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Red Oak, IA

While Red Oak is primarily known as a farming region, agriculture is not the sole industry by any means. Manufacturing, retail, health and education all hold top places in industrial rankings for the region, which boasts active economic development organizations that work every day to bring new residents and industry to a region poised for growth.

Economic Incentives

Iowa has several economic incentives available for businesses beginning, expanding or relocating to the state, including local tax abatement, a new jobs tax credit, no sales or use tax on manufacturing machinery and equipment, no personal property tax, no sales and use tax, low worker’s compensation costs and unemployment insurance rates, employee training programs, and enterprise zone programs. Additionally, Iowa is a right-to-work state.

At the local level, the City of Red Oak has established two Tax Increment Financing (TIF) districts for economic development. County and city tax exemptions may be available for businesses locating or expanding in the TIF districts. Montgomery County is also eligible for the establishment of enterprise zones, which would bring tax and other benefits to businesses locating here.

Of major benefit to startup, expanding and relocating businesses in Red Oak and Montgomery County is the team of economic development players that works daily to further business interests in the region. The Red Oak Industrial Foundation, The Montgomery County Development Corporation and the Red Oak Chamber of Commerce advocate for business, work to draw new residents to the area, and engage in a number of economic development projects. This team, through the Industrial Foundation Contact Committee, will sit down at the table with a starting, expanding or relocating business to go over all the economic incentives and programs available and will negotiate to bring that business the best possible financial incentives package. This process can significantly lower the cost of starting or expanding a business in Montgomery County.

Businesses will find that undeveloped commercial acreage is available near the city, as are some commercial buildings. Like many small communities, Red Oak is investing in downtown renaissance. Local investors have purchased and refurbished buildings in the downtown and are ready to welcome new retail and service businesses, as well as industry. Incentives, including low-interest loans, are available for businesses choosing to locate in this historic city’s center. Contact the Red Oak Chamber of Commerce for more information.

Transportation

Offering a well-rounded transportation network, Red Oak is served by U.S. Highway 34 and State Highway 48 and is just half an hour from Interstate 29. Red Oak is within five minutes of a public airport — Red Oak Municipal Airport — and less than an hour from commercial air service at Eppley Airfield in Omaha, Nebraska. Red Oak is also on the mainline of the Burlington Northern Santa Fe.

Agriculture

Agriculture is a dominant industry in Red Oak. Agriculture earns billions of dollars annually for Iowa farmers. Montgomery County’s total agricultural products brought more than $80 million to the local economy in 2002.

Corn and soybeans dominate farming in the county, with those two crops comprising both the largest number of acres farmed as well as the most profitable
harvests. Montgomery County farmers also produce oats, alfalfa and popcorn and raise cattle, sheep, hogs and chickens.

The Iowa State University Extension Office in Montgomery County serves local farmers with research and information on everything from crop statistics and pest control to climate data, finances, the environment and more.

Industry and Workforce

Red Oak is home to numerous manufacturing plants. The labor force, which is drawn from a 70-mile radius, can offer
businesses a variety of special skills. Continuing workforce education is facilitated by Red Oak’s location, which is within 50 minutes of five colleges or universities, and through the Technology Center, which is the site of courses offered through Southwestern Community College, Bellevue University and Buena Vista University. A large portion of the Technology Center is dedicated to the use of local industries for training personnel.