Two weeks ago Micron Technology Inc. was on the verge of announcing the site of its new $1.3 billion computer chip manufacturing plant. Now company officials say the announcement likely won't come until next week.
"It's a big decision and a big investment, and they're just taking their time to make sure they make the right decision," Micron spokeswoman Julie Nash said.Utah County, Nebraska and Oklahoma are in the running for the new plant that would employ about 3,500 workers at an average salary of about $30,000. The Boise company is looking at sites in north Utah County somewhere along the I-15 corridor, probably near Lehi.
Some Utah officials are speculating that Micron is waiting to see what incentive packages are approved by lawmakers in Nebraska and Oklahoma before making their final decision. Both legislatures are still in session.
On the final day of the Utah Legislature, lawmakers passed SB105, which gives manufacturing companies tax breaks on replacement equipment. Previously, only new equipment was exempt from sales tax. Most states have similar tax provisions, and supporters say the bill puts Utah on a level playing field when competing for manufacturing companies.
If signed by Gov. Mike Leavitt, the law will take effect over a four-year period. The bill will cost the state about $30 million it currently takes in on sales tax on equipment. The bill could save Micron more than $50 million.
Utah County representatives say they will help establish a redevelopment district of some sort to use Micron property taxes to purchase the 900 acres the company needs. The redevelopment district also will pay for roads and other infrastructure improvements to the Micron property.
However, state and local officials say Micron is not after the best incentive package. The company likes Utah's work force and the proximity to excellent engineering programs at Brigham Young University and University of Utah.
"They've never asked us for anything," Utah County Commissioner Gary Herbert said. "They're interested in Utah because of the many things that we all enjoy every day."
Micron says it will announce the site for its new plant at a press conference in Boise, after which company officials will travel to the new site for a ceremony with local officials.