OGDEN -- Lofthouse bakery could expand its Ogden operation with the help of a state tax incentive.
The Governor's Office of Economic Development has offered a five-year tax incentive to Ralcorp Frozen Bakery Products, the parent company of Lofthouse, to add a new griddle to the existing production facility in Business Depot Ogden.
If it accepts the incentive and adds the griddle to make waffles and pancakes, the company would add 115 new full-time jobs during the next five years.
Lofthouse has two months to decide whether to accept the deal, but GOED communications director Michael Sullivan said, after a statement given by Ralcorp president Charles Huber, he is optimistic company officials will choose to expand in Utah.
"Ralcorp Frozen Bakery Products is pleased to be bringing more jobs to the Ogden area through this expansion," Huber said. "Having the state's and city's support on this project reflects our shared interests in strengthening the local community."
The expansion is expected to generate $15 million in new wages during the next five years. The state will get nearly $700,000 in new revenue.
The incentive would be a 20 percent rebate paid to the company from payroll taxes, state sales tax and the corporate income tax, Sullivan said.
The company must meet certain requirements, including being 125 percent above the average Weber County wage, before it gets the rebate, which is capped at $138,434 total for the five years.
Sullivan said such incentives are critical to attracting business to Utah and the state doesn't incentivize things that will already happen.
Incentives are offered to give an edge during the competitive process of bringing businesses to the state.
Lofthouse also was looking at a plant in Seattle for the expansion.
Although Utah is rarely the highest bidder in the incentive process, Sullivan said the state has such a good work force and central location that most businesses choose to come here.
"We're glad that they (Lofthouse) are expanding and expect there will be other companies out there that will be expanding as well," said Richard McConkie, Ogden's deputy director of community and economic development.
"And we're glad that the BDO is doing what we hoped it would by being a major employer and provider of jobs."
McConkie said the business depot has become a major economic force in the Top of Utah and the additional 115 jobs would be further proof of that.
Lofthouse has been in Ogden 15 years and currently employs more than 500 full-time employees.
Updated 12:12 a.m.
Lofthouse may expand Ogden operations
OGDEN -- Lofthouse bakery could expand its Ogden operation with the help of a state tax incentive.
If they accept the incentive, the company would add 115 new full-time jobs during the next five years, after adding griddle equipment to make waffles and pancakes.
The expansion is expected to generate $15 million in new wages during the next five years. The state will get nearly $700,000 in new revenue.
Lofthouse has been in Ogden 15 years and currently employs more than 500 full-time employees.
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