Iowa Investments Expected to Produce Big Impact

The $79 million that Iowa taxpayers will invest in three economic development deals - Wells Fargo & Co., Trans Ova Genetics and GCommerce - will help drive $1.5 billion into the state economy over the next 10 years, a new economic study being released today shows.

The $1.5 billion represents income from new jobs; spending on cars, homes and other goods; and taxes generated for state and local projects.

Six Iowa economists developed the economic-impact model to gauge the return to taxpayers on investments made through the newly created $503 million Grow Iowa Values Fund.

Since organizing this summer, the Grow Iowa Values Board has invested $20 million in the three projects. Those projects have garnered a total of $64 million in public investment when local incentives are added.

The three companies have promised to create 2,472 new jobs in exchange for the state assistance. The new study calculates the direct effect of those new jobs, plus the investment in construction, equipment and furnishings connected with the projects, which carry a total estimated price tag of $295 million.

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