Industrial rail park could be rural Iowa community’s biggest project post-Maytag

Jasper County and the City of Newton are finally on the right track.

The two governing entities have come together to establish an almost 500-acre rail park spearheaded by partners Iowa Interstate Railroad and Alliant Energy. Officials say the project is one of the biggest opportunities to present itself post-Maytag, and it could have generational benefits for the community.

Known colloquially as the Newton Rail Park, it will be located northeast of town both inside and outside city limits. Proximity to Interstate 80 and to renewable energy industries like the returning TPI Composites, Arcosa Wind Towers and Chevron-REG makes the rail park an ideal spot for “speed-to-market” service.

Jim Bowman, senior director of site and economic development at Iowa Interstate Railroad, said a number of different industries are desired for the rail park, including manufacturers of chemicals and biofuels, electrical appliances and components, food, fabricated metal products and machinery.

“These industries need, typically, rail and high power. And they create really nice jobs, which is what this is all about,” Bowman said in a phone interview with Newton News. “…Geographic location is critical and key, and the fact it is well-served with Interstate 80 and U.S. Highway 6 and city and county roads.”

The concept of the rail park was based on an earlier proposed project in Newton. Bowman said a prospect had proposed a large development on 294 acres, but the project did not go forward. Iowa Interstate Railroad was approached by representatives from that company to consider option agreements. And it did.

Iowa Interstate Railroad was forward-thinking and saw an opportunity to control the property and transform it into an industrial park, Bowman said. The company saw an opportunity to collaborate and “do something unique” with this public-private partnership. Alliant Energy was then convinced to jump aboard.

With Jasper County and Newton serving as the public partners, the rail park has a stronger foundation and becomes more shovel-ready for future prospects. The rail park offers industries more direct lines to deliver their products. Developers have even proposed potential rail extensions leading directly to factories.

Development concept maps further show a logistics center designed for the wind industry — but it can serve any industry — right next to the rail terminal. Over time the rail park could eventually extend past its initial section of acreage, possibly even doubling in size.

“If you get to that level you really stand out as a major industrial location in Iowa,” Bowman said. “There aren’t many that are that size. And there are none that have a full service rail terminal in the middle of it. Dedicated locomotives are there for moving cars, staging cars, spotting cars — all of that is a major asset.”

Bowman added that is what makes this project unique.

“You’ve got a railroad, a large electric utility company and the public sector partnering,” he said. “It’s a true public-private partnership … I don’t know if this exists anywhere else in Iowa, to do a major industrial development with these four entities. I’m really proud that we could bring these groups together.”

MOVING FORWARD REQUIRES PARTNERSHIPS

In order to finance the buildout, land acquisition and public infrastructure needed for the industrial rail park, Iowa Interstate Railroad and Alliant Energy needed to form a public-private partnership with the city and county. It would be Jasper County who would largely finance the project with an urban renewal area.

Newton City Council on April 21 voted 5-1 to approve a joint agreement with Jasper County for urban renewal purposes. The county is prepared to establish an urban renewal area to help finance the project, which has been a source of contention between the two entities during negotiations.

Disagreements largely focused on the financing and the proposed annexations, and for a moment it looked like these disputes were going to threaten the future of the project. Council member Stacy Simbro was the only council member to vote against the joint agreement, but he noted he is in full support of the project.

“I really hope the draft things that we talked about that the county said they would come to the table on, I hope that comes to fruition,” Simbro said. “…I hope we move forward with good faith. I hope these things iron out, because if they don’t then all of us should regret our vote.”

Council member Randy Ervin served on the negotiating team. He said there are going to be challenges ahead and some risks, but he has also been receiving positive reinforcement from people throughout the state wanting Newton to get the balling rolling. To him, it is an opportunity to move the city forward.

“This is probably the biggest project in Newton’s history, or at least since I’ve been alive,” Ervin said at the city council meeting. “…Are there risks? Yes. Do I feel, at this point, better than I did a week ago? Absolutely. We cannot let our citizens down on this one. Those are my feelings on this.”

Council member Melissa Dalton, another official who served on the negotiating team, added, “We’ll have a lot of faith moving forward that this is going to work between the city and county. I just want to point that out, too. We’re working on faith here. And I agree with what Randy said.”

Although a signature from the mayor was received by the county at the eleventh hour, supervisors had to defer future action on an amended urban renewal plan and the establishment of the Jasper Rail Park Urban Renewal Plan to May 6. But the agreement between the two is in place, and it is as a crucial step.

Supervisor Brandon Talsma said the joint agreement and the urban renewal plan are critical in getting this project up and running. Instead of depleting county reserves, the county is going to bond to help with the land acquisition, which will not be paid back with the debt service levy.

“That amount will be paid as the property is sold,” Talsma said.

PROJECT POSITIONS CITY & COUNTY TO BE MORE COMPETITIVE

When trying to describe the potential impact of the rail park, Talsma didn’t know where to start. It would be a one-of-a-kind location in the state and possibly the entire Midwest, he said, and it would be very attractive for larger, industrial entities to come in and it would streamline a path for them to come in.

“We’re talking hundreds of jobs, hundreds of thousands — if not millions — of dollars of new property tax dollars coming in,” Talsma said. “I’ve been summing it up, and I think Thad (Nearmyer) has been too, it’s kind of a once in a generation opportunity that we have right here.”

Economic development teams from the city and county were crucial in this project. Frank Liebl, executive director of Newton Development Corporation, said millions of dollars have already been invested into this project, and millions more will be invested of the course of several years as the park is developed.

“Post-Maytag, it is probably the largest project we’ve seen in this city and county for a long time,” Liebl said.

Jeff Davidson, executive director of JEDCO, said despite the disagreements between the city and the county, both he and Liebl work together seamlessly and have been focusing their efforts for one purpose. Davidson said what he and Liebl are trying so desperately to improve is time to market.

“Time is money when you’re in the private sector and you have money that you want to invest and make money off of,” Davidson said. “You don’t want your money sitting around while people go through the motions of purchasing property and getting it zoned and getting it annexed. That could take six months.”

Which is where Jasper County and its community often falter. Davidson said the county is not competitive enough and needs to do better in order to compete with places like Johnston, Grimes, Norwalk and Altoona. People want to invest money in Central Iowa, but Jasper County needs to be in a more competitive position.

“That is what we’re trying to do with the rail park,” Davidson said. “…We’re all here working to make Jasper County a better place.”