Doitch said he would like to start an ammunition business in Parowan, ultimately employing 60 to 100 people. However, he is torn because the costs to locate the business in Parowan would be much higher than other areas that have economic incentives set up.
He said if he were to take the business to North Las Vegas, he would not have to pay property taxes for five years and there are buildings available. In Parowan, he has explored all possible options, and there are no existing buildings that would work. He would have to have a building constructed, and purchase land to do it on.
There is one piece of land he could buy that is zoned correctly and in a good location. It is 14 acres though, and he only needs 1 1/2 to 2 acres, so if he buys it he will end up subdividing the rest for other businesses, he said. His primary roadblocks, he said, are the lack of utilities to the property and the high impact fees.
“For me personally it’s a big problem,” he said.
Mayor Don Landes expressed that the city was motivated in getting Doitch to locate the business in Parowan.
“We’re really interested in getting you here,” he said.
Councilmember Alan Adams said while he is very interested in seeing Doitch come to Parowan, he is concerned about the possibility of spending to put in the infrastructure and then having Doitch back out or only stay in town a short time.
Doitch said he does not want the city to spend a penny before he can prove to them he is starting the business, and would be interested in having some kind of agreement that would show they would put in the infrastructure and waive impact fees once he purchases the land and a metal building.
Adams said he is comfortable with that. Many cities invest to make industry possible and build and economic base, and he believes this opportunity could be a great investment for the city.
Doitch said he believes this would be a good start for Parowan, and is likely to pave the way for more businesses to come in, since it will be more affordable once the infrastructure is there.
“You need to invest a dollar to see a dollar,” he said.
Councilmember Dennis Gaede said Parowan has lost interested business owners before because of the high costs of development, and getting the infrastructure to the city’s industrial-zoned area is crucial.
Doitch said if the council approves those two items quickly, it will probably take six months to a year to get the business up and going. Getting the proper licensing and specialized equipment is time consuming, he said.
Adams said while the concept seems to be accepted by everyone on the council, the cost is going to be major in deciding what they can do.
City Manager Shayne Scott said the infrastructure is not something they’ve budgeted for, but there are some options in using savings and impact fees, and by doing much of the work internally.
“We are not a rich community,” he said.
Public Works Director Kelly Stones said the most expensive item will be the sewer infrastructure, because the property is downhill from the line. There was extensive discussion about the possibility of using septic, which Doitch was not enthusiastic about because of the necessary maintenance, but the council will explore all options.
The issue of economic incentives will be further discussed and possibly voted on at the July 26 city council meeting at 6 p.m.