CBS 2 uncovers the truth about I-Jobs, the $830 million program that is supposed to create thousands of jobs over the next three years. However, the jobs that are being created may not last much longer than that.

With just a click of the mouse, two business buddies are connected through video, internet conferencing. Russ Novotny makes a living out of it with his business, Virtual Interactive.

“Our whole idea is to provide very easy to use video conferencing services,” says Novotny, co-owner of Virtual Interactive.

Shannon Meyer, with the Cedar Rapids’ Chamber of Commerce wants to take business networking to the next level, six stories up, with a Regional Economic Commerce Center. The facility would house Priority One, the Entrepreneurial Development Center, the Chamber of Commerce and office space for businessmen like Novotny.

“The networking that would go on there, you can’t put a price tag on that,” says Novotny.

Meyers submitted the I-Jobs application to the Iowa Finance Authority asking for $12 million to build the business hub.

“This truly would have created jobs,” Meyers says.

“People are out there wanting to start businesses and if they’re doing it totally on their own, there’s a very good chance they are going to fail,” says Novotny.

However, while Governor Culver travels around the state presenting very large I-Jobs checks. One of those checks will not be delivered to the Cedar Rapids’ Chamber of Commerce for its plan to create jobs. Novotny says that is frustrating considering how hard it is for business owners starting out.

“Oh my goodness, it was so hard,” Novotny says. “I guess sometimes it is good you are looking forward instead of looking backwards.”

Iowa Governor, Chet Culver, says I-Jobs is all about investing in people and creating jobs. Davenport just received $9.6 million for a sewer project, Iowa City, $2.2 million for a new fire station, Coralville, $27 million for flood protection. The projects will create hundreds of construction jobs, jobs that are short term.

The flood protection plan for the First Avenue Corridor in Coralville will create 324 full-time temporary jobs and 169 permanent jobs. The Regional Economic Commerce Center would create almost one hundred more jobs.

"We were going to be creating an enormous amount of sustainable, long-term jobs, not just construction jobs. Construction jobs are great, don't get me wrong, I'm just saying these were going to be long term jobs," says Meyers.

Though many of the checks are just now going out, the I-Jobs application process is over. 135 applications went to Iowa Finance Authority (IFA) to look over. IFA determined whether the applicants met the minimum requirements. Those applications then went on to a Governor appointed board that scored the applications on a 20 point scale. Points were based on the following five criteria: job creation, financial feasibility, energy efficiency and sustainability, benefits for disaster recovery, and readiness to proceed. Each category is based on a 40 point scale, meaning, job creation only counts for 20% of a project’s score.

“It really feels as though I-Jobs’ focus is short-term jobs. It is about building right now, building something right away,” says Novotny.

Coralville was given one of the largest grants, $27 million to protect from future flooding. Many flooded city’s in Eastern Iowa turned to FEMA for flood mitigation. FEMA distributes federal dollars. There is more federal money than state money to hand out. CBS 2 asked Coralville’s City Manager, Kelly Hayworth, why take limited state dollars when federal money is available.

“There are limits to FEMA money in regards to mitigation efforts,” Hayworth says.

With $27 million, Coralville’s going all out. The city is widening clear creek bridge, reconstructing the storm sewers on First Avenue all the way down Sixth Street, also widening the road and creating a new wetland park East of the conference center.

Some, like Novotny, who are working hard to stay afloat during these economic times, says once again, those are all construction jobs. Novotny asks, where is the long-term? Hayworth says he sees int.

"It's really going to protect several businesses, commercial businesses, that wouldn't have reestablished if they didn't know flood protection would be provided," says Hayworth.

Governor Chet Culver argues the same. He says construction work now will create and environment for better jobs in the future.

"We are on the move and when we come out of this recession we are going to be in a better position than any state in the nation. We are going to have a modern 21st century infrastructure. That's what every business is looking for," says Governor Culver.

Of the 53 I-Jobs’ grants awarded, 21 scored at least 30 on the 40 point scale for jobs and economic impact. Governor Culver says the long-term jobs come later. The future for a Cedar Rapids Economic Commerce Center will have to wait.

IFA never gave the Chamber of Commerce’s application to the governor’s appointed board because even though the Regional Economic Commerce Center would have helped a lot of flooded out businesses, the Chamber’s building itself, was never flooded. The Chamber’s application was never scored because it is not a public building.

The Chamber of Commerce is still looking at ways to build its Regional Economic Commerce Center. However it has scaled back the plans. Instead of building a six story building, now, the plan is for only a three story building. There would be less office space for business owners but they would still be able to stay connected to Priority One, the Entrepreneurial Development Center and the Chamber. The Chamber is still looking for additional state and private dollars to fund the project.I-Job, What Jobs?