CLEARFIELD -- Officials have approved a plan that will give a national company $14 million in incentives to expand its local facilities and bring in an estimated 800 jobs.
Alliant Techsystems Inc. (ATK) is making a substantial investment in Clearfield by expanding its current operations. The operations will occupy 96 acres on multiple sites. ATK already has several facilities in Clearfield involved with aerospace and armaments.
The 802 jobs expected to be created during the 20 years of the contract will have an average wage that exceeds 125 percent of the Davis County wage for each year. For 2010, the wage rate is $35,831.
It's planned that more than 50 percent of the jobs will be created in the first five years of the expansion program.
With the prospect of new jobs, increased tax revenue and ripple effects on the local economy, city officials say it is an investment that needs to happen. Without the requested tax incentives, the expansion would not occur in Utah, company officials said.
That is why the city has agreed to assist by giving incentives to ATK for its investment in Clearfield and the surrounding area. The city council approved an ordinance this week that adopts the economic development project area for the ATK project.
It was already approved by the Clearfield community development and renewal agency.
Interim City Manager Adam Lenhard said ATK is giving a significant investment that will be a major boon to the area. That's why, he said, the local taxing entities were willing to give this incentive.
"We want to give them incentive to create this project," Lenhard said. "It is a huge project. All of this investment results in increase in the assessment of property, which creates new taxes."
The incentive will last up to 20 years or $14 million. Lenhard said the amount is all based on the company's investment. The expansion is expected to create roughly $56 million in new property tax revenue.
"If they don't make the investment, they don't get the incentive," he said. "It is a post-performance incentive."
With the project area approved, the measure will go to all the involved taxing entities. Once those entities give approval, the project area becomes official.
Clearfield's recent approval was among the first steps for this to come to fruition.