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FEATURE

GOED Works Hard to Promote Its Legislative Priorities on the Hill

The legislative tug-of-war that occurs annually on Capitol Hill is typically an intense, action-packed 45 days, and no organization could be more interested in the outcome of the legislative process than the Governor’s Office of Economic Development (GOED).

In fact, Jason Perry, executive director of GOED, was on the Hill earlier this week, testifying in support of legislation important to Utah economic development. What’s more, Perry and his staff have been actively tracking numerous bills as they move through committee. While the list could change as the legislative process plays out, here’s a brief description of the bills and legislative activity important to GOED and economic development professionals.

S.B. 10 Industrial Assistance Fund/Rural Fast Track Program

Sponsor: Senator Bill Hickman
Perry says SB10 is an important piece of legislation for existing rural businesses: “We tend to focus our economic development efforts on recruitment, which is absolutely necessary, but it’s actually more realistic to help an existing business in rural Utah expand than to recruit a new business.” Senate Bill 10 would earmark 20% of Industrial Assistance Fund (IAF) monies for economic development projects in rural Utah, through which existing businesses could receive incentives for infrastructure expansion and the creation of high paying jobs. Perry says no new money would be required. A second piece to the legislation would allow businesses to tap into $50,000 in IAF money without having to obtain GOED board approval.

S.B. 53 Higher Education Engineering Partnership

Sponsor: Senator Gregory Bell
Utah has a talent shortage for engineers, which is an obstacle to economic development. Perry says his office has had employers and trade associations report the need for approximately 1,000 engineering jobs in the state that could be filled right now. Senate Bill 53 would help establish a robust engineering partnership between Utah State University and Weber State University. The bill would expand the engineering programs at both schools and create a partnership to jointly deliver bachelor degrees in engineering. As a side note, Perry says during the Christmas and New Years holidays GOED ran numerous ads targeting engineers and received over 120 resumes. “One of our priorities is to build the state’s talent pipeline and going after engineers is a big part of that effort,” he says.

S.B. 93 Governor's Rural Partnership Board Amendments

Sponsor: Senator Bill Hickman
GOED has been trying to interface more directly with the Governor’s Rural Partnership Board; however, there is no mechanism in place to cover the expenses of board members who travel long distances for meetings. Perry says Senate Bill 93 would create such a mechanism.

S.B. 127 Tourism Marketing Performance Special Restricted Fund

Sponsor: Senator Scott Jenkins
Promoting the state’s brand is important to GOED’s economic development efforts and during the last legislative session money was set aside for tourism marketing. Unfortunately, the bill was drafted in such a way that the money was directed to the wrong State fund. Perry says. Senate Bill 127 “clarifies the original wording and designates that the money will go to the Tourism Marketing Performance Special Restricted Fund.” The Tourism Marketing Fund is used for the state’s branding and tourism marketing campaigns. “We are seeing definite benefits from our efforts to brand the state around the world. Without these funds we might have to stop our advertising program,” he says.

H.B. 125 Centers of Excellence Amendments

Sponsor: Representative Bradley Daw
The Centers of Excellence (COE) program has been a successful tool for the development of technologies at the state’s research universities. Perry says the purpose of House Bill 125 is to focus on the commercialization of technology development: “We want to help develop, commercialize, and grow the technologies here.” Transferring technology out of universities and into the industry is hard. It combines the challenges of new product development with the complexity of technologies that are often not fully developed. “HB 125 is designed to help those technologies move into the Utah Business Community,” according to Perry. The Bill will allow COE to make grants to licensees, existing businesses or entrepreneurs, who are willing to invest, time, effort and complementary funds to take these technologies to market. “It will help plug the commercialization of technologies into the Utah economy,” he says.

Health Insurance for Small Businesses

Perry’s office has requested $350,000 to be used to pay for consulting and actuarial costs involved in developing a health insurance program for small businesses. “We are trying to develop a plan that will provide something meaningful in that space. We want some key legislative members of the House and Senate to write a bill and create a plan that will work for small businesses in this state. My hope is to have a bill ready for the 2008 legislative session,” Perry says.

