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State economic-development officials are offering tax incentives worth almost $12.6 million to five companies that pledged to create almost 1,600 jobs in Utah.
The tax breaks are projected to generate $65 million in state and local taxes and pay out wages exceeding $600 million during the lives of the various agreements, approved by the Governor's Office of Economic Development board on Thursday. The rebates are provided after recipients reach contractually established goals.
Young Living Essential Oils, founded in Riverton but now based in Lehi, received the largest incentive almost $8.8 million over seven years to expand its global headquarters and manufacturing and distribution facilities, a venture the company said will involve a capital investment of $82 million.
Founded in 1993 by Gary Young, the company sells essential oils it claims are more therapeutic than chemically altered or adulterated oils. A multilevel-marketing organization, its website says it now has operations in Australia, Europe, Canada, Japan and Singapore.
The expansion will add 445 jobs, which will pay out $174 million in wages and benefits, and generate $44 million in corporate, payroll and sales taxes, GOED calculated.
Also offered rebates were:
• MaritzCX, a company created recently when Maritz Research purchased South Jordan-based Allegiance, a software company whose technological platforms will be meshed with Maritz's strategic consulting services to give clients almost instantaneous information about the wants and needs of their customers. The integrated company expects to add 425 jobs, which will pay a projected $268 million over the seven years of the contract. MaritzCX's tax yield is projected at $10.3 million.
"This is a huge win for Utah," said GOED board member Jeff Edwards, president and CEO of the Economic Development Corporation of Utah. "It's also a direct reflection on Utah's presence as a leading technology hub in the U.S."
• AAA, which provides automotive, insurance and travel assistance to 53 million Americans (including 175,000 Utahns), is looking to develop a "member-support center" in Utah with help from a state incentive of $862,000 over seven years. The company plans to invest $20 million into the facility and to create 580 jobs, which GOED projected will pay $113 million in wages and boost tax coffers by almost $5.8 million.
• JSI Store Fixtures, Inc., a family owned company out of Maine that designs and manufactures merchandising displays for the supermarket industry, received an incentive of $558,500 over five years to build a $1 million manufacturing facility in Payson. "The Payson facility gets us closer to our target customers in the western United States," said JSI President Terry Awalt, citing reduced freight costs and better sales from shorter lead times to deliver products.
The facility will create 87 jobs paying about $16 million while producing $3.7 million in taxes for state and local governments.
• Armada Skis will relocate its headquarters from Costa Mesa, Calif., to Summit County with help from a $355,000 state incentive redeemable over eight years. Armada plans to establish a research and development center, a showroom and a distribution facility at its new headquarters, anticipating an investment of $500,000.
The 56 jobs that will be created to design, market and distribute skis, poles, outerwear and accessories will generate $32 million in wages and $1.8 million in new state taxes, GOED's Sullivan said.