January 10, 2006

  

A Publication of the Economic Development Corporation of Utah

 PRESIDENT'S MESSAGE

 Legislative Issues and Priorities



With the New Year brings new promise and new opportunity. Here at EDCUTAH, we look forward to those opportunities and what they may bring to our state. To help capitalize on some of these opportunities, we’re looking for the support of our legislators, who will soon be holding their annual legislative session sure to be filled with weeks of long days and nights.

Today’s Economic Review introduces the first of several issues in the upcoming legislative session that may impact economic development in our state: the USTAR initiative. We’ll continue to feature specific legislative issues in the weeks to come and give some perspective regarding how each may affect our state’s ED efforts.

Today’s issue also includes links to many of the ED-related news stories from the past week, as well as yet another of our informative Investor Spotlights. 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

USTAR is EDCUTAH’s Top Legislative Priority

An Interview With EDCUTAH Chair Scott Anderson, Who is CEO and President of Zions Bank

Economic Review (ER):  What are EDCUTAH’s top priorities for the legislative session that starts next week?

Anderson:  Our top two priorities are (1) the Utah Science, Technology and Research (USTAR) economic development initiative, and (2) redevelopment agency issues. We will also be following and making recommendations on a number of tax issues, including corporate and sales tax rates. (Editor’s note: The RDA and tax issues will be addressed in a future edition of EDCUTAH Economic Review.)

ER:  Why has the business community rallied around USTAR and made it one of the top priorities?

Anderson:  I think it’s because business leaders recognize that USTAR is the best and most important economic development initiative in a generation. Utah’s economy is doing well, and now we have an opportunity to ensure that it stays on an upward trajectory. USTAR really provides the means to take Utah’s economy to the next level and keep it there.

ER:  If Utah’s economy is doing well, why do we need to spend more money on programs like USTAR?

Anderson:  For one thing, even though our population is growing and we’re producing more jobs, many of the jobs do not adequately support a family. Average salaries in Utah, as compared to the national average, have been dropping for several years. USTAR will produce new businesses and jobs in the high-tech sector, where salaries are much better. Low-paying jobs will happen almost naturally as the population grows. But creating high-paying jobs requires pro-active planning and intervention.

ER:  How exactly will USTAR build the economy?

Anderson:  Our research universities have an impressive record of spinning off high-tech businesses that employ thousands of people in high-paying jobs. USTAR will provide focus, support and organizational support to dramatically accelerate the commercialization of research in disciplines where we already have a competitive advantage. USTAR will help our universities build, recruit and fund dozens of world-class research teams that will focus on disciplines where multi-billion dollar markets exist. We know the field of genetics, for example, is about to explode with literally thousands of new business startups taking advantage of discoveries that will result in medicines for many kinds of diseases, and that will have numerous applications in health care, agriculture, manufacturing and many other fields.

We face a high-tech future, and Utah must be in this game. Some 32 states, including some of Utah’s direct economic competitors in the Mountain West, have invested more than $29 billion in research university economic development in the past four years. Harvard University and MIT are planning to jointly bring together 400 scientists to work on the genetics basis of cancer. Many industry and academic experts are saying the overall genetics industry will be as big as the computer industry. We can’t afford to be left out of this explosion of scientific knowledge and the resulting business opportunities. Our economic future is literally at stake.

ER:  If USTAR is funded at the level recommended by Gov. Huntsman, what results do you anticipate?

Anderson:  The governor’s budget doesn’t provide all the funding USTAR needs, so we will be scrambling to find ways to augment it. But it is a good start and we believe the difference can be made up. With full funding, conservative projections show that over 30 years USTAR will attract $4.9 billion in new external research funds; 422 new companies will be formed; 123,000 new jobs will be created, paying $62 billion in taxes and bringing $5 billion in new tax revenues to Utah.

ER:  Will the benefits of USTAR be restricted to just the University of Utah and Utah State University?

Anderson:  No. All areas of the state will benefit as five Innovation Centers, located strategically throughout the state, support the needs of local businesses and connect them to USTAR research and development projects and other resources.

