Lehi official outlines possible $11 billion expansion, seeks extension of economic-development incentive

Marlon Eldred, Lehi City’s economic development director, told the Utah County Commission that a company that recently bought an existing Lehi plant is considering another "$11,000,000,000 plus" investment at the site and could expand employment to roughly 1,600–2,000 people at full build-out. Eldred said the owner has committed to 800 new jobs but the number could grow as the project develops.

Eldred asked the commission to extend the Alpine Highway Economic Development Area (EDA) agreement and described the draft incentive as a 70% EDA tax-increment incentive to the company, with the remaining 30% split among taxing entities: 44% to Lehi City, 44% to the school district and 12% to Utah County. "We're open to" ways to account for county administrative costs, Eldred said, including a flat or calculated administrative fee drawn "off the top." He urged the commission to finalize the fee arrangement before formal agreements are executed.

Commissioners raised several concerns centered on housing and transportation. Commissioner Gardner said the county needs an explicit affordable-housing response for the project: "My house that my mother lives in today was $60,000 in 1995 and it's $480,000 today... we sure as hell do now" need affordable-housing measures, she said. Eldred and other presenters acknowledged that the existing 1995 EDA framework contains no affordable-housing set-aside and said the present request is framed as an amendment to that prior agreement rather than a newly conditioned incentive.

Transit and road capacity were also probed. Eldred and a company representative said traffic studies for the area indicate "no new roads needed" based on planned nearby development, and shift work at the plant would stagger commute loads. Still, commissioners pressed for state, regional and county coordination on mass transit and UTA commitments, noting earlier promises for service that did not materialize for other large local employers.

Eldred outlined a timeline: an upcoming taxing-entity technical committee (an eight-member panel including county and school representatives) will vote on the project budget; if approved, Lehi’s redevelopment agency will consider interlocal agreements and send a formal agreement to the county. He also said state legislation under consideration could change low- and moderate-income housing requirements for transit-oriented developments, and recommended watching the legislative session.

A county representative who identified themself as representing the incoming entity emphasized the project's competitive environment, saying other states have offered up-front grants or subsidies the state does not provide and that Utah's incentives are post-performance rebates. "This is 2 to 3 times the largest private investment in the history of our state," the representative said.

Next steps: the taxing-entity technical committee is scheduled to meet next Tuesday (as stated at the meeting); if it approves the budget, Lehi’s redevelopment agency and then the county will consider interlocal agreements. The county said it will continue to negotiate administrative-fee structure and press state agencies on transit and housing solutions.