EDCUtah Quarterly Investor Update and MoutainWest Capital Network's Award Focus on the Positives in Utah's Economy

Times are tough, but great things are still happening in Utah, as you will read in our feature story (below). Duncan Aviation's decision to locate a service center in Provo is a big win for Utah. If you haven't heard or read about this announcement, see our newslinks in the right column for more information. Also, I draw your attention to two exciting events coming in the next few weeks:

On Wednesday, October 22 the EDCUtah Quarterly Investor Update will be held. This is an opportunity for EDCUtah investors and anyone interested in Utah economic development to review our successes over the past quarter and have a look at projects in the pipeline. This quarter we are pleased to have Mike Nadon, CEO of Cementation USA coming to speak about Cementation's decision to establish its U.S. headquarters in Sandy. The other exciting aspect of this Quarterly Investor Update (QIU) is the venue. The event will be held at the Swaner EcoCenter in Park City. The Swaner EcoCenter is a LEED certified building designed to reflect the four elements of a healthy ecosystem: water, sunlight, earth and air. More than 75 percent of the building materials are reclaimed, recycled or rapidly renewable resources. Please RSVP by Friday, October 17 to adeibert@edcutah.org or asalazar@edcutah.org, or by calling (801) 382.8824. Click here for more details or here for directions.

The MountainWest Capital Network (MWCN) gala luncheon marks the 14th annual Utah 100 business awards program. Utah Governor Jon Huntsman is scheduled to keynote the event, which will take place Friday, October 24 at the Grand America Hotel, from 11:15 a.m. until 1:15 p.m. The awards recognize Utah's top 100 companies for their significant contributions to the state and its expanding economy.

For the past 13 years MWCN has recognized outstanding companies based in Utah through this extremely popular event. President Devin Thorpe says the gala luncheon allows Utah to celebrate and honor those in the business community "who are responsible for the success we see in our state."

Tables are still available for the luncheon. To reserve, go to www.mwcn.org, send an e-mail to info@mwcn.org or call (801) 966-1430 for more information.

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" button on the bottom of this page. Enjoy!

Jeff Edwards
President and CEO

City Creek Center, Numerous Other Commercial Developments Help Buffer Economic Distress

While the world economy roils in financial upheaval, Utah's economy is being buffered to some degree by commercial construction activity as numerous existing commercial developments move forward around the state.

Indeed, major development projects are underway in many locations, including the new Hamilton Partners skyscraper taking shape at 222 S. Main in Salt Lake City, the City Creek Center in downtown Salt Lake City, Fashion Place Mall's redevelopment in Murray, the Valley Fair Mall redevelopment in West Valley City, Station Park in Farmington, the Junction in Ogden, The District in South Jordan, Trolley Square's redevelopment, the redevelopment of the Sugarhouse district, the Quarry Bend development in Sandy and the recent completion of the Real Salt Lake Stadium, also in Sandy. These are only a handful of the numerous developments under significant construction or recent completion around the state. Nonetheless, they typify the important commercial construction activity that is helping to buoy the Utah economy.

EDCUtah will feature additional coverage of some of these commercial projects in coming issues of the Economic Review. This week, however, our attention is focused on the City Creek Center, a sustainably designed, walkable urban community of residences, offices and retail stores that will rise over the next four years on approximately 20 acres across three blocks in the heart of downtown Salt Lake City.

Developed by City Creek Reserve, Inc., an affiliate of The Church of Jesus Christ of Latter-day Saints, the City Creek Center project includes strategic partners Taubman Centers, Inc., a leading developer and operator of innovative retail environments, Harmons Grocery Stores, a Utah company, and Cowboy Partners, a Utah-based residential developer.

Development at the City Creek Center achieved a new milestone recently when construction reached ground level at the corner of South Temple and West Temple. The newly completed underground parking structure offers four levels of parking that will accommodate 5,000 stalls and convenient parking entrances tall enough for large SUVs, even with ski racks attached to their roofs.

Mark Gibbons, president of City Creek Reserve, Inc., says various aspects of the City Creek Center will open up incrementally between now and 2012, when construction is expected to be complete. First to open will be the residential sales center, which should occur within weeks, according to Gibbons. The City Creek Center will feature 700 residential units in six different towers. Residential sales will begin as soon as the sales center opens and offer a broad range of pricing opportunities.

