Another public entity came out in support Friday of two businesses intending to make future investments in the city of Clinton.
The Iowa Economic Development Board approved financial assistance for RAIL.ONE and Data Dimensions, giving the go-ahead on Enterprise Zone tax benefits.
The benefits are similar for both companies. Data Dimensions will receive a rebate on sales tax from construction material from the state of Iowa and also will receive a reimbursement for training from the state.
Those are state benefits, and the city of Clinton passed this week a property tax reimbursement over 10 years that is estimated to be worth $1,918,728 as a local match for the state benefits.
RAIL.ONE also will receive a refund of sales tax on construction. However, the company will earn an investment tax credit that will be approximately $1.8 million during five years for profits the company earns in the state of Iowa.
The Clinton City Council approved this week an annual Tax Incremental Financing rebate of up to $200,000 annually for up to 10 years as a local match for the incentives. Karen Mallinger with the Clinton Regional Development Corporation said this is an exciting time for Clinton.
“This is my first time carrying these things to the finish line,” Mallinger said. “And it seems things seem to be turning around here.”
RAIL.ONE intends to locate in the Lincolnway Railport. A German rail tie manufacturer, RAIL.ONE is expected to make an initial investment of $20 million, and will make an annual economic impact of $15.2 million, according to the Clinton Regional Development Corporation.
The company will bring 60 direct jobs and will result in another 40 indirect jobs.
RAIL.ONE will work in conjunction with Utah-based wooden rail tie recycler Nevada Rail Materials at the railport. NRM will bring 35 jobs.
Data Dimensions is expected to create 130 new full-time positions and make an investment of approximately $6.2 million.
“The announcement today from the Iowa Department of Economic Development was the latest piece of our economic development puzzle that is falling into place for the Clinton area,” said Clinton Mayor Mark Vulich. “It was fantastic to read that approval from Debi Durham's office was so quickly granted for the tax benefits and job incentives. I think this goes to show that over the last year a great team has been assembled and there is an excellent working relationship between the mayor, City Council, city staff, Clinton Regional Development Corporation, Chamber of Commerce and the Iowa Department of Economic Development. Without this solid relationship, projects such as this would not be possible.”