The Clinton Herald, Clinton, Iowa

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Clinton

May 15, 2013

State awards railport road with grant

CLINTON — Development for Clinton’s Lincolnway Railport received more financial support Tuesday as state officials approved a grant that will pay for 80 percent of a road into the industrial park.

The Iowa Transportation Commission on Tuesday approved a Revitalize Iowa’s Sound Economy (RISE) grant application submitted by the city of Clinton to construct a new road.

The road is expected to cost $343,000, of which the city received an 80 percent match. Up to $274,450 will be made available to assist in the construction of approximately 525 feet of new roadway north from 44th Avenue South into the railport located on the southwest side of town.

The city will be responsible for the remaining $68,000, which will come from the sale proceeds.

This project is anticipated to be completed by September 2013.

Mayor Mark Vulich said the grant was awarded because of the substantial investment the RAIL.ONE project will bring to the area as well as the wage the company will pay. Vulich said the average wage will be $17.79 an hour, which is 114 percent of the average Clinton County wage.

“It’s very exciting,” Vulich said. “This is a fantastic accomplishment for the city of Clinton because very few 80/20 grants are awarded. The momentum is starting to turn for us and we’re going to keep it going.”

The improvements are necessary to provide access to RAIL.ONE USA Corp. and will support the creation of 62 new jobs along with more than $36 million in associated capital investment. RAIL.ONE manufactures concrete, main track and turnout railroad ties.

The road also will serve future development as it will reach two lots adjacent to RAIL.ONE.

Last month, the Clinton City Council approved the sale of approximately 25 acres of land in the railport to RAIL.ONE.

The company will receive a 100 percent tax increment finance rebate from the city for 10 years with the total amount not to exceed $6 million over the course of the decade.

This is not the only recent state support the railport has received. In March, the Iowa Economic Development Board approved a refund of sales tax on construction for RAIL.ONE. The company also 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.

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