Feb. 17, 2009

  A Publication of the Economic Development Corporation of Utah
CEO Jeff Edwards

President's Message

Results of CPPA's State of the State Survey


The Center for Public Policy and Administration (CPPA) at the University of Utah released results from a very interesting report last week. The information focuses on the results of a recent survey measuring Utahn's attitudes and opinions about issues facing the state. The survey was conducted by Dan Jones and Associates and included responses from roughly 1,000 Utahns.

One area of the study I found particularly interesting was the section on the state budget. When Utahn's were asked about cutting state services and/or having taxes raised, respondents said they were more willing to cut parks and recreation and public transportation funding but were less willing to cut public education. In the area of tax increases, respondents showed a willingness to raise taxes on cigarettes and user fees but not much of a willingness to raise property taxes.

The survey also showed that Utahn's overall are very concerned about the cost of health insurance. While 86 percent of respondents had some form of health insurance, over 50 percent of those were concerned about the prospect of decreased, or eliminated benefits. The results of the survey can be a useful tool in regard to economic development policy as the trends of public opinion help shape the direction of business in Utah. The report is available online here. I encourage you to read it.

Today's Economic Review also includes links to many of the ED-related news stories from the past week. As always, if you have comments, suggestions or topics you'd like to see in the Economic Review, please contact us by clicking the "Comments" link on the bottom of this page. Enjoy!

Jeff Edwards

Jeff Edwards
President and CEO


Feature

Utah: "The State of Sport"


On a Saturday afternoon in May 2007, some 5,000 spectators gathered in breath-taking Monument Valley, Utah for the first of two U.S. stops in the Red Bull Air Race World Series -- an international race where the world's best pilots navigate aerial courses at low altitude with speeds up to 250 mph while battling gravitational forces that can reach 10Gs.

The event, which generated $28 million in economic impact for Utah and over $10 million in media value promoting Utah, continues to draw interest two years later as the race is re-broadcast on TV stations across the world.

Another recent event, the 2008 Dew Tour, held in Salt Lake City last summer, was the most successful Dew Tour event ever and included the largest crowd to ever attend the four-day event in the history of the tour. It generated approximately $13 million in direct economic impact to Utah and $6 million in TV and media/broadcast value to the state.

Bringing major sporting events like the Red Bull Air Race and Dew Tour to Utah is the central objective for the Utah Sports Commission, Utah's premier sports recruitment organization and EDCUtah partner. In fact, the Commission has been integral in working with its partners on over 300 sports events since its inception in 2000, generating a total economic impact of approximately $1.4 to 1.5 billion for the state and an estimated media value of $70 million. The Commission assisted in 48 sporting events in 2008 alone.

President & CEO Jeff Robbins says the Commission actively seeks events that can leverage and utilize Utah's world-class facilities, infrastructure, institutional sports and recreational knowledge, volunteer database, sports industry, local sports organizations and other core competencies has in its $6 billion sports industry.

"If a key event is a fit for the state, we work with our partners to find ways to leverage our resources and bring the event to Utah," he adds.

The following table, which excludes the 2002 Olympics, lists a few of the major events that Utah has hosted or will host, thanks in part to the work of the Utah Sports Commission and its many partners, with their corresponding economic impact and media value:

EventEconomic Impact Media Value
Utah Championship$8.3M$3.3M
XTERRA Winter World Championship $2.6M$2M
XTERRA USA National Championship$3.5M$2M
Dew Tour$22.7M$5M
Red Bull Air Race$28M$10M
Red Bull Rampage$4.3M$2M
Triple Crown Girls Fastpitch Softball World Series$31.5MNA
STIHL Timbersports Series$4.1M$1M
Monster Energy Supercross$15.7M$1M
Huntsman World Senior Games$31.5MNA
FIM World Superbike Championship$27.8M$4M
Golden Gloves Boxing$6.1MTBD
Primal Quest Utah$9.5M$5M
USA Jr. Olympic Girls Volleyball Championships$61.2MNA
Freestyle World Cups$11.3M$1M
Freestyle World Championship$22.7M$3M
World Cup Speedskating/Bobsled/Skeleton/Luge$2-3M$.5M
Youth Archery World Championship$1.75M$2M


"In addition to the economic impact these events bring to Utah, some of the events are televised nationally and/or internationally and have millions of dollars in media value as well," says Robbins. "The broadcasts not only showcase the events, but highlight Utah communities, venues, scenery and culture. What's more, several of the events have repeated broadcasts after the event is over, which continues to brand Utah as a player in the global sports marketplace."

