An aviation company’s plan to expand in Provo in 2008 was grounded by the recession, but the project expects to soon have clearance to take off.
Pending approval this week of an incentive from Provo City Council, Duncan Aviation will hire 700 people during the next 15 years in a $52 million expansion project. The company last week received approval from the Governor’s Office of Economic Development (GOED) board for a state incentive.
The expansion received a state incentive in 2008 totaling nearly $6.7 million but was halted when the economy soured.
“We’ve had a chance to date, you could say, before we got married,” Provo Mayor John Curtis said at last week’s GOED board meeting.
Privately owned Duncan services aircraft through airframe inspections, engine maintenance, major retrofits for cabin and cockpit systems, full paint and interior services and preowned aircraft sales and acquisitions. It has service facilities in Nebraska and Michigan, and its 21 other facilities includes one in Provo. Founded in 1956 and based in Lincoln, Nebraska, the company has more than 2,100 employees.
“It’s a significant investment for the state. It is a significant investment by Duncan,” said Jerry Oldroyd, chairman of the GOED board’s incentives committee. Curtis said the project “adds a new dimension to the airport that is fabulous.”
“Six years ago, 14 Duncan Aviation team members ventured west to start Duncan Aviation’s newest heavy maintenance location,” Bill Prochazka, chief operating officer of Duncan Aviation’s Provo location, said in a prepared statement. “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.”
The project is expected to generate $389 million in wages over 15 years and nearly $20 million in new state tax revenue during that period. The new state incentive includes a tax credit of about $5.6 million and $400,000 in an Industrial Assistance Fund grant to reimburse the company’s interest payments related to financing costs of pollution control equipment. The project represents the first use of SB186, legislation passed this year that allows Industrial Assistance Fund monies to help a company buy and install air quality control technology if the company is in a federally designated “nonattainment” area regarding air pollution.
The GOED board last week also approved a $318,124 tax credit incentive for Decorworx to expand in Cedar City, with the $11.5 million project creating 164 jobs over eight years. The new positions will include sales, engineering, design and craftsmen.
Founded in Cedar City 20 years ago, Decorworx specializes in customized décor that reflects a store’s brand and targeted demographics. Clients include Associated Foods Salt Lake, Affiliated Foods Midwest and Piggly Wiggly.
Jeff Dansie, the company’s president, told the board that the company originally planned to have the expansion in Louisiana. The company plans to redo a run-down facility in Cedar City for the project.
“As a result of our talented employees, Decorworx has been openly received nationwide,” Dansie said in a prepared statement. “We find daily inspiration from our lifestyle in Cedar City and the surrounding area. It enables us to create award-winning stores and true success for our clients.”
The project is expected to result in new wages of $29.3 million wages over eight years and $1.6 million in new state tax revenue during that period.
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