The Lee County Board of Supervisors unanimously approved a tax incentive term sheet with Mesabi Metallics that outlines local tax payments and community benefits for the company's proposed $15 billion steel complex.
The board of supervisors also approved a resolution supporting the project, a key requirement for the company's incentive package with the Iowa Economic Development Authority.
Under the terms, Mesabi Metallics would provide up to $10.5 million in host-community payments during development and construction to help offset demands on county services.
The company would guarantee at least $112 million in new assessed property value before receiving any tax rebate and pay Lee County $50 million over 20 years in lieu of additional property taxes.
“This is a generational investment in Iowa, and this week’s vote moves it forward,” said Joe Broking, CEO of Mesabi Metallics, in a release provided by a Des Moines public relations firm.
President Donald Trump announced the proposed steel complex in September as a $15 billion investment in Lee County. The company plans to connect its Minnesota iron ore operations with a new steelmaking facility in Iowa, creating what it describes as a domestic mine-to-mill supply chain.
The project could support up to 6,000 construction jobs and employ at least 1,750 full-time workers once operational.
The facility would use direct reduced iron and electric arc furnace technology to produce steel. Production is projected to begin in 2030.
Mesabi Metallics is sponsored by Essar Group, a multinational industrial group with interests in steel, energy, infrastructure, and shipping.
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