Lee County approves Mesabi deal with $50 million over 20 years

Lee County supervisors unanimously approved a term sheet for Mesabi Metallics’ proposed steel plant on Nov. 10, setting out up to $10.5 million in host-community payments during development and construction, plus $50 million for the county over 20 years in lieu of additional property taxes.

The vote came at a Nov. 10 board meeting in Fort Madison. The county agenda listed the proposed term sheet and a resolution supporting the plant for Iowa Economic Development Authority incentives. Mesabi Metallics and KCRG also reported the unanimous approval.

What the term sheet provides i

• Up to $10.5 million in host-community payments during development and construction, intended to help offset demands on county services.
• At least $112 million in new assessed property value before the company receives any tax rebate.
• $50 million to Lee County over 20 years in lieu of additional property taxes.

Dividing the $50 million total by 20 gives an arithmetic average of $2.5 million a year. That is not a stated annual payment schedule; the term sheet describes a total over 20 years.

Mesabi describes the proposed project as a $15 billion investment. The company estimates it could create more than 6,000 construction jobs, at least 1,750 full-time jobs once fully operational, and $95 billion in economic output during construction and the first 10 years of full operations. Those are projections, not achieved results.

The vote is a county step, not a final state decision i

The board also approved a resolution supporting the proposed plant for Iowa Economic Development Authority incentives. That county action does not establish a final state incentive award or authorize construction.

KCRG reported that Supervisor Charles Holmes supported the agreement and said the county and company had worked on it for about a year and a half. The terms concern county payments if development and construction occur; the company’s projected jobs and economic output likewise depend on the proposed project proceeding.