LDJ Manufacturing announced recent staff reductions before the end of the year. In a statement to KNIA/KRLS News, LDJ announced the termination of 11 employees. President Ben Cox sent the following to the radio station on Monday:
“Two weeks ago, in response to shifting demand in the agricultural and construction industries, we made the difficult decision to scale our operations, which resulted in a reduction of 11 positions. Supporting these team members as they transition to new opportunities remains a priority for us, and the decision was made only after a thorough evaluation of all options to protect the long term stability of our business and our employee-owners. While this step is challenging, it strengthens our position as we look ahead to 2025. We are grateful for the contributions of our talented team members and the continued support of our community.”
In 2022, LDJ Manufacturing received a RISE Grant through the Iowa Department of Transportation that was used to expand a turn lane at their entrance on Highway 163. As part of that agreement, the company agreed to grow its workforce in the three years following the grant’s disbursement. Cox said the company intends to fulfill that obligation.
“Since receiving the RISE grant, our workforce has grown, and we remain committed to meeting the hiring targets outlined in the grant agreement. We are confident in fulfilling these goals within the three-year timeframe and continuing our investment in the local workforce and community.”
RISE Program Manager Jennifer Kolacia told KNIA/KRLS News LDJ has three years after the roadway is open to comply with the terms of the grant and create new jobs.
“For the Marion County project, that means they have until September of 2026 to have created the 30 jobs that are part of their contingency. Compliance with this requirement is measured by reviewing and calculating a weighted average number of jobs created using payrolls from the beginning and end of any six-month period from the time funding was awarded (May 10, 2022) to three years after the RISE improvement was complete and open to traffic (September 5, 2026) to document the existence of the jobs along with a baseline payroll at the time the project was awarded.”
Kolacia says if the job creation goals are not met, they begin to evaluate possible settlement terms.
“Once September of 2026 arrives and the community is not able to show job creation of 30 jobs over a 6 month timeframe (between 5/10/2022 to 9/5/2026), we would first see if the community complied with our substantial completion policy. If at least 90% of the job creation is satisfied, we would consider the contingency substantially complete and it would not go into the settlement process.
If we find that the number of jobs is less than 90% we would begin the settlement process. When calculating the settlement for an Immediate Opportunity project that has not met the contingency requirement, credit is first given to the development as if it were a Local Development (a RISE grant based on speculative development) project. This means that the settlement is not based on the full 80% that may have been awarded, rather it is based on the 30% “RISE differential” which is the difference between the credited 50% amount and the awarded 80% amount. We then give them credit for the jobs that were created by prorating the settlement amount based on the actual jobs created. Once the calculation is finalized, we then present this determination to the Commission for their review.”
KNIA/KRLS reached out to Marion County Public Information Officer Emily Feagins about possible Marion County Board of Supervisors action — the board approved the grant application and a county funding match in 2022. She says the board is aware of the situation and will make an evaluation in 2026 to see if the terms of the contract have been met.