EMC Corporation, along with the Governor’s Office of Economic Development (GOED) Board, announced today that EMC will expand its operations in Draper, creating 700 jobs and an estimated $62 million in capital investment. The announcement came as part of a special board meeting held at the Capitol.
“Utah’s booming IT sector has gained national attention and continues to be an integral part of our economy,” said Gov. Gary R. Herbert. “EMC has been a major partner in building Utah’s Silicon Slopes, and we are grateful for their positive impact. We look forward to their future contributions.”
EMC, a leading provider of information technology focused on cloud computing, big data analytics, and security, operates one of eight global “Centers of Excellence” in Draper. The company’s Utah facility, selected for both location and access to a skilled workforce, provides a variety of IT and client services, including serving U.S. federal agencies and global customers.
“EMC is excited to continue our journey in Draper,” said Vance Checketts, Vice President and General Manager of EMC’s Utah operations. “We are extremely pleased with the progress the company has seen during the last several years, and the strong partnership we have formed with both community and government leaders. EMC prides itself on being an employer of choice, not only globally, but locally as well, and it was an honor to be recognized by Utah Business Magazine as a ‘Best Large Company to Work For.’ We look forward to continuing to strengthen our relationship with the community.”
EMC’s expansion plans to create 700 jobs in the next 10 years. The total wages, including medical benefits, in aggregate are expected to exceed 125 percent of the county wage. The projected new state wages over the life of the agreement are expected to be approximately $207.5 million. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $9.1 million over 10 years. The expansion is expected to generate an estimated $62 million in capital investment.
“Utah has experienced intense growth in the tech industry in recent years and EMC has been a significant part of that expansion,” said Jeff Edwards president and CEO of the Economic Development Corporation of Utah (EDCUtah.) “EMC could have chosen to go anywhere in the world but picked Utah. Their commitment to creating strong career opportunities in Utah has helped the state become one of the leading markets for tech talent growth.”
As part of the contract with EMC, the GOED Board of Directors has approved up to a maximum tax credit of $3,873,191 in the form of post-performance Economic Development Tax Increment Finance (EDTIF) incentive, which is 25 percent of the new state taxes EMC will pay over the 10-year life of the agreement. Each year as EMC meets the criteria in its contract with the state, it will earn a portion of the total tax credit incentive.