edcUTAH Aug. 12, 2009
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Economic Review
Jeff Edwards, president & CEO of EDCUtahPresident's Message
Join Us for Our 2009 EDCUtah Annual Meeting and Breakfast

It is time to reserve your table for EDCUtah's Annual Meeting, which will be held September 16 at the Grand America Hotel. As always, the event is a prime opportunity to learn about EDCUtah's previous fiscal year (FY 2008-2009) and hear our report on economic development activity in the state. You will also have the privilege of hearing the keynote address by William W. Wallace CFA, senior vice president and regional portfolio manager for Key Bank.

The annual meeting begins with registration at 7:30 a.m. and breakfast at 8 a.m. To reserve a seat, call Amber Deibert at (801) 323-4251 or e-mail adeibert@edcutah.org. For table sponsorships contact Art Franks, afranks@edcutah.org or (801) 323-4242. Please RSVP by September 10. Click here to view the 2009 EDCUtah Annual Meeting Invitation and directions to Grand America. I look forward to seeing you on Wednesday, September 16!

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



In the News

Economic indicator rises to highest in almost a year
Reaching its highest point since last September, a monthly economic index jumped to 52.6 -- an indication that Utah's economy might be on an upswing. The Business Conditions Index for the Mountain States region -- a leading economic indicator for Colorado, Utah and Wyoming -- rose above growth-neutral of 50.0 to 51.5 in July, with Utah leading the three. (Deseret News)

Senate confirms Huntsman as ambassador to China
Without a hint of opposition, the Senate confirmed Utah Gov. Jon Huntsman Jr. on Friday as U.S. ambassador to China, clearing the way for his second in command, Gary Herbert, to assume the governorship and for Huntsman to head east as the nation's emissary to a crucial economic partner. (Salt Lake Tribune) (LA Times) (ABC 4) (Fox 13)

Polishing a Diamond in the Rough: The revitalization of Ogden is a lesson for every municipality in America
In little more than a decade, this formerly shabby low-rent city has been transformed into a top tourist destination, a host for world-class athletic events and a still-growing relocation center for international companies that make gear, apparel and accessories for skiers and snowboarders. (Utah CEO Magazine)

Midvalley commercial development breaks ground
What was a burgeoning mining site decades ago could become one of the state's largest commercial and office developments. Numerous business and civic leaders were on hand Tuesday for the groundbreaking of View72 Corporate Center at 7800 South and 1000 West. Co-developed by the Gardner Co. and Arbor Commercial, when completed, the 200-acre site could accommodate 2 million square feet of commercial and office space... (Deseret News)

Small-business conditions up in Utah
July's increase in unemployment spelled good news for owners of small businesses, according to the Zions Bank Small Business Index for Utah. (Deseret News)

Huntsman resigns governor's office; Herbert sworn in
Gary Herbert has been sworn in as Utah's 17th governor following the resignation of Jon Huntsman, who is now the U.S. ambassador to China. (KSL) (Deseret News)

Salt Lake City airport tops in on-time flights
Salt Lake City International Airport remains the best airport in the country for on-time travel, according to an article this month in Travel and Leisure Magazine. (Deseret News)

Efficiency called best strategy for Utah's energy future
Utah electricity producers should work harder to reduce energy waste and target the state's various renewable energy resources to mitigate climate change and secure our energy future, a local energy executive said Tuesday. (Deseret News)

Ogden considers Junction hotel
The city's administration has had recent discussions with developers about construction of a hotel at The Junction complex. (Standard-Examiner)

Utah's oil, natural gas boom ebbing
Crude oil and natural gas exploration soared in Utah last year. But those good times appear over for now. The number of new oil and gas wells that were started during the first seven months of this year is down 54 percent from the same period last year, and the chances of a turnaround in drilling activity in the remaining months of 2009 don't look good. (Salt Lake Tribune)

Utah's 4-day workweek cuts energy use 13 percent
Closing Utah state offices on Fridays has resulted in a 13 percent reduction in energy use according to an internal analysis of the nation's most expansive four-day workweek program. (Forbes)

