Salt Lake Tribune
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GOED gives Barnes less
This is an archived article that was published on sltrib.com in 2007, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

After threatening to move its Ogden facility to Singapore, Barnes Aerospace was able to secure an economic development incentive offer from Utah for as much as $10.1 million.

But the Governor's Office of Economic Development Board said Friday the company now will get only one-fifth of that amount - an incentive worth only up to $2 million - after the company downsized its Utah expansion plans.

The company, a business segment of the Barnes Group Inc., has operated a plant in Weber County for nearly two decades that produces components used in the aerospace industry. It currently employs about 177 people.

"We are still expanding our facility and maintaining our presence in Ogden," said Stephen J. McKelvey, Barnes spokesman.

That expansion includes the addition of a 120,000-square-foot manufacturing facility now under construction in Ogden and scheduled for completion early next year.

According to applications Barnes filed with the state, the original expansion included as many as 900 jobs; the company said in recent filings it would add 474 jobs.

Not only is the company adding fewer jobs, but the average pay for those jobs also is less than it had originally envisioned, according to information the company filed with the state.

Last year, the company said jobs added in Ogden would pay an average of 70 percent more than Weber County's median wage. In its most recent filing, the company said its average annual wage will be $35,350, which is about 43 percent above the median wage.

The reason for the fewer jobs and lower rate of pay is that Barnes has decided not to move a business unit from Lansing, Mich., to Ogden that employed many highly paid engineers and researchers, state officials say.

Board member Jerry Oldroyd called the reduced $2 million incentive announced Friday a "reasonable compromise" between the state and the company.

The terms of the deal with Barnes has changed in other ways. Under the terms of the deal approved last year, Barnes would have received $1 million in cash from the state's Industrial Assistance Fund after it moved into its new Ogden facility and began expanding there, with the remaining $9 million over two decades as a partial rebate of taxes the company pays in Utah.

Under the terms of the deal announced Friday, Barnes would get no cash from the Industrial Assistance Fund after it completes its new building. Instead, the company will get up to $2 million as a partial rebate of taxes the company pays in Utah over 15 years.

More incentives given

The Governor's Office of Economic Development Board also approved the following incentives:

* Up to $2.73 million to Thermo Fisher Scientific (formerly HyClone) for an expansion of nearly 200 jobs in Logan. The incentive is a partial rebate of taxes the firm pays in Utah over 10 years.

* Up to $150,000 to the Silverstein/Barder Co., which plans to film a movie called "The Cusp" in Utah. The movie is about a serial killer and a woman who can "see inside" of the killer's mind.

* Up to $253,833 to Braveart Films LLC, to produce an unnamed film in Utah about a group of teenagers in the 1970s.

* Up to $150,000 to The Movie Co., to produce a movie called "The Oreska Band" in Utah. The movie, by the same company that produced both "High School Musical" movies, is about a popular Japanese band comprised of women.

Incentive reduced after aerospace company scales back Ogden plan
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