Eldridge agrees to sponsor Lewis Machine & Tool's IEDA application, adds $60,000 to development agreement cap

The Eldridge City Council voted to sponsor an application by Lewis Machine & Tool (LMT) to the Iowa Economic Development Authority's High-Quality Jobs Program and to increase the cap on LMT's existing development agreement by $60,000 as the required local match.

Nevada, a city staff member who presented the item, said the city and LMT discussed expanding the firm's facility to include plating and coating operations. He said state officials confirmed that increasing the cap on LMT’s current development agreement would satisfy the local-match requirement for the IEDA application. Under the proposal, LMT would receive an IEDA forgivable loan of $300,000 and state tax incentives; the city would increase the existing 10-year, 80% increment tax-rebate cap by $60,000. Staff reported the expansion is forecast to add roughly 34 jobs and to generate about $180,000 in tax revenue per year.

Council members asked for clarification about whether the $60,000 would be TIFF (tax-increment financing) dollars or another local fund; staff said the cap increase would come from the existing TIFF increment arrangement tied to the company’s current development agreement. The sponsor motion passed on a recorded vote.

Nevada and other council members framed the agreement as supporting local business growth after LMT secured a sizable multi-year contract; one council member noted the company had “received a $93 million contract over 10 years.” The approval includes direction to amend the development agreement and execute the change before the IEDA application deadline; staff noted the IEDA application deadline as Sept. 22.

What happens next: City staff will prepare and execute an amendment to LMT's development agreement to increase the cap by $60,000 and will file the sponsorship paperwork for the IEDA High-Quality Jobs Program before the application deadline.