President's Message Two EDCUtah Board Members Among 'Business Builders of the Year' Honorees Utah Business Magazine's July issue included a noteworthy piece about Utah's Entrepreneurs of the Year. Two of the people featured in the story are EDCUtah Board members: Rob Moore, of Big-D Construction; and Maxine Turner, of Cuisine Unlimited. We are glad to see them receive recognition for their entrepreneurship. Rob was recognized in the "Construction Manufacturing" category, while Maxine was recognized in the "Best Business Catering" category. Utah's economic development success is fueled in a large way by the entrepreneurship of our business leaders. I have provided links to the Utah Business Magazine stories about Rob and Maxine; however, you may need to register with the site in order to read them. 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 President and CEO

Feature Story Renewing Motion Picture Incentive Fund a Top Priority for GOED After visiting the production set for the film "John Carter of Mars" in Moab with Governor Gary Herbert, Utah Film Commission Director Marshall Moore stopped at Hollow Mountain Gas & Grocery in the remote hamlet of Hanksville to put gas in his tank. As cashier Celeste Sellers took his money she noticed the Utah Film Commission logo on his shirt and wanted to shake his hand. Sellers told Moore she wanted to thank him that "John Carter of Mars" was being filmed in Utah. Her son needed a job and was hired to work security on the set. Thinking about the encounter later, Moore says he thought to himself: "That's what bringing films to Utah is all about." Motion Picture Production Creates Jobs Indeed. Bringing film productions to Utah creates jobs -- 995 of them in 2010 -- and Utah's Motion Picture Incentive Fund (MPIF) has become a significant factor in recruiting film productions to the state. However, the incentive program is scheduled to sunset next year and renewing it is one of three top priorities for the Governor's Office of Economic Development (GOED), along with renewal of the West Coast Marketing Program and the Tourism Marketing Performance Fund. While the 2011 legislative session is still some six months away, top leaders in GOED are working hard now to ensure that the legislature will appropriate money to continue the programs, each of which is a significant job-generating engine for the state. (The West Coast Marketing Program and the Tourism Marketing Performance Fund will be featured in upcoming editions of the Economic Review.) $5 to $1 ROI After spending seven months in Utah, including approximately 45 days of filming, The Walt Disney Studios' feature film "John Carter of Mars" generated some $21 million and 300 jobs for the Utah economy. The production was lured here by a post-performance incentive package worth $5.5 million, which generated a $5 to $1 return on investment for the state. Overall, for FY 2010, which ended in June, Utah hosted 22 film projects including film festivals and commercials, which totaled 557 production days, created nearly 1,000 jobs and generated an economic impact of $137 million. "Our film incentive program has been very successful. It has worked just as we had anticipated," says Derek Miller, managing director of corporate recruitment and incentives for GOED. "The incentives allow us to compete for large motion pictures that otherwise might not land in Utah. Furthermore, since the program is post-performance, no tax-payer dollars are expended until after the terms of the incentive are met." A Sustainable, Predictable Incentive Moore notes that the MPIF was "set up the right way from the beginning, so it is sustainable and predictable" -- something motion picture companies appreciate. "Production companies like Utah because they know the incentive program is solid," he says. Because the money appropriated for the MPIF sunsets in 2011, GOED is working with legislative leaders now to be sure the 2011 legislature extends funding for at least five years. Doing so will not only help the state remain competitive with larger productions, but also provide the continuity sought by the lucrative television series productions, says Moore. "It is also very important that we remove the incentive cap, if we want to compete for larger budget motion pictures," he advises. TV Series Would be a Big Win Regarding a TV series, Moore says Utah has not hosted one since 2006. Bringing a series back to Utah would be a big win for the state. The "Touched by an Angel" series, which was filmed in Utah for nine seasons, generated about $1 million per episode. Thus, with 225 episodes, the series had an economic impact of about $225 million. In contrast, Moore says the typical independent film will work in the state for three months and generate between $1 million and $3 million in economic impact. Other TV productions to film in Utah include four seasons of "Everwood" and four seasons of "Promised Land." He notes that Utah's built-in incentives, such as its infrastructure, scenery, film crews and equipment, talent pool, close proximity to an international airport, and short flight time to L.A., make the state a viable place for film production. Moreover, it is the sustainment and enhancement of the MPIF by the Utah State Legislature that keeps the state competitive. Post Performance Incentive In its current form, the MPIF provides that production companies may apply for post-performance tax rebates or credits of up to 20 percent of the production spend in the state for two years. "The MPIF is a stable program because it only awards the incentive once the film production has been completed and the money has been spent in the state," says Moore. "Keeping the post-performance aspect while at the same time augmenting the fund, as necessary, will protect the state's investment and attract more film production to Utah."

