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A financial-services company in Draper and an aerospace-parts manufacturer in St. George received state tax incentives worth nearly $1 million Thursday from the Governor's Office of Economic Development (GOED) board.
The board offered HealthEquity, Inc. a tax break of up to $570,000 if it lives up to plans to add 200 jobs over the next six years as it expands operations in Draper.
RAM Co. in St. George earned a $373,000 incentive from GOED for a plan to invest $11 million into its aerospace-parts development plant and to create 139 new jobs over the next eight years.
"Nearly two-thirds of incented companies have Utah ties prior to receiving an incentive," said GOED Executive Director Val Hale.
Board member Jerry Oldroyd said HealthEquity already has established an impressive presence in Utah with 30 percent annual growth building health savings accounts.
Future prospects look even better, he added, noting that HealthEquity recently acquired another company and its 170,000 accounts, valued at $400 million.
Servicing those clients will be the duty of the 200 new employees, who will be paid 110 percent of the Salt Lake County average. That will generate $66.6 million in new wages, along with $2.8 million in new tax revenues.
HealthEquity also has said it will invest $6.75 million into its Draper facility.
"This great state offers a highly skilled and educated talent pool, proactive communities and a government that promotes business," said HealthEquity President and CEO Jon Kessler. "These amenities have been central to our continued growth."
RAM has been active in St. George since 1975.
While it did a lot of work for the U.S. space program at one point, GOED board member Stefanie Bevans said its focus now is primarily on the aerospace industry, making solenoids, check and relief valves and solenoid valves.
"Manufacturing jobs are important," said RAM Co. President Kevin Ganowsky. "Thanks for recognizing RAM as an important part of Washington County's economy."
With its $373,000 incentive, RAM expects to create 139 jobs over the next eight years. Paying about 110 percent of the county average, these jobs are projected to produce $25.6 million in new state wages and nearly $1.9 million in new tax revenues.
"RAM is an important part of our city's economic fabric," said St. George Mayor Jon Pike. "We're thrilled to see them earn so much success and are pleased with their decision to continue growing at home."
Observed Jeff Edwards, president/CEO of the Economic Development Corp. of Utah, which works closely with GOED to recruit and retain businesses: "In economic development, like all business, out best clients are our existing clients."