edcUTAH Sept. 1, 2009
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Economic Review
Jeff Edwards, president & CEO of EDCUtahPresident's Message
EDCUtah Annual Meeting -- Two Weeks and Counting

Utah League of Cities and Towns Annual Conference Next Week

Only two weeks until EDCUtah's Annual Meeting at the Grand America Hotel on Wednesday, September 16, 2009. We still have a few sponsor tables available with 10 seats each. This is a perfect opportunity to invite clients, staff and interested investors. Please reserve your table or seat today by calling Art Franks, EDCUtah's membership director (801) 323-4242 or e-mailing afranks@edcutah.org. I look forward to seeing you on Wednesday, September 16, 2009.

Also, next week you won't want to miss the Utah League of Cities and Towns (ULCT) Annual Conference. This year's ULCT Conference will be held in Salt Lake City September 9-11, with a golf tournament on September 8. The newly renovated Salt Lake City Sheraton Hotel is again hosting this event and the theme is "Tough Times, Tough Minds." For more information or to register please go to http://ulct100.wordpress.com/registration/.

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

Utah to host 2011 national meeting of governors
Salt Lake City will host the 2011 gathering of the National Governors Association, the association announced Wednesday. It will be the fourth time the association has met in Utah since 1919. (Salt Lake Tribune)

Intermountain Healthcare: A model system?
In the mid-1990s, only about 40 percent of heart surgery patients nationally were going home with the right medications -- beta blockers, anticoagulants and other potentially lifesaving drugs. (Salt Lake Tribune)

Herbert says he won't raise taxes
Gov. Gary Herbert pledged Thursday not to raise taxes next year, despite a looming budget shortfall. (Deseret News)

Stimulus funds renovating Utah military sites
Hill Air Force Base Chaplain Carl Wright can hardly contain his excitement. For five years the base has been seeking money to expand its chapel, which seats about 350 people, but the project hasn't been an Air Force priority. (Salt Lake Tribune)

USTAR Researchers to light workplace with smarter buildings
Few inventions have lit the way to modern times more than Thomas Edison's 1879 discovery of electric illumination, created by running current through a carbon filament in a vacuum bulb. Edison's idea, which transformed the way we live and work, has been upgraded so many times, few ways remain to improve on the light bulb. (Salt Lake Tribune)

Forbes says health care should be left to market
Health care needs reform in the United States, but it shouldn't be through government programs, Steve Forbes said at Utah Valley University on Friday. (Deseret News) (Salt Lake Tribune)

Street car proposal closer to being a reality
Sugar House is far from its potential these days. A stalled project in the heart of the neighborhood has deflated morale a bit. (KSL) (Salt Lake Tribune)

Developer wants South S.L. backing
A developer who wants to put 27-story condominiums in the heart of this industrial suburb plans to ask the City Council on Wednesday to take out bonds for the project. (Deseret News)

Utah loan program helps keep small businesses afloat
He was making countertops, and the recession-buffeted, home-construction implosion over the past 18 months had slammed his bottom line with a 40 percent revenue drop. (Salt Lake Tribune)

Does traffic jam economy? Study says reducing congestion could increase productivity
Have you ever been stuck in traffic and thought of all the things you could be doing that would have been more productive? A new study has confirmed your suspicions. A Reason Foundation report released Thursday found that reducing traffic congestion and improving travel times could boost the Salt Lake area's economic output by up to $700 million a year. (Deseret News) (KSL)

Calendar
September 9-11
ULCT (Sheraton, SLC)

September 15
3rd Annual "what's IN OUT back!" Wasatch Economic Summit and golf tournament

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

September 20-22
CoreNet (Phoenix, AZ)

September 24
What's Going Down Up North (Logan, UT)

October 2-6
Industrial Asset Management Council (IAMC) (Hot Springs, VA)

October 4-7
IEDC (Reno, NV)

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

October 12-14
CoreNet (Las Vegas, NV)

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

October 22
PTAC Symposium (Layton, UT)

October 27-29
Solar Power International (Anaheim, CA)

November 18
Board Meeting (Salt Lake Country Club)

December 16
Holiday Open House (EDCUtah)

edcUTAH Investors
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Board of Trustees

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
Salt Lake City International Airport: A Boon to Utah’s Economy and Economic Development

First in a Series on Transportation in Utah

In 1911, during Salt Lake City's Great International Aviation Carnival, pioneer aviator Glenn H. Curtiss launched his newly-invented seaplane from the Great Salt Lake, awing some 20,000 spectators and making international headlines. At the time of the carnival Salt Lake City's newly minted airport consisted of a cinder-covered landing strip on a marshy, desolate area of the valley known as Basque Flats.

That site, which would later welcome the first regularly-scheduled air passenger service in U.S. history -- a Western Air Express flight from Salt Lake City to Los Angeles -- is today home to Salt Lake City International Airport, the 25th busiest airport in the U.S. in terms of total passengers and 22nd busiest in the world in terms of total airport operations. Additionally, Salt Lake City International is consistently ranked first among U.S. airports for on-time departures and arrivals, leads the nation for fewest flight cancellations and was ranked one of the top mid-sized U.S. airports for customer satisfaction by JD Power and Associates.

