By PETER HUSSMANN
The day before state economic development officials agreed to give Whirlpool Corporation $6.5 million for upgrades to its Amana refrigerator plant, the same state agency demanded the company return money granted for work at its former Newton plant, a letter dated last week indicates.
On Feb. 17, Jeffery Rossate, business development division administrator for the Iowa Department of Economic Development - who was fired five days later over his role in the state's film tax credit fiasco - wrote Whirlpool officials demanding the return of nearly $270,000.
"Permanent layoffs and closure of the Newton Facility were announced prior to the project completion date," Rossate wrote concerning a New Jobs and Income Program Agreement the Iowa Department of Economic Development entered into with Maytag in 2001.
According to the agreement, the letter went on, "Maytag is subject to repayment of the same percentage in Investment Tax Credit (ITC) benefits as the business failed to create in jobs. A full repayment of ITC is due to plant closure. According to the Iowa Department of Revenue, the amount of ITC taken was $269,089."
Rossate goes on to state that the agreement between the state and Maytag is "terminated as of the date of this letter..." The Iowa Department of Revenue was assigned "recapture of outstanding funds."
The next day, Iowa economic development officials announced the $6.5 million award to Whirlpool, a move lauded by the governor as critical to the retention of Amana's 1,600 jobs in Iowa.
"This is great news for Amana and great news for Iowa," Culver said in a press release.
Whirlpool plans to add 60 jobs to its Amana operation as a result of the grant's receipt.
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