From Deseret News archives:

Incentives luring jobs to Utah

Williams to hire 156; BD Medical may add 325

Published: Friday, May 7, 2004 9:35 p.m. MDT
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Williams International will add 156 full-time jobs in Ogden, and a state board is hoping a monetary lure will entice BD Medical to add 325 more in Sandy.

The state Board of Business and Economic Development on Friday approved financial incentives for both companies.

Williams will get a rebate of a percentage of new incremental state tax revenues over the 2003 baseline during a 20-year period as it adds 156 jobs to manufacture jet engine product lines.

The level of the rebate depends on the company identifying Utah as its "preferred product location" for aviation products. If Williams puts aviation production activities outside Utah during the first 10 years of the relationship without the board's approval, both the rebate percent and length of the rebate period would be significantly reduced.

Board member Barbara Zimonja said the agreement is structured "mostly to incentivize Williams to always stay in Utah, and I think that from the conversations we've had, I think that our goals are the same."

Williams' engineering and administrative headquarters are in Walled Lake, Mich. The company has more than 300 employees in Ogden at operations near the Ogden-Hinckley Airport.

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In late 2002, state and local officials were disappointed to learn that the company had committed to put a $268 million jet engine manufacturing and service facility in Huntsville, Ala., instead of Ogden. Lloyd McCaffrey, director of manufacturing technology, said Friday that the Alabama operations never materialized, although the company's Web site says it "now plans a third manufacturing center" in Huntsville.

The BD Medical incentive could total more than $1 million in Industrial Assistance Fund money. The Sandy-based company was approved for $3,000 per new position that is between 125 percent and 200 percent of the Salt Lake County median, and $4,000 for each new job paying higher than 200 percent of the county median.

BD has about 1,200 employees in Utah.

Zimonja said Utah is competing with another state with perhaps a larger incentive than Utah's. Michael Halladay, plant manager for surgical and infusion therapy systems, said two locations outside the United States also are vying for the expansion.

"I know it's very good," he said of Utah's incentive. "I'm not sure I could measure it against the other state, but I know this state has been extremely willing and helpful to work with and help us, as has the county and Sandy city both. We're working with them right now on additional incentives. We'll see how it stacks up."

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