Front Page September 28, 2007 Standard-Examiner Article Written by Scott Schwebke
Ogden may be new base
City, state relocation incentives may mean 695 more jobs here by 2013
B Y SCOTT SCHWEBKE
Standard-Examiner staff email@example.com
OGDEN - Adam Aircraft Inc. may relocate its assembly headquarters from Colorado to Ogden-Hinckley Airport - provided the city and state can help offset $12.5 million in relocation costs.
The move would bring 695 additional jobs to Ogden by 2013, resulting in nearly a $9 million financial investment by the company, said Richard McConkie, Ogden's deputy community and economic development director.
"It's an idea that we approached Adam Aircraft with," he said. "It seems to make sense for them. The area's labor pool, proximity to Hill Air Force Base and the tax climate in Utah add up to making Ogden an excellent location."
Adam Aircraft is leaning toward relocating all of its assembly operations for the A700 Adam Jet and A500 twinengine piston aircraft to Ogden because of Utah's friendly business climate and skilled work force, said Shelly Simi, spokeswoman for the Englewood, Colo.-based company.
However, negotiations are continuing. The state and Adam Aircraft officials plan to meet with Gov. Jon Huntsman in mid-October, Simi said.
Jason P. Perry, director of the governor's office of economic development, could not be reached Thursday for comment on the proposal.
Adam Aircraft currently has plane assembly facilities at Centennial Airport in Englewood and at Kemp Gateway Center, which is at the south end of Ogden-Hinckley Airport.
Relocation of Adam Aircraft's entire assembly operation to the Kemp Gateway Center would double the size of the company work force in Ogden to about 1,390 jobs over the next 10 years, McConkie said.
Dave Harmer, the city's community and economic development director, is attempting to offset some of Adam Aircraft's relocation costs by getting permission from the Ogden Redevelopment Agency to pledge $570,000 in tax increment to the company through 2021.
The state won't consider offering Adam Aircraft a financial incentive unless the city makes a contribution, he said.
The RDA board, made up of city council members, discussed the issue during a Thursday night work session but took no action.
The tax increment amount is based on the estimated valuation of $6 million in tools and equipment that Adam Aircraft would provide as part of the relocation, McConkie said.
If it relocates its assembly operations, the company also plans to make $2.8 million in improvements at the Kemp Gateway Center, he said.
The consolidated assembly facility would be housed in a new 96,000-square-foot building nearing completion at the Kemp Gateway Center.
At full production, Adam Aircraft expects to produce 10 to 12 A-700 jets and three A-500 planes monthly, Simi said.
She said the relocation would not affect Adam Aircraft's corporate headquarters, which would remain in Englewood.