A publishing and software company was awarded a tax-exempt bond that will help it move its operations from Orem to Springville.
Oldham Associates, which employs 263 people, secured a $7.5 million industrial development bond from the state Department of Community and Economic Development's Private Activity Bond Authority. Oldham Associates plans to renovate and move into a building in Springville's industrial park.Industrial development bonds allow existing Utah manufacturers to reduce borrowing costs by 2 to 3 percent, said Richard Nelson, director of the bond authority.
Oldham Associates owns the Utah County Journal newspaper, Liberty Press publishing company and Digital Technology International, a developer of newspaper industry software. The company plans to transfer all of its employees to Springville this year, as well as create 37 new jobs.
Representatives of Oldham Associates ensured the Springville City Council Tuesday night that if the company defaults on its bond payments, the city will not be liable. The city acted as conduit for Oldham Associates to obtain the tax-exempt financing from the state.
The Private Activity Bond Authority receives $150 million per year from the federal government to be used for industrial development bonds, for providing housing and for offering student loans.