Fertilizer plant receives $25 million more in state incentives

DES MOINES - The state's economic development board on Friday approved $25 million in additional tax breaks for a fertilizer plant in Lee County, completing an agreement reached almost three years ago.

The company said the additional investment will create additional jobs and help increase the project's scope.

The Iowa Economic Development Authority approved the additional state assistance for the Iowa Fertilizer Plant in Lee County.

In return, the Egypt-based company constructing the plant pledged to add 11 more jobs, bringing the total to 180, and to invest more in the plant's construction, bringing its total cost to $1.9 billion.

'We believe, and that data proves it, that this is a good economic development project for Iowa,” said Debi Durham, executive director of the economic development department. 'And that was ratified today once again by our board.”

The board first approved the package of incentives for the fertilizer plant in September 2012. That deal included built-in increases that had to be approved over time.

Friday's additional incentives brought the total state investment to $107.5 million.

The project has received more than a half-billion dollars in total local, state and federal financial assistance.

'We have always been committed to the state of Iowa, and we are pleased to announce an increased investment totaling $1.9 billion,” Iowa Fertilizer president Shawn Rana said in a statement. 'This is exciting news for our company and our Iowa employees, and we look forward to a continued partnership with the great state of Iowa.”

The project has had its detractors.

Iowa Sen. Joe Bolkcom, a Democrat from Iowa City and an outspoken critic of the large financial assistance package the state has awarded the fertilizer plant, had more harsh words for Friday's economic board action.

'At a time when Gov. (Terry) Branstad is short-changing our schoolchildren and Iowa families needing mental health care, it is disgraceful that he continues to ignore reality by recklessly dumping another $25 million into a flawed deal,” Bolkcom said in a statement.

Company officials say, when completed, the nitrogen fertilizer production plant will produce 2 million tons of fertilizer per year, and the plant's employees have an average wage of $32.60 per hour.