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United Parcel Service will get almost $5 million from the state as part of its plan to build a $200 million regional package operations facility in Utah.
The Governor's Office of Economic Development board approved a post performance, $4.76 million tax-credit rebate to help the delivery company expand its Utah presence with 195 high-paying jobs.
UPS already has 3,500 employees in the state, where it has handled packages, heavy freight and contract logistics since 1975.
Company officials said the new facility, whose location remains to be determined, will enhance UPS's ability to deliver products to surrounding states.
"Salt Lake City and the Utah economic development team have been wonderful collaborators to address UPS growth," a UPS statement said. "We're finalizing project details … and look forward to our continuing partnership with the community."
GOED Executive Director Val Hale said Utah was well positioned in many respects to provide what UPS was looking for.
"Our state provides a hard-to-beat strategic location for serving the western United States," he said. "We have a thriving workforce. UPS will benefit from choosing Utah for this expansion."
GOED's incentive package is built around UPS creating 195 jobs over an eight-year period. Those jobs are expected to pay 110 percent of the average Salt Lake County wage, adding up to $106 million during the life of the agreement.
New state tax revenues are projected to be $23.8 million, said GOED spokeswoman Aimee Edwards.
Salt Lake City Mayor Jackie Biskupski applauded UPS's decision to develop the facility in her community.
"As the 'Crossroads of the West,' Salt Lake City is a good fit for UPS to serve the needs of millions of customers," she said, noting that UPS delivers 18 million packages daily to more than 6.1 million customers in 220 countries.
UPS also is a good fit for Salt Lake City, Biskupski added, "with its strong commitment to diversity, a culture of empowering employees and a willingness to lead on sustainability issues."
Likewise, Economic Development Corporation of Utah President Jeff Edwards said "this project highlights the power of partnerships and demonstrates what 'Team Utah' does best."
Finance firm expanding
Snap Financial is going to expand its corporate and customer-service operations in Utah, adding 142 jobs with help from a $564,000 state tax incentive.
The four-year-old company provides lease-purchase financing on durable goods for consumers around the country. Over the five-year period of the agreement, Snap Financial plans to invest $2.5 million into the new facility, pledging to pay the new employees 110 percent of the county average.
Those new wages are expected to add up to $33.5 million. Another $3.8 million in taxes will be generated for state government, said GOED spokeswoman Aimee Edwards.
While the company currently has operations at 1760 W. 2100 South, she noted that Snap Financial has not selected a specific site for the expansion.