Three weeks after incentives revealed, negotiations continue on Iowa steel mill proposal

SEATTLE (Scrap Monster): Three weeks ago Iowa lawmakers approved offering nearly $1.4 billion dollars’ worth of incentives for a steel plant in southeast Iowa, but state and local officials are still negotiating with the company over the details.

Iowa Economic Development Authority Diretor Debi Durham said she’s leading the state’s negotiations with India-based Mesabi Metallics. “If, in fact, everything comes together, it’s going to be a transformational project not only for Iowa, but for the United States,” Durham said. “But it’s not done yet. We’re very close.”

Durham said the White House is working to expedite approval of permits for a natural gas pipeline that would reach the proposed steel plant campus in Lee County. Mesabi Metallics had hired lobbyists in Kentucky and had filed documents with that state indicating it was considering a site near Paducah for its steel mill, but Durham said the company has given Iowa a 60 day window for exclusive negotiations. She has not revealed when that 60 day window closes.

Any agreement Durham may draft would have to be approved by the Iowa Economic Development Authority’s 11 member board. “What people don’t really understand is the IEDA has a separate board of directors that are appointed by the governor. It’s bipartisan, primarily made up of business people and they scrutinize every deal the state does when it comes to incentives,” Durham said, “and so that will be the final process.”

Durham said local governments in Lee County are also negotiating with the company. “They’re still working through what that local package is going to be and, you know, the land mass and they’re still working on some natural gas issues,” Durham said. “And then once all of those are done and their financing is in place, then it will go through some contracting and it will go to our board of directors.”

The board’s next meeting is currently scheduled for November 20.

Courtesy: www.radioiowa.com