Cabela’s, along with Utah’s Governor’s Office of Economic Development (GOED), announced plans to open a distribution center in Tooele County to process freight and deliver products to consumers. Cabela’s, which reported $2.88 billion in sales in 2012, operates just 50 stores across North America, including a 150,000-foot-store in Lehi, but plans to open another 19 by 2016.
“We are happy to see such a major player in the outdoor industry continue to grow its presence in Utah,” said Governor Gary R. Herbert. “The creation of Cabela’s Utah distribution center will strengthen our valued outdoor industry and create family sustaining jobs in rural areas.”
Cabela’s is entering into an agreement with the state to create approximately 250 jobs, 85 of which will be contracted with the state to pay at least 100 percent of Tooele County’s average annual wage including benefits. The company expects the jobs to create more than $30 million in new state wages over the life of the agreement. The GOED estimates that the company will also pay approximately $3.4 million in new state taxes over the 10-year period.
“As Cabela’s continues to grow, so, too, does the need to expand the footprint of our distribution centers,” said Tommy Millner, Cabela’s Chief Executive Officer. “It’s exciting to accomplish that while also bringing new jobs to Utah, where we have thousands of loyal customers and people live the Cabela’s lifestyle.”
As part of a contract with Cabela’s, the GOED Board of Directors has approved a maximum cap tax credit of $693,198 in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) incentive, which is 20 percent of the net taxes Cabela’s will pay over the 10-year life of the agreement. Each year as Cabela’s meets the criteria in its contract with the state, it will earn a portion of the tax credit incentive.
