The Utah Board of Economic Development has approved a $900,000 loan to DOD Electronics, which manufactures sound-processing products.
Some $300,000 will come from the Industrial Assistance Fund, which is almost gone. The remainder will come from the fund after the Legislature replenishes it.Richard Nelson, fund administrator, said the Murray firm meets the requirements to obtain money from the $10 million fund. He said the company will increase the number of employees from 350 to 1,250. A primary requirement to obtain funding is creation of jobs.
Board members made it clear that DOD and its parent company, Harman International, will be jointly obligated for borrowing the money that will be repaid by tax credits. Also, any board member can review the contract once it is drafted.
The money will be paid out over three years and repaid in five years, Nelson said.
The DOD issue arose during last month's board meeting, but no action could be taken because two members of a subcommittee considering the request declared a conflict of interest. Developer Roger Boyer said he may be bidding to build a structure for DOD, and attorney Max Farbman said his law firm has represented Harman International.
In their place, chairman Ellis Ivory appointed Bonnie Miller and Hugh Pinnock to serve on the subcommittee.