The Des Moines Register from Des Moines, Iowa • Page 18

Page 6B Thursday May 1 1 2006 The Des Moines Register ST Tf CLOSED IN NEWTON: 7 WHAT'S NEXT FOR THE CITY MAYTAG History and highlights Vilsack promises $10 million; other Iowa cities may want in 23 -i 1 -s Frederick Louis Maytag, two brothers-in-law and George Parsons founded what is now known as Maytag Corp. In 1893 in Newton. By 1902, the company was the largest manufacturer ol threshing machine feeders in trie world. 1893 F.L. Maytag begins a business to manufacture farm implements in Newton.

1907 Maytag starts producing wooden-tub washing machines after a slump in the farm equipment business. Under the leadership of L.B. Maytag, a son of the founder, the company expanded several times in the 1920s and '30s. 1911 The first washer with an electric motor is produced. 1922 Maytag makes the first vaned agitator washer.

1925 The company goes public; it survived the Great Depression without ever encountering a loss. Gov. Tom Vilsack leaves a meeting with Maytag employees Wednesday in Newton. Maytag's former headquarters and plant in Newton will close, Whirlpool said Wednesday. Vilsack spoke to workers with at least 20 years of service at Maytag.

and their families as possible. The workers have a wealth of technical and engineering skills, she said. Local leaders are working on creating a capital investment fund that could provide assistance to small businesses that former workers might begin. And economic development leaders are talking with officials of Iowa's universities about the possibility of creating an incubator in Newton to test new university technology and research. City leaders also are working to raise $5 million to help establish Newton Promise, which would make a college education free to graduating high school students.

Already, Didier said, the proposal is keeping some former Maytag families from leaving town. She and others said Whirlpool will work with leaders to help market the former Maytag plant and headquarters. Allen, the city's mayor, said no immediate business prospects have emerged. Former state economist Harvey Siegelman said leaders need to carefully consider how they spend limited economic development dollars. The state has about $50 million available annually for economic development.

Siegelman said state needs to focus on creating jobs and industries that are resistant to takeovers and closings. Those businesses are typically young companies with new products. "Iowa is still in a place of putting out fires instead of being fire-resistant," he said. Reporter Donnelle Eller can be reached at (515) 284-8457 or dellerdmreg.com By 00NNELLE ELLER Gov. Tom ViLsnck's proposal thut the Mute provide $10 million to help Newton replace 1,800 Vhirlxol jobs will likely have other job-hungry communities knocking on the stute's door.

Already, Vilsack said Wednesday, the state is considering a similar proposal for Webster City, a northern Iowa town of 8,100 that expects to lose 700 appliance manufacturing jobs with ElectroluxTrigidaire cutbacks. The Webster City washer and dryer plant employs about 2.000 people and is the town's largest employer. Another hard-hit city is Mount Pleasant, which lost about 330 high-paying jobs this year with the closing of the Celestica electronics plant. "I could do a lot with $10 million," said Jennifer Daly, executive vice president of the Mount Pleasant Area Chamber Alliance. "There are a lot of areas of the state devastated by job loss," said Daly, who noted that the state has provided $350,000 in grants to market the region to businesses and provide guidance to startups and expanding businesses.

Vilsack said his proposal to make $10 million available to Newton and Jasper County for a wide range of economic development initiatives is a state first. Uses could include incentives to attract businesses or help entrepreneurs. Vilsack said the loss of the former Maytag manufacturing plant and headquarters is an "extraor- I 1930s Labor problems shut rinuun tho nlant for weeks in the late 1930s. But black smoke belching from the plant beckons workers back to their jobs under the 'r supervision of the National Guard. 1940 Fred Maytag II grandson of F.L.

Maytag and son of E.H. Maytag, the company's president becomes president after E.H. Maytag's death. Racetrack provides reasons for hope in business leaders OWIOPtlfRSON INC RtGISUR businesses. A $70 million racetrack that is expected to open this summer is attracting new development, said Mayor Chaz Allen.

The Iowa Speedway has attracted a proposed 300-room hotel, water park and retail project that's expected to cost up to $85 million. Newton also is the site of a new $50 million biodiesel plant. Local leaders applauded Vilsack's proposal. "We welcome anything that might bring new jobs to Newton," said Ron Foreman of Newton's City Council. Kim Didier, executive director of Newton Development said it's important to try to retain as many former Maytag workers John and Elaine Mattingly own Newton.

Elaine Mattingly said dominated by a single company, of things to stay positive about." Still, others admitted they can't ignore what could amount to the loss of more than 2,000 potential customers. Cindy Smith, who runs an in-home day care, said four of the eight children she cares for every day are "Maytag kids." "There goes half my business," Smith said during an outing with the children to Maytag Park. "It doesn't take an Einstein to figure out that parents who don't have jobs generally can't afford to pay for day care." She added: "No racetrack is going to change that." Elaine Mattingly, who with her husband, John, owns Mattingly Music Books, said that Newton has absorbed the loss of thousands of jobs over the years, and that small businesses are always the first to feel it. The second-generation shop is the family's sole income. "I hope we never get bested have to find gency plans.