Feds holding back $100 million in drill leases
Brian Wixom's company has paid the U.S. government hundreds of thousands of dollars for leases to drill for oil and gas on federal lands over the years, only to never put a rig in the ground. (AP)

Utah Health Exchange goes live Aug. 19
Shopping for your health insurance plan, Travelocity.com style, is about to become a reality. The Utah Health Exchange, a Web site where individuals and businesses can compare and buy health plans, is going live Aug. 19. (Salt Lake Tribune)

Summit focuses on development
The first Cedar City Economic Summit took place Wednesday evening in Festival Hall and focused on the implementation of cluster-based economic development. (Spectrum)

Iron County Coordinating Council discusses wind farming
The Iron County Coordinating Council met Wednesday in Enoch to discuss the pros, cons and differing opinions of wind energy in the area, in preparation for a public hearing and possible adoption of a new wind farm ordinance. (Spectrum)

Calendar
September 9-11
ULCT (Sheraton, SLC)

September 16
EDCUtah Annual Meeting (Grand America Hotel, Salt Lake City) (breakfast meeting)

September 19-23
IAMC (Minneapolis, MN)

October 4-7
IEDC (TBD)

October 15
Quarterly Investor Update (Jewish Community Center, Salt Lake City)

November 18
Board Meeting (Salt Lake Country Club)

December 16
Holiday Open House (EDCUtah)

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The EDCUTAH Economic Review is a weekly publication of the Economic Development Corporation of Utah. It is distributed to EDCUTAH partners and selected other government and civic organizations interested in Utah's economic development.

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Feature Story
Daybreak Bustles With New Residents, Businesses

Five years ago Kennecott Land, a company owned by Rio Tinto -- the world's third largest mining company and owner of Kennecott Utah Copper -- opened Daybreak, a sustainable master planned community on 4,200 acres near the foothills of the Oquirrh Mountains in South Jordan City.

Daybreak is the first fully master-planned community to be undertaken in Utah and features eclectic shops and restaurants, unique architecture, urban parks and transportation options, all within bustling neighborhoods. Over the course of its estimated 20-year build out, the mixed-use community will grow to an estimated 20,000 homes, 60,000 residents and approximately 14 million square feet of commercial space.

Sustainable Development
"It's a great story for Rio Tinto, a mining company, to do adaptive reuse of a reclamation site into what has been largely touted as one of the best sustainable developments in the country," says Don Whyte, president of Kennecott Land.

Indeed it is. While mining is still going strong six miles away at Kennecott Utah Copper's Bingham Canyon mine -- one of the largest open pit copper mines in the world -- the Daybreak community is thriving with an influx of businesses, 2,050 homes sold, and approximately 8,000 residents. The University of Utah is building an 180,000 square-foot medical center there and Zions Bank is opening a branch near what is called "SoDa Row," in the middle of four residential villages in the Daybreak community. What's more, Black Diamond Gymnastics and Sport Centers, based in Park City, will open its second location in Daybreak during August. Other businesses to locate in Daybreak include several restaurants, a children's boutique, a barber shop and a dry cleaner. Additional tenants will be announced over the coming weeks.

"The SoDa Row Village Center businesses are locally owned and operated with owners who have a desire to not just operate a business but be part of a community," says Scott Schwendiman, commercial development manager for Kennecott Land. "They caught the vision of what Daybreak is all about." The 68,000 sq. ft center has five uniquely designed buildings that are each built to the LEED Gold standard and are located across from Oquirrh Lake at 4709 Daybreak Parkway.

Another state-of-the-art building in the community is Daybreak Corporate Center, which also serves as the Rio Tinto Regional Center. The center was awarded LEED® Platinum Certification by the U.S Green Building Council (USGBC) and is the first LEED Platinum building in Utah. Platinum certification is the highest certification awarded from USGBC and demonstrates energy efficiency and environmental stewardship.

"Daybreak is able to move forward with commercial and retail development even in the slow economy because increasingly, people in the valley desire unique places and products that have character and are eager to support the businesses. The businesses that are joining us are eager to be a part of Daybreak because of strong demographics and strong growth, but also because they see what is possible when quality development meets committed vision," adds Schwendiman.

