The Ogden Union Stockyard Exchange Building will be restored and become the headquarters for Gauss Management Research & Engineering Inc. The aerospace and defense company currently is based in South Ogden. (Brice Wallace/Salt Lake Business Journal)
An aerospace and defense company is moving forward with its plans to relocate its headquarters from South Ogden to the historic Ogden Union Stockyard Exchange Building and expand operations at Business Depot Ogden.
Gauss Management Research & Engineering Inc. (GMRE) will get financial assistance from the state. The Governor’s Office of Economic Development board, at its September meeting, approved a tax credit incentive for the $3.9 million project, tied to the creation of 50 high-paying jobs over five years.
Work on the art deco Exchange building advances Ogden City’s vote earlier this year to preserve and restore the building through a partnership with a development team led by Fischer Regan Enterprises LLC, with the goal to protect the landmark structure and support long-term economic use. The city acquired the building in 2013 but development proposals stalled, leaving the building to deteriorate. The city later partnered with a developer for a $1 million stabilization of the structure.
Opened in 1931, the building was meant to showcase the influence the Ogden Union Stockyards had on the livestock industry.
GMRE will move to the renovated building and expand its manufacturing and warehouse operations in a leased facility at Business Depot Ogden.
In business 23 years, GMRE is focused on technology services, integration and sustainment, aerospace and defense aircraft modernization, and light to medium manufacturing. The company specializes in the Modular Expandable Laboratory System (MELS), custom installation kits and wire harnesses.
CEO Mike Gauss told the GOED board that the company’s employees, subcontractors and consultants total nearly 500 people, although not all are in Utah. The job growth aligns with the company’s target of reaching $200 million in sales by 2030.
“I can just tell you, the growth of high-paying jobs through our company here in Utah will exceed what we have here,” he said. “We plan to exceed expectations.” He added that the number of 50 jobs is “very conservative,” with 30 expected to be in place by year-end.
“This expansion is an investment in GMRE’s future and in the Ogden community that has been an important part of our story since Day 1,” Larry Magley, GMRE’s chief financial officer, said in a news release about the project. “The support we’ve received through the post-performance tax incentive helps us continue investing here while creating new, high-paying jobs. We’re proud to grow our capabilities, strengthen our workforce, and continue building our future in Ogden.”
The state incentive is in the form of a tax credit of up to $972,579 over five years. The project is expected to generate new total wages of over $21 million and new state tax revenue of nearly $3.5 million over five years. The new jobs are expected to pay an average of $117,778.
“The project is expected to bring 50 high-paying jobs into the city, save an iconic structure of Ogden’s history, and will further support the state’s aerospace and defense cluster,” Eric Gibson, Ogden’s economic development director, told the GOED board.
“Strengthening Utah’s aerospace ecosystem is a core goal in our strategic development plan,” Jefferson Moss, GOED commissioner, said in a news release. “GMRE’s expansion demonstrates how local innovation advances our strategic aim for workforce expansion in high-value engineering and advanced technology.”
GOEO does not provide upfront cash incentives. Each year that an incentivized company meets the obligations in its contract with GOEO, it will qualify to receive a portion of the new, additional state taxes the company paid to the state.
