Government Incentives for Relocation and Expansion
Jones Waldo's Government Incentives for Relocation and Expansion Practice Group has the expertise to assist businesses desiring to locate or expand in Utah to obtain the maximum economic incentives available for constructing new facilities. We have substantial experience representing Fortune 500 and large private companies with the negotiation of the key business terms and covenants and the form of the agreements with local governments to receive the benefits.
One of the most significant tools cities and counties have to offer companies that may want to locate in Utah is Tax Increment Financing, which is a complex statutory scheme that permits in essence a rebate of a portion of real property taxes by a redevelopment agency under certain conditions. Because of our experience in representing a number of companies in transactions involving TIF, we can anticipate the likely issues and usually get them resolved favorably. We know the local players and how to effectively negotiate the best incentive package with the least onerous contractual requirements. We also represent the State’s largest redevelopment agency (Salt Lake City), and can bring to bear the general knowledge gained in doing those transactions on projects elsewhere.
We have also represented businesses in obtaining grants from the Utah Industrial Assistance Fund, financing also through industrial development bonds and exemptions from the state sales tax. We can advise on other existing incentive programs, such as job training. We helped one Fortune 100 company successfully get the State Legislature to create a new tax credit for machinery and equipment used for research purposes. In addition, we have the ability to get the best entitlement available for property and to get it as soon as possible. We can also effectively represent companies needing long-term development agreements with communities so that phased projects are possible.
Practice Group members have contacts with important officials in State government dealing with corporate relocation and environmental and other regulatory issues so that companies can get their issues heard and addressed, and with local organizations focused on company relocation.
Some of the most important recent projects on which members have assisted clients include the following:
- Negotiated tax increment participation agreement between Intel Corporation and a city’s redevelopment agency (RDA), pursuant to which the RDA agreed to reimburse Intel for a significant share of the site development and other infrastructure costs involved in developing a 127 acre site into a research campus, in consideration of meeting a number of economic development requirements. Also represented Intel in negotiating a development agreement with the city to allow the construction of five 320,000 square feet general purpose office buildings and two smaller tenant office buildings over a 20 year period.
- Negotiated agreement between a city and Wal-Mart regarding location issues for 1.2 million square feet regional distribution center, and a tax increment participation agreement with the RDA to reimburse the company for certain infrastructure and site development expenses.
- Negotiated tax increment participation agreement between Wal-Mart and a county RDA, pursuant to which the RDA agreed to reimburse Wal-Mart for a portion of the costs incurred in constructing a 875,000 square feet produce distribution center. Also represented Wal-Mart in negotiating a development agreement with the county with regard to development standards and county fees.
- Negotiated an agreement for a regional power company to acquire land from a city and to be reimbursed for certain costs of the $80 million electrical generating plant.
- Negotiated a tax increment participation agreement with a county RDA, pursuant to which the RDA agreed to make a grant to Packard Bell to reimburse it for certain site rehabilitation costs incurred in the construction of a technical support center.
AttorneysTom Berggren (Group Leader)
Paul M. Harman
James W. Peters
Keven M. Rowe
J. Blake Terry