According to Scott Kaufmann, vice president of commercial development for Kennecott Land, commercial development lagged behind residential development while businesses waited for the critical mass, but the "mass" has arrived. "We are succeeding in the face of extremely difficult market conditions," he says, "which speaks to the need of this kind of project in the marketplace."

Energy Star Compliant
To date, Daybreak has a mix of housing types and commercial space in its four different villages, in addition to recreational and educational facilities. The community is being built around the concept of preserving open space, reducing pollution and conserving natural resources. Consequently, every Daybreak home utilizes energy efficient technologies to conserve natural resources. Such technologies include low thermal conductivity windows, improved insulation and high efficiency heating and cooling systems.

The building that houses the Daybreak Community Center and Elementary School is also LEED certified, receiving a Silver certification from the USGBC for energy efficient design. It features natural lighting, reduced water consumption and a geothermal heating and cooling system, which has provided considerable savings in heating costs. What's more, Kennecott Land has committed to buying all of its electricity through a renewable power program and is exploring more solar power use at Daybreak.

"While these innovations are providing cost savings to the residents, the greater value is found in the savings to the environment," says Whyte.

Every home at Daybreak is built to United States Environmental Protection Agency Energy Star® program specifications. In fact, Daybreak is the largest community in the nation to pledge to meet Energy Star specifications. While its residents benefit from lower utility costs, the environment benefits from a reduction in harmful greenhouse gas emissions. Kettering says the average utility savings per household, based on an average 2,200 square foot house, are approximately $400 annually. That same home will offset greenhouse gas emissions by approximately 4.49 metric tones of Carbon Dioxide Equivalent (CDE) annually. At full build out, Daybreak's Energy Star® homes will contribute to an overall greenhouse gas emissions savings of approximately 58,000 metric tones of CDE annually -- equivalent to removing 12,677 passenger cars from the road.

Business Opportunities and Jobs
"This energetic community has been nationally recognized for its sustainable practices, successful mix of product types and its commitment to smart growth. But sustainability is also about building a vibrant economy with plenty of business opportunities and quality jobs that help to provide a better life for residents today and tomorrow," Whyte says.

Thus, in addition to commercial space within the mixed use villages, Kennecott Land has developed a nearby industrial center called Daybreak Commerce Park, which encompasses 250 acres, with 150 acres designated for technology or light industrial use. The first facility to locate in the industrial park was the Rio Tinto Distribution Center, a warehouse full of supplies, parts and other materials needed for the Utah Kennecott mining operation. Online auction company eBay is currently building a $400 million state-of-the-art, tier four data center in the park, and discussions are underway with a variety of other potential companies, says Kaufmann.

Rio Tinto's Distribution Center was also built to meet LEED specifications and Kaufmann expects eBay's data center may possibly meet LEED Gold certification standards. "We are ambitious in our pursuit of LEED standards and think there is a strategic advantage to LEED certification," he says, "which yields much better designs across projects."

A SURE Site
Daybreak Commerce Park is a participant in EDCUtah's SURE Sites program, an Internet site that allows businesses and site selectors interested in developing in Utah to research information about industrial and commercial locations via the Internet. The park is just 20 minutes from Salt Lake International Airport and downtown Salt Lake City. It is also easily accessible from Bangerter Highway and I-15. Access to the development will be further enhanced by development of two convenient public transit (TRAX) stations and the future Mountain View Corridor.

Kaufmann says the park is entitled under the PC-zone, which affords great flexibility to a variety of project types, and development of the remaining 150 acres may come in a range of sizes and configurations. Each parcel can be subdivided to meet owner specifications, making Daybreak Commerce Park ideal for businesses looking to place office and warehouse space at the same location.

A Model of Responsible Development
"Rarely does anyone have the opportunity to design and build a community of this size from scratch, but that is what we have done here. Daybreak is recognized as a model for how responsible development can occur," says Whyte. "Our respect for the environment has led to a sustainable development with efficient use of resources, where residents have a strong sense of community and enjoy great quality of life. Truly, Daybreak is becoming the premier location to live, work and play."

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