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Iowa Railway Finance Authority approves project funding

October 24, 2007

The Iowa Railway Finance Authority approved $2.8 million in funding for 11 rail improvement projects as part of the Railroad Revolving Loan and Grant Program. The rail projects are expected to support the creation of 467 new jobs, leverage $1.3 billion in new capital investment and reduce transportation costs by $52 million.

Included in the program is funding for rail improvement projects at seven bio-energy plants, one industrial development center, and one industrial service site.  Listed below are the approved projects.

Iowa Railway Finance Authority

Railroad Revolving Loan and Grant Program

Applicant Grant Loan Total

Branchline Assistance Projects

CR Terminal - Iowa Northern RR $36,000 $206,000 $242,000
Iowa Traction RR $0 $38,000 $38,000
          Sub Total $36,000 $244,000 $280,000

Industrial Service Projects

Norfolk Iron & Metal $810,000 $30,000 $840,000
          Sub Total $810,000 $30,000 $840,000

Bio-Energy Development Projects

 
Big River Resources $75,000 $0 $75,000
Homeland Energy $0 $25,000 $25,000
Oregon Trail Energy $75,000 $0 $75,000
Prairie Creek Ethanol $75,000 $0 $75,000
Raccoon Valley Biodiesel $50,000 $0 $50,000
Unity Ethanol - Cedar River $0 $270,000 $270,000
Unity Ethanol - Ottumwa $159,000 $111,000 $270,000
          Sub Total $434,000 $406,000 $840,000

Industrial Park Economic Development Projects

LincolnWay Railport $120,000 $720,000 $840,000
          Sub Total $120,000 $720,000 $840,000
       
PROGRAM TOTALS $1,400,000 $1,400,000 $2,800,000

The Railroad Revolving Loan and Grant Program was established in 2005 for the purpose of providing funding assistance for the improvement of rail facilities that support economic development and job growth. The program is funded by existing loan repayments and appropriation. The program is administered by the Iowa Railway Finance Authority, an independent board staffed by the Iowa Department of Transportation.