ER:  The USTAR budget includes funding for research buildings at Utah State and the University of Utah. Are those buildings really needed?

Anderson:  To attract the best researchers in the world in specialized, targeted disciplines, we must have world-class research facilities for them to work in. Otherwise, they won’t come. To do groundbreaking research, they need the latest laboratory equipment and facilities. We’re not just building office space. The top scientists with the best commercialization records are a little like professional sports stars. They are in high demand and it takes a complete package to recruit them. Some of these teams include as many as 70 scientists, researchers, lab assistants and graduate assistants. With as many teams as will be recruited, new facilities are absolutely needed.

ER:  How will USTAR be governed and accountability ensured?

Anderson:  USTAR is an economic development initiative, not a higher education initiative. Thus, it will be governed by a board of leaders appointed by the governor, the House speaker and the Senate president. They will direct and control distribution of funds and ensure that legislative intent is followed. A separate advisory committee of business and science leaders will also help to see that USTAR fulfills its economic development mission.

ER:  How can business people get involved and support USTAR?

Anderson:  It would be wonderful if hundreds of business leaders would contact their state legislators. We need legislators to know that the business community is fully behind USTAR as the most important economic development initiative in many years. The state currently has a large budget surplus, and now is the time to make an investment in our future. Business people can make that case more effectively than anyone else.

If you would like more information about USTAR and specific ways you can help, call the USTAR Support Coalition at 801 456-1477. The Coalition can provide written material about USTAR and help you contact your legislator. More information is also available at the USTAR Web site.
 

Deadline Next Week


Inc.'s 125th Annual Search for 500 Fastest-Growing Companies in America

Inc. magazine and Inc.com have begun the search for the 2006 Inc. 500, the annual listing of America’s 500 fastest growing privately-held companies.  The Inc. 500 listing is widely regarded as the most prestigious indicator of growth among independent companies in the US.

A preliminary qualification form is available at Inc.com through  January 15. In late January and February, Inc. staff will contact the companies that have a chance at making the list and ask them to fill out a more detailed application. (Full press release)

CALENDAR

Jan. 11:

Washington County Economic Summit (www.whatsupdownsouth.com)(St. George)

Feb. 10-12:

EDCUTAH Site Consultant Event (Park City)

March 8-9:

Big Business and Technology Expo (Orem)

April 6-7:

Utah League of Cities and Towns Spring Convention (St. George)

April 9-12:

BIO 2006 Annual Conference (Chicago)

April 23-26:

CoreNet Global Summit Spring Convention (Philadelphia)

May 3-4:

Salt Lake Chamber Business-to-Business Expo

May 21-24:

ICSC Spring Convention (Las Vegas)

EDCUTAH PARTNERS
 

Current Partners
Why Be a Partner?
 Board of Trustees

IN THE NEWS

Business Headlines from the Past Week

What’s Up Down South? Summit Focuses on New Opportunities in Washington County

- The hottest ticket in town is to the sold out Washington County Economic Summit. Developers and entrepreneurs have their eyes on Washington County, which is the fastest growing county in the state, while St. George is the second fastest growing metropolitan region in the nation. Business leaders from across the state will attend the summit to get the scoop on the area’s tremendous growth and business opportunities. Organized by the Washington County Economic Development Council and the Dixie Business Alliance, the ninth annual summit will be held on Jan. 11 at the Dixie Center at Dixie State College. (Utah Business Magazine)

Developers Reveal New Shopping Center Projects

- Intermountain developers, retailers and real estate agents will reveal new shopping center projects in the region during the International Council of Shopping Centers (ICSC) 2006 Mountain States Idea Exchange Jan. 26 at 1 p.m. in SLC. (Utah Business Magazine)

Pleasant Grove Seeks Help to Plan Commercial Growth

- For years, Pleasant Grove has been mostly an observer to the economic-development gambles in Utah County. Now officials in the Utah County city have an ace in the hand with about 1,000 acres of prime real estate — and officials and residents are serious about cashing in on it. (Morning News)

Autoliv:  No Plans to Leave Ogden

- Despite a slumping domestic automotive industry, officials at Autoliv Inc., Northern Utah's largest private employer, say the company plans to keep a strong presence here. (Standard-Examiner)

