From Deseret News archives:
Spanish Fork OKs economic plan
Development to bring jet manufacturer to site north of airport
The North Airport Economic Development Project Area was put in place largely because of a tentative deal with a tenant for the project — Spectrum Aeronautical, which would manufacture 10-passenger business jets on the site.
Scott Wood, a spokesman for Spectrum Aeronautical, said planes made by the company will burn 450 gallons of fuel per hour, a drastic reduction from similar models on the market that burn 1,100 gallons per hour.
He said the company conducted a "very successful" test flight in January and is working hard to finalize a deal with Spanish Fork to build a new facility here.
Wood said Spectrum hopes to begin by making four planes per month, then step that up to as many as 200 annually over an extended period of time, but exact production forecasts were difficult to make, he said.
"We're really at the mercy of the market, and we really can't speculate much as to what those numbers could be," he said.
The Spectrum facility is projected to add 500 jobs and $18 million in annual payroll to the local economy by 2015.
"There will also be other companies that will locate into this area because of his company being here," said David Oyler, city manager. "These are quality jobs . . . this is a good project for our community and it will improve the economic base of our city to have these types of job here."
An economic development plan like the one created by Spanish Fork provides that all the tax revenue generated by developments within a designated area over a given amount of time to go directly back into that area in the form of tax incentives to attract new business and for needed infrastructure such as roads and sewer.
State law allows cities to create an economic development project area if it can be shown that the project will be economically viable and serve the public by improving the local and state economy. The law also requires the city to set aside 20 percent of all funds generated during the project period for income-based housing development.
The new project area will last for 15 years, or until it generates roughly $7.7 million in taxes, after which point the taxes from the area will be distributed normally.
The project will officially go into effect when businesses in the area begin paying taxes, which could be anywhere between 2007 and 2010, depending on how fast companies move in.
Spanish Fork Mayor Joe Thomas said the tax incentives given to businesses within an economic development area are necessary to make the project work. The city's Redevelopment Agency, basically the mayor and city council, approved the proposed plan.
"Fundamentally, I am opposed to giving back tax dollars for this, but we live in a world where we have no choice but to do it because other states are willing to do so and we have to compete," he said. "In the long run, it turns out to be a good investment for the city."
E-mail: jtwitchell@desnews.com
