New news about Lehi --
sltrib.com
Saturday, February 15, 1997
Will Micron Lose $3 Million State Pledge?
BY LESLEY MITCHELL
THE SALT LAKE TRIBUNE
Legislators are considering reneging on a $3 million pledge to Micron Technologies Inc., to raise more money to help pay for Interstate 15 reconstruction.
The funds, a loan which would have become a grant after the company finished and occupied a $2.5 billion plant in Lehi, were approved by the state's Industrial Assistance Fund in July of 1995.
The Boise-based microchip manufacturer spent about $500 million on the plant before putting it on hold about a year ago.
Company officials have said they would like to complete the 2.6 million-square-foot plant within five years -- after chip prices improve. Micron could not be reached for comment Friday.
Legislators say there is widespread support for taking the $3 million.
''We're not going to let the money sit there for what could be one, two or even five years,'' said William Greer, a legislative budget analyst.
Rep. Keele Johnson, R-Blanding, said the proposal is one of many that would help legislators raise more money for the estimated $1.36 billion tab for I-15 work.
It is uncertain whether Micron would be able to get the money back should it resume construction and finish the plant, said Johnson. At that point, if the state still wanted the company to have the money, the governor probably would have to call a special session to reallocate the funds, he said.
That is why state economic developers are fighting the plan.
''It's a lot easier to keep the money than try and get it back,'' said Rick Mayfield, director of Utah's division of business and economic development. ''We have made a commitment to this company.''
But Mayfield and others in his department are not optimistic that they will be able to retain the funds, due to pressure among legislators to find ways to fund the interstate work without raising taxes.
''It's an easy way [for legislators] to get a hold of a good sum of money,'' he said.
The industrial-assistance fund is among several economic-development programs that face budget cuts in order to fund the freeway work.
In addition to taking the $3 million promised to Micron, the state also would suspend its $1 million annual contribution to the Industrial Assistance Fund.
That would leave only $1.4 million in the fund -- not enough to fulfill the state's pledge to Micron, said administrator Richard Nelson.
''If they [Micron] went ahead with their plans this year, I just don't know what we would do,'' Nelson said.
The Legislature also is looking at reducing funding for other economic-development initiatives, such as international business development and The Utah Centers of Excellence Program, which foster commercial applications for research done at universities in Utah.
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