Lee County signs tax agreement with Mesabi Metallics for its steel mill

LEE COUNTY, Iowa (KCRG) - Iowa’s proposed $15 billion steel mill is one step closer to becoming a reality.

Mesabi Metallics, the company behind the mill, says the host county has signed its support.

The Lee County Board of Supervisors Tuesday night unanimously approved the framework for local tax and community benefit payments. It also unanimously passed a resolution to support the mill.

Under the agreement, Mesabi would pay $10.5 million to the county during development and construction to offset demands on county services.

It also guarantees at least $112 million in assessed property value before tax rebates.

Mesabi also agreed to pay Lee County $50 million over 20 years instead of additional property taxes.

During the board meeting Tuesday, Supervisor Charles Holmes said the county has been working out this agreement for the past year and a half.

“I’m very comfortable supporting this because I understand the very best law firm dealing with large improvements in the state of Iowa has worked with Lee County and the company for the last year and a half bringing this term agreement to conclusion, so I’m happy with it,” he said.

President Donald Trump announced the steel mill in September, promising it to be America’s largest steel plant.

The plant estimates it will support more than 6,000 construction jobs and employ at least 1,750 full-time workers once its fully operating.

Its first decade of full operation, it would generate an estimated $95 billion in economic output.

The plant is planned to be fully online by 2030 and will produce an estimated 10 million tons of steel each year.

Mesabi is planning to break ground on the project by the end of 2027.