UPS specializes in delivering packages but last week received one that could mean 1,500 jobs for Utah. The company was approved for a tax credit incentive package from the Governor’s Office of Economic Development (GOED) board, tied to a $207 million expansion in Salt Lake City and 195 new jobs over eight years. GOED officials said the project could result in 1,500 other, non-incentivized full- and part-time jobs at the facility.
UPS specializes in delivering packages but last week received one that could mean 1,500 jobs for Utah.
The company was approved for a tax credit incentive package from the Governor’s Office of Economic Development (GOED) board, tied to a $207 million expansion in Salt Lake City and 195 new jobs over eight years. GOED officials said the project could result in 1,500 other, non-incentivized full- and part-time jobs at the facility.
The board also approved an incentive for Snap Finance in a Utah headquarters project expected to create 142 jobs.
Jerry Oldroyd, chairman of the board’s incentives committee, said UPS wants to create a “mega-hub” to serve a multi-state region. “It’s a huge employment center, it’s a huge capital investment, and it’s a great opportunity for the state and for the city,” Oldroyd said.
Founded in 1907, UPS delivers more than 18 million packages a day to more than 6.1 million customers in 220 countries worldwide. The company first began operations in Utah in 1975 and currently employs more than 3,500 workers across the state in package, heavy freight and contract logistics operations.
The board approved a tax credit incentive for UPS totaling up to nearly $4.8 million. Oldroyd said Utah faced competition for the project from Arizona, Colorado and Idaho.
“UPS has a strong presence in Utah with a large network of facilities and a productive workforce,” said Val Hale, GOED’s executive director. “Our state provides a hard-to-beat strategic location for serving the western U.S. We have a thriving workforce, and UPS will benefit from choosing Utah for this expansion.”
Wages for the 195 incentivized jobs are expected to total $106.2 million over eight years, and new state tax revenues are projected at $23.8 million during that period. Oldroyd said the wages are expected to be twice the Salt Lake County average.
“We are thrilled to have an exceptional employer like UPS choose to make such a substantial commitment to Salt Lake City and the state of Utah,” said Jeff Edwards, president and chief executive officer of the Economic Development Corporation of Utah. “This project highlights the power of partnerships on several levels and demonstrates what ‘Team Utah’ does best.”
“As the ‘Crossroads of the West,’ Salt Lake City is a good fit for UPS to locate a facility to serve the needs of millions of customers,” said Salt Lake City Mayor Jackie Biskupski. “Likewise, with its strong commitment to diversity, a culture of empowering employees, and a willingness to lead on sustainability issues, UPS is a good fit for Salt Lake City.”
The Snap Finance incentive is tied to a $2.5 million customer service and corporate operations expansion in West Valley City, where the company is based. Founded in Utah in 2012, the company provides lease-purchase financing on durable goods for sub-prime credit consumers across the nation who buy furniture, mattresses, tires and electronics.
“We appreciate GOED and the state of Utah supporting our rapid expansion and longer-germ commitment to the state,” said Matt Hawkins, Snap Finance chief executive officer. “We find Utah a compelling location with a favorable business climate. We are excited to build our team with both local and relocated talent.”
The $563,939 tax credit incentive is tied to creating 142 jobs expected to pay total wages of $33.5 million over five years and generate new state tax revenues of $3.8 million during that time.
“Supporting local business growth is one of the most important economic development investments we can make in the state of Utah,” Hale said. “This new addition strengthens our economy by offering residents diverse jobs in the growing financial-tech industry.”
GOED board member Christopher Conabee said Utah faced competition for the project from Costa Rica.