Fifteen billion dollars. That’ll get your attention. Add thousands of jobs and a giant steel plant in Lee County, and it sounds like southeast Iowa just hit the jackpot.
Maybe it did. But there’s a lot of ground between an announcement in Washington and workers collecting paychecks in Iowa.
President Donald Trump and Gov. Kim Reynolds say
Mesabi Metallics plans to build the plant. The Minnesota company, owned by
India’s Essar Group, is promising 1,750 permanent jobs and up to 6,000
construction jobs. The goal is to start making steel in 2030.
Iowa’s offering roughly $1.36 billion in state
incentives to help land it. That’s a big price tag, even spread over years. So
what are we buying, and what happens if we don’t get it?
Trump can announce the project, push for it, and
help line up federal support. He can’t sit in Washington and approve Iowa’s tax
breaks. The state has to do that.
As of October 6, Iowa was still negotiating with
the company. Mesabi needed to apply, the contract needed to be finished, and
the state’s economic development board needed to approve it. They announced the
prize before they finished the deal.