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Plant could be windfall for Corridor
Reporter: Gigi Wood
gigi@corridorbiznews.com
An economic windfall for a small Iowa community could result in offshoot opportunities benefiting the entire region.
Acciona Windpower, a global wind energy production company, recently announced it chose West Branch as the location for a wind turbine assembly plant. The decision means a $23 million investment that will create 110 jobs for a place largely known as a tourist attraction for presidential buffs; President Herbert Hoover was born in West Branch in 1874.
“It was one of those serendipitous situations,” Acciona spokeswoman Lena Stinsa said of the company’s decision. “We were looking for a place that would fill our needs and what West Branch offered was perfect.”
The factory will supply wind turbines for wind farms located throughout North America and will have the potential to produce 1,740 wind turbines each year. It is expected to produce about 250 wind turbines in 2008, Ms. Stinsa said.
Acciona could become a candidate for state funding from the recently-approved Iowa Power Fund, which is intended to distribute $25 million during its first year to new types of alternative energy research and development. An independent board will be appointed to oversee the fund and decide what areas to bankroll.
“Acciona could definitely be a part of that,” said Brad Anderson, spokesman for Gov. Chet Culver.
Steve Lacina, executive director of the Cedar County Economic Development Commission, said the fund presents an advantage for West Branch.
“It gives us the opportunity to think creatively and go to the governor and say, ‘We have an idea (for the funding),’” he said.
Back in West Branch, Acciona plans to redesign the former Sauer Danfoss building in the town’s industrial park. Between the Acciona project and the construction of a Procter & Gamble distribution center, $92 million in projects will be completed in Cedar County by the end of the year, Mr. Lacina said.
Some facets of Acciona’s 113,000-square-foot building will be redesigned to accommodate large wind turbines, and the company plans to add another 100,000 square feet to the building. Company officials expect work on the facility to begin this week.
Acciona is filling space left empty by Sauer-Danfoss, another global company, which makes mobile equipment for vehicles. It closed the West Branch plant in 2003 to cut costs and offset fourth quarter 2003 losses.
Mr. Lacina said he does not expect a repeat of that closure.
“Acciona is the largest company in the world that is vertically integrated,” he said. “Sauer, because of mergers, shut down their operations. I don’t see that happening again.”
The town has changed the way it looks at attracting companies to the area.
“We do not want to pursue dinosaur companies that can, because of the nature of their business, uproot and move to other countries,” he said.
Instead, West Branch is already on the move to create a cluster industry for wind power, similar to the way Dubuque caters to the insurance industry, the international relationship Burlington has with tractor-producing Case Corp. and the network the Iowa City area has with research and development companies.
“I’m pursing a lead today out of California,” he said
Acciona is the second major wind turbine manufacturer to locate in the Corridor. Clipper Windpower, a California-based turbine maker, opened a facility on the southwest side of Cedar Rapids in 2006.
West Branch received a lot of industry media attention when the Acciona deal was announced, sparking interest from similar companies, Mr. Lacina said. His goal is to attract companies that would fill the entire supply chain of needs for Acciona, from fiberglass manufacturers to electric control boards.
If a cluster is created, many more workers will be needed to supply those companies. Acciona is in talks with Kirkwood Community College to find ways to help the company fill positions in West Branch, a town of 2,269. Kirkwood provides training and education to workers in newly created positions through the Iowa New Jobs Training Program. The average wage for Acciona jobs will be $15.14.
“We will help them find the people they need and the skills they want over the long term,” said Dee Baird, vice president of continuing education and training services at Kirkwood.
West Branch is also working with the University of Iowa to locate skilled workers.
“If we don’t have the workforce, we’re really going to suffer,” Mr. Lacina said.
Before people are hired, roads need to be built.
Once constructed, the Acciona’s wind turbines will be shipped out in segments weighing 155,000 pounds, the limit allowed on highways and interstates. The weight, as well as the size of truck needed to ship the segments, creates myriad challenges. West Branch officials are working with the company and the Iowa Department of Transportation to widen entrance ramps onto Interstate 80 to accompany the trucks.
Meanwhile, a bridge between West Branch and Davenport along Interstate 80 is too low for the large trucks. Entrance and exit ramps will need to be added to that bridge, but in the meantime, West Branch is working with the company on alternatives, such as shipping by rail and river. Mr. Lacina said West Branch’s proximity to the Mississippi River and access to rails provides Acciona with the ability to easily ship throughout North and South America.
All that good news does not come cheap.
West Branch provided slightly more than $2 million in the form of an eight-year tax increment financing grant and forgivable loan. The state also gave a $2 million float loan, $500,000 Community Economic Betterment Account forgivable loan and $350,000 Physical Infrastructure Assistance Program forgivable loan. The company could receive up to $2.3 million in High Quality Job Creation tax credits as well. Acciona also is eligible to receive up to $250,000 from the Alternate Energy Revolving Loan Program from the Iowa Energy Center in Ames.
The activity in Cedar County is attracting national attention. On May 5, Sen. Chris Dodd (D-Conn.) will become the first 2008 presidential candidate to visit West Branch when he comes to speak about alternative energy, one of his platforms. CBJ
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