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FiberTEK Insulation gets federal tax-free bonds to build plant
Grace Leong
A Tampa, Fla.-based fiberglass insulation maker is getting $10 million in federal tax-exempt bonds to build a 311,000-square-foot plant in Nephi, government officials announced on Tuesday.
FiberTEK Insulation LLC is building a $32 million production plant at 2726 S. Main St. in Nephi with help from a $10 million federal loan from the Private Activity Board, a Utah tax-exempt bonding authority. The company, which already has a 275,000-square-foot plant near Tampa serving its clients on the East Coast, is building the Nephi plant to serve the residential, industrial and commercial building industry in the western United States.
The company is hiring 99 workers for the Nephi plant.
"That's a substantial number of jobs for a small county like Juab, and it's just the beginning. The plant is projected to generate another 147 jobs in construction, sales and other fields," said Gordon Walker, director of the Utah Division of Housing and Community Development, which manages the Private Activity Board's tax-free bond program.
The Private Activity Board provides manufacturers with a low-cost source of financing for capital expenses, which in turn helps generate more jobs.
In addition to the $10 million bond incentive, FiberTEK also received funding from private investors, according to the state Division of Housing and Community Development.
"The city is also helping to establish water and sewer services to FiberTEK plant site and Juab County is improving a county road that serves the plant site," said Randy McKnight, Nephi's city administrator.
Last August, the company received an offer of a $4 million economic incentive package from the Governor's Office of Economic Development.
The state incentive includes a $1.25 million Industrial Assistance Fund grant, which will be awarded to FiberTEK once it has completed construction of its Nephi plant, hired its workers and begun production, said Mike Sullivan, a spokesman for the Governor's Office.
The company is now hiring managers, production line workers, process and electrical engineers, maintenance specialists and accountants for the Nephi plant, which is expected to be completed by this fall.
After the IAF grant is awarded, FiberTEK will also be able to request an Economic Development Tax Increment Finance, or EDTIF, rebate of up to $2.75 million. That's a rebate on corporate, payroll and sales taxes paid for up to 10 years on a post-performance basis.
With 99 workers earning an average of $16 an hour, it will be the sixth largest manufacturer in Juab County, Walker said.
According to Sullivan, FiberTEK will pay average wages of $30,855, 45 percent above the current Juab County median wage of $21,350.
The Governor's Office estimates the plant will bring more than $36 million in new wages to Nephi over the next 10 years, while state revenues will be boosted by $13.2 million. |
