DES MOINES, Iowa (AP) - The state of Iowa will give Flexsteel Industries more than $2 million as part of a $10 million bid to keep the furniture company’s plant in Dubuque and save most of the site’s more than 200 jobs.
The Iowa Economic Development Authority board approved a $2.1 million incentive package for Flexsteel on Friday, The Des Moines Register reported (https://dmreg.co/2qCct1n ). That includes a $1 million forgivable loan and more than $1 million in tax credits and refunds.
In addition to the state award, a lengthy project agreement shows Flexsteel will receive more than $6.5 million in tax incentives over 10 years from the city of Dubuque, more than $1.5 million from Dubuque County in land discounts and $100,000 from Northeast Iowa Community College for workforce training.
Flexsteel announced earlier this month that it will keep its manufacturing operations, along with 200 of its current 218 jobs, in Dubuque. That announcement came seven months after the company said it would close its Dubuque facility at the end of this year.
The company plans to spend at least $25 million on a new plant in Dubuque, with construction to begin later this year. Production will be shifted from Flexsteel’s existing facility to the new site by the fall of 2018.
Flexsteel is a key employer in the community, said Daniel McDonald, vice president of existing business at Greater Dubuque Development Corp. Some families have sent four and five generations to the plant, he said.
“Dubuque is Flexsteel, and Flexsteel is Dubuque,” McDonald said.
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Information from: The Des Moines Register, https://www.desmoinesregister.com
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