The Pella City Council, during last week’s regular meeting, approved a resolution fixing a date for a public hearing on the proposal to enter into a development agreement with Castle Metal, Inc. and an Economic Development Assistance Contract with Castle Metal, Inc. and the Iowa Economic Development Authority.
This resolution simply establishes July 1, 2014 as the public hearing date for a proposed economic development agreement with Castle Metal and the Iowa Economic Development Authority.
In August of 2013, Council approved a conditional resolution of support to provide incentives in a private development agreement between the City of Pella and Castle Metal, Inc. At the time, the conditional resolution of support was necessary for Castle Metal to secure financial incentives from the Iowa Economic Development Authority (IEDA).
Due to a delay in the project schedule, Castle Metal was expected to have approved a development agreement with IEDA by June 15, 2014.
As part of the IEDA development agreement, Castle Metal must secure a local match equivalent to 20 percent of the direct financial assistance provided by the IEDA. As a result, the IEDA’s financial assistance largely depends on the Council’s approval of the proposed development agreement.
Castle Metal, Inc. is a subsidiary of Kasteel Metal B.V., which is a leading Dutch worker of steel and aluminum. Castle Metal plans to lease a 40,000 square foot existing facility within the corporate limits in order to conduct its specialty steel working operations. Specialties will be laser cutting, automatic bending and robot welding in combination with after-treatment as pickling and powder coating. Stainless steel parts for milking robots will be the company’s main focus. These products will be sold only to Lely USA with the possibility of additional customers being added once the company is established in Pella.
Castle Metal is proposing to lease a facility located at 214 S. Clark Street. To prepare the facility for production, extensive improvements would need to be made that include the construction of new walls, improvements to the foundation, and installation of heating, cooling, and ventilation systems.