Wells’ Dairy Repays Iowa $1.25 Million

By The Associated Press

DES MOINES (AP) – Wells’Dairy Inc., the maker of Blue Bunny ice cream, has repaid the state $1.25 million of

$2.9 million in forgivable loans it received to build a new headquarters in Le Mars.

The state has found Wells’Dairy did not meet its job creation commitments.

The company, which had been mulling a move to Nebraska or South Dakota, had agreed to create 128 jobs and retain 346 existing jobs for a total of 475 positions overall. It had also committed to complete a new $25 million corporate headquarters.

The state’s review found that Wells’Dairy fell 158 positions short of its employment projection.

The repayment was announced on Friday. It came after the Iowa Department of Economic Development completed a review of its incentives awarded to keep Wells’Dairy in Iowa with the Grow Iowa Values Fund.

Wells’Dairy says it fell short of its job creation goals because of a decision earlier this year to sell off its fresh dairy products business and because of record increases in the cost of ingredients over the past two years.

State Economic Development Director Mike Tramontina said the state understands that Wells’Dairy had to make business decisions over the past four years in order to support longer-term goals to continue and expand the business.

“At the same time, IDED must be stewards of the state’s investments and we have therefore negotiated the repayment of funds based on the project parameters that were unmet,” he said.

The state released a joint statement with Wells’Dairy CEO Mike Wells, who said the company’s request for state assistance was made in good faith and that Wells’Dairy was grateful for the state’s recognition of the company’s needs.

Wells’Dairy has repaid “all monies owed,” he said.

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