Get breaking news alerts via email

Click here to manage your alerts
(Al Hartmann | The Salt Lake Tribune) People lined up in front of Cabela's in Lehi Friday November 29 to enter the store at 5 a.m. when the doors open. Many received prizes for waiting in line. Those towards the front of the line arrived on Thursday morning and camped out overnight. To pass the time a giant screen shows the popular "Duck Dynasty" show.
Cabela’s to open distribution center in Utah
Economic development » Tax incentives also will help Varian to expand X-ray plant.
First Published Jan 09 2014 02:22 pm • Last Updated Jan 10 2014 11:52 am

State tax incentives were approved Thursday to help Cabela’s build a distribution center in Tooele County and Varian Medical Systems to expand its X-ray technology manufacturing center in Salt Lake City.

The Governor’s Office of Economic Development board extended the financial assistance in hopes of aiding the creation of 1,250 jobs that will provide more than $430 million in new wages in the next 15 years.

At a glance

Search jobs online

O Find more about employment opportunities stemming from the state’s financial incentives:

cabelas.jobs varian.com

Redford project

The Utah Governor’s Office of Economic Development is giving GF Films LLC a tax incentive to produce a mini-series on “The West,” narrated by film star, Robert Redford, in the state. The post-performance tax credit will be in between $730,000 and $913,000.

Join the Discussion
Post a Comment

In addition, the two projects are expected to generate $38.4 million in new state taxes over that span.

Cabela’s, whose Lehi store is one of 50 the company operates across North America, has decided to build a "highly sophisticated" distribution center in Tooele to process freight and deliver products to consumers, company spokesman Wes Remmer said in a news release.

About 250 jobs will be created to run the center. To qualify for a post-performance tax credit worth almost $700,000 over the next 10 years, 85 of the new positions must pay at least 100 percent of Tooele County’s average annual wage, including benefits.

"We are happy to see such a major player in the outdoor industry continue to grow its presence in Utah," Gov. Gary Herbert said in the release. "The creation of Cabela’s Utah distribution center will strengthen our valued outdoor industry and create family-sustaining jobs in rural areas."

Randy Sant, who works on economic-development issues for Tooele County, said Cabela’s has not decided where to build the facility and is still looking at several locations.

He expects a site to be picked soon enough for the plant to meet a projected opening date in late 2015. In the meantime, Sant said, Cabela’s will work out of space it has leased.

The Varian deal is larger, looking to foster the addition of 1,000 jobs over the next 15 years. These jobs are supposed to pay 125 percent of Salt Lake County’s average annual wage, said GOED spokesman Michael Sullivan, and amount to $400 million over the life of the agreement.

GOED’s board approved a tax credit of $7.1 million over the 15-year period, about 20 percent of the $35 million in new tax revenues Varian is projected to generate over that span.

story continues below
story continues below

The company expects to spend about $40 million to add 120,000 square feet of manufacturing space to its existing operation, which covers 341,000 square feet.

The addition will include research laboratories, cleanrooms, administrative offices and space to make flat panel image detectors, lines of X-ray tubs and new business the company hopes to pursue, CEO Dow Wilson said in the release.

Noting that Varian has operated in Utah since the 1940s, he said "70 percent of the orders for our X-ray products come from customers outside the U.S., making us one of the Utah’s largest exporters."

Wilson added that Utah is "an excellent place to operate our business. Here we’re able to find the engineering and technical talent we need to fulfill our mission of making world-class medical products that are used to save lives around the world."

In both cases, Sullivan said, the companies will receive a portion of their tax credit each year they meet performance criteria specified in the agreements.


Twitter: @sltribmikeg

Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment

About Reader Comments

Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.