Nov. 18, 2008

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

President's Message

Delta Airlines' Salt Lake City/Tokyo Flight a Reality


Some more good news from Salt Lake City International Airport: Delta Airlines will offer direct flights from Salt Lake City International Airport to Narita International Airport in Tokyo, Japan. Delta officials say flights will begin June 3, 2009. This is an excellent indicator of confidence in Utah's economic strength worldwide. What's more, Salt Lake City passengers will have easy access to 20 other Asian cities with flights out of Narita.

Narita is Delta's second overseas route from Salt Lake City. The overwhelming success of the first route to Paris, France led to positive expansion and this additional overseas route. We at EDCUtah see this as yet another tool for our business development team when pursuing projects interested in Utah.

Please take note of the excellent news coverage this fantastic announcement has garnered over the past week in our News Links section.

On another note, after a trip to CORENET Global Summit, the semi-annual conference of the professional association for corporate real estate and workplace executives, I was encouraged to see an overall optimistic attitude about the economy in general. According to my non-scientific poll, it appears that with the exception of the Northeast and California, there is still a tenor of positive growth around the country. Look forward to next week's feature in this newsletter regarding CORENET and the findings and perspectives we gained by attending this important industry conference.

This week's feature story highlights economic development activity in Cedar City and Iron County. Utah's "Gateway to the National Parks" is enjoying significant developments in mining and alternative energy, which are helping to make the area a hotbed for growth.

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

Jeff Edwards
President and CEO

Feature

Cedar City and Iron County Have it All Together


When Mayor Gerald Sherratt says "Cedar City has it all," he's right. And what is true of the city applies equally to the county. Already rich in tourist attractions, natural amenities, pristine air and world-renowned events like the Utah Shakespearean Festival, Cedar City and Iron County have become hotbeds of economic development activity.

Named for its generous supply of iron ore, Iron County is enjoying a renaissance of iron mining, increasing attention as a source for clean, renewable energy development and a flourishing manufacturing sector.

The mayor can list in rapid-fire succession a plethora of key developments. For example, he says:

  • The Utah Shakespearean festival just ended one of its best seasons ever.
  • Iron County's Iron Bull Mining & Milling facility at Iron Mountain is back in operation after a 22-year hiatus. Salt Lake City-based Palladon Ventures purchased the mine for $10 million in 2005 and invested another $10 million in upgrades. Trainloads of stockpiled ore, two to four million tons a year, will be hauled to port in Long Beach, Calif., where the ore will be loaded onto China-bound barges. A Chinese company, China Kingdom International, will process the ore under a five-year, $1 billion contract. The mine currently has a 25-member staff and is expected to eventually employ up to 120 workers.
  • The Cedar City Airport has the second largest runway in the state, boasts a new terminal and a SkyWest/Delta connection with two daily flights to Salt Lake.
  • Fiber optic broadband connectivity will soon be available to major businesses in the area through a partnership with Utah-based Interlinx.
  • The vast network of power transmission lines and the recent opening of Raser Technologies' geothermal power plant just across the county line near Minersville has brought national attention to the potential for thermo power in the western half of Iron County.
  • Cedar City's retail sector ranks 21st in the state for sales (over $600 Million in gross taxable sales).
  • Southern Utah University is the fastest growing university in the state.
  • Cedar City was recently cited as one of the best places for outdoor living and one of the best places to retire by national publications like Outdoor Life, U.S. News & World Report and Where to Retire magazine.
  • The manufacturing industry continues to expand. Charlotte Pipe and Foundry Company recently located its western manufacturing plant in Cedar City at Port 15 Utah, where it employs approximately 40 people in a $40 million facility.

Speaking of Port 15 Utah, this 800 acre business park (an EDCUtah SURE Site), is drawing increased interest because of its rail access. The Union Pacific rail line to Cedar City runs through the middle of the park. The project is a joint venture between the School Trust Lands Administration and Utah-based Quantum Development.

Brent Drew, vice president of business development, says Port 15 Utah just received approval to add rail service to phase two, which comprises 400 acres on the north side of the park. The rail crossing is in place and plans are underway to begin installing the rail spur this spring. Phase one lots with rail service are already taken, so the new development will be a boon to the park, especially given the increased interest from businesses looking for rail-served sites.

What's more, L M Construction, of Las Vegas, just completed its first of four 9,000 square-foot buildings, now available for lease in Port 15.

