Success Stories - Siting Renewable Energy on Contaminated Land Former Maytag Appliances Plant, Newton, Iowa Small town redevelops as wind energy manufacturing hub Site History For nearly a century, the Maytag Corporation was the largest employer in Newton, Iowa. When Whirlpool acquired Maytag, liquidated and closed the plant in 2006, 1,800 people were out of work in the town of 16,000, located in Jasper County 35 miles east of Des Moines. Maytag's departure also left 1.9 million square feet of manufacturing space, warehouses and other buildings on its 175-acre site. The Whirlpool Corporation agreed to take responsibility for cleanup at the Maytag site when it acquired the company. Cleanup activities included removal and treatment of soil and groundwater contaminated with chromium and chemical solvents. By 2008, 154 acres of the site were ready for reuse. An EPA order in 2009 will establish continual monitoring and institutional controls at the site. ABOUT THE SITE: Location: Property Size: Available for Reuse: Site Ownership: Former Use: Contaminants: Project Type: Infrastructure: Supported Use: EPA Region 7, Jasper County, Iowa 175 Acres, 1.9 million ft2 buildings 154 Acres Whirlpool Corp., IRG Acquisitions Maytag appliance plant Chromium, PCE, TCE RCRA Electricity, water, sewer, gas, active rail Manufacturing, warehousing RENEWABLE ENERGY MANUFACTURING: Renewable Energy Manufacturing The city of Newton acted quickly to retain many of the jobs associated with the Maytag Corp. operations by attracting investment in renewable energy. The city, county and property manager IRG Acquisitions began marketing the Maytag site to investors. Various developers were interested in the Maytag site and bringing renewable energy manufacturing to the city. Newton representatives met TPI Composites, a wind turbine blade manufacturer at the 2007 American Wind Energy Association conference. TPI considered siting its facility in the former Maytag plant, but the plant buildings were too short to house the 140-foot blades. The city of Newton worked together with TPI to complete construction of a new 316,000-square-foot, $56 million facility in 2008, creating 500 jobs. The plant makes fiberglass blades for GE Energy, which sells its 1.5-megawatt turbines to customers within a 500-mile radius of the facility. In April 2008, a second developer, Texas-based Trinity Structural Towers, announced it would invest $21 million to retrofit 300,000 square feet of the Maytag plant for the production of steel and concrete wind turbine towers. The facility opened in February 2009, and will employ 140. Trinity Towers saw its first tower section roll out of the facility that just a year earlier produced Maytag washers and dryers. At the end of 2008, Trinity had a $1.6 billion backlog of orders for the towers it will make in Newton. Economic Development Strategies The incentives offered by the city of Newton and state of Iowa were important factors in siting both projects. The city and state provided a combined tax incentives package of $6 million to encourage development of the TPI facility, in return for the creation of 500 manufacturing jobs by 2010. Trinity Towers received a $580,000 grant from the state of Iowa to assist in retrofitting the Maytag plant, in addition to local and state tax incentives. Although TPI considered a site in Mexico with low labor costs, Newton's location and existing infrastructure were ideal for the project. Rail lines and Interstate 80 connect the plant to wind power generation sites in the Great Plains region, where the turbines are needed but expensive to transport. In addition, former Maytag employees were eager to fill the new manufacturing positions. Iowa plans to grow the wind power industry as part of its strategy for state energy independence and economic development. The state expects new wind installations over the next decade to produce $500 million in local tax revenue, and $100 million in royalty payments for landowners. Iowa is currently working with 25 wind energy manufacturers and suppliers considering investment in the state. RE Activity: Incentives: Dollars Leveraged: Jobs Leveraged: Key Partners: Current Status: Wind turbine support towers $580k grant, state/local tax incentives $21 million 140 City of Newton, Jasper County, EPA Region 7 Plant operational February 2009 FACILITY CONTACT: Peter Yanson, IRG Assumptions/Quadrelle Realty Services LLC: (219) 764-2214 EPA CONTACT: David Doyle, US EPA Region 7: (913) 551-7667, doyle.david@epamail.epa.gov To learn more about siting renewable energy on contaminated land, visit: www.epa.gov/renewableenergyland ; fact sheet is for informational purposes only. EPA does not endorse the property or the purchase or sale of commercial property. Any prospective purchaser must contact the property owner to discuss the suitability, availability and sale of this property. ------- |