An Economic Powerhouse
"Salt Lake City International Airport is an economic powerhouse and plays a critical role in keeping Utah as a top location for business, tourism, outdoor recreation and many other areas important to our economy," says Todd Brightwell, EDCUtah's vice president of business development. "Clearly, our economic development work would be much more difficult without our major metropolitan airport close by."

Indeed, Salt Lake City International Airport is one the closest airports to its city center anywhere in the U.S. Situated just 10 minutes west of the central business district, the airport is convenient not only to the capital city but also to 11 major ski resorts and numerous metropolitan areas across the Wasatch Front. It will become even more conveniently accessible upon completion of the Utah Transit Authority's (UTA) airport line of the TRAX light rail system in 2013. By 2030 the UTA anticipates the airport line will serve approximately 14,000 daily passengers.

"Truly, Utah's 'Crossroads of the West' moniker would be less meaningful without the Salt Lake City International Airport," Brightwell adds. "What's more, the airport is a major employment center and a critical factor in the selection process for aviation-related businesses. In fact, more than 60 percent of all projects usually have access to a major airport as a necessary element to the decision making process."

Barbara Gann, public relations and marketing director for the Salt Lake City Department of Airports (SLCDA), the agency which operates and manages the airport, says the SLCDA employs approximately 600 workers at the airport, while "thousands more are employed airport-wide with aviation-related companies."

Debt-Free
The airport has an annual operational budget of $110 million, none of which is supported by local tax dollars. Capital projects are supplemented with Airport Improvement Project funds from the federal government, passenger facility charges and state grants. Interestingly, Salt Lake City International Airport is also the only debt-free large hub airport in the nation. During 2008, in reaction to spiking interest rates, the SLCDA made a strategic move to retire its Series 2004A and Series 2004B auction rate bonds, paying them off with cash reserves in the amount of $49,775,000.

"The choice was in reaction to the market, but also to better position us to ultimately take on an Airport Expansion Program currently in development," says Maureen Riley, executive director of the SLCDA. "With the support of the Airport Board, Mayor Becker and the Salt Lake City Council, we were able to quickly respond to this rapid and unpredicted interest rate increase. We were fortunate to have the financial means to nimbly respond."

A Delta Hub
The airport is also home to Delta Air Lines' second largest hub and has become ever more important with the merger of Delta and Northwest Airlines and service by Delta Connection Partners ExpressJet and SkyWest. Southwest Airlines also has a strong Utah presence. Additional carriers serving the Utah market include:

  • American Airlines
  • Continental Airlines
  • United Airlines
  • Jet Blue Airlines
  • Frontier Airlines
  • US Airways

Through December 2008, over 20 million passengers passed through the gates of Salt Lake City International Airport, according to SLCDA data. As of June 2009, the airport experienced more than 450 scheduled airline departures per day to 109 nonstop destinations throughout the United States, Canada, and Mexico, as well as daily nonstop service to Charles de Gaulle International Airport in Paris, France. Forty of the 50 states can be reached non-stop from Salt Lake City.

International Service
From December 2007 to December 2008 the airport's international flights increased some nine percent, a reflection of Delta Air Lines' adjustments to service from Salt Lake City to Canada and Mexico. Delta's nonstop service to Paris-Charles de Gaulle Airport marked the first scheduled transoceanic route from Salt Lake City. In June 2008, Delta started nonstop service to Tokyo Narita International Airport; however, due to difficult economic conditions and the H1N1 flu outbreak, that service will be suspended from October 1, 2009 until May 14, 2010. Nonetheless, the flights make Tokyo the first city in Asia to receive nonstop service from Salt Lake City.

Gann says the International Terminal at Salt Lake City International Airport has the capacity to handle more than 200 arriving international passengers per hour. The building also houses the United States Federal Inspection Services (including Customs) and permits passengers to recheck baggage, move through screening and proceed to their departing gates. The 90,000-square-foot facility features a 70-foot-long baggage carousel, which is the airport's largest.

Air Freight
Convenient air freight service from Salt Lake City International Airport puts shippers within hours of any point in the nation, Canada and Mexico. Twenty-two cargo carriers, including Airborne Express, Ameriflight, DHL, Emery, FedEx, and United Parcel Service, handle approximately 345 million pounds of air cargo and mail annually.

Expansion
Future airport expansion plans could involve the extension of one runway, the realignment of another and the addition of a fourth parallel runway. Long-term, Gann says the airport may build a new terminal and two new concourses. Ultimately, a single terminal with attached concourses will be the design.

The receipt of $8,570,924 in economic recovery funds allocated by the Federal Aviation Administration will help the airport construct a new taxiway that will serve a future deicing pad for up to eight aircraft using the east runways.

Unlike other metropolitan airports, Salt Lake City International Airport has acquired adequate property for future expansion needs, which will ensure the quality of air service without the problems and delays associated with congestion and overcrowding for many years to come.

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