The Governor’s Office of Economic Development (GEOD) announced Oracle plans to create approximately 351 jobs in the state of Utah over the next 10 years and will also open a new customer software support center in Salt Lake County. This new facility will be focused on supporting and responding to customers’ needs and helping them maximize their experience with Oracle products.
“Utah is becoming known as a tech hotspot thanks to the continued growth of well-respected companies like Oracle in Utah,” said Spencer P. Eccles, executive director of the Governor’s Office of Economic Development. “IT/software companies have chosen to locate or expand here because of the educated workforce, low operating costs and unparalleled quality of life the state offers, as well as the critical mass that Utah has created.”
Oracle develops hardware and software engineered to work together in order to meet customers’ business needs. The company is focused on helping enable its 400,000 customers in more than 145 countries around the world eliminate complexity and simplify IT. The company already employs workers across Utah and will add customer support service jobs to Utah’s workforce.
“We have been impressed by the high-tech growth in Utah and we’re pleased to be expanding our presence here,” said Oracle Vice President of Real Estate and Facilities Randy Smith. “The state offers a unique blend of potential economic growth as well as a highly skilled workforce. The opportunities in Utah are very clear and it’s the right place for us to grow.”
Oracle has indicated that they will be creating 351 new jobs over the next 10 years. The total wages, including medical benefits, in aggregate are expected to exceed 125 percent of the county average wage. The projected new state wages over the life of the agreement are expected to be approximately $238,959,392. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $11,318,407 over 10 years. The new Oracle facility has the potential to result in an expected capital investment of $6,142,500.
“EDCUtah is pleased to see the expansion of a global company like Oracle in Utah,” says Jeff Edwards, president and CEO of the Economic Development Corporation of Utah. “Oracle’s presence here further enhances our ability to grow the information technology industry and continue to attract first-rate technology jobs to Utah.”
As part of a contract with Oracle, the GOED Board of Directors has approved up to a maximum tax credit of $2,829,602 in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) incentive, which is 25 percent of the new state taxes Oracle will pay over the 10-year life of the agreement. Each year as Oracle meets the criteria in its contract with the state, it will earn a portion of the tax credit incentive.
About the Utah Governor’s Office of Economic Development (GOED) www.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 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: Michael Sullivan, 801-538-8811 or mgsullivan@utah.gov
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