Maytag campus becomes largest donation in DMACC history

When Reza Kargarzadeh started plastic a molding business in 1994 with three presses, he didn’t know he’d one day own a company with about 2,000 employees, a facility in Mexico and 15 total locations.

He also didn’t know he’d not only end up obtaining, in 2012, and one day donating the corporate campus of one of Iowa’s most storied companies to a community college to help forge business-education partnerships.

Kargarzadeh, founder of Engineered Plastic Components, was joined by Gov. Terry Branstad, DMACC officials and state and local leaders for a news conference held Monday in the Maytag Innovation Center. He announced he’s donating seven former Maytag corporate campus buildings to DMACC, valued at about $9 million and encompassing about 472,000 feet of office, industrial and residential space, to be used for expansion of DMACC programs and to help strengthen the college’s partnerships with industries.

“In the past six years, my company has gone through tremendous growth,” Kargarzadeh said. “When I looked around and what we wanted to do with this facility, I started talking with DMACC President Rob Denson. I found his ideas very dynamic, very creative. We have a great education system in the state of Iowa and we want to help grow that. We have decided to donate this beautiful facility to DMACC.”

Denson, who also spoke at the news conference, said the donation is the largest in the 50-year history of the college. Buildings 1, 2, 16, 17, 18, 20 and 50 will join the main DMACC building and the Career Academy as part of the college’s Newton presence.

Preliminary plans call for DMACC to utilize the buildings as traditional office and industrial park space for businesses and other educational partners, student housing, space for new DMACC programs and a business incubator for startup companies offering move-in ready space.

“Thank you for this wonderful and generous gift to DMACC and the community of Newton,” Branstad said to Kargarzadeh. “Not only am I happy to hear about the growth of your company, but I’m happy Newton and DMACC can continue to grow as well. These benefit the entire state of Iowa.”

Frank Liebl, executive director of the Newton Development Corporation, and City of Newton Director of Finance and Development Bryan Friedman were both at Monday’s event. Kargarzadeh thanked both of them and others for their help throughout his company’s involvement with the property.

Kargarzadeh bought the property in 2012 for only $1, but absorbed about $2 million each year in “carrying costs,” in addition to paying about 50 percent of annual taxes on the property, due to a rebate agreement with the city.

The campus has had few tenants since the Whirlpool corporation left Newton about nine years ago. While the city won’t have that direct tax revenue in the years ahead, the two businesses that are currently in campus buildings — Aureon and Health Enterprises — will remain and will be assessed and taxed, as will all businesses that move into the campus later.

Kargarzadeh paid about $78,000 in property taxes this year.

The seven buildings include the former Maytag Building 18 — the tallest, most visible office building in the campus, located directly against West Fourth Street North. It also includes Building 20, which has the circle drive off of West Fourth Street North, Buildings 16 and 17, office buildings that are behind Building 18; Buildings 1 and 2, where the Innovation Center and other first-floor facilities are located, and Building 50, which is strictly for mechanical equipment.

While the donation solves the issue of having an iconic, prominent structure in central Newton no longer as simply a reminder of what Maytag was and how things ended, it will also fit well into the nine principles of the city’s comprehensive plan that involve higher education.

DMACC board chair and Newton resident Joe Pugel said Maytag was instrumental in helping create the Newton DMACC campus almost 25 years ago.

“Our understanding is that even though only about 25 percent of the space is being utilized, the tenants are covering all the fixed costs,” Pugel said. “We’re excited about moving forward with this. This all materialized in the past two months.”

Newton Mayor Mike Hansen was among the many local leaders in attendance.

“To donate a Fortune 500 company’s facilities — what a fantastic gift,” Hansen said. “DMACC has so many great programs, such as nursing, here already, and this will really give them ownership of a large campus. The possibilities are endless.”

Contact Jason W. Brooks at 641-792-3121 ext. 6532 or jbrooks@newtondailynews.com