Board of the Governor's Office of Economic Development
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Board of the Governor’s Office of Economic Development Governor’s Office of Economic Development Electronic Meeting – Zoom: https://us02web.zoom.us/j/83083749838?pwd=Tytma0pwY0RJV0RqVlEvM3JqM0Vldz09 By Phone: +16699006833,,83083749838# May 14, 2020 • 10:00 am – 12:00 pm AGENDA Welcome .................................................................................................... Mel Lavitt Motion on April 9, 2020 Meeting Minutes ............................................. GOED Board Incentives Report ....................................................................................... Mel Lavitt The Board will discuss public information about companies who have applied for incentives and vote on whether to approve the incentives, and if so, at what level. Three companies will be presented. Film Incentive Amendment................................................................ Virginia Pearce “Wireless” Office of Outdoor Recreation Grants ......................................................... Pitt Grewe 2002 Utah Children’s Outdoor Recreation & Education (UCORE) Grants 2002 Utah Outdoor Recreation (UORG) and Recreation Infrastructure (RRI) Grants GOED Update .............................................................................................. Val Hale Review of departmental activities and upcoming events Incentives Update ........................................................................... Tom Wadsworth Review of GOED’s new and existing corporate incentives projects EDCUtah Update .............................................................................. Theresa Foxley Overview of current and upcoming business development projects at EDCUtah Adjourn Meeting ....................................................................................................... 2020 GOED Board Meeting Dates In accordance with the Americans with Disabilities Act, individuals requiring special accommodation during this meeting should notify Larry Shepherd at 801.538.8770 prior to the meeting. January 10, 2020 July 9, 2020 February 13, 2020 August 13, 2020 March 12, 2020 September 10, 2020 April 9, 2020 October 8, 2020 May 14, 2020 November 12, 2020 June 11, 2020 December 10, 2020 GOED BOARD EXECUTIVE SUMMARY Anglepoint Group, Inc. May 15, 2020 Project Highlights Timeline: 2020 Target Industry: IT/Software Proposed Location(s): Utah County Capital Investment: $410,000 Jobs: 93 Average Wage: $75,000 Company Overview Anglepoint is the leading IT and Software Asset Management consulting firm. Software Asset Management (SAM) is an emerging business practice that involves managing and optimizing the software assets and applications in an organization. The goal is to limit IT costs and business and legal risks related to the ownership, licensing, and use of software and to maximize the productivity of end-users. Anglepoint helps large Fortune 500 organizations address specific needs for enterprise software through program strategy, tool selection and implementation and ongoing management of software licensing. Anglepoint is growing rapidly as the demand for software asset management has increased. In order to serve the needs of clients, the company must increase headcount significantly. This project is to expand Anglepoint’s operations in Utah by adding 93 high-paying jobs and additional office space in Utah County. This will double the current workforce in the State. Positions will include General Analysts and Tooling Analysts. These roles will include extensive on-the-job training. The company is highly interested in hiring Utah graduates in IS, Computer Science/Engineering, Statisctics, and IT. Incentives Committee Recommendation Total amount of EDTIF, post-performance refundable tax credit: $ 228,348 The amount represents the following percentage of new state revenues: 15% Number of years that incentive is approved for: 5 Years Jobs & Revenue Full time jobs over project lifetime: 93 New State Wages & Revenue: New State Wages over 5 years: $19,433,830 New State Revenue over 5 years: $1,522,323 Proposed Motion Approve Anglepoint, Inc. for an EDTIF post-performance refundable tax credit of up to $228,348 which represents 15% of the $1,522,323 of new state revenue, which may be earned over 5 years. • Total EDTIF incentive not to exceed $228,348 EDTIF post-performance refundable tax credit. • Annual EDTIF incentive amount based on 15% of qualified new incremental state tax revenues generated and receipted in the previous calendar year. • Total incentive not to exceed 15% of qualified new incremental state tax revenues over 5 years with a contractual recapture provision for any excess funds paid to the company. • Must meet new qualified employment