SALT LAKE CITY – Unexpected layoffs and a highly contested property tax increase have Eagle Mountain residents reeling.
Hundreds face unemployment
Tyson Foods announced the closure of its Eagle Mountain plant on Aug. 13 after five years of operation. The company plans to shut down the plant around Oct. 12. The closure leaves 723 workers two months to find a new job – with some telling FOX 13 they’re worried there won’t be enough time.
The closure comes amid “historic cattle shortages,” Tyson said in a news release.
Tyson will also close another plant in Joslin, Illinois, and plans to sell a facility in Washington.
“Collectively, these changes will allow the company to maintain a similar level of cattle harvesting across a more efficient and modern network,” the company wrote.
Property tax increase approved
News of the closure came on the heels of the City Council approving a 183% property tax on Aug. 6.
The tax increase was met with pushback and frustration from residents.
Some residents who spoke at the city’s Truth in Taxation meeting expressed frustration over the tax incentives the city has offered to lure in big names like Meta – and Tyson.
Tax incentives in Eagle Mountain
In 2018, Eagle Mountain agreed to offer Meta 100% tax relief on personal property taxes and 80% relief on real property taxes.
In 2019, the city offered Tyson tax credits to incentivize the food giant to come to Eagle Mountain. Tyson was expected to bring in an annual payroll of $44 million. The company also planned to create 1,200 total jobs over several years.
The Governor’s Office of Economic Opportunity told KUTV that Tyson will not be eligible for rebates once it closes because they are based on the company’s performance.
What’s next?
A group of residents filed for a referendum to put the issue on the ballot in November. The council is now considering repealing the increase to reduce it from 183%.
For employees affected by the Tyson closure, the city said financial assistance resources are available.
Tyson Foods also encouraged workers to apply for positions at their other facilities. However, one Eagle Mountain employee told KUTV that it’s difficult because it would require a big move across state lines.
