Pella Chronicle

Local News

July 10, 2014

Pair of agreements approved with Castle Metal, Inc.

Following a public hearing during last week’s Pella City Council meeting, the council approved a pair of resolution regarding contracts with Castle Metal, Inc.

The first resolution that was approved directed the authorizing execution of an Economic Development Assistance Contract with Castle Metal, Inc. and the Iowa Economic Development Authority. The second resolution dealt with approving and authorizing execution of a Development Agreement by and between the City of Pella and Castle Metal, Inc.

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 that time, the conditional resolution of support was necessary for Castle Metal to secure financial incentives from the Iowa Economic Development Authority (IEDA).

In order for Castle Metal to receive financial assistance from the State of Iowa, the City must first approve two agreements, which they did.

The first agreement is a three party agreement with Castle Metal, IEDA and the City of Pella which demonstrates the City’s willingness to contribute the required 20 percent local development assistance and meet the terms set forth by the State of Iowa.

The second agreement, between the City of Pella and Castle Metal, further defines the terms and conditions required by Castle Metal to receive the City’s share of development assistance. A single public hearing was utilized to receive comments on both agreements.

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 processes such 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.

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