Commission approves resolution to issue up to $10 million in industrial bonds for Komac expansion

The Davis County Commission on June 2 approved a resolution authorizing up to $10 million in industrial development revenue bonds to support Komac Incorporated’s planned expansion at Eastgate Business Park.

Economic development director Alex Leonardi told commissioners Komac plans more than $14 million in capital expenditures and expects to create about 50 new jobs with a median annual salary of $79,000. Komac’s products were described in the meeting as focusing on military aviation projects, naval missiles and commercial drones.

Garrett Gross, bond counsel with Gilmore & Bell, explained the county would act as a conduit issuer and that the private borrower — not the county — is responsible for repaying the debt. Gross said the county will be indemnified under the proposed documents and that commitments are in place from UMB Bank to underwrite the financing.

Staff noted Komac previously used a county conduit bond roughly a decade ago and that prior financing was repaid in full in 2021. Commissioners were told the federal tax rules require a public-comment hearing (commonly called a TEFRA hearing) for tax‑exempt private activity bonds; staff said the county will post notice and accept comments by email/phone and scheduled that hearing for June 23.

A commissioner read the resolution authorizing the issuance and related documents and commissioners approved it by voice vote. The resolution also delegates authority to negotiate final terms within the conditions established in the resolution.

Next steps: the county will publish TEFRA hearing notice and accept public comments before any final bond issuance.