Dec. 02--GPS specialist Garmin confirmed this morning that it plans to hire at least 65 engineers in Salem as part of a $14 million expansion at its existing site there.
The Swiss company's U.S. subsidiary, based in Kansas, had close to 400 employees in two locations at the Salem Airport. It operates a call center, product assembly, aviation product research and software development. Plans call for a new, 66,000-square-foot building that will consolidate those operations and expand the work force.
Oregon is subsidizing the new building with a $487,500 forgivable loan from the state's Business Expansion Program, a relatively new incentive that ties subsidies to the income taxes generated by new hiring. Other recipients include Oracle and Salesforce.com.
To get the subsidy, Garmin agreed to hire at least 65 people and pay them an average of 150 percent of the statewide -- that works out to a little more than $60,000 annually. It will have to pay the money back if it doesn't meet its hiring and wage targets.
Last spring, the Salem City Council extended an enterprise zone at the airport that provides property tax exemptions to businesses operating there. At the time, Garmin promised to add at least 70 jobs. Salem extended the property tax breaks from three years to five years.
-- Mike Rogoway; twitter: @rogoway; 503-294-7699
Copyright 2013 - The Oregonian, Portland, Ore.
