Regional Industry & News

What we don’t yet know about possible state incentives for proposed $15 billion steel plant

Proposal announced for Iowa’s Lee County

DES MOINES, Iowa (Gray Media Iowa State Capitol Bureau) — Will a proposed $15 billion steel plant in Iowa’s Lee County require state incentives before it opens in the next decade? State officials have not yet publicly said.

The deal

U.S. Secretary of Commerce Howard Lutnick stood in the Oval Office on Monday with a group of other people including President Donald Trump and Iowa Republican politicians: Governor Kim Reynolds, U.S. Rep. Ashley Hinson (IA 2nd District, Marion), U.S. Rep. Marianette Miller-Meeks (IA 1st District, Ottumwa), U.S. Sen. Joni Ernst, and Attorney General Brenna Bird.

“I think this deal is done,” Lutnick said during the news conference in response to a reporter’s question about whether state incentives will be part of the deal for the project with the Indian-owned company, Mesabi Metallics, that the Trump administration said would support 6,000 construction jobs and 1,750 permanent jobs in the state.

Lutnick added, “...the president doesn’t bring people together unless it’s a done deal.”

Steel plant incentives

What incentives would Iowa taxpayers provide? State leaders have not said.

Governor Reynolds said during the news conference that “tough negotiations” had taken place but did not say what those negotiations entailed. The news release that her office sent out after the event did not disclose details of any state incentives either.

Gray Media Iowa also reached out to the Iowa Economic Development Authority -- the entity which frequently awards incentives for projects -- but did not hear back.

Special session for steel plant

Iowa legislators have also discussed a special session to approve legislation for a steel mill project. Neither the office for Speaker of the House Pat Grassley nor the office for Senate President Mike Klemish responded to requests asking about the possibility of a special session for state incentives for the steel mill project.

The top two Democratic Statehouse leaders did provide statements.

House Minority Leader Brian Meyer (D - Des Moines) released a statement:

“I’ve heard from Iowans all across the state who are struggling with high prices of diesel, housing, and groceries, who are looking for relief, so I look forward to reviewing the details of the plan.

There is still a lot unknown, but my hope is this will be a step in the right direction to create good-paying jobs while being fiscally responsible.”

Senate Minority Leader Janice Weiner (D - Iowa City) released this statement:

“The announcement this afternoon regarding a potential steel plant in southeast Iowa is compelling. I would love to see the creation of good-paying jobs for hardworking Iowans. We need to be thoughtful and measured in our approach.

At this point, there is still much we don’t know. We have no details regarding any potential incentive package that may be offered to this foreign company – nor any guarantees for Iowa workers.

We don’t know whether transparency and accountability measures will be included to safeguard Iowans and the local communities, whether Iowa’s skilled union laborers will be prioritized, how any potential deal will impact landowners, or why haste is necessary. Until we know what kind of deal is on the table, we won’t be able to determine whether this project is indeed in taxpayers’ best interests.”

Candidates for governor

Gray Media Iowa also reached out to the two candidates for governor to ask what incentives they would support for the steel mill.

State Auditor Rob Sand, the Democratic nominee from Des Moines, posted this on social media:

“This is a promising idea for Lee County and for our state given that our economy is among the worst in the nation. I look forward to hearing more details, particularly on what protections for Iowa taxpayers will be built into the deal, and what guarantees will exist for Iowa workers to build and work in the plant if Iowa taxpayers will be asked to chip in.

I feel strongly that the next State Auditor – no matter which party they’re in – should get to ensure accountability for taxpayers.”

Businessman Zach Lahn, the Republican nominee from Belle Plaine, said in a statement:

“The question is: what will Iowans get in return for any incentives? The incentive should match the return.“The return is vibrancy brought back to a rural community.

A hospital reopening in Lee County so families can get care close to home. Young people moving back, kids filling classrooms again, and Main Street coming back.“And it’s Iowa making things again, with the best steel in the world coming from our own backyard. That’s Iowa First in action.”