The Largest in American History
There was a lot of buzz last week about a possible special session of the Iowa Legislature, regarding incentives to lure a major steel plant to the state. Even some on the GOP side of the aisle were curious about the timing, only five weeks before an election…and why it had to be done now, instead of waiting for the regular legislative session in January.
The Oval Office was full yesterday afternoon, as the President announced that Mesabi Metallics would build a new $15 billion mega-steel plant in Lee County, Iowa…anticipated to be the largest integrated steel plant in U.S. history when it opens in 2030. And it would bring as many as 6,000 construction jobs now, with the promise of some 1,750 permanent jobs once the plant opens.
Mesabi is opening a new iron ore mine in Minnesota, at a cost of $2.5 billion; the new Iowa steel plant will use iron ore from that mine. While Mesabi Metallics is headquartered in Minnesota, it is owned by an India-based group, which is headquartered in Egypt.
Gov. Kim Reynolds called negotiations with the company “tough” but said a deal was reached. Presumably, that deal requires legislative approval and would include tax breaks and other incentives. Some presume that needs to be done now, before the Republican governor leaves office and before the makeup of the legislature changes thanks to the November general election. Without details on the incentives, all that has led some to wonder what Iowa will be giving up to get the deal done.
U.S. Commerce Secretary Howard Lutnick said the done was going to happen regardless of the Iowa incentives; Lutnick said, “This deal is done. They’ve already worked it out. That’s why we’re all together with the President. The President doesn’t bring people together unless it’s a done deal. You guys know that already.”
Granted, with the large GOP majorities in both chambers of the legislature and a Republican governor, one would think a deal would slide through—but again, even some Republicans expressed concern about how this was all handled, so until votes are actually cast, it might be a bit premature to start applying for jobs at the plant…no matter how many Iowa politicians who are on the November ballot were crammed around the President’s desk yesterday.
