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News Room

Duncan Aviation Expansion Moves One Step Closer

July 14 2016 - 12:02 pm

News Release
For Immediate Release

Contact:
Aimee Edwards, GOED Communications Director
801-538-8811
edwards@utah.gov

Lori Johnson, Duncan Aviation Marketing Communications Manager
402-479-1518
lori.johnson@duncanaviation.com

Duncan Aviation Expansion Moves One Step Closer
The company will make a significant investment in Utah County, pending a Provo City Council vote next week

SALT LAKE CITY (July 14, 2016)—The Governor’s Office of Economic Development (GOED), along with Duncan Aviation, is pleased to announce that the aircraft maintenance company is moving closer to expansion at its Provo location. The proposed expansion will add up to 700 jobs and include more than $50 million in capital investment over the coming years.

“This expansion will enhance Utah’s global presence, given Duncan Aviation’s unique corporate connections,” said Val Hale, executive director of GOED. “Duncan Aviation is a well-respected, family owned company that has invested in Utah for some time. They will continue to be a major reason Utah is no longer viewed as a ‘flyover state.’”

Duncan Aviation is the largest privately owned business jet support facility in the world. Founded in 1956 and headquartered in Lincoln, Nebraska, the business aircraft service company has two other full-service locations in Battle Creek, Michigan, and Provo. It maintains more than 20 other facilities in the U.S., supporting aviation needs of government and business operators worldwide. Today, Duncan Aviation has more than 2,100 employees. The Provo expansion marks significant growth for the company, where new jobs will include positions ranging from aviation engineers to machinists and managers.

“Six years ago, 14 Duncan Aviation team members ventured west to start Duncan Aviation’s newest heavy maintenance location,” said Bill Prochazka, chief operating officer of Duncan Aviation’s Provo location. “We were met with enthusiasm and professionalism from every direction through our discussions with the state, Utah County and Provo City. Today, we are 40 strong, on our way to 400 plus. It’s an exciting time to be in the business aviation maintenance, repair and overhaul (MRO) sector, and to be a part of this great company as we provide high quality and responsive service to corporate business jet operators from around the world.”

Duncan Aviation has indicated that the expansion will create up to 700 jobs over the next 15 years. The total wages in aggregate are required to exceed 110 percent of the Utah County average wage. The projected new state wages over the life of the agreement are expected to be approximately $389,092,501. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $19,857,070 over 15 years.

“Duncan Aviation is such an impressive organization, and the impact that this announcement will have on the state’s aerospace cluster is significant,” said Jeff Edwards, president & CEO of EDCUtah. “Economic development is a team sport, and without the unwavering commitment from so many people in Provo, Utah County, and the State we would not be celebrating today.”

Duncan Aviation may earn up to 30 percent of the new state taxes they will pay over the 15-year life of the agreement in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) tax credit rebate. As part of the contract with Duncan Aviation, the GOED Board of Directors has approved a post-performance tax credit rebate not to exceed $5,557,121. The board has also approved an Industrial Assistance Fund (IAF) grant of no more than $400,000 to help offset the cost of procuring pollution control device technology, as authorized under S.B. 186. Each year as Duncan Aviation meets the criteria in its contract with the state, it will earn a portion of the total tax credit rebate.

Duncan Aviation was previously approved for a similar incentive agreement in 2008, prior to the recession. This is a renewal of the project. Duncan Aviation’s expansion plan is pending official vote and approval from Provo City Council July 19.

“From the first meeting with Duncan Aviation representatives nine years ago, Provo City has been impressed with the caliber and quality of this great company,” said Provo City Mayor John Curtis. “We are pleased that Duncan is expanding their existing facility here in Provo. The quality and number of jobs that Duncan will create in Provo will benefit our residents and surrounding communities in Utah Valley. We are especially appreciative of the efforts of former Mayor Lewis Billings and both past and present Provo Municipal Councils, the Provo School District, Utah County and the Central Utah Water Conservancy District to make this project possible.”

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About the Utah Governor’s Office of Economic Development (GOED)
Web: business.utah.gov
The Governor’s Office of Economic Development (GOED) charter is based on Governor Gary Herbert’s commitment to economic development statewide. Utah’s economic development vision is that Utah will lead the nation as the best performing economy and be recognized as a premier global business environment and tourist destination. The mandate for this office is to provide rich business resources for the creation, growth and recruitment of companies to Utah and to increase tourism and film production in the state. GOED accomplishes this mission through the administration of programs that are based around targeted industries or “economic clusters” that demonstrate the best potential for development. GOED utilizes state resources and private sector contracts to fulfill its mission. For more information please contact: Aimee Edwards, 801-538-8811 or edwards@utah.gov.

About Duncan Aviation
Duncan Aviation is an aircraft service provider supporting the aviation needs of government and business operators and other service providers. Services include major and minor airframe inspections, engine maintenance, major retrofits for cabin and cockpit systems, full paint and interior services and preowned aircraft sales and acquisitions. Duncan Aviation also has international aircraft components solutions experts available 24/7/365 at +1 402.475.4125 who can handle any aircraft system problem with immediate exchanges, rotables, loaners or avionics/instrument/accessory repairs and overhauls. Complete service facilities are located in Lincoln, Neb., and Battle Creek, Mich. Additional locations include Provo, Utah, and more than 20 other facilities strategically located throughout the United States to provide customers with local support and the quickest response to avionics, engine and airframe Aircraft On Ground (AOG) situations.

For more information about any of Duncan Aviation’s services, call +1 402.475.2611 or visit www.DuncanAviation.aero.