Zach Lahn called a $15 billion steel mill project planned for Iowa a “once-in-a-lifetime project,” saying it will make a positive impact for generations to come, as he campaigned Wednesday on keeping young people in Iowa and securing the state’s future.
The Republican gubernatorial candidate held a rally in Grimes where he reiterated the focal points of his campaign, including bringing Iowa agriculture into schools, raising Iowa’s education ranking, cleaning up waterways and keeping “the enemy” — Democrats — from the gate.
During his remarks, he didn’t mention during the plans by Mesabi Metallics to build a steel mill in Lee County, the subject of a special legislative session set for Friday, but told reporters later the project is “a very good deal for Iowans.”
GRIMES — Zach Lahn called a $15 billion steel mill project planned for Iowa a “once-in-a-lifetime project,” saying it will make a positive impact for generations to come, as he campaigned Wednesday on keeping young people in Iowa and securing the state’s future.
The Republican gubernatorial candidate held a rally in Grimes where he reiterated the focal points of his campaign, including bringing Iowa agriculture into schools, raising Iowa’s education ranking, cleaning up waterways and keeping “the enemy” — Democrats — from the gate.
During his remarks, he didn’t mention during the plans by Mesabi Metallics to build a steel mill in Lee County, the subject of a special legislative session set for Friday, but told reporters later the project is “a very good deal for Iowans.”GET THE MORNING HEADLINES.SUBSCRIBE
“This is a tremendous opportunity for the people of Iowa, for southeast Iowa, for an economically depressed place, and so this is something that’s going to affect people’s kids and grandkids down the road by getting it in the state,” Lahn said. “I think that the governor has done a great job in getting it to the state and getting it to the point it’s at, and I’m very thankful for that.”
The special session will focus on amending Iowa’s Major Economic Growth Attraction (MEGA) program, which provides incentives for large-scale development projects. Lahn said that while he hasn’t looked at any incentive packages for the project, he wants to ensure “we stair-step any incentive that we give” and that that Iowans and U.S. citizens are hired for the jobs the project will generate.
According to Trump’s announcement, the steel plant will be the largest in the U.S. and will create 1,750 permanent jobs and 6,000 temporary construction jobs.
Lahn states on his campaign website that he wants to “end tax credits and economic development funds for out-of-state and foreign corporations and prioritize Iowa-based companies with deep community roots,” but said Wednesday he’s referring to corporations like Chinese-owned company Syngenta with that line of thinking, not large projects like the steel mill.
Mesabi Metallics is an Essar Group company, according to its website, described as “a major Indian industrial conglomerate.” While Syngenta competes against Iowa companies, Lahn said there is no competition for the Mesabi Metallics project.
“This is going to go in some state, and we have to do what we can to bring it to the state of Iowa,” Lahn said.
When asked his thoughts on comparing tax incentives for data centers to tax incentives for the steel mill, Lahn said the two are “completely opposite.” While data center companies are trying to come into the state, wanting tax breaks but not offering much in return, the steel mill project is “one of one.”
According to an economic impact study from the Technology Association of Iowa, the state has more than 100 data centers being planned, built or already in operation.
There can be a return from corporations hoping to build data centers in Iowa, Lahn said, in the form of property taxes and help in lowering community costs and cleaning up Iowa’s water, but the benefits that will come with the steel mill are already apparent.
Lahn said while it’s hard to say what the mill’s impact on the state will be over the next 50 years he knows southeast Iowans will see benefits, and that companies — both new and returning — could want to set up shop close to where the steel is.
“What an opportunity to have Iowa become the state that builds again in a major way and start to get some of our manufacturing reshored here,” Lahn said. “Maybe we can get some of the plants that we used to have to see the opportunity to come back.”
