Iowa

The state's stature as an agricultural, food and life sciences presence shows no signs of waning, with projects big and small attracting foreign investment and homespun incentives.
        Based on 2000 Census data, the state legislature updated its Iowa Enterprise Zone Program this year, adding 13 counties and three cities, while 15 counties will lose the ability to add zones as of July 2003, even though their existing zones will endure until 2007. More than 300 such zones have been certified by the state, engendering more than $1 billion in new business investments since their inception in 1997.
        Adding to the state's already well-respected higher education environment is an increase in enrollment at its 15 community colleges. The spike is driven in part by big jumps in tuition at the state's three public universities. Technology courses and applied sciences were the areas of study receiving that bounty, a further incentive to Iowa's already-growing core industries.
        Among the recent expansions is a $1.8-million move by Revival Animal Health in Orange City into a new 30,000-sq.-ft. (2,787-sq.-m.) facility that will allow 20 new jobs to be created. Part of a growing cluster of such companies in northwest Iowa, the company produces vaccines, antibiotics and nutritional products.
        Roquette America, owned by Roquette Freres of France, has been approved for tax benefits that will enable the firm to pursue its $94-million expansion in Keokuk. A major part of that growth is a $50-million, 50-megawatt cogeneration plant that will produce electricity not only for the plant, but for surrounding customers. The company itself is investing $44 million to expand an existing processing facility by 9,000 sq. ft.(836 sq. m.), build a 22,000-sq. ft. (2,044-sq.-m.) facility to produce specialty products and expand raw material processing capabilities. Fifty-four new jobs will be added to the payroll of 200.
        The company, a maker of starch, glucose corn syrups and high fructose corn syrups used in foods and beverages and paper products, purchases nearly half of its annual $100 million worth of corn from the state. The cogeneration project -- a collaborative effort between the state, Roquette and Alliant Energy -- was supported by a $1-million forgivable loan from the state. A second phase of the cogeneration project, pending regulatory and legislative support, could bring additional energy capacity to service Southeast Iowa and $120 million to $300 million in further investment.
        Another food processor, Sunny Fresh Foods, has announced an $11-million expansion to its Mason City plant, which was just launched in March 2001 and had already undergone a 14,000-sq.-ft. (1,300-sq.-m.) add-on in December 2001. The 50,000-sq.-ft. (4,645-sq.-m.) addition, expected to be completed by the end of 2002, will double the size of the egg processing facility.
        "When we first came here, we made a commitment to Mason City to create 100 jobs within 10 years," said Mike Luker, president of Monticello, Minn.-based Sunny Fresh. "This expansion project keeps us on track to meet that commitment." Five to10 new jobs will bring the payroll to above 50. The company, a division of Minnesota-based Cargill, also has plants in Panora, Iowa; Monticello, Minn., and Lake Odessa, Mich.
        Logistics is a strong asset for Iowa as well. The aforementioned Ryan Companies has just completed one of three 1.4-million-sq.-ft. (130,060-sq.-m.) regional distribution centers for fellow Minnesota-based company Target Corp. in Cedar Falls, Iowa, with two others -- in Topeka, Kan., and Midlothian, Tex., under construction. Colin Barr, vice president of development for Ryan, says all three are located on land immediately adjacent to a major highway, and just outside their metro areas' major commercial zones. Target is currently served by 16 centers.
        In West Branch, outside Iowa City, Procter & Gamble is building an $18-million, 550,000-sq.-ft. (51,095-sq.-m.) distribution center. Expected to employ 225 people when it opens early in 2003, the center will be operated by an outside logistics company, giving further credence to the national trend of logistics outsourcing beyond mere construction. The company already operates a plant employing 475 in Iowa City.
        As for growth from traditional Iowa companies, you can't get much more traditional than John Deere, a brand virtually synonymous with the identity of the state and the region. The Deere expansion of its plant in Ankeny, outside Des Moines, will include $5 million in new buildings and $25 million in new automation and equipment, all designed to increase production by 33 percent. Two sprayer assembly lines are being relocated from the company's plant in Thibodaux, La., meaning the Ankeny plant will add 137 jobs. The company has six plants in Iowa, as well as the headquarters for its credit company. Deere recently reported a doubling of third-quarter profits as a result of cost-control measures, better asset management and a positive response to new products introduced in the European market.