National outdoor retailer Cabela’s may soon start building its own distribution center in Tooele County.
With a tax incentive approved last Thursday by the Governor’s Office of Economic Development board of directors, Cabela’s is on the verge of formalizing plans to expand permanently in Tooele County, according to Randy Sant, an economic development consultant who does work for Tooele City and Tooele County.
If built, the facility is projected to provide up to 250 local jobs.
“I want to be a little cautious about this,” said Sant. “I spent a day with officials from Cabela’s and they are very interested in Tooele County, but their board has to approve a site and accept the incentive before it is a done deal.”
Cabela’s currently employs 50 people at a temporary distribution center in the former Reckitt-Benckiser building, according to Sant. In July 2013, Cabela’s signed a one-year lease for 100,000 square-feet of the building, which is located at the Miller Motorsports Business Park on Sheep Lane.
The building was constructed in 2009 as a distribution center for Reckitt-Benckiser. The company has since moved to Salt Lake County.
“Cabela’s plan is to expand their use of the former Reckitt-Benckiser warehouse to 300,000 square-feet and use that until they complete building a new warehouse — somewhere,” said Sant.
Officials from Cabela’s home office have reportedly looked at property in Ninigret Depot and at Miller Motorsports Business Park.
“They are looking for 45 to 50 acres to build a 600,000-square-foot facility,” said Sant. “They wanted to buy the Reckitt-Benckiser building, but the owners did not want to sell.”
The agreement with the Governor’s Office of Economic Development (GOED) provides a 10-year maximum post-performance tax credit of $693,198. Each year that Cabela’s meets the criteria in the agreement, it will earn a portion of the tax credit incentive.
The agreement requires Cabela’s to create approximately 250 jobs, 85 of which must pay at least 100 percent of Tooele County’s average annual wage of $42,518.
Cabela’s estimates it will add $30 million in new wages over the lifetime of the agreement. GOED estimates the company will pay $3.4 million in new state taxes over the 10-year period.
“This is a great way to start off the New Year,” Sant said.
Cabela’s was founded in 1961 when Dick Cabela began selling fishing flies through a newspaper ad in Casper, Wyo.
Today the company’s global headquarters is located in Sidney, Del. Cabela’s ships merchandise to all 50 states and 125 countries.
The company operates 50 stores in North America, including a 150,000-square foot store near Lehi.