Iowa Department of Transportation

Dec. 15, 2006

For more information, contact:
John Hey
515-239-1653
john.hey@dot.iowa.gov

Iowa Railway Finance Authority approves grants for six projects

AMES , Iowa – The Iowa Railway Finance Authority recently approved $1.63 million in funding for six rail improvement projects as part of the Railroad Revolving Loan and Grant Program. The rail projects are expected to support the creation of 651 new jobs at a cost of $2,504 per job and leverage $80.9 million in new capital investment.

Included in the program is funding for rail improvements on a shortline railroad, two proposed bio-energy plants, two industrial development centers and one industrial development site. A total of 26 applications were received with requests for more than $11.4 million in funding assistance. Eleven of the applications were bio-energy development projects.

Railroad Revolving Loan and Grant Program Iowa Railway Finance Authority Approved Projects
Project type
	Applicant	Grant $	Loan $	Total $
Branch Line Assistance Project
	BJR Burlington	0	163,000	163,000
Industrial Service Project
	Siemens Wind Power (Keokuk)	326,000	40,010	366,010
Bio Energy Development Projects
	Southern Iowa Bio(Osceola)	100,000	150,000	250,000
	Alt. Energy Sources ( Ogden )	144,500	94,500	239,000
Industrial Park Economic Development Projects
	Lincoln Way Railport (Clinton)	244,500	244,500	489,000
	Red Oak Industrial Park	0	122,990	122,990
PROGRAM TOTAL		815,000	815,000	1,630,000

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

News Release