Next to open will be the new food court, slated for late spring of 2009. The new food court will be split, with part located at street level inside the new KeyBank Tower, 36 S. State Street, and part under a sky-lit outside dining area between the KeyBank and Eagle Gate Towers.

Gibbons says the residential portion of the project will also open up incrementally. First to open will be twin condominium towers at 44 and 55 W. South Temple. Opening is slated for late 2009 or early 2010. A 20-story residential tower with a glass curtain wall will follow at 100 South across from Regent Street. The tallest building in the project will be a 30-story residential tower at 99 W. South Temple, the former location of the Inn at Temple Square. Penthouses at the top of the building will feature panoramic views of the city and surrounding valley. The final residential piece, slated to open some time in 2012, will be a condo development located at 44 W. 100 S., east of the Marriott Hotel.

The City Creek Center will include four main office towers, offering approximately 1.4 million square feet of office space, and a regional retail center with approximately 900,000 square feet of retail space. The retail anchors are Nordstrom and Macey's. Nordstrom will occupy a two-story, 124,000 square-foot store located mid-block on West Temple, while Macy's will locate on the east side of Main Street with a three-story, 150,000 square-foot store on the north end of the block near South Temple.

Approximately 500,000 additional square feet of nationally recognized merchants and restaurants will line the pedestrian walkways and link the two anchor stores. Some retail areas will be open-air while others will have a retractable roof. Gibbons says other retail tenants will be announced by Taubman Centers, a City Creek strategic partner and owner/operator of the development's retail portion. The development will also feature a full-service Harmons Grocery Store on the south side of Social Hall Avenue, east of State Street.

As a pedestrian-friendly development, the City Creek Center will welcome residents, office workers, visitors and shoppers with green space, water features and open walkways. Gibbons says fountains and streams of recycled water will represent the historic south fork of City Creek that ran through the downtown area when pioneering settlers first arrived in 1847. Plans call for approximately six acres of gardens and beautifully landscaped open space.

With all of the construction underway, residents have a tendency to avoid downtown. Gibbons says to "come on down."

"We invite people downtown to see what is going on," he adds. "Clearly there are interruptions, but hopefully there is an excitement going on about the development and we invite people to see what we are doing." The City Creek Center has been distinguished internationally for its sustainable, green design.

In The News

Economic Development Headlines from the Past Week

EDCUtah announces 2008 Community Match Grant recipients

- Economic Development Corporation of Utah (EDCUtah) recently announced it has awarded 25 Community Match Grants to Utah communities and economic development groups for a total of approximately $72,000. (Utah Business Magazine registration required)

Provo lands aircraft-repair company Duncan Aviation

- Duncan Aviation, a Nebraska-based firm that services corporate aircraft, will build a 320,000-square-foot repair and painting facility at the airport, Mayor Lewis K. Billings and Duncan Chief Executive Aaron C. Hilkemann announced Thursday at a news conference.
(SL Tribune) (Morning News) (Daily Herald)

Utah flies high in aviation industry

- The Governor's Office of Economic Development (GOED) Business Development Board met and approved an Economic Development Tax Increment Financing (EDTIF) incentive for Duncan Aviation, an aircraft maintenance and repair company. The board also extended an Economic Opportunity Grant from the Industrial Assistance Fund (IAF) to recruit a Delta Airlines direct flight from Salt Lake City to Tokyo Japan. (Utah Business Magazine registration required)

Hill Air Force Base to break ground on 550-acre research park

- Hill Air Force Base will host a groundbreaking Friday for the new 550-acre Falcon Hill National Aerospace Research Park. The project, near the west gate of the base on the border with Roy, will include office and research space, as well as restaurants, hotels and shops. (SL Tribune) (Clipper Today)

West Valley City designates 400 acres for industrial park

- The West Valley City Council designated more than 400 acres near the intersection of 6400 West and 5400 South as an economic-development area (EDA) earlier this week. "Now the real work starts of creating an industrial park out of it," said the city's Business Development Manager Nevin Limburg. He is overseeing the project, which is expected to create more than 7,600 jobs. (SL Tribune)