Motion Picture Incentive Fund

The legislature has been asked to set aside $5 million for the motion picture incentive fund. “Motion pictures filmed in Utah have become a huge economic development opportunity, where the return on investment is typically at least ten to one,” Perry says. However, last year the fund received only $1 million and the money was expended almost immediately. Utah is the premier place to make films, and based on the significant dollar return the incentive fund has generated in the past, it only makes sense to fully appropriate this incentive program, which provides rebates to film makers based upon eligibility factors favorable to the state.

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Three Outdoor Products Companies Announce Investment In Utah

Nearly 2000 Jobs Created/Retained, $6.5 Million in New Capital Investment Generated

Officials attending the Outdoor Retailer Winter Market announced three more outdoor products companies are expanding in Utah, further solidifying Utah’s position as the premiere location for outdoor-related business and recreation. In all, the projects are expected to create and retain nearly 2,000 full and part-time jobs and generate more than $6.5 million in new capital investment.

“We’re doing everything we can to recruit and retain outdoor products related business in Utah,” said Jeff Edwards, president and CEO of the Economic Development Corporation of Utah. “Our unique environment and unparalleled quality of life, coupled with our State’s great location, incredible workforce and friendly business environment make Utah a perfect fit for outdoor related business.”

The three new projects showcased were:

Backcountry.com, an online retailer of more than 250 outdoor and backcountry brands. With anticipated sales growth over the next five years expected to be up 500%, Backcountry.com announced a significant expansion. Plans include an investment of more than $4.8 million to grow its operations in Park City and West Valley City. In addition, the expansion will bring approximately 1,250 new jobs to the area.

Peregrine Outfitters, a wholesale distributor of more than 6,000 outdoor accessories. Peregrine stocks merchandise from hundreds of manufacturers and publishers. In addition, the company’s subsidiary, Peregrine Distribution Services, acts as a provider of third-party warehousing and other fulfillment services to other outdoor-related companies. Peregrine announced today, its intention to open an additional warehouse in Ogden. Peregrine will generate 25 new jobs in Utah.

Smith Sport Optics, world famous for its ski goggles and helmets, has announced the acquisition of a manufacturing facility in Clearfield. The 120,000-square-foot facility will serve as Smith’s primary worldwide manufacturing, assembly and distribution facility. Over the next decade, Smith will grow its Utah workforce by more than 60 jobs.

Also recognized, was the recent announcement of the new Salomon Center in Ogden. The naming rights to the $19.5 million high-adventure recreation center, were purchased by Salomon’s parent company, Amer Sports as a demonstration of the community support it plans to provide the area. Amer announced the relocation of its North American Winter Sports headquarters to Ogden in the fall.

Backcountry.com, Peregrine Outfitters, Smith Sport Optics and Amer Sports join outdoor giants such as, Black Diamond, Petzl and Rossignol/Quicksilver in calling Utah home. “The outdoor products and recreation industry has a rich history of partnership with the State of Utah,” said Jason Perry, executive director of the Governor’s Office of Economic Development. “Today we are pleased to join in recognizing the significant addition of several major partners in the outdoor industry, who are coming to Utah, or expanding their presence in what is becoming the Outdoor Products & Recreation Capital of the Americas.”

Utah has experienced a large influx of outdoor companies that have fallen in love with the climate, the people and the environment, largely in part due to their exposure to Utah in conjunction with the Outdoor Retailer Summer and Winter Markets. “These are companies that have Utah on their radar largely due to the successful hosting of Outdoor Retailer Winter and Summer Markets for the past 10 years,” said Scott Beck, president and CEO of the Salt Lake Convention and Visitor’s Bureau.

Local and national news outlets have covered this announcement, including the following links: Business Week, Forbes, Chron.com, FXStreet, KUTV, Salt Lake Tribune, Deseret Morning News, KSL, KCPW, Daily Herald, and Utah Business Magazine.

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Former EDCUTAH CEO Chris Roybal
to Leave Governor's Office

On Jan. 22, Governor Jon Huntsman announced his Senior Economic Development Advisor Chris Roybal will end his tenure in the Office of the Governor on Feb. 2, to take a position as President and Chief Operating Officer at a Salt Lake-based transportation services company.

"Chris has done the State of Utah a tremendous service by dedicating his talent and energy to bolstering our approach to economic development in Utah