National dairy product manufacturer Daisy Brand LLC has been awarded $67.185 million in combined state and local incentives for its planned $626.57 million investment for a new 750,000-square-foot facility in Boone.

The Iowa Economic Development Authority board approved the incentives package Friday, which includes a mix of state tax awards and direct financial aid through the High Quality Jobs program totaling $18.185 million.

According to an IEDA project report, the state will provide Daisy Brand a $7 million forgivable loan; $10.185 million in sales and use tax refunds during the facility’s construction; and a $1 million investment tax credit distributed over five years.

The report said the city of Boone has also committed a $49 million property tax exemption for the project.

Alliant Energy will contribute $1.01 million in incentives to the project, according to the IEDA report.

A news release from the office of Iowa Gov. Kim Reynolds sent after the board’s vote said Daisy Brand’s expansion in Boone will create an initial 106 new jobs with a total of 255 jobs expected as demand increases.

The state program requires the company to pay employees 120% of the average wage in the laborshed where the project is located. The Boone area’s average laborshed wage is $28.85 per hour, according to the project report.

The IEDA report said 55 of the 106 jobs are tied to the incentives.

“Daisy Brand’s investment in Iowa further reinforces our standing as a manufacturing powerhouse and reputation for fostering an environment where businesses succeed and grow,” Reynolds said in the release.

“With a third of the nation’s top food manufacturers located in Iowa and 26% of our manufacturing industry attributed to food processing, Iowa and Daisy are a perfect fit. From our dairy industry and farmers to our skilled workforce, there is no better place for Daisy to expand, and I am confident the company will continue to flourish in our great state,” she said.

The IEDA report said that Daisy Brand will start construction on the building in 2027; equipment installation is slated for 2029.

The report acknowledges that the Dallas, Texas-headquartered Daisy Brand competes with Des Moines-based Anderson Erickson Dairy and Minneapolis, Minn.-based Kemps LLC, which have existing manufacturing operations in Iowa.

Daisy is one of the largest brands and top manufacturers of sour cream and cottage cheese in the U.S.

“Additionally, some Iowa retail stores selling private label sour cream and/or cottage cheese products would be competition for the market space,” the IEDA report states. “Daisy Brand has an existing distribution channel in Iowa.”

The IEDA report said the project will allow Daisy to serve existing customers in the Midwest with locally sourced milk from Iowa farmers, supporting the state’s dairy industry.

“At its core, economic development is about partnerships between communities, companies and the state to ensure future growth,” Debi Durham, director of the IEDA and Iowa Finance Authority, said in the release. “This significant investment is a testament to those partnerships, one that will pay off for Boone and Iowa.”