The Governor’s Office of Economic Development (GOED) today announced Teem will expand its operations in Utah adding up to 250 jobs, $3.1 in new state revenue and up to $1 million in capital investment in Salt Lake City over the next five years.
“Teem is a great Silicon Slopes company and we are pleased they would expand and maintain their full operations in the State of Utah,” said Val Hale, executive director of GOED. “Over the next five years they will increase their business and provide high-wage positions here in the state of Utah.”
Founded in 2012,
“We have enjoyed tremendous success in Utah in large part because this is such a great place to find and attract talent” said Teem CEO Shaun Ritchie. “We are excited to work with Governor Herbert’s administration to continue to expand our team and create economic opportunity in the place we call home.”
Teem plans to create up to 250 jobs over the next five years. The total wages in aggregated are required to exceed 110 percent of the average county wage. Projected new state wages over the life of the agreement may be up to $$83,618,889, which includes wages, salaries, bonuses and other taxable compensation. Projected new state revenues, as a result of corporate, payroll and sales tax are estimated to be $3,104,351 over five years.
“Team Utah and I are thrilled at Teem’s decision to expand their existing presence in the state,” said Theresa Foxley, president and CEO of the Economic Development Corporation of Utah. “This announcement is yet another example of Utah’s strong tech sector and ability to bring and keep businesses for the long term. We are excited about the new opportunities that Teem will provide Utahns.”
Teem may earn up to 20 percent of the new state taxes they will pay over the life of the five-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 Teem, the GOED Board of Directors has approved post performance tax credit rebate not to exceed $ $620,870. Each year that Teem meets the criteria in its contract with the state, it will earn a portion of the total tax credit rebate.
The Utah Legislature has authorized economic development incentives in the form of post-performance tax rebates. The statute allows for up to a 30 percent rebate of state taxes over 20 years. The company is required to meet specific criteria outlined at the time the rebate is approved by the Utah Governor’s Office of Economic Development Board to claim the refund.