Mar 30

Pork producer approved for $15 million in state incentives

PFoodsofIA-Facility-Rendering1-300x170DES MOINES – The Iowa Economic Development Authority (IEDA) board today awarded direct financial assistance and tax benefits worth nearly $15 million to Prestage Foods, slated to build a massive pork processing plant in Mason City.

Prestage Foods of Iowa, LLC, sought up to $11,160,000 in state incentives under the High Quality Jobs Program and the tax break was approved by the board.  Prestage will also receive over $3 million in job training funds.

“IEDA voted unanimously on Prestage Farms,” Mayor Eric Bookmeyer told NIT Tuesday afternoon. “It is great to have supportive partners down there. They see the momentum.”

This Prestage Foods plant will employ as many as 1,000 people when it first opens in 2018 and may add a second shift later to increase employment at the facility to 2,000.

Mason City will give Prestage Foods utility and infrastructure improvements and a 50 percent rebate on its property taxes in Mason City for a 10-year period, up to a maximum of $13,950,000.

Prestage Farms, Inc. is a 33-year old “top five” producer of live hogs and live turkeys with multiple U.S. locations including Iowa. Since 2003, Prestage Farms has operated swine finishing facilities in Iowa. The company has formed a new entity, Prestage Foods of Iowa, LLC, to build a state-of-the-art pork processing plant in Mason City. The Mason City project plant represents a $239 million capital investment. The company was awarded tax benefits via HQJ for this project and is expected to create 922 jobs, of which 332 are incented at a qualifying wage of $15.79 per hour.

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