Online auction giant eBay is investing $110 million in an expansion of its operations in Draper, UT. The project, which will receive a $38.2-million tax credit from the state, will create 2,200 jobs.
eBay has existing facilities in Draper and South Jordan that employ about 1,400. The company has had a presence in Utah for 12 years, expanding in 2009 by adding 400 jobs. State officials say the new jobs will exceed 125 percent of the average wage in Salt Lake County.
“We expect the (new) facility to be open in about 2013,” eBay communications director Michael Frandsen told Desert News.
In Utah, eBay currently operates a major customer service center in Draper that includes support functions such as human resources, finance, account management, call center management, training, legal, along with product and project management. The company also operates a data center in South Jordan.
Gov. Gary Herbert called the Draper expansion project an indicator of the kind of commitment companies like eBay have toward Utah and the belief eBay has in the state’s economic future.
“They believe that building and expanding here suits their needs,” Herbert said. “When world-class companies like eBay pledge partnership with Utah, it is a vote of confidence in the economic growth and stability that we are currently enjoying.”
Before the announcement, the Governor’s Office of Economic Development board voted to grant the company a post-performance refundable tax credit of $38.2 million over 20 years.The latest incentive combines with two previous job-based incentives — in May 2009 and October 2009 — to create a single comprehensive incentive package based on eBay expanding its workforce by more than 2,480 Utah employees at an average salary that will exceed 125 percent of the Salt Lake County average wage.
If the company meets the hiring goals, the result would be more than $127 million in new state tax revenue over the 20-year period. Ground-breaking for the new facility is expected to take place before the end of this year.