Members of the Governor's Office of Economic Development Board on Friday unanimously approved the incentive from the state's tax rebate program, which typically is reserved for companies that have not yet decided where they will expand. The board awarded the incentive even though the two companies' IM Flash Technologies partnership said months ago it would expand in Lehi.

In fact, it would have been puzzling if the company had chosen a location other than Lehi to house much of IM Flash Technologies, which will provide flash memory for consumer electronics, removable storage and hand-held devices. That is because Micron already owns a massive facility in Lehi built almost a decade ago that is nearly empty and can accommodate thousands of workers within a short period of time.

But GOED board members said the incentive is still more than justified, given the fact that IM Flash will have operations in Lehi, Boise and Manassas, Va. and could expand in any of those three cities - or even others if it wished.

"We approved the incentive to encourage them to base as much of their production in Utah as possible," said David Simmons, GOED board member.

In addition, Simmons said Lehi will be IM Flash Technologies' headquarters and that the average salary for the new jobs, in areas such as manufacturing, engineering, administrative and research and development, will be about $50,000 annually.

"These are the types of jobs Utah wants and needs," he said.

Dave Baglee, co-CEO of IM Flash Technologies, said using the Micron facility was an "obvious choice" but that the company easily could expand elsewhere.

The incentive helped "persuade us that Lehi was the right place for the headquarters," he said.

Under the terms of the deal with the state, IM Flash Technologies will receive an incentive equal to 30 percent of the state tax revenue it creates over a five-year period. The $15 million is an estimate based on $50 million in new tax revenue, Simmons said.

To keep the money, the state has required that IM Flash remain in Utah for a minimum of 10 years.

Micron acknowledged Friday that while it is adding 1,850 new jobs, it will eliminate a computer chip-testing operation in Lehi that employs more than 400 people. Those employees may find work at other Micron facilities or even remain in Lehi with IM Flash, Micron spokesman Stan Lockhart said.

lesley@sltrib.com

IM Flash Technologies

* What it is: A new company formed by Micron Technology Inc. and Intel Corp. to manufacture flash memory for use in consumer electronics and hand-held communications devices.

* What it means to Utah: During the next 18 months to two years, the company plans to add 1,850 new jobs in Lehi in areas such as manufacturing, engineering, administrative and research and development.

* Average pay: An estimated $50,000 annually