The Iowa Economic Development Authority board on Friday approved assistance for several projects throughout the state, including funding for major infrastructure improvements to the Kraft Heinz factory in Muscatine and two innovation companies located in Coralville and Iowa City. Projects in Decorah, Fonda and Sioux City received awards through the Community Attraction and Tourism program and reinvestment districts in Cedar Rapids and Des Moines received approval for amended plans. 

Kraft Heinz to upgrade Muscatine facility

Kraft Heinz’s oldest plant, built in 1893, is in Muscatine, where products like Heinz Ketchup, Heinz Homestyle Gravy, Lea & Perrins Worcestershire Sauce, single-serving ketchup packets and barbecue sauces are produced. Aging and in need of repairs, the company is planning on a $48 million overhaul of the facility and $12 million in equipment purchases. 

Facility improvements involve infrastructure repairs, including more efficient wastewater treatment systems, modernizing HVAC systems, electrical systems and piping upgrades. 

Given the current condition of the property, if the proposed improvements to the facility are not made, the company will consider closing the operation and redeploying its resources to facilities in the company’s footprint outside of Iowa, according to IEDA documents. 

IEDA approved a $2 million forgivable loan and $1.4 million in tax incentive rebates through the High Quality Jobs program. Securing state support for the project means the factory’s 404 jobs at $24.08 an hour will stay in Muscatine, IEDA officials said. 

The state award will be contingent on approval by the city of Muscatine and the company coming into compliance with Iowa Department of Natural Resources wastewater requirements.

Manufacturing is the state’s largest industry, contributing $35.1 billion annually and resulting in 17% of the state’s GDP.  During the past year, more than 3,900 people have been laid off from Iowa manufacturing jobs, related to factories closing or downsizing capacity. Read the Business Record’s three-part series on the state of manufacturing in Iowa here.

Decorah receives $1M CAT grant for sports complex

The city of Decorah was awarded $1 million to develop the Decorah Athletic Complex, which will include four baseball/softball diamonds, two batting cages, eight pickleball courts, a concession building and playground. 

The addition of accessible restrooms will support the Freeport and Trout Run trails located there as well. The city expects to increase travel and overnight stays for families due to weekend tournaments and educational workshops. The total project cost is $4.2 million. 

Other CAT awards include:

• City of Fonda was awarded $39,000 to construct two new outdoor, professional grade pickleball courts and a sidewalk. The total project cost is $130,451.
• Camp High Hopes in Sioux City was awarded $818,000 to build a new multi-purpose adaptive recreation center for people with disabilities, special needs and chronic illnesses. Total project cost is $4.1 million.

The CAT program provides financial assistance to communities for the construction of recreational, cultural, educational or entertainment facilities that enhance the quality of life in Iowa.

Cedar Rapids, Des Moines district plans receive final nod

On July 22, 2022, the city of Cedar Rapids was approved for a maximum benefit amount of $9 million for the Cedar Rapids Central Reinvestment District with a commencement date established as Jan. 1, 2025. Since then, a couple projects were identified as not ready for development and were removed from the plan. The district will still include mixed-use buildings, public plaza and an entertainment center. At the board meeting, the amended Cedar Rapids Central Reinvestment District plan was approved for the maximum benefit of $6 million. The projects within the reinvestment district area represent a $162 million investment. 

A longtime plan for Merle Hay Mall in Des Moines also received approval. Ownership of the 66-year-old, 74.6-acre mall property is working with the cities of Des Moines and Urbandale on the plan to revitalize the area into a modern shopping and mixed-use sports and entertainment destination. The state’s allocation to the $164 million Merle Hay arena and entertainment district project remains $26.5 million. Read more at BusinessRecord.com. 

Startup awards

IEDA awarded two startups with loans. Coralville’s Pani Clean, Inc. is focused on removing nitrates at the source, converting them to useful products and making clean water more affordable and accessible. Their product uses an electrochemical process to convert nitrate into nitrogen gas or green ammonia to be reused on site. The company was awarded a $50,000 Proof of Commercial Relevance loan for IP development and evaluation, proof of concept work and key personnel. 

Halide Biologics, Inc., based in Iowa City, uses the potential of chemical biology to enhance the pharmacological properties of protein therapeutics. The company designs novel halogenated protein drugs of increased stability to treat medical diseases and conditions. This work seeks to overcome the weaknesses of existing protein drugs currently in clinical use. The company was awarded a $50,000 Proof of Commercial Relevance loan for IP development and evaluation, proof of concept work, product refinement and key personnel.