State OKs financial assistance for C.R., Coralville business projects

Business projects that will retain or create jobs in Cedar Rapids and Coralville were approved Thursday for state financial assistance.

The Iowa Department of Economic Development Board awarded $100,000 in direct financial assistance through the state's Grow Iowa Values Fund  to Raining Rose Inc. in Cedar Rapids. The company plans to demolish existing buildings at 3015 First Ave. SE. and construct a new 122,000-square-foot manufacturing facility.

The new building would replace Raining Rose's existing facility at 407 Ninth Ave. SE, as well as leased space in other buildings.

Raining Rose, a manufacturer of natural body care products,  expects to create 54 jobs, 15 of which are supported by state incentives, and the project represents a $10.4 million capital investment. The IDED Board also approved incentives through the state's High Quality Jobs program.

The IDED Board awarded a $250,000 royalty agreement and tax incentives to Zero Energy Systems to construct a 46,000-square-foot manufacturing facility in the Wescor development of Coralville. The plant, the first of its kind in the nation, would take 12 months to complete and produce the company's proprietary concrete wall system.

The project is expected to create 25 jobs supported by state incentives and represents a $7.5 million capital investment. The insulated wall system for commercial and residential use allows for net-zero energy use results while providing disaster resistance and longevity.

Tax incentives approved for the project are through the Iowa's High Quality Jobs program.

Zero Energy Systems is a start-up company that will provide computer-automated production with equipment from Weinsburg, Germany, to manufacture its insulated wall system. The company's primary focus will be on custom residential, light commercial and institutional projects that specify energy, longevity and disaster resistance standards.

Facility design and planning will begin in the fourth quarter of this year and construction will start in March 2012.

Scott Long, chief executive officer of  Zero Energy Systems, was pleased that the state-of-the-art plant is closer to becoming a reality.

"This has been a lengthy process and we certainly appreciate all of the help provided by the state, the city of Coralville and the Iowa City Area Development Group," Long said. "This is an area dedicated to innovation and helping entrepreneurs, and we are excited to start operations in Coralville."

ICAD Group assisted ZES with the funding application process and facility siting. 

"We credit Scott and his partner for their willingness to see this project come to fruition,” said Joe Raso, ICAD Group president.  “ICAD Group has been working with ZES for the past three years and we look forward to helping this company grow."

The IDED Board approved funding for 11 projects throughout Iowa that could create as many as 256 new jobs. The awards included incentives to companies in Iowa's targeted industries of manufacturing, biosciences, software development and food processing.