Utah tax incentives prompt 2 companies to pledge jobs
The board of directors of the Governor's Office of Economic Development on Thursday approved tax incentives for two companies that pledged to create as many as 424 jobs in coming years, including one business that plans to repatriate some of its high-end manufacturing from China.
ENVE Composites Inc., an Ogden-based manufacturer of carbon fiber composite products, will get a $1.3 million post-performance tax break if it creates 342 jobs over seven years that pay at least 125 percent of the Weber County average wage.
CEO Sarah Lehman said 30 percent of the company's business is high-end bicycle components, including wheels, seat posts, stems and handlebars made in China. The company will bring that manufacturing to Ogden. ENVE also plans to expand its wheel manufacturing in Ogden, she said.
"This state incentive will allow us to aggressively compete with Asian manufacturing and begin the process of onshoring jobs from Asia back to Ogden," Lehman said.
ENVE already employs 70 people at its Ogden factory. The company was founded five years ago.
Lehman said hiring will begin almost immediately. Most of the positions should be filled within four years.
The company will pay $5.3 million in taxes and more than $63 million in new wages during the seven-year period, according to GOED.
ENVE has also pledged a $20 million capital investment in the expansion. The company hasn't decided whether to construct or lease another building in Ogden, Lehman said.
OrangeSoda Inc., a subsidiary of Minnesota-based Deluxe Corp., promised to create up to 100 additional jobs somewhere in Utah County over the next decade in return for a post-performance tax incentive of $535,849. The jobs will pay at least 125 percent of Utah County's average wage. It already employs 189 full- and part-time workers in the state.
The company will pay more than $44 million in new wages and $2.6 million in new state taxes over the life of the agreement.
OrangeSoda provides search engine marketing, website optimization and social media marketing services.
The company is looking at buildings in several Utah County cities. It will invest $5 million into the project.
In other GOED business:
• BBC Worldwide Reality Productions will receive a tax incentive of as much as $362,500. The company plans to film the second season of "Breaking Pointe," a reality TV series about Salt Lake City's Ballet West. The first season was filmed in Salt Lake City last year.
Breaking Pointe "goes behind the curtain of that ballet company and spends a season with them and their preparation, and [shows] what it's like to compete for parts in the ballet," said Marshall Moore, director of the Utah Film Commission.
BBC will film the show between Jan. 1, 2013 and March 2, 2013, with a crew of 24 people.
• Red Machine LLC will get a $105,000 post-performance cash rebate for filming part of an action movie in the Uinta mountains.
Most of the movie will be shot in Canada. The part filmed in Utah will feature Bart the Bear 2, son of Bart the Bear, an Alaskan Kodiak bear that lived in Heber City with its owners until 2000, when it died.
A crew of 35 began filming in the Uintas on Thursday. Work should wrap up on Oct. 17.
See more about comments here.