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GOED: Borsight and a2b Fulfillment, Inc. to expand in Ogden

Ogden – The Governor’s Office of Economic Development (GOED) announced that Borsight will expand its state-of-the-art airport hangar facility in Ogden, adding up to 95 jobs, $4.1 million in new state revenue and an estimated $6.3 million in capital investment.

“Borsight’s existing facility is the largest facility at the Ogden airport, and due to some new government contracts, the company is on the cusp of doubling revenues,” said Val Hale, executive director of GOED. “We’re looking forward to their success and are happy to be a part of their continued growth and expansion.”

Borsight is a proven Prime Contractor to the United States Air Force and NATO, where its core expertise is integrating modern avionics into legacy airframes. The company excels at creating cutting-edge data-link, voice communication and defensive counter-measure equipment to work with other electronic equipment already installed in the aircraft. The company specializes in modernizing the avionics and mission systems of U.S. Department of Defense airplanes and helicopters, but also has other customer relationships from Europe to Asia.

The company is a Service-Disable Veteran-Owned Small Business which was founded in Ogden and employs a high proportion of military veterans and recent graduates of local university engineering programs.

“GOED’s commitment to Borsight will be fantastic for all of Weber County,” said Martin O’Loughlin, a Borsight executive. “We are grateful to GOED for helping to make this possible. Our leadership team, and the leaders from Ogden City who helped make this possible, all strongly believe that Borsight’s significant investment in new facilities will attract other aviation companies to the area. Building on this scale assures other aerospace firms that the Ogden Aerospace-Industrial Sector is the right place to be. They grow more confident that their own relocation to Ogden will be a profitable move. So this incentive is more powerful than just helping to create 95 new jobs; it has the potential for revitalizing the entire aviation ecosystem at the airport.”

Borsight will create up to 95 jobs over the next seven years. The total wages in aggregate are required to exceed 110 percent of the county average wage. Projected new state wages over the life of the agreement are expected to be approximately $33,319,518. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $4,125,041 over five years.

Borsight may earn up to 20 percent of the new state taxes they will pay over the seven-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 Borsight, the GOED Board of Directors approved a post-performance tax credit rebate not to exceed $825,008. Each year as Borsight meets the criteria in its contract with the state, it will earn a portion of the total tax credit rebate.

“Our leadership team, and the leaders from Ogden City who helped make this possible, all strongly believe that Borsight’s significant investment in new facilities will attract other aviation companies to the area. Building on this scale assures other aerospace firms that the Ogden Aerospace-Industrial Sector is the right place to be. They grow more confident that their own relocation to Ogden will be a profitable move. So this incentive is more powerful than just helping to create 95 new jobs; it has the potential for revitalizing the entire aviation ecosystem at the airport.” – Martin O’Loughlin, Borsight

GOED also announced that a2b Fulfillment will expand operations to Ogden, adding up to 75 new jobs, $12.6 million in new state revenue and an estimated $840,000 in capital investment.

“We are excited to support Ogden in one of their proactive recruitment efforts,” said Val Hale, executive director of GOED. “Ogden is in a prime location to accommodate a2b Fulfillment’s expansion while enabling them to ship to their customers quicker. Expanding in Ogden will allow a2b Fulfillment to drive down prices and stimulate creative solutions to meet distribution requirements.”

a2b Fulfillment provides third-party logistics services including order fulfillment, customer care and value-added services. The company’s specialized solutions are designed to improve the customer experience while reducing operating costs through a variable model.

“Utah is an excellent distribution location for servicing the West Coast,” explained Ayal Latz, president of a2b Fulfillment. “We now will reach 94 percent of U.S. households in two days. The state has created a business-friendly environment, and boasts a strong, educated workforce. We intend to be a great asset to the community at large by creating jobs, investing in the community and servicing the logistics needs of both our national clients and the businesses in Utah.”

a2b Fulfillment will create up to 75 jobs over the next five years. The total wages in aggregate are required to exceed 110 percent of the county average wage. Projected new state wages over the life of the agreement may be up to $334,260,021 million, which includes wages, salaries, bonuses and other taxable compensation. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $12,685,151 over 15 years.

“As the crossroads of the West, Utah continues to be one of the best places for warehouse and distribution operations,” said Theresa Foxley, president and CEO of the Economic Development Corporation of Utah. “We look forward to the success a2b Fulfillment will find in Utah.”

“Utah is an excellent distribution location for servicing the West Coast,” explained. We now will reach 94 percent of U.S. households in two days.” – Ayal Latz, a2b Fulfillment

a2b Fulfillment may earn up to 10 percent of the new state taxes they will pay over 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 a2b Fulfillment, Inc., the GOED Board of Directors has approved a post-performance tax credit rebate not to exceed $54,647. Each year as a2b Fulfillment meets the criteria in its contract with the state, it will earn a portion of the total tax credit rebate.

The company is working closely with the local community to determine the best location for its expansion. Exact location will be announced at a future date.