Regarding alternative energy, a report by the Utah Renewable Energy Zone Task Force says geothermal resources are considered "significant" enough in Utah to provide 750 megawatts of electric generation over the next 10 years, and twice that amount long-term. Geothermal companies are "aggressively" leasing properties with geothermal potential and Iron County expects to be in the mix. What's more, Iron County's high altitude, consistent winds and days of sunshine make it a favorable location for solar and wind power generation.

Bryan Dangerfield, economic development director, summarizes Cedar City's competitive advantages by noting the outstanding infrastructure, transportation resources, redundant fiber optic line, fast-track permitting process, supportive local government, quality of life (including year-round festivals, sporting events, outdoor recreation, theatre and arts), rural setting, and logistical proximity to large metropolitan areas such as Los Angeles, San Diego, Salt Lake City, Denver, and Phoenix.

"I think the future here is very bright," adds Mayor Sherratt.

CALENDAR


Dec. 17:  Holiday Open House 4 to 6 p.m. at EDCUtah

Jan. 13, 2009:  Entrada at Snow Canyon Country Club;  reception 6 to 8 p.m.

Jan. 14:  Washington County Economic Summit, 7 a.m. to 2 p.m., Dixie Center, St. George, UT www.whatsupdownsouth.com

March 24-26:  JEC Composites Show (Paris, France) http://www.jeccomposites.com/jec-show/

EDCUTAH INVESTORS

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Investor Spotlight:
Cedar City


An EDCUtah municipal investor since 2001, Cedar City enjoys its designation as Utah's "gateway to the national parks." Indeed, tourism plays a big role in its economy. The world-renowned Utah Shakespearean Festival and several national parks nearby are huge draws, but recent high technology developments in alternative energy systems, diverse manufacturing and a renaissance of mining are lighting up the economy as well. The area is fast being known as the "gateway to clean renewable energy."

Economic Development Director Bryan Dangerfield says it is no secret the world is clamoring for clean power from renewable resources and Iron County hopes to play a significant role in green energy development. The area's high altitude, days of sunshine and flat, developable land make the county a top resource for solar and wind power generation. Add the region's vast geothermal resources and Iron County has the potential to be one of the most productive alternative-energy areas in the country.

Given all the activity, it's no wonder Gerald Sherratt, mayor and former president of Southern Utah University, says the future is very bright here.

Sherratt and Dangerfield both enjoy a close working relationship with EDCUtah and the partnership between the municipality and EDCUtah continues to be a productive one.

"EDCUtah is an outstanding organization from top to bottom that provides qualified leads that are a good fit for our community," says Dangerfield. "The professional staff attends site visits and helps the potential client through the State incentive process."

The location of Charlotte Pipe and Foundry's western manufacturing facility in Port 15 Utah is just one example of the successful teamwork that has taken place between Cedar City and EDCUtah. The project brought a $40 million capital investment to the city, added 40 jobs and a 150,000 square-foot manufacturing facility. The project was "fast-tracked" by local government and contractors taking only seven months from permitting to first production.

At 800 acres, the Port 15 Utah Industrial Park is the largest new rail-served business park west of the Mississippi River, which was developed as a joint venture between Quantum Development and the School Trust Lands Administration.

In The News

Economic Development Headlines from the Past Week

Nelson Laboratories to add 350 jobs in Utah

- Nelson Laboratories will add more than 350 new full-time jobs over the next decade as it expands its operations in Taylorsville. The company announced the expansion Thursday, after the Governor's Office of Economic Development Board awarded the company a tax credit of nearly $2 million for the project. (Deseret News) (Salt Lake Tribune) (Utah Business Magazine)

Milford's huge wind farm a step closer

- Milford High School shop teacher Andy Swapp always wanted to know about the wind around town. So in 2000, he established a wind-measuring tower and two years later he received a knock on his door from First Wind officials interested in a possible wind farm. (Salt Lake Tribune) (Spectrum) (Deseret News) (Utah Business Magazine)

100th site added to EDCUtah's SURE Sites program

- Economic Development Corporation of Utah (EDCUtah) has announced the 100th available site has been added to the organization's SURE Sites program. UtahSURESites.com is the state's only qualified site location program, designed to meet the needs of relocating and expanding businesses. (Utah Business Magazine)

Delta announces new direct flight from SLC to Tokyo

- Delta Air Lines has announced a new nonstop flight from Salt Lake City to Tokyo, beginning in June. Spokesman Anthony Black notes that the company's merger partner, Northwest Airlines, has a hub in Tokyo. Delta wanted to connect that hub with its Western United States hub. (Utah Pulse)

