Incentives OK'd for meat plant in Utah

An Iowa-based meat processing plant will be eligible to receive up to $2 million in Utah tax incentives in exchange for building a new $50 million plant in Pleasant View, Weber County, that will employ up to 500 people.

The Governor's Office of Economic Development board on Wednesday officially approved the incentives for West Liberty Foods. The incentives are conditioned on the company keeping its operations in Utah for a minimum of 10 years, offering health insurance to its employees and paying wages of at least 125 percent of the county median wage.

Mike Nelson, director of incentives and recruitment for the state of Utah, said West Liberty Foods' wages will average $29,900, about 139 percent of Weber County's median salary.

Nelson said the company likely would have located its new plant in Arizona had the incentives not been offered.

"The competitors in this process were Nevada and Arizona," Nelson said. "We were head-to-head with Arizona right up until Friday. This is one of those enticements that will bring them to the state and show that we care about their business and we want their company."

The tax incentive works as a rebate. West Liberty can receive up to a 30 percent annual rebate in what it pays in state taxes over a 10-year period for a maximum of $2 million. If the company pays no taxes, no rebate is given.

"We don't use dollars that are paid by Utah residents," Nelson said. "We actually rebate taxes that the company pays to the state."

West Liberty Foods plans to start construction on its new plant this year. Roughly 250 people will be employed in 2007, and 500 employees will be working at the plant sometime in 2008 in jobs ranging from meat packaging, transport, sales and marketing to supervisors and executive positions.

Nevin Limburg, Pleasant View city administrator, said West Liberty Foods will be the largest private employer in the city of 6,500 people and form an anchor to a new business park, which is bordered by I-15 on the west and U.S. 89 on the east.

"It means a great deal to the city," Limburg said. "This is our first major effort at building a significant tax base. We're going on the theory that you do that first with capital investment. It will offer many significant employment opportunities for people in the whole area."

West Liberty Foods is a private label and co-manufacturer of ready-to-eat sliced processed meat and poultry. Company representatives could not be reached Wednesday for comment on their Utah plans.

---

E-mail: danderton@desnews.com