Weber clears way for steel firm

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OGDEN -- The Weber County Commission paved the way for 22 new jobs in the county Tuesday by approving a resolution for up to $5 million in bonds for U.S. Holdings Inc., a Florida-based manufacturer.

The company plans to start a production facility at 2382 Rulon White Blvd., in the Weber Industrial Park.

Renovation of the facility should start soon, now that the bond financing has been approved, said Brandon Johnson, attorney at Chapman and Cutler of Salt Lake City. Johnson's organization is serving as bond council for U.S. Holdings.

The new jobs will create $1.6 million in wages, according to a Utah Department of Community and Culture news release.

U.S. Holdings expects the local facility to increase employment to 45 within three years, Johnson said. The company produces metal products for the waste water and sewer industry such as manhole covers.

A growing customer base in the western U.S. made a new facility necessary for the company, Johnson said.

He said U.S. Holdings chose Weber County because the facility was economical, near freeways and centrally located between customers along the West Coast and in the Midwest.

Another draw was the availability of trained laborers in the county, he said.

"That is because of the applied technology schools in the area, which are training people on the machines used by the company," Johnson said.

The county commissioners had to approve the company's bonds because a private entity cannot issue tax-exempt bonds by itself, he said. Tax-exempt bonds have a better interest rate.

"Weber County agreed to issue the bonds as a conduit," he said. "Weber County has no obligation to pay the bonds."

If the bonds go into default, investors will have to go to the company for restitution, Johnson said.

Before being approved by the county, U.S. Holdings had to gain approval for a private activity bond through the state. Each state is allowed a limited amount of private bonds per year, Johnson said.

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