The Municipal Council has agreed to seek $10 million in industrial revenue bonds to help Weslo Corp. finance a new building for expansion and add to the company's 600-employee work force in Cache Valley.
Scott Barrett, city attorney, said Logan has used only $2.8 million in federal industrial revenue money in 1988, and the state's economic development office said it can probably get more because many cities did not use their allocations for the year.The council approved the request at an emergency meeting last week so it would be on the 1988 calendar year.
Wallace Smith, spokesman for Weslo, one of the nation's leading manufacturers of exercise equipment, said having the signatures on the resolution before the end of the year was important financially to the firm.
The council and the city administration worked to keep Weslo from moving after learning that several cities offered the company free land and other incentives to relocate.
Logan recently funded a study on the feasibility of creating a redevelopment district in southwestern Logan. It would contain an industrial park for Weslo and one or two other businesses.
More than 600 people are employed at Weslo, which has operations in several buildings throughout Cache County. Smith said more employees would be hired when a 200,000-square-foot building opens and production increases.
The business was started in 1979 by Scott Watterson, Gary Stevenson and Blaine Hancey Jr., all Cache Valley natives, but last spring Weslo was acquired by Weider Health and Fitness Corp. of Woodland Hills, Calif. The local men still run the company for Weider.