projections, employee headcount at the stated wage 110% criteria at 50% for each project year. • Annual total project average salary of new employees (not each new position, this is an aggregate annual number) to be at least 110% of the average wage each excluding company contributed health insurance. • Must commit to keep operation in Utah for the length of the incentive period, 5 years. • Incentives are site specific and subject to local incentive participation. • Local incentive proposal must be presented and approved by the GOED Incentives Committee in order for company to be eligible for the incentive. • Only new state revenue and new jobs created after the GOED Board final approval date are eligible for this incentive. GOED BOARD EXECUTIVE SUMMARY GoHealth, LLC May 15, 2020 Project Highlights Timeline: 2020 Target Industry: IT Proposed Location(s): Lindon, UT Capital Investment: $10,000,000 Jobs: 1,159 Average Wage: $54,000 Company Overview GoHealth, LLC owns and operates a private online exchange for individuals and families to shop and compare health insurance plans. The company offers access to health, family health, dental insurance, and self-employed health insurance solutions; and provides information in the areas of health insurance by state, health insurance companies, Medicare options, and health savings accounts. It also provides call center outsourcing and exchange solutions; and technology and business process outsourcing services related to individual health insurance products. GoHealth, LLC was formerly known as Norvax, Inc. The company was founded in 2001 and is based in Chicago, Illinois with an additional office in Charlotte, North Carolina and Lindon, UT. GoHealth received an EDITF incentive from the State in 2018 to bring 363 jobs to Lindon. Since then, they have expanded rapidly and are already approaching the projected job count from the original application. As GoHealth expands operations in Utah, they will be hiring an additional ~1,100 employees. This will include an additional expansion of the licensed health and life insurance agents that were intended in the original application and an expansion of corporate operations. These new operations will include IT, tech, marketing, and HR. Incentives Committee Recommendation Total amount of EDTIF, post-performance refundable tax credit: $ 13,048,245 The amount represents the following percentage of new state revenues: 20% Number of years that incentive is approved for: 5 Years Jobs & Revenue Full time jobs over project lifetime: 1,159 New State Wages & Revenue: New State Wages over 5 years: $259,769,152 New State Revenue over 5 years: $65,241,225 Proposed Motion Approve GoHealth, LLC. for an EDTIF post-performance refundable tax credit of up to $13,048,245 which represents 20% of the $65,241,225 of new state revenue, which may be earned over 5 years. • Total EDTIF incentive not to exceed $13,048,245 EDTIF post-performance refundable tax credit. • Annual EDTIF incentive amount based on 20% of qualified new incremental state tax revenues generated and receipted in the previous calendar year. • Total incentive not to exceed 20% of qualified new incremental state tax revenues over 5 years with a contractual recapture provision for any excess funds paid to the company. • Must meet new qualified employment projections, employee headcount at the stated wage 110% criteria at 50% for each project year. • Annual total project average salary of new employees (not each new position, this is an aggregate annual number) to be at least 110% of the average wage each excluding company contributed health insurance. • Must commit to keep operation in Utah for the length of the incentive period, 5 years. • Incentives are site specific and subject to local incentive participation. • Local incentive proposal must be presented and approved by the GOED Incentives Committee in order for company to be eligible for the incentive. • Only new state revenue and new jobs created after the GOED Board final approval date are eligible for this incentive. GOED BOARD EXECUTIVE SUMMARY Malouf May 15, 2020 Project Highlights Timeline: 2020 Target Industry: Manufacturing Proposed Location(s): Nibley, UT Capital Investment: $120,000,000 Jobs: 1,195 Average Wage: $54,500 Company Overview Malouf is a bedding and furniture manufacturer and distributor headquartered in Logan, UT. The company offers products including mattresses, pillows, sheets, bedframes, etc. The company is traditionally a B2B retailer, but is moving into direct to consumer markets as well as pursuing new sales channels with big box retailers, and creating private label products for brands like Walmart, Target, and Macy’s. Products are also available through online channels and retail locations in the US and international specialty stores in over 20 countries. The company