MONDAY, AUG 27, 2018  |  IN THIS ISSUE 

 
Iowa leaders remembered U.S. Sen. John McCain,  who died Saturday at age 81,  as a friend and inspiration despite a complicated history with the Hawkeye State . The Des Moines Register quoted Sen. Joni Ernst praising the Arizona Republican a "hero" and a "personal friend," while Sen. Chuck Grassley called him "tough and tenacious," adding his contributions would not be forgotten. But Mr.  McCain received a sometimes-cool reception from Iowans during his lifetime, including during his 2000 presidential run, in which he received  just 5 percent of Iowa Caucus votes after opposing ethanol subsidies. He fared poorly in the state again eight years later when he came in fourth in the caucuses - despite eventually winning the Republican nomination for president - and lost the state months later to  Democrat Barack Obama.

Even so, Mr. McCain loved Iowa, said David Roederer, the  Iowa chair of his 2008 presidential campaign. Mr. Roederer said the senator was a fan of the Iowa State Fair and one of his dearest friends was Col. George "Bud" Day of Sioux City, who helped nurse him back to health as a fellow prisoner of war in Vietnam.

Four months after parent company Bon-Ton Inc. announced it would close  all of its remaining Younkers locations, the chain has announced it will cease Iowa operations and shut down permanently this week. KHAK reports all stores will close Aug. 29.  The 162-year-old Iowa retail chain, which was born in  Keokuk in 1856 , is a victim of a retail apocalypse that has also struck Sears, Kmart and Toys R' Us, among others. Across the state, the closures span 16 Younkers stores and one Herberger's, leaving 890,000 square feet of empty space in Des Moines-area malls alone. In all, Bon-Ton sold 256 stores, including 49 Younkers, to a liquidation company after filing for bankruptcy earlier this year.

Iowa  officials will give the two companies managing the state's Medicaid program a 7.5 percent raise to continue running the health care program, which serves 680,000 poor and disabled Iowans. The state's share of the $344 million boost comes to about $103 million, the AP reports, with the federal government picking up the rest of the tab. State Medicaid Director Michael Randol said the new contracts will improve oversight of services provided by UnitedHealthcare and Amerigroup, but Iowa Democrats, who have criticized privatization of the federal health program for failing to save money, called the increase "a gut punch to Iowa taxpayers." UnitedHealthcare and Amerigroup have repeatedly claimed losing hundreds of millions due to reimbursement rates that fall below their costs, and Iowa's third Medicaid manager, AmeriHealth Caritas, left the program completely last year, citing unfavorable contact terms. 

Facing the likelihood it would lose one of the state's top development sites to eminent domain,  Hubbell Realty Co. has sold a prime piece of riverfront property to the federal government for construction of a $140 million federal courthouse. The Des Moines Business Record reports a purchase agreement was reached late last week for an undisclosed price.  The U.S. General Services Administration had twice stated its preference to build the courthouse on the site overlooking the Des Moines River, where private development had been viewed as key to connecting the many pieces of downtown and providing an overlook on a multi-million-dollar water trails project. In a statement, Hubbell CEO Rick Tollakson said his company entered the agreement with the federal government "under the threat of eminent domain," adding it was clear the sale was the best and only path forward.
Story5Musk's tease of taking Tesla private remains just that
 
More than two weeks after setting off a furor with a tweet suggesting he was taking Tesla private, the company's founder on Friday said the board had decided it would remain public. In a statement, Elon Musk said that after further reflection, privatizing the company would be "even more time-consuming and distracting than initially anticipated." Mr. Musk's announcement on Aug. 7 that he was considering taking the company private - made without the knowledge of the Tesla board, according to the New York Times - forced officials to halt trading of the company's stock and set off a media frenzy.

Although Mr. Musk claimed in his tweet to have funding secured, behind the scenes his team hustled to line up investors. The plan was rejected, the Wall Street Journal reported, when the team realized that some of the investors could be competitors like Volkswagen, and would likely put the company on a tighter leash than its current stockholders - "a merry band of electric car fanatics willing to look past Tesla's rickety finances and its struggle to master the skill of mass-producing automobiles."   
Give them a wake up call

Forward the FREE daily CBJ Morning Rush newsletter to your friends and colleagues, and share the feeling of being informed! Use our fast, one-minute subscription to the CBJ's newsletters  here, or check out our other subscription options  here. 

See something we missed? Send tips, leads, corrections, etc. to [email protected].

CommuteYour Morning Commute
Construction season is in full swing in the Corridor - drive with care, be nice to one another. See the DOT's interactive road conditions map here. 
 
Links as of 7 a.m.