CLEARFIELD -- Officials moved forward with plans to give a local company $14 million in incentives to expand its facilities and bring in an estimated 800 jobs.
The community development and renewal agency, composed of city council members and the mayor, recently approved the ATK reimbursement and development agreement. This agreement formalizes the schedule for improvements to the project area, ATK's investment in the facilities and the CDRA's tax increment incentives associated with the project.
Previously, the board approved a budget for the economic development project area.
These efforts stem from Alliant Techsystems Inc., which made a substantial investment in Clearfield by expanding its current operations. The operations will occupy 96 acres on multiple Clearfield sites.
This investment, in excess of $100 million, will result in a significant number of new jobs in the community, said City Manager Adam Lenhard.
The 802 jobs that are expected to be created during the 20-year period 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 expected 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, officials say it is an investment that needs to happen. Without the requested tax incentives, the expansion would not occur in Utah.
Lenhard said this will be a major boon to the area.
"It is a huge project," he said. "All of this investment results in an increase in the assessment of property, which creates new taxes.
"If they don't make the investment, they don't get the incentive. It is a post-performance incentive."
He added that the recent approval of the agreement is the culmination of a lot of work.
Already, the project has been approved by all of the involved taxing entities.
"We are crossing our t's and dotting our i's right now," Lenhard said.
One of the next steps, which could happen this month, is to finalize a participation agreement between the city and ATK. This would finalize all the agreements for the project to happen.