Being a player in the global sports marketplace is one of the Commission's central objectives and it is working hard to brand Utah as "The State of Sport".

"With Utah's world-class venues, infrastructure and diverse landscape and climate, the state the ability to host almost any sporting event," Robbins says. "We have been branding Utah as an adventure/action sports state, which has been reinforced by the numerous action/adventure sporting events that Utah has hosted or will host in the future. With Utah's youthful population, this a natural message to send out."

Utah is also home to two national governing bodies of sport, the United States Ski & Snowboarding Association (U.S.S.A.) and United States Speedskating (U.S.S.). Thus, the U.S. teams all train at the Utah Olympic Oval, Utah Olympic Park and the ski resorts. Many of the athletes involved have moved to Utah. Furthermore, Utah's Olympic venues also hold training sessions for international teams throughout the year.

In addition to its own branding and recruitment efforts, the Utah Sports Commission operates a grant program that has provided $6.5 million to 175 sports events since 2000. The program is designed to assist organizations in attracting and retaining sport opportunities in Utah. Applying organizations must demonstrate that the grant award is a key component to the bidding on, hosting of, or the overall success of the event. Events considered for grant funding include amateur and professional athletic events or other sports-related activities that further the mission and meet the charter of the Utah Sports Commission, as recommended by the Grant Program Committee and approved by the Executive Committee after a thorough review process.

How the Utah Sports Commission Came to Be

In 1998 the Utah Department of Community and Economic Development (DCED), after months of researching the future of sports in Utah, began studying the merits of creating an umbrella sports marketing organization to help promote, attract and develop sports similar to what many other states (over 42 at the time) had done. Leaders from the DCED visited Lake Placid, New York and spent six months researching and consulting with over 30 sports commissions, such as the Indiana Sports Corporation, which was generating $175 to $200 million per year for the state through sporting events. The DCED's efforts led to the creation of a sports exploratory group, which later recommended that a sports commission should be formed if Utah was to leverage the 2002 Olympics and position Utah in the sports marketplace. In January 2000, the group announced its intent to form a sports commission.

The Utah Sports Commission currently has six full-time employees on staff. President & CEO Jeff Robbins has a lengthy resume of service within the state. He is Chairman of Kirilenko's Kids Foundation and serves on the boards of the Utah Tourism Office, Olympic Parks of Utah, Economic Development Corporation of Utah and Intermountain Health Care's The Orthopedic Specialty Hospital. He has served on the boards of the PGA TOUR Nationwide Utah Championship golf event, the Jimmy Shea Foundation and was co-chair of the Moscow-Utah Youth Games, the summer and winter multi-sport competition held between Moscow, Russia and the State of Utah, where he represented Utah's governor. Robbins also served on the Board of the Governor's 2002 Olympic Hosting Organization, which coordinated many of former Governor Mike Leavitt's key initiatives during the 2002 Olympic Winter Games, as well as serving on Governor Jon Huntsman's transition team in 2004.

Before joining the Utah Sports Commission in 2000, Robbins was director of Olympic relations and sports development for Utah and worked in the executive office of Novell, Inc. He has also held marketing and strategic relations positions with WordPerfect Corporation and Utah Power.

Robbins obtained a bachelors degree from the University of Utah and an MBA degree from the University of Phoenix. While at the University of Utah he competed nationally and internationally in tennis and is the youngest member to be inducted in the State of Utah Tennis Hall of Fame.

Robbin's Team at the Utah Sports Commission:

  • Stephen Rich, vice president of operations
  • Mike Deaver, vice president of development
  • Laura Shaw, director of marketing
  • Chase Robbins, projects
  • Mike Smith, tournament director, Nationwide Utah Championship
  • Jason Badell, Sales Account Manager, Salt Lake CVB

In addition to the staff, the Utah Sports Commission is also assisted by local, state and "TEAM UTAH" partners.