Radiation Board Puts Off Envirocare Expansion Decision

- A state advisory board Friday stopped just short of signing off on Envirocare of Utah's plans to double the size of its radioactive and hazardous waste facility. (SL Tribune)

Utah 2006 Economic Forecast: Boom Time in Utah

- Utah's economy is expanding more rapidly than in most states and appears to be on the verge of accelerated growth. Many key sectors of the state's economy already are enjoying boom times with continued growth expected in 2006. (SL Tribune)

Prospects for 2006: Truckin’s a Top Job

- It might not sound glamorous, but driving big rigs across the country is one of the hottest jobs in Utah - one with excellent opportunities and pay. Utah Department of Workforce Services projects 900 openings in the state this year. (SL Tribune)

State Surges Out of Scary Slump

- Just three years ago many Utahns were anxious about their jobs, their homes and their futures. Today, memories of that stubborn economic downturn are fading as Utah enters what could be one of the most prosperous periods in its history. (SL Tribune)

Utah 'a State on the Move'

- More jobs, more homes and more people. It all adds up to more economic prosperity for Utah. In 2005, the state gained nearly 40,000 new jobs, issued more housing permits than ever before and welcomed 78,000 new residents, according to an economic report presented Thursday to Gov. Jon Huntsman Jr. (Morning News) (Standard-Examiner)

Utah Job Growth Still Strong

- Utah's quality of life and relatively young, well-educated work force are among factors contributing to its strong job growth, according to a state economist. (Standard-Examiner)

Creighton Report: Utah Economy Strong

- Higher interest rates and rising energy prices could not slow down manufacturing growth in Utah and the Mountain region last month, according to a Creighton University report. (Morning News) (Standard-Examiner)

Coca-Cola, Armbrus to Increase Jobs in 30-acre Cedar City Industrial Park

- Cedar City Corp. is selling more than 30 acres of land around the Cedar City Regional Airport, a sale that will bring new businesses and jobs to the area and pay off a $2 million city debt. (Spectrum)

Embracing the Hispanic Market

- Mainstream advertising may not effectively target Utah’s Hispanics, who make up at least 10 percent of the state’s population. A conference on Thursday, Embracing the Exploding Hispanic/Latino Market, is intended to help businesses reach out to a demographic they may have overlooked. (Utah Business Magazine)

Ogden Mall Development Sparks Interest in Empty Buildings

- Real estate agents have been getting more inquiries about vacant retail and office space on the east side of Washington Boulevard since an $18.5 million high-adventure recreation center was approved at the former site of the downtown Ogden Mall. (Daily Herald) (Standard-Examiner) (Commercial Property News)

Merchants Optimistic After Decent Holiday Sales

- Retailers in Utah and the rest of the nation head into 2006 with cautious optimism after December sales figures showed that the holiday shopping season, while overall respectable, was disappointing for some of the nation's most prominent merchants. (SL Tribune)

Utah Auto Dealers See Better Year than U.S.

- Utah dealerships selling Big Three cars and trucks finished 2005 in better shape than their counterparts in other parts of the country, where U.S. automakers continued to lose market share to their Asian competitors and Japanese automakers reported the year's biggest sales gains. (SL Tribune)

Huntsman Advisers Say Long-term Outlook Rosy for State's Economy

- Utah's continued strong economy should free up revenue surpluses to enable the state to reinvest in its infrastructure and education, which have gone neglected since the economic downturn that began in 2001, said Gov. Jon Huntsman Jr. on Thursday. (SL Tribune)

Little Giant Ladder to Stay in Springville

- Wing Enterprises Inc., which became a household name through its late-night Little Giant Ladder infomercials, isn't going ahead with plans announced in August to move its $200 million ladder and accessories-making plant in Springville to Mountain Vista Business Center in Provo. (Daily Herald) (Morning News)

SL County Tourism Booms

- Salt Lake County's tourism industry is taking off, with hotel tax revenues nearing Olympic highs and profits from the car rental tax finally making up losses lingering after Sept. 11, 2001. (Morning News)

Utah Ski Resorts Report a Roaring Holiday Season

- Christmas holiday visits to Utah ski resorts look to be at or beyond record levels as the Wasatch Mountains continue to bask in a post-Olympic glow. ( SL Tribune)



INVESTOR SPOTLIGHT


Richard Walje, president of Utah PowerName/Title: Richard Walje / President

Company:  Utah Power

Company's Mission:  To provide safe, reliable and affordable electric energy to our Utah Customers, along with, by the way, award-winning customer service.

