The Governor’s Office of Economic Development (GOED) met today and has extended an incentive offer to AAA in consideration for the company’s plan to create up to 580 additional jobs over the next 7 years as they look to begin their first member support operations in Utah.
It is anticipated that the project will result in a capital investment of $20 million and a minimum of 290 new, full time jobs that qualify well above the 125% required threshold as well as another ancillary 290 full time positions that are not included in the incentive calculation.
“Having AAA here in Utah is a win for all parties involved since the tourism industry is such a key part of our economy.” said Val Hale, GOED executive director. “More high-quality jobs will be created—helping to further economic growth, AAA customers will have better service, and AAA will contribute in a meaningful way to ‘Life Elevated® for those people who are serviced by our friendly and productive workforce.”
Established in 1900, AAA offers a wide array of automotive, travel, insurance and financial services. In North America, AAA operates 44 motor clubs with more than 1,100 offices, serving more than 53 million members throughout the United States and Canada.
As the third-largest regional member club of the national organization, AAA serves more than 4 million members in Northern California, Nevada and Utah.
“Utah is on the rise and continues to attract outstanding companies like AAA,” said Jeff Edwards, president and CEO of the Economic Development Corporation of Utah (EDCUtah.) “AAA is a globally recognized brand that will play a vital role in Utah’s ability to grow its economy.”
AAA has indicated that they plan to create up to 580 over the next 7 years. For 290 of those jobs, the total wages, including medical benefits, in aggregate are expected to exceed 125 percent of the county average wage. The remaining 290 full time jobs that are below the requirement are not included in the incentive calculation. The projected new state wages over the life of the agreement are expected to be up to $112,946,673. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be up to $5,750,969 over 7 years.
As part of a contract with AAA, the GOED Board of Directors has approved up to a maximum tax credit of $862,645 in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) incentive, which is 15 percent of the new state taxes AAA will pay over the 7-year life of the agreement. Each year as AAA meets the criteria in its contract with the state, it will earn a portion of the tax credit incentive.