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Davis County approves resolution in form for up to $10M industrial bond for Keo Mac; TEFRA hearing set for June 23
Summary
Commissioners approved, by voice vote, a resolution in form authorizing Davis County to act as conduit issuer for up to $10,000,000 in industrial development revenue bonds for Keo Mac Incorporated and directed publication of a TEFRA notice with a public hearing scheduled for June 23, 2026.
Davis County commissioners approved, by voice vote, a resolution in form on June 2 authorizing the county to act as conduit issuer for industrial development revenue bonds of up to $10,000,000 to support Keo Mac Incorporated’s planned expansion in the Eastgate Business Park.
Economic development director Alex Leonardi told commissioners the company is applying for a $10,000,000 private activity bond to build an additional manufacturing facility with total capital expenditures exceeding $14,000,000 and said the project is expected to create about 50 new jobs with a median annual salary near $79,000. “Keo Mac is an aerospace and defense manufacturing company located in Layton at the Eastgate Business Park,” Leonardi said.
Garrett Gross, bond counsel with Gilmore & Bell, explained the county would be a conduit issuer and that a federal tax-exempt financing process requires an IRS (TEFRA) hearing so the public can comment on the tax-exempt status. “We’ve got a commitment letter from UMB Bank,” Gross said, and added the county would have minimal legal or financial risk because the borrower is responsible for repayment.
Chair moved to approve the resolution in form and Commissioner Lorraine Kamala seconded, reading the resolution language that authorized issuance of bonds “not to exceed $10,000,000” and delegated authority to finalize terms and related documents. The resolution also requires publication of notice for a TEFRA hearing; the county will publish the notice and hold the public hearing on June 23, 2026, allowing comments by telephone, email or mail as required by TEFRA rules.
The resolution authorizes the county to confirm the sale and execution of loan documents with the borrower and Kansas City Financial Corporation (a UMB Bank subsidiary) and to establish conditions to be met prior to issuance. Commissioners approved the action by voice vote; no roll-call tally was specified in the record.
Next steps: the county will publish the TEFRA notice, accept public comment per IRS requirements, and return to finalize bond terms if conditions are met.
