Cedar Rapids business asked to return incentives - KWWL - Eastern Iowa Breaking News, Weather, Closings

Cedar Rapids business asked to return incentives


The state has asked a Cedar Rapids business to return $250,000 in incentives awarded to help spur development.

The business opened last year as AgSugar International but now goes by Vertecra Inc.

The Iowa Economic Development Authority reportedly sent a letter last month demanding the company return the money and to not take other assistance or tax credits previously awarded. The letter cited the company's failure to meet the grant obligations, which include notifying the state of major changes that could threaten the company's success.

Vertecra chief operating officer Dan Kazanas has asked the state to reconsider. He says the company spent the grant money on testing and related expenses for two bio-based technologies that weren't commercially viable.  He says the company is moving ahead with other projects.

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