 

In The News

Economic Development Headlines from the Past Week

It's Lights, Camera ... Action Sports

- Salt Lake City -- Those who watched the AST Dew Tour action sports stop here last fall on television probably noticed the same slogan on every start ramp and barrier wall: Utah, the State of Sport. It was a symbol nearly seven years in the making. Through their experience in planning for and hosting the 2002 Winter Olympics, officials in Utah discovered that sports featuring individuals -- particularly those involving daring feats -- were a potential gold mine. Utah has worked since the Salt Lake Games to become a hub for action sports and other contests, an effort that continues during the recession. (New York Times)

Chinalco to invest $19.5 billion in Rio Tinto

- The Aluminum Corp. of China agreed to invest $19.5 billion in the mining group Rio Tinto on Thursday in the country's largest purchase overseas, taking advantage of lower valuations to guarantee access to iron-ore resources. Under the deal, the company, known as Chinalco, will buy $7.2 billion worth of bonds convertible into Rio Tinto stock and pay $12.3 billion in cash for stakes in Rio Tinto's aluminum, iron ore and copper assets in the United States, Australia and Chile. Rio Tinto owns Kennecott Utah Copper. (Deseret News)

Economist optimistic about Utah

- Utah is seeing obvious economic troubles because of the national recession, but a couple of state economic officials believe Utah is weathering the storm better than most other states and is positioned to prosper when it passes. (Morning News) (SL Tribune)

Killpack's bill would give more authority to Falcon Hill entity

- As a large-scale commercial development on the west side of Hill Air Force Base gets under way, state legislation is moving forward outlining how it will function within a complex framework of federal, state and local government authority. (Standard-Examiner)

Utah road planners OK $190M project list

- The Utah Transportation Commission on Thursday approved a $190 million list of projects that could quickly tap federal stimulus dollars once Congress passes -- and President Barack Obama signs -- a funding package. (SL Tribune)

Chamber of Commerce forms coalition to stimulate Utah's economy

- The Salt Lake Chamber of Commerce is forming a "Can-do Coalition" of business leaders, lawmakers and local government officials to stimulate Utah's economy. Chris Redgrave, Chair of the Chamber's Board of governors, says they're asking the legislature to implement specific initiatives. (KCPW) (Utah Business Magazine)

Coalition will help local economic development

- Priming Davis County for economic development by offering resources will be the role a new coalition plays for cities. The Davis Unified Development and Economic Strategy coalition will hold its first meeting at noon, March 3, at Farmington City Hall, 130 N. Main. (Standard-Examiner) (Clipper Today)

$800,000 in projects planned for Davis County

- The Community Development Block Grant program, which is designed to serve needs of low-income residents in communities around the nation, has long been a source of much-needed cash for Davis County's cities and social-service organizations. As long as CDBG funding comes through like it did in 2008, Davis County could pass about $800,000 to cities and organizations that requested the federal funds. (Deseret News)

Kaysville business to supply U.S. Air Force

- Good vibrations are allowing a Top of Utah business to thrive globally. Kaysville-based Ensign Global Solutions announced this week one of its new technologies has been approved for "off-the-shelf" purchase by the Air Force's Air Combat Command, the unit responsible for maintenance on the HH-60 combat search and rescue helicopter. (Standard-Examiner)

Bennett proposes bill to aid St. George airport

- Utah Sen. Bob Bennett has introduced legislation that would allow the city of St. George to sell land at its present airport to help finance a replacement facility. To date, St. George is financing $44 million of the planned $168 million airport -- scheduled to open in January 2011 -- by selling 274 acres at the existing airport to Anderson Development Services Inc. (SL Tribune)

Road stimulus would create 6,000 jobs in Utah

- With Congress about to finalize a massive economic stimulus package, Transportation Secretary Ray LaHood huddled Wednesday with state transportation chiefs, imploring them to use the influx of federal cash for its intended purpose. (SL Tribune)


CALENDAR


Feb. 18:  EDCUtah Board Meeting (Hilton City Center)

Mar. 12:  EDCUtah Quarterly Investor Update (Juan Diego Catholic School) from 4 p.m. – 6 p.m.

Mar. 24-26:  JEC Composites Show (Paris, France)

Mar. 30:  Governor's 3rd Annual Utah Economic Summit (Grand America Hotel, Salt Lake City)

Apr. 15-17:  Utah League of Cities and Towns Midyear Conference (Dixie Center, St. George)

Apr. 26-28:  CoreNet (Dallas, TX)

Apr. 29-May1:  SME (San Diego, CA)


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