Charles City Area Development Corp. OKs funds as part of Cambrex expansion project package

By Bob Steenson, bsteenson@charlescitypress.com

A quick Charles City Area Development Corp. meeting Wednesday provided several updates on various community projects.

The board also approved a $30,400 forgivable loan to Cambrex Charles City Inc., as part of a local match for state funding for a $49.29 million manufacturing expansion project at that company.

The Iowa Economic Development Authority last Friday approved $250,000 in direct assistance in the form of a five-year forgivable loan, in addition to an estimated $244,275 in state sales, service and use tax refund and research activities credit through the state’s High Quality Jobs program, for the Cambrex project.

Area Development Corp. Executive Director Tim Fox said at the CCADC meeting Wednesday that the community is required to match 20% of the $250,000 from the state.

The Southwest Bypass Tax Increment Financing District will incentivise the 32 expected new jobs from the Cambrex project at $1,250 each, making $40,000 total. That plus the CCADC’s $30,400 will be more than enough to meet the $50,000 local match required by the state.

The regular meeting Wednesday afternoon was preceded by the area development corp.’s annual meeting.

During that meeting Fox noted that the CCADC had been involved in helping five new small businesses start up in the last fiscal year: R&R Town Mart in Rudd; Metal Wholesale near Floyd; and Main Street Drug, Diamond Restoration and North Iowa Lawn and Sports, all in Charles City.

Fox said his goals for this new fiscal year are that at least one of three things happens: a new company takes over the former Simply Essentials plant, a company locates in the Avenue of the Saints Development Park or a company locates in the Oliver Development Park.

“If we can do one of those three I think we’ll have a pretty good year,” he said.

Also at the regular meeting Wednesday:

• Fox said his best guess is that an announcement will be made on a new company to take over the former Simply Essentials property at 901 N. Main Street by the end of August, and there are several businesses seriously interested in the site.

He previously has said the interested companies are involved in ag-related industries such as food processing. Simply Essentials, a chicken processing plant, closed its doors last Aug. 5, putting more than 500 people out of work.

• Fox noted that county manufacturing employment has dropped from a high of 1,924 in the second quarter of 2019, before Simply Essentials closed, to 1,348 in the first quarter of 2020.

But, he said, Floyd County still has the second highest average weekly manufacturing wage in the state at $1,535 a week, or $79,820 a year, only behind Linn County with an average weekly manufacturing wage of $2,066.

• Charles City Engineer John Fallis reported that preliminary plans have been submitted to the Iowa Department of Land Stewardship for a storm water drainage project in the Southwest Development Park. The goal is to have a bid-letting near the end of September so work can begin yet this year.

City Administrator Steve Diers said the estimate for the project is about $394,000.

• Fox reported that he would work with Nashua to give that city some help in coming up with a strategic plan.

• Fox said work continues on marketing plans for the Avenue of the Saints Development Park. Proofs for a website were due Thursday and representatives from the Institute for Decision Making – an economic and community development outreach unit of Business and Community Services at the University of Northern Iowa – will be touring the site on Aug. 5.

He also said MidAmerican Energy has given the CCADC a $5,000 grant through its Local Partners Program to help pay for a targeted industry analysis cost of $9,908 by researchIQ, another UNI group.

• Fox said the corporation is finishing the last of its furnace replacement program jobs this week, bringing the yearly total to a record 57 furnaces.