Cardiovascular Associates seeks to expand in Sioux City
By Lynn Zerschling lzerschling@siouxcityjournal.com | Posted: Saturday, October 11, 2008
SIOUX CITY -- A fourth medical clinic will remain in Sioux City rather than moving across the river to South Dakota, thanks to a state economic development program.
On Monday the City Council will be asked to assist Sioux City-based Cardiovascular Associates expand on the St. Luke's Regional Medical Center campus. CVA had considered locating that clinic to Dakota Dunes in South Dakota, Mayor Mike Hobart said Friday.
The state's Targeted Jobs Withholding Tax Credit Program will provide an estimated $185,000 in withholding tax credits over a 10-year period, Marty Dougherty, economic development director, noted. Dougherty said CVA will invest more than $870,000 in remodeling and buying equipment. The clinic will retain six jobs and add a seventh at St. Luke's.
Overall, CVA employs 70 employees in Sioux City at its Mercy Medical Center and St. Luke's clinics. CVA also operates 19 clinics in the three-state area.
Dougherty pointed out the council paved the way for CVA to apply for the tax credits earlier this year by creating the Pierce Street Corridor Urban Renewal Area, which includes the St. Luke's campus. Only businesses located in an urban renewal area are eligible to submit applications to the state for the tax credit program. That program has helped three other medical clinics expand in Sioux City.
As part of the application, the city will report it will be able to provide 10 percent in matching funds, or $18,500, in a forgivable loan to the project. The money would come from sales tax revenues.
"It's probably a rule change," Dougherty explained of the local matching funds.
That 10 percent match has not been required in the past. He said he met with representatives of the other pilot cities who use this program to discuss the proposed rule change by the Iowa Department of Economic Development.
"They have an Oct. 29 meeting in Des Moines. We and the other pilot cities in Iowa will be submitting comments," Dougherty said. "We like the program the way it originally was written. It has the potential to prevent a project from moving forward."
Through the use of the new so-called "border legislation" approved by the Iowa Legislature in 2006, Sioux City is one of four pilot cities using the tax credit program to retain or attract businesses. The goal is to compete with Nebraska, which has an aggressive incentive package for new business development, and South Dakota, which has no state personal or corporate income taxes.
On Monday the City Council will be asked to assist Sioux City-based Cardiovascular Associates expand on the St. Luke's Regional Medical Center campus. CVA had considered locating that clinic to Dakota Dunes in South Dakota, Mayor Mike Hobart said Friday.
The state's Targeted Jobs Withholding Tax Credit Program will provide an estimated $185,000 in withholding tax credits over a 10-year period, Marty Dougherty, economic development director, noted. Dougherty said CVA will invest more than $870,000 in remodeling and buying equipment. The clinic will retain six jobs and add a seventh at St. Luke's.
Overall, CVA employs 70 employees in Sioux City at its Mercy Medical Center and St. Luke's clinics. CVA also operates 19 clinics in the three-state area.
Dougherty pointed out the council paved the way for CVA to apply for the tax credits earlier this year by creating the Pierce Street Corridor Urban Renewal Area, which includes the St. Luke's campus. Only businesses located in an urban renewal area are eligible to submit applications to the state for the tax credit program. That program has helped three other medical clinics expand in Sioux City.
As part of the application, the city will report it will be able to provide 10 percent in matching funds, or $18,500, in a forgivable loan to the project. The money would come from sales tax revenues.
"It's probably a rule change," Dougherty explained of the local matching funds.
That 10 percent match has not been required in the past. He said he met with representatives of the other pilot cities who use this program to discuss the proposed rule change by the Iowa Department of Economic Development.
"They have an Oct. 29 meeting in Des Moines. We and the other pilot cities in Iowa will be submitting comments," Dougherty said. "We like the program the way it originally was written. It has the potential to prevent a project from moving forward."
Through the use of the new so-called "border legislation" approved by the Iowa Legislature in 2006, Sioux City is one of four pilot cities using the tax credit program to retain or attract businesses. The goal is to compete with Nebraska, which has an aggressive incentive package for new business development, and South Dakota, which has no state personal or corporate income taxes.
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PT wrote on Oct 12, 2008 2:22 AM:
JM wrote on Oct 11, 2008 9:12 PM:
Herky wrote on Oct 11, 2008 6:27 PM:
olhundriver wrote on Oct 11, 2008 3:34 PM:
Sharon wrote on Oct 11, 2008 6:27 AM:
Oh well, I guess taxpayors will have to live with giving everyone handouts these days, saving everyone. Don't forget to raise our taxes! "