"We are very optimistic about Newton's future," he said. "I like to say that in every ending there is a new beginning." Eventually losing Maytag work will mean Progress Industries has to find other companies. Currently, the sheltered workshop provides service to 10 additional companies. Besides the bolt and screw assembly, workshop clients also package washer and dryer belts for Maytag, manufacture some replacement parts, repair parts, ship replacement parts and make transmissions for the Maytag equipment. In addition, some higher-functioning clients go to a controlled a a for the dinary circumstance that required extraordinary action." The washer and dryer company was founded in Newton more than 100 years ago.

It was purchased in March by Michigan-based Whirlpool for $2.6 billion. Whirlpool, a former competitor, said it would consolidate the former Maytag headquarters and laundry manufacturing operations into its existing operations. Vilsack's proposal must get approval from a state economic development board before the money is made available over the next three to five years, state leaders said. Newton leaders said they've been working hard to attract new news and tried to assess what it would mean to them. From ice cream shop owners to surgeons, the project along with a proposed 300-room hotel and water park became the main focus of hope for Newton, which has about 15,600 residents.

Such enthusiasm might not be off mark, either: The track will eventually employ 30 full-time workers and a seasonal staff of up to 500 people, said Todd Melfi, the speedway's general manager. Officials estimate that the attraction will draw fans from a 300-mile area, and that by next year the track will hold 40,000 people. Season tickets went on sale Saturday, and 1,000 were sold in the first 45 minutes. "Iowa Speedway is located in Newton and is part of Newton, but it's so much bigger than Newton," Melfi said. "I don't think (Maytag) will have a direct impact on Iowa Speedway because of our reach." Terpstra, who opened her store three years ago and has since expanded to a space on the town square, said she expects the racetrack to send thousands of visitors to Newton's restaurants and shops.

"Frankly, I'm tired of hearing about Maytag," Terpstra said. "I mean, we're not just about Maytag here. We're about much more than that and we have a lot shop comes from Maytag, said Progress Industries director Dan Skokan. Progress Industries helps provide housing, job training and rehabilitation for people with mental and physical disabilities. "The kind of work Maytag has given us is work that some of our lower-functioning clients can do, like the nut and bolt assembly," Skokan said.

"Maytag keeps a lot of our clients busy every day, from 40 to 50 clients six hours a day." Wednesday's announcement that Whirlpool was shutting down its Newton plant did not come as a surprise to Skokan, who said officials at Progress Industries have been working on contin 1941 Production of washing machines stops from 1941 to 1945 while Maytag produces components for military airplanes during World War II. The Iowa Speedway will help Newton's economy but that doesn't mean Maytag's departure hurts any less. By BONNIE HARRIS REGISTER BUSINESS WRITER Newton, la. Business owners, determined to "stay positive" in the shadow of Whirlpool's announcement that it would shutter Maytag's operations, zeroed in Wednesday on what they hope will become a new economic lifeline. "We have the racetrack, you know, and that could very well save a lot of us," said Darlene Swank, who manages a jewelry store on the courthouse square.

"Don't forget about the racetrack. That's going to bring in all kinds of business," said Geri Doyle, a real estate agent and president of the Chamber of Commerce. "And then there's the racetrack, right? I don't think people realize what a draw that's going to be," said Bonnie Terpstra, who owns the Farmer's Wife gift store. The $70 million Iowa Speedway under construction south of Interstate Highway 80 was gabbed about constantly in the business community Wednesday, as people reacted to Whirlpool's iwtfWTi'ITiitwhrni RODNEY WHITETHE REGISTER Mattingly Music Books in she hopes the city is never such as Maytag, again. again by a single corporate presence," she said, adding that the town endured a collective blue period last year and hopes people are investing energy in moving on.

But that doesn't mean everyone's handling the latest news well. "If you talk to the clergy in town, they know intimately how rough it's been," Mattingly said. "Hopelessness and despair are living in tandem with great hope." Joan Mattingly, who first opened the store with her husband in 1965, said the shop has a 37-year tradition in Newton and has weathered "all kinds of hard times" and all without the benefit of a racetrack or water park to help bring in customers. "We've always gotten through the rough patches," said Joan Mattingly. "And Newton has a lot more going for it now than it did then." Reporters Jennifer Jacobs and Andrew Logue contributed to this article.

new firms work environment on site at Maytag. "We're just glad we have little more time to come up with some alternatives to the work," Skokan said. One small building at the Progress Industries complex is replacement parts warehouse the people at the workshop run Maytag. "I suppose there is the possibility that they would leave that warehouse here, but why would they do that when they are closing everything else," Skokan said. He said company officials have assured him that work will continue for Progress Industries clients until closer to the time of plant closing.

1949 The company builds a second plant and celebrates the production of its 6 millionth washing machine in October. Sheltered workshop may T. BYJULI PR0BASC0-S0WERS REGISTER STAFF WRITER Newtown, la. Hands moved quickly to grasp bolts and large screws that would become the stabilizing legs on washing machines made by Maytag. Workers turned the bolts a few turns on to the screws, and another group of workers plugged the bolts into a machine to turn them on tighter.

Work and the related clamor went on as usual Wednesday at Progress Industries, where people in a sheltered workshop assemble, pack and make parts of Maytag. Set in buildings behind one of the Maytag plants, about 50 percent of the job done at the work 1953 The first spinning clothes dryer is produced. 1959 A ribbon is placed on Maytag's 12 millionth home laundry appliance, produced in August..