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Davis County approves up to $10 million conduit bond for Kihomac expansion
Summary
The Davis County Commission approved a resolution authorizing up to $10 million in industrial development revenue bonds to support Kihomac, Inc.’s planned manufacturing expansion in Layton, creating about 50 new jobs and scheduling a TEFRA hearing on June 23 for tax-exemption public comment.
The Davis County Commission on June 2 approved a resolution to authorize the issuance of up to $10,000,000 in Industrial Development Revenue Bonds, Series 2026, to finance construction of an additional Kihomac, Inc. manufacturing facility at Eastgate Business Park in Layton.
Chief Deputy Neal Geddes introduced the measure and called the bond a form of conduit financing that provides a tax-exempt interest-rate subsidy to the private borrower. Economic Development Director Alex Leonardi told commissioners the project would involve capital expenditures estimated at more than $14 million and is expected to create about 50 new jobs with an anticipated annual median salary of $79,000 — roughly 26.5% above the county median income. Garrett Gross, bond counsel with Gilmore Bell, stated the County would act as a conduit issuer and that the private company, not the County, would be responsible for repayment; bond counsel also confirmed indemnification and protections for the County.
Because the borrower is a private entity, state law does not require a public hearing on bond issuance; however, bond counsel noted an IRS-required TEFRA hearing for the tax-exempt status will allow public comment on June 23. Commissioner Lorene Kamalu praised federal programs that allow county conduit issuance without creating county liability. The motion to approve the resolution was made by Chair John Crofts, seconded by Kamalu, and passed unanimously.
Background: Kihomac previously received a $10 million bond nearly a decade ago that supporters say created 120 local jobs and was repaid in full in 2021. The current application targets military aviation, naval missile, and commercial drone manufacturing, with the company reporting that drones and related components will be sourced domestically.
Next steps: The County approved the form of the loan agreement and delegated authority to negotiate final terms with Kihomac and UMB Bank; a TEFRA hearing for public comment is scheduled for June 23, 2026.