Calendar

Aug. 2
OIA Thought Leader Symposium

Aug. 12-13
Utah Rural Summit (SUU, Cedar City)

Aug 24-27
AUVSI's Unmanned Systems 2010 (Denver, CO)

Aug. 28
2nd Annual Ladies Curiosity Golf Challenge at Thanksgiving Point

Sept. 10-11
Mountain West Biomedical Engineering Conference (Park City)

Sept. 14-17
Utah League of Cities and Towns Annual Convention (Salt Lake City)

Sep 19-21
CorNet Global Summit (Phoenix, AZ)

Sep 26-29
IEDC 2010 (Columbus, OH)

Oct 2-6
IAMC Professional Forum (Hot Springs, VA)

Oct 11-14
SAMPE Fall Technical Conference (Salt Lake City, UT)

Oct 12-13
SME Tooling for Composites Conference 2010 (Salt Lake City, UT) (Co-located with the SAMPE conference)

Oct 12-14
Solar Power International 10 (Los Angeles, CA)

Oct. 14-15
Nano Utah 2010 (Salt Lake City)

Dec 15
EDCUtah Holiday Open House (Salt Lake City)

Jan. 12, 2011
"What's Up Down South" Washington County Economic Summit (St. George)

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Electronic Arts unveils new state-of-the-art video game studio in downtown Salt Lake City
Electronic Arts Inc. today announced that it will formally open the doors of its new video game development studio based in the heart of Salt Lake City. To commemorate this occasion, EA will host Utah Governor Gary R. Herbert, along with several Utah state and local government officials at a Ribbon Cutting Ceremony inside the new facility.
(MarketWatch) (Deseret News) (Salt Lake Tribune)

Outdoor retailers betting on stability in 2011
It's hard to predict the future, but retailers are forced to plan for it six months to a year ahead. Registrations for the 2010 Outdoor Retailer Summer Market at the Salt Palace Convention Center Aug. 3-6 reveal optimism within the industry for 2011 sales.
(Park Record)

Twitter plans to open new data center in Salt Lake City area
Twitter Inc. announced Wednesday that it will open a new, custom-built data center in the Salt Lake City area later this year.
(Deseret News) (more from Deseret News) (Standard-Examiner) (KSL)

Delta Air expects 65,000 applicants for 1,000 jobs
Delta Air Lines Inc., the world's largest carrier, said it anticipates getting about 65,000 applications for its 1,000 airport job openings...
(Salt Lake Tribune)

Salt Lake office vacancy rates remain at 15.9 percent or higher in 2nd quarter
Despite sparkling new architectural gems like the office building at 222 S. Main in Salt Lake City, about three offices of every 20 sit vacant throughout the city, according to a recent study by Commerce Real Estate Solutions.
(Deseret News)

Metro Logics leases warehouse
Metro Logics, a third party logistics firm, has completed arrangements with LNR to lease 427,000 square feet of warehouse space in two buildings, Bangerter Crossing Buildings A and B at 3845 and 3907 W. Ninigret Drive in Salt Lake City.
(Deseret News)

Chamber proposes innovative immigration reform strategy that protects public, sustains economy
The Salt Lake Chamber proposed an innovative state immigration policy combining the need for federal action with supportive state action that protects the public and sustains the economy.
(Utah Pulse)

Exports gain momentum in Utah economy
As the once-reliable twins of the local economy — real estate and population growth — have faltered, a smaller but more solid sector — exports — has been picking up the slack and gaining momentum.
(Deseret News) (Salt Lake Tribune) (KSL) (Standard-Examiner)

Salt Lake County's June hotel visits beat weak '09
A few big conventions can boost monthly hotel occupancy numbers.
(Salt Lake Tribune)

For Utah banks, crisis is past but concerns remain
Utah banks are showing signs of breaking a spiral of loan delinquencies that led regulators to close several lenders and place others on a watch list.
(Salt Lake Tribune)

Bills to save spaceflight, ATK jobs progress
One bill to provide $1.9 billion for a new space launch vehicle got the go-ahead from the U.S. Senate Appropriations committee Thursday.
(Deseret News) (Standard-Examiner)

U.S. Bank plans to open 4 new Utah branches, hire 32 people
U.S. Bank announced Thursday that it is opening four new branches in four Utah cities and will add 32 employees to its payroll in the state.
(Deseret News)

Salt Lake City spurring business with retooled loans
Some of Salt Lake City's dusty, decrepit storefronts now have designer signs. Some once-boarded buildings now have bounded to life.
(Salt Lake Tribune)

Big-D gets contract for UVU science building
Big-D Construction of Salt Lake City has been awarded a $30 million contract to build a health sciences education building at Utah Valley University in Orem.
(Salt Lake Tribune)

FDIC unloads more Barnes Bank offices
The Federal Deposit Insurance Corp. has raked in more than $13 million by selling six former Barnes Bank office buildings to a trio of buyers.
(Salt Lake Tribune)

New downtown alliance director excited about Provo's future
As the newly appointed executive director of the Downtown Business Alliance of Provo and manager of the Provo Farmers Market, Kathryn S. Allen is doing what she has done for nearly three decades -- having fun while serving the residents of Provo.
(Daily Herald)

East Side 'ripe' for filmmaking, experts say
The history of Utah's film industry is chronicled in a new book, "When Hollywood Came to Town: A history of movie-making in Utah" by James D'Arc, curator of the Motion Picture Archive at Brigham Young University.
(Park Record)

No layoffs for Box Elder County company, no matter what the economy
Economic times have been tough in Box Elder County the past couple of years. ATK, Autoliv and Lay-Z-Boy, which went out of business, have all laid off workers.
(KSL)

Supercross: Utah Sports Commission extends
Feld Motor Sports announced today that the Utah Sports Commission will be continuing their sponsorship with Monster Energy Supercross, an FIM World Championship, for the third consecutive year. Monster Energy Supercross will be returning to Salt Lake City's Rice-Eccles Stadium, April 30 for the penultimate race of the 17 race championship.
(Ultimate Motorcycling)

Central Logic relocates corporate headquarters to South Jordan to accommodate current operations and future business expansion
Central Logic, the healthcare industry's leading provider of innovative patient flow software and consultative expertise, today announced the relocation of its corporate headquarters to South Jordan, Utah.
(BusinessWire)