Investments • State offers $27.5 million in tax credits to secure pledges.
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Three companies will receive tax credits from the state of Utah in return for creating almost 1,100 jobs over the life of their agreements with the Governor's Office of Economic Development.
1-800-Contacts will get a post-performance credit of $8.8 million to support an expansion of its corporate headquarters in Draper, GOED's board of directors agreed Thursday.
Under its agreement, the company will create 654 jobs over 15 years. The jobs must pay at least 125 percent of Salt Lake County's average annual wage. That works out to about $59,000, according to U.S. Bureau of Labor Statistics figures.
1-800-Contacts plans to invest $59 million in the expansion.
Last year, WellPoint Inc., one of the largest U.S. health insurers, bought the contact lens retailers from private equity firm Fenway Partners. Brian Bethers, president of 1-800-Contacts, said WellPoint usually centralizes legal, human resources and other administrative duties after an acquisition. But in the case of 1-800-Contacts, it decided to leave those functions in Utah.
"They've agreed to keep here in the state of Utah with 1-800-Contacts all of our corporate office responsibilities. So it means that we will be retaining here in Utah all the talent and educated employment force that we have and it will allow us to continue to grow," Bethers said.
Capital Access Network, a New York-based financial technology software firm, pledged 108 jobs within seven years in Salt Lake City after GOED's board agreed to provide a $2 million post-performance tax credit.
Capital Access plans to move its Boston-based subsidiary, NewLogic, to Utah's capital in a $1.9 million investment. NewLogic is a financial services company that makes loans to small businesses.
Wages will be at least 125 percent of the county's average annual wage.
Orem-based doTerra International, an essential oils maker, will create 330 jobs over 10 years. In return, the company will get a $16.7 million post-performance tax credit.
Wages must be at least 125 percent of Utah County's average annual wage. That's roughly $47,000, according to BLS figures.
Insted of expanding to another state, the company plans to move its headquarters to Pleasant Grove and will invest $60 million in the construction of a new corporate office.
"We are actually thrilled to stay here in Utah. We view that as a competitive advantage. We really do," doTerra President Dave Stirling said.
Promised jobs, for credit
1-800-Contacts • 654 jobs over 15 years, $8.8 million tax credit
Capital Access Network • 108 jobs over 15 years, $2 million credit
doTerra International • 330 jobs over 10 years, $16.7 million