Utah Fund of Funds unveils expansion plans for 2009

- The Utah Fund of Funds, an innovative program created by the Utah State Legislature to foster entrepreneurship by increasing the amount and diversity of capital available to Utah growth companies, today announced its 2009 plans to expand its activities and influence on behalf of Utah entrepreneurs and companies. Since it was launched in 2006, the Utah Fund of Funds program has helped drive significant economic impact for Utah. As of October 31, 2008, the program's 21 portfolio funds had invested in 32 Utah companies. (Utah Business Magazine)

Nonstop flights to India are on Utah's wish list

- First Paris, now Tokyo. Next up for nonstop international flights from Salt Lake City? Maybe India. Jason Perry, executive director of the Governor's Office of Economic Development, told the GOED board this week that India is among a few destinations on the state's wish list for Delta Air Lines to serve. (Deseret News)

City Creek parking lots could open next summer

- Finding parking in downtown Salt Lake City should get a lot easier when the weather gets warmer. H. David Burton, presiding bishop of The Church of Jesus Christ of Latter-day Saints, said parking structures for the $1.5 billion City Creek Center project are on schedule for completion in summer 2009.(Deseret News)

Global Entrepreneurship Week Utah announces speakers and panel topics for entrepreneur and investor conference

- 'Unleashing Ideas' Conference Organizers of Global Entrepreneurship Week Utah (GewUtah.com) today announced the speakers for the Global Entrepreneurship Week Utah conference--"Unleashing Ideas: Igniting High-Growth Entrepreneurship in Utah." The joint entrepreneur and investor conference will take place Thursday, Nov. 20, 2008, from 8 a.m. until 5 p.m. at the South Towne Exposition Center, and features the third-annual Utah Angel Summit, drawing angel and venture capital (VC) investors throughout the state. (Market Watch)

Utah CEOs discuss the must-haves for a high-growth company

- Technology leaders in Utah joined forces this past week for the Utah Technology Council's (UTC) Utah County breakfast entitled "The Must-Haves for a High-Growth Company" which was held at the new University of Phoenix Pleasant Grove campus. The presenters were a pair of successful CEOs, Glen Mella from Control4 and Rich Hanks with Mindshare...
(Business Wire)

Ogden Marriott re-opens; Ogden City views re-opening key to attracting tourists

- The city of Ogden is pleased to announce the grand re-opening of the Ogden Marriott today. The interior of the hotel at 247 24th Street has been renovated to create a warm, outdoorsy environment that is in-line with Ogden City's goal to become America's high-adventure capitol. The names of the on-site restaurant and lounge, Canyon Fish Market & Grill and Rocks Lounge, have also been chosen to reflect the area's many outdoor activities and will serve locally influenced cuisine. (Utah Business Magazine)

Eager skiers get new staging area

- Powder hounds will have a chance this winter to make first tracks - and sleep in. Forget about lining up at the mouth of Little Cottonwood Canyon at dawn on a powder day if the canyon is closed for avalanche control or plowing. This winter, the Salt Lake County Sheriff's Office plans to send a text message right to your cell phone, alerting you when the road to Snowbird and Alta ski resorts will open.

(Salt Lake Tribune)

Utah spends millions on ads for skiing

- Utah spends millions on ads for skiing
Utah's ski industry is hoping for the best, despite an economy that is currently anything but hopeful. (Deseret News)

Morgan County wants open spaces, jobs

- Preserving open space and encouraging job and population growth in Morgan County's two main communities are the top priorities of residents who participated in the six-month Envision Morgan project. (Salt Lake Tribune)

Oil-shale projects are going ahead in Utah--for now

- The falling crude-oil prices of recent weeks will have little impact on the current oil-shale and tar-sands boom going on in eastern Utah, according to companies now working to develop the resources in the Uintah Basin. (Deseret News)

Population growth spurs different kind of development

- The population along the Wasatch Front is expected to nearly double over the next three decades. And because of this growth, there'll be a lot of development, says University of Utah professor Arthur C. Nelson. (KCPW) (Utah Business Magazine)

$2.6 billion rebuild set for I-15 in Utah County

- The Utah Department of Transportation is gearing up for a massive, $2.6 billion reconstruction project involving 20 miles of I-15 in Utah County and two east-west roads that drivers will be able to use to avoid the freeway construction. (Deseret News)

Applications for business licenses still strong

- The economy may be slowing down, but applications for new business licenses aren't. Some of those are from businesses leasing new office space in Kimball Junction or Kamas, but mostly it's new in-home or home-based businesses that have kept the numbers from declining. (Park Record)