Moody’s: Impact is “credit positive” for 18 counties in the state.
Bakken Pipeline Underway in Iowa
With construction now beginning on the Bakken Pipeline, Moody’s Investors Service has announced the project is “credit positive” for all of the 18 counties along the pipeline route, according to the Des Moines Register. That’s good news for the counties’ revenues that will grow as a result, bad news for the farmers and other residents who are still opposed to the project.
The $3.8 billion pipeline project—which will extend across four states, from North Dakota to Illinois—is expected to generate increased property tax revenue, which accounts for 60-80 percent of each county’s operating revenues, in addition to a temporary increase in sales taxes, which accounts for 10 percent.
Of the 12,000 jobs the project is expected to create, 4,000 will be in Iowa alone. Dakota Access LLC, the company behind the project, estimates the state will receive $50 million in sales and income tax during construction, generating $24.7 million in local property taxes in 2017—funds that can reinforce reserves or be used to address capital needs projects.
According to Moody’s, of the 18 counties projected to benefit from the project, Sioux and Jasper stand to receive the greatest benefit, as the majority of the pipeline passes through these counties.
While the project promises to provide jobs and drive revenue growth, some in the state worry about the threat of oil spills and continued use of fossil fuels, and the use of eminent domain to gain access to the land has left many opposed to the pipeline.
