State development board approves aid toward $49 million Cambrex Charles City project

By Bob Steenson, bsteenson@charlescitypress.com

The Iowa Economic Development Authority Board approved $250,000 in direct financial assistance as well as tax benefits at its monthly meeting on Friday, to help fund a $49.3 million project at Cambrex Charles City Inc.

As the Press reported Friday, Cambrex Charles City has proposed a major new manufacturing expansion at its site in the southwest part of the city. The $49.39 million project is expected to create at least 32 new jobs.

“As the result of recent rapid growth, Cambrex has identified the need for a capital expansion to increase manufacturing capacity at the Charles City location in Floyd County,” the state application says. The new facility would include mid-scale and large commercial scale manufacturing capability.

John Andrews, vice president of operations and site director for Cambrex Charles City, told the Press more information would be available from the company about the project soon.

In addition to $250,000 in direct assistance in the form of a five-year forgivable loan, the state will make an estimated $244,275 in state sales, service and use tax refund and research activities credit available through the state’s High Quality Jobs program.

The funding application also indicates that Cambrex will seek $40,000 in a forgivable loan from the city of Charles City and $30,400 in a forgivable loan from the Charles City Area Development Corp.

The company is also asking for $719,965 in local property tax exemption, figured at 90% for nine years on the value added to the property through the project.

Cambrex would provide more than $48 million of the financing itself. The project is expected to be completed in 2023.

The Cambrex decision by the IEDA board Friday was part of financial incentives approved for five companies expected to result in more than $182 million in new capital investment. In addition, support was approved for seven startup companies.