Delta Air Lines promised funds to develop direct Salt Lake City to Tokyo flight

- The Governor's Office of Economic Development has agreed to give Delta Air Lines $250,000 to help start a direct flight from Salt Lake City to Tokyo. For comparison, Executive Director Jason Perry says the Salt Lake City to Paris flights have been 80 percent full, and brought economic opportunities to the state. (KCPW) (Morning News) (SL Tribune)

Utah County agrees to put $65M toward I-15 rebuild

- Utah County will help pay to rebuild Interstate 15, but officials want to make sure that local roads are not neglected in the process. (Salt Lake Tribune)

Utah's resources key to high tech and economy growth, expert says

- Utah possesses strong resources that will be essential to the next era of high-tech industry growth, says Novell CEO Ron Hovsepian. As leader of a global company with more than 4,700 employees worldwide, Hovsepian noted that Utah's strengths are critical to the next phase of high technology growth not only for Novell and for the Utah economy, but for the high-tech developments that are affecting the world overall. (Utah Business Magazine registration required)

Cleared for Landing: Officials hope new taxiway opening at Ogden-Hinckley will lure commercial flights

- City officials are optimistic the opening of a $5 million taxiway at Ogden-Hinckley Airport will help the facility land commercial flights. (Standard-Examiner)

Count on growth in Utah

- With the nation's economy contracting daily, you may think this isn't the time to talk about growth. Actually, it is a great time. Economies go in cycles, but many indicators point toward continued growth in Utah during the decades to come, and Utah's leaders need to be prepared now to handle the impacts of that growth. (Morning News) (SL Tribune)

RSL: Welcome to our house

- It's finally here. Years after it was promised, left for dead and then painstakingly resurrected into a gleaming landmark near the freeway, the controversial $110 million Rio Tinto Stadium opened Friday night when Real Salt Lake played the New York Red Bulls on national television... (SL Tribune)

Economy delays FrontRunner

- The slumping economy means Utah County residents might have to wait an extra six months before riding FrontRunner trains to Salt Lake City. Officials plan to push back the southern commuter line's opening date from mid-2012 to early 2013. (SL Tribune)

Utah business index lowest since 2001

- Add the Zions Bank Small Business Index for Utah to the list of economic numbers on the downswing. The index slipped to 85.8 in September from a revised 85.9 in August, the lowest point for the index since the full-year figure of 85.5 in 2001.
(Morning News) (SL Tribune)

Plans for bike transit centers are presented

- For downtown Salt Lake City resident and bicyclist Krista Bowers the easiest way to not take the car, she says, "is to not have one." For Bowers, a proposed "Bicycle Transit Center" can't come soon enough. (Morning News)

SLC looking to build $32 million fleet-maintenance facility

- Undeterred by the slumping economy, Salt Lake City is making plans to invest $32 million in the "backbone" of city operations. City officials are proposing to build a new fleet-maintenance facility at 1954 W. 500 South that would centralize city fleet operations and provide the space needed for repair work and on-site storage. (Morning News)

CALENDAR

Oct. 21: 3rd Annual Procurement Symposium
Learn sell to the government and the military
Nationally recognized speakers, training sessions and exhibits. Runs from 7:30 a.m. to 3:30 p.m. at the SouthTowne Expo Center,
9575 S. State Street Sandy.
Pre-Registration Cost:
$50/person and $35/guest until Oct. 13
$65/person and $50/guest after Oct. 13
Registation: www.goed.utah.gov/PTAC
For more information contact Myrna Hill (801) 538-8775 or email ptac@utah.gov
Oct. 22: Quarterly Investor Update from 4:30 to 6 p.m. at the Swaner EcoCenter. Speaker Mike Nadon, Cementation USA. Investors $20, all others $25. Swaner EcoCenter is providing a gift for all attendees--don't miss out! Click here for directions or here more details. RSVP to Amber Deibert or Amy Salazar at (801) 328-8824 or email adeibert@edcutah.org or asalazar@edcutah.org.
Oct. 24: MountainWest Capital Network's Acclaimed Utah 100 Business Awards Luncheon at the Grand America Hotel, from 11:15 a.m. until 1:15 p.m. Utah Governor Jon Huntsman will address attendees. Tables are still available for the luncheon. To reserve yours go to www.mwcn.org, send an e-mail to info@mwcn.org or call (801) 966-1430 for more information.
Dec. 17: Holiday Open House (EDCUtah)

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