State aid for Elanco approved
Loan, tax breaks set for animal health facility
State incentives for continued investment at the Elanco Animal Health plant in Fort Dodge were approved Friday.
The Iowa Economic Development Authority board OK’d a $2.25 million forgivable loan for the company.
It also approved various tax breaks through the state’s High Quality Jobs program.
Those tax breaks total $3,795,000, according to Kanan Kappelman, a spokeswoman for the Iowa Economic Development Authority.
She said that includes:
• $2.55 million in investment tax credits
• $705,000 in research activities tax credits
• $540,000 refund of state sales, service and use taxes
Friday’s action provides the state component of a multi-faceted incentive package intended to help Elanco Animal Health grow the Fort Dodge plant
Following a review of all facilities after the company acquired the animal health business of Bayer, Elanco leaders committed to keeping the Fort Dodge plant, retaining all the existing 441 jobs, creating 26 more jobs and investing $106 million in the site over the next six years.
”We are pleased to continue our work to serve farmers, veterinarians and pet owners through our manufacturing and R and D operations in Fort Dodge,” David Evans, executive director and site head for Fort Dodge — Elanco, said in a written statement.
Webster County, Fort Dodge and Iowa Central Community College also are providing incentives to the company.
Webster County will provide a $500,000 grant.
Iowa Central Community College will provide a job training grant of $330,000.
The Fort Dodge city government will offer a tax increment financing rebate estimated at $480,000.
The city will also offer a rebate of 80 percent of the increased taxable value of the site which is expected due to planned remodeling.
It will also annex the plant at 800 Fifth St. N.W. into the city limits, a move which will entitle the company to lower bills for water and sanitary sewer service. That is estimated to save the company more than $360,000 a year for the first five years.
The Webster County Board of Supervisors and the Fort Dodge City Council have approved resolutions of support for the company, a first step toward providing the incentives.