February 28, 2006

  

A Publication of the Economic Development Corporation of Utah

CEO Jeff Edwards

 PRESIDENT'S  

 MESSAGE

 Attracting Business to

 Both Urban and Rural

 Locations


Economic development incentives are statewide in nature, used to attract business growth in both urban and rural areas of Utah. As today's feature article points out, five of the nine recent incentives awarded by GOED's incentive board have been for rural economic development, including Qwest's recent announcement to expand operations in Logan.

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 STORY

Rural Economic Development Heats Up!

Last week's announcement by Qwest Communications International that it is opening a customer sales and service center in North Logan is a big win for rural economic development in the state. It's also an excellent example of how a rural community can parlay natural and financial incentives to win over a high-tech company, and with it nearly 600 high-paying jobs.

Jerry Fenn, Qwest president for Utah and EDCUTAH board member, says the Denver-based telecommunications company could have placed the service center anywhere, particularly within its 14-state service area; however, Qwest chose the Cache Valley location because it offered several unique advantages, including:

Qwest is a quality company and EDCUTAH was fortunate to work with Fenn and his team, and to be involved in the process that helped convince Qwest to locate in Cache Valley. Furthermore, EDCUTAH fully expects this success to continue since additional companies are also interested in the unique natural and financial incentives available in rural Utah. In fact, Michael Nelson, GOED corporate recruitment and incentives director, recently reported to the GOED board that five of the last nine projects involve rural Utah locations.

The increased interest in rural Utah is exciting because of the potential to significantly improve the low wage cycle commonly found in rural communities. For example, even the lowest-paying jobs at the new Qwest service center will pay 135 percent of the county median. The average salary at the center will be around $40,000; however, a majority of the salaries will start at $24,000 a year. Approximately 43 management employees will make more than $60,000 annually.

Here are some other projects EDCUTAH is working on that have potential to significantly increase the wages in rural Utah locations:
EDCUTAH currently has 180 open projects, some of which involve rural locations, but are not far enough along to discuss in the public forum. Nonetheless, we expect our continued economic development efforts will bring other quality companies, like Qwest, to realize the value of locating in rural Utah.

CALENDAR

March 8-9:  Business and Technology Expo, Orem

March 23:  EDCUTAH's Quarterly Investor Update

March 24:  GOED Tech Breakfast (Click here for more information)

April 6-7:  Utah League of Cities and Towns Spring Convention, St. George

April 9-12:  BIO 2006 Annual Conference, Chicago

April 19-20: Rural Business Conference with Sen. Robert Bennett, Vernal (Click here for more information)

April 23-26:  CoreNet Global Summit Spring Convention. Philadelphia

May 3-4:  SL Chamber Business-to-Business Expo

May 21-24:  ICSC Spring Convention, Las Vegas


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USTAR UPDATE

U. Recruits Neuroscience Team

In case you missed it, the Morning News published a very interesting story Monday validating the potential of USTAR. Using USTAR funds from last year, the University of Utah is recruiting a large research team from Harvard University.

The team brings with it research grant money and enormous expertise in the study of neuroscience, particularly relating to the causes of depression. This team, along with others on campus and being recruited, have the potential to spin off new businesses in multi-billion dollar markets.

USTAR, which is supported by numerous Utah business leaders and associations, in addition to Gov. Jon Huntsman, still awaits funding by the Legislature. We encourage anyone who supports USTAR to contact their legislators today and urge them to fund the initiative.

TO FIND YOUR LEGISLATORS AND GET THEIR E-MAIL ADDRESSES GO TO:  http://www.le.state.ut.us/

TO LEAVE A MESSAGE FOR YOUR REPRESENTATIVE:
Utah House of Representatives: (801) 538-1029

TO LEAVE A MESSAGE FOR YOUR SENATOR:
Utah State Senate: (801) 538-1035

LET THEM KNOW:
USTAR will help Utah become a world leader in scientific research and technological advancement-directly translating to a strong economy, high-paying jobs, increased tax revenue and better quality of life.

IN THE NEWS

Economic Development Headlines

Business Conference to Address Needs of Rural Entrepreneurs

- The fifth annual Rural Business Conference will be held in Vernal on April 19 and 20, 2006. Presented by Sen. Bob Bennett and the Utah Rural Development Council, the conference is expected to draw more than 300 business executives, government leaders and economic development officials from across the state. (Utah Business Magazine)

Utah Jobs Going Unfilled

- More jobs are going unfilled across Utah as a booming economy increases demand for positions ranging from laborers and truck drivers to civil engineers and pharmacists. (Morning News)

Utah Workers Awash in Choices

- Utah Transit Authority doesn't hire physicians, basketball stars or even top-level engineers. But the transportation company is offering signing bonuses anyway - to attract bus drivers. (SL Tribune)

U of U Spin-Off Company to Develop Stem-Cell Technology

- A University of Utah researcher is taking his stem cell research to market with the creation of spin-off company Nephrogen LLC. Located in Research Park, the biotechnology company will explore the therapeutic potential of adult stem cells for treating acute kidney disease. (Utah Business Magazine)

NSA Seeks Linguists at BYU to Staff Utah Center

- National Security Agency recruiters were at Brigham Young University this week, spreading the word that linguists are needed to staff a national-security center in Utah that will specialize in foreign-language translation. (Morning News)

Ogden's 'Ski Hub' Plan Picks Up Speed

- Nearly two years ago, city officials began talking publicly about transforming Ogden into the "ski hub of North America," a vision that includes making the city both an international recreation destination and a center of the ski-equipment industry. (Standard-Examiner)

Opinion: Economic Growth Follows Social Tolerance

- Economic development is a critical need for Utah. Indeed, Gov. Jon Huntsman lists it first among the key concerns of his administration, above education, transportation and the environment. (SL Tribune)

Commercial Snowball Still Rolling Through Summit County

- Growth is here and more growth is coming, so be prepared. At least, that's what Park City Board of Realtors statistician Mike Sloan concludes after publishing his final analysis of Summit County's 2005 retail, office and industrial real estate market for Commerce CRG. (Park Record)

Senate Approves RDA Bills

- Senators gave unanimous approval on Friday to Sen. Curt Bramble's long-awaited RDA overhaul bill, SB196. A second bill allowing cities to divert tax increment to abandoned industrial sites also received approval. (Morning News here and here) (SL Tribune)

Black Chamber Opens for Business

- The Utah Black Chamber of Commerce made its debut Friday in a ceremony at its new offices in the Utah Business Development Alliance building, 1747 S. 900 West. (SL Tribune) (Morning News)

Pricey Permits

- Thinking of developing an office building? You may want to steer clear of South Jordan, which charges developers more than $438,000 to obtain a single office building permit, according to a study released Thursday. (Morning News)

11 Firms Are Top Manufacturers

- Eleven Utah companies have been named winners of the Manufacturing Extension Partnership's 2005 Manufacturer of the Year Awards. (Morning News) (SL Tribune)

Spanish Fork Weapons Maker Expands

- For more than a decade, Klune Industries Inc. has been making rocket and launcher components for defense supplies giant Lockheed Martin. (Daily Herald)

Rossignol Nears Deal on Ogden Distribution Site

- Rossignol Group is in final negotiations with The Boyer Co. to locate its U.S. ski equipment distribution headquarters at Business Depot Ogden, the companies said. (Morning News)

Utah Tech Company Flies Quietly Under the Radar

- For most of its five decades, Communications Systems-West has quietly protected the nation in near anonymity - a tightlipped operation whose clients were the White House and Pentagon. (The Spectrum)

U.S. Sec. of Labor Discusses American Competitiveness Initiative (ACI) With UITA

- Following President Bush's announcement of the American Competitiveness Initiative (ACI) in his recent State of the Union address, Deputy U.S. Secretary of Labor Steve Law visited Utah business leaders to discuss the initiative in person. (Press Release)

HAFB Symposium: How To Do Business With the Air Force

- Hill Air Force Base is holding a requirements symposium March 21-22 to explain how to do business with the Air Force, including how to register as a defense contractor. (Utah Business Magazine)