Lee County supervisors approve term sheet for proposed steel project

LEE COUNTY, Iowa (WGEM) - The Lee County Board of Supervisors has unanimously approved a term sheet outlining the proposed financial arrangement for Mesabi Metallics’ planned $15 billion steel project, according to Mesabi Metallics.

The board also passed a resolution supporting the plant, which, according to Mesabi, is a key requirement for Mesabi’s incentive package with the Iowa Economic Development Authority (IEDA).

“This is a generational investment in Iowa, and this week’s vote moves it forward,” said Joe Broking, CEO of Mesabi Metallics. “Paired with our nearly $3 billion investment in Minnesota, this project creates a fully integrated American steel supply chain—iron ore mined and processed in Minnesota, high-quality steel made in Iowa.”

“We thank the Lee County Board of Supervisors for bringing us one step closer to thousands of good-paying jobs, a stronger American manufacturing base and a critical new source of domestic steel,” Broking added.

According to Mesabi, the term sheet includes “significant benefits” to the local community and provides long-term tax certainty for the project. Under the proposed terms, Mesabi Metallics would:

• Provide up to $10.5 million in host-community payments during development and construction to help offset demands on county services
• Guarantee at least $112 million in new assessed property value before Mesabi receives any tax rebate
• Pay Lee County $50 million over 20 years in lieu of additional property taxes

The vote builds on Mesabi’s September announcement of a $15 billion Iowa investment—part of an approximately $18 billion plan linking its Minnesota iron ore operations to a new, modern steelmaking complex in Iowa. According to Mesabi, the Iowa project is expected to:

• Support more than 6,000 construction jobs
• Employ at least 1,750 full-time workers once fully operational
• Generate an estimated $95 billion in total economic output during construction and the first 10 years of full operations
• Create a fully domestic mine-to-mill supply chain, linking Minnesota iron ore with modern DRI and EAF steelmaking in Iowa

Residents who attended the most recent meeting voiced concerns about the plant’s staffing.

Ginger Knisely, chairman of the Lee County Board of Supervisors, said Mesabi has a reputation for keeping its workforce local.

“I think we’ll see a mix of people moving to the area and also people who already live here being able to go through some training opportunities and skill up for these jobs,” Knisley said. “Mesabi does have a really good track record of hiring local labor and so we are absolutely hopeful that they will follow suit here in Lee County.”

The board expects construction to also bring in several thousands of jobs and begin in the fall of 2027.

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• Trump announces $15 billion steel plant project in Iowa, Rep. Miller-Meeks says it’s coming to Lee County