City of Fort Dodge issued the following announcement.
Elanco Animal Health (NYSE: ELAN) reaffirmed their commitment to continue manufacturing and R&D operations at their Fort Dodge, Iowa, location. After the company’s acquisition of Bayer’s animal health business last year, they performed a rigorous review of their operational footprint, including the Fort Dodge facility, which employs nearly 450 people and contributes over 40% of Webster County’s Manufacturing Gross Regional Product. An attractive incentive package was created by the State, City, County, and Iowa Central Community College for Elanco’s retention within Fort Dodge.
“All parties stepped up to the plate to create a package that would be competitive with the other locations under consideration. It is one of the most creative incentive packages that I have seen in my years of economic development,” asserted Dennis Plautz, CEO, Greater Fort Dodge Growth Alliance.
“We are happy to see Elanco stay within our community. Keeping this plant is positive not only for Webster County, but the region as well. About 50% of Elanco’s employees commute from outside the county to the plant,” acknowledged Supervisor Mark Campbell.
The Fort Dodge City Council and Webster County Board of Supervisors take up the matter through a Resolution of Intent on July 12 and the Iowa Economic Development Authority Board will review it on July 19. The competitive incentive package includes the opportunity for direct incentives in the amount of $2.2 million and for indirect financing and tax credits in the amount of $3.8 million from the Iowa Economic Development Authority. As part of the application to IEDA there is a local match requirement as well.
The local match includes:
• City of Fort Dodge - Through a voluntary annexation of the facility, Elanco would realize a savings of over $360,000 per year for the first 5 years due to water and wastewater utility savings. In addition, the City would provide a TIF rebate in the amount of 80% of the increased TIF revenue based on the City's TIF rate compared to the existing County TIF rate (prior to annexation), estimated at $480,000. Lastly, the City would provide a TIF rebate in the amount of 80% of the increased taxable value of the site due to the building remodel.
• Webster County - Committed $500,000 grant
• Iowa Central Community College - Committed $330,00 job training grant
The package secures the retention of 441 existing jobs at the site, as well as the addition of another 26 jobs. The agreement creates the opportunity for Elanco to continue with its investment of over $106 million in the next six years for manufacturing, R&D, and pilot plant machinery upgrades and replacement.
“We are pleased to continue our work to serve farmers, veterinarians, and pet owners through our manufacturing and R&D operations in Fort Dodge,” said David Evans, executive director and site head, Fort Dodge – Elanco. “The collaboration and support of the State, County, City, Iowa Central Community College and Growth Alliance leadership has been excellent, and we look forward to continuing to build a leading animal health company through our operations in Iowa.”
“It has been one of my goals as Mayor to annex the facility into the City due to its proximity and the city services that we already provide. We have worked with the different owners of the facility over the years on numerous projects, but this one was the perfect project to create a win-win situation for both Elanco and the City,” stated Mayor Matt Bemrich.
Original source can be found here.
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