State Auditor Rob Sand has asked federal regulators to block Koch Industries’ planned acquisition of OCI Global’s Nitrogen Iowa fertilizer plant in Lee County.
In a January 30 letter to Federal Trade Commission Chair Lina Khan and Assistant U.S. Attorney General Jonathan Kanter, who leads the Justice Department’s Antitrust Division, Sand noted tax incentives totaling some $550 million had supported building the plant, which “was pitched to taxpayers as a project that would encourage future competition and growth for the region.”
Scott Syroka highlighted the problematic sale in a Bleeding Heartland post last month. That article detailed how then Governor Terry Branstad’s administration orchestrated a package including $300 million in federal tax giveaways related to a flood relief program, $133 million in local tax abatements from Lee County over twenty years, and $112 million in state tax credits or forgivable loans.
The auditor’s letter argued that a sale to Koch Industries would likely increase fertilizer costs for farmers. It would also negate the original intent of the deal; the idea that Koch wouldn’t own the new plant justified “the massive commitment of tax dollars in the first place.” Sand said he agreed with comments Branstad made to reporters in 2013, asserting that the Koch brothers “don’t want the competition,” whereas Iowans “want competition.”
Sand is the first Iowa statewide official to contact federal officials about the sale, which OCI Global announced in December.
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