Education:  Graduated from Granger High School (Class of 1970), Bachelor of Electrical Engineering and Master of Business Administration degrees, both from the U. of U.

Growing up:  I grew up in West Valley City (nee Granger) and had a very traditional upbringing of the time. Enjoyed playing every sport and "book learning" as well. My mother still lives in the house I grew up in. My father was a long-time employee of Kennecott so always had a fondness for anything copper. I remember when Granger was its own little community and it actually took a drive through the country to visit my grandparents who lived in Draper. My how times have changed.

Family:  Michelle, my wife, works at Deer Valley, or at least she claims it's work. We have two children, Matt 14 and Elizabeth 11, who are normal in every way, except they are much more sophisticated than I was back in the day.

Hobbies:  My hobby now seems to be checking my BlackBerry every 10 minutes. My daughter suggested I call it Wilson, as in the Tom Hanks movie, as it appears to be my best friend. Really I like to ski, mountain bike, read and compute, not necessarily in that order. Am thinking about taking up the hobby of making money, but not sure I have the aptitude.

Motivations/ambitions:  I am motivated by seeing things get done. This is probably related to my start in the electric utility industry as a lineman. It was very gratifying at the end of the day to see another mile or two of power line up in the air. The other thing that drives me is a desire to see continuous improvement, not only in how business is done, but also by employees as they grow and develop their capabilities. My ambition is to assure that Utah Power is viewed as a very good company, responsive to community needs, as well as committed to providing our customers with an affordable, vital service.

Why economic development is important:  Our society, and our way of life, is dependent on having a strong economic base that creates jobs, that fund schools and gives us the opportunity to enjoy the lifestyle our great state is noted for. It is also important to balance economic development with our energy infrastructure, our environment and the educational needs of our citizens. But all of these opportunities and benefits are dependent on the foundation of good employment opportunities.

Hottest economic development issues you see:  The two biggest challenges facing our company are the need to identify and secure utility infrastructure corridors, to support the state’s rapid growth; and the need to balance utility investments that might make locations development-ready, versus the timing of providing the facilities when they are actually needed.

Improvements in economic development you’d like to see:  That we continue to build on the notion that utilities, economic development staff and cities/counties need to better understand the limitations and costs of certain locations, and to develop alternative methods of providing funding infrastructure for as yet unsecured new business development.

Proudest moment:  The day I received my Journeyman lineman's card—of 13 applicants I was the only one who passed the test that day. Of course, the other is being named President of Utah Power, a humbling and satisfying opportunity to continue the long tradition of our company's forward-looking management approach.

Most embarrassing moment:  One time I was a speaker in New York City at an IT Executives' conference. I left home in a hurry and forgot to grab my dress shoes to go with my suit. I didn't realize that I'd forgotten them until 20 minutes before I had to speak. So I made my speech dressed in a suit and gym shoes. I said that this demonstrated that even dinosaur-like utility company executives could learn to move agilely. The other time is when I fell off a power pole while showing off and on the way down got turned around and got slivers in my backside. It was embarrassing to have them removed.

Favorite book:  Anything by Joseph Conrad or Scott Turow.

Favorite mentor:  John Bohling, who was a senior vice president at Utah Power. He combined strong analytic capabilities with empathy for the human condition.

Your personal motto:  "I'm here for a good time, not a long time!!" However, as I gain more tenure with the company I may need to revise it to say, "I'm here for a long time, not a good time (or at least a pretty good time)."

Anything else you’d like to share:  I'm very impressed by the staff at EDCUTAH and their professional approach to their jobs. It is a pleasure to be able to work with and associate with them and the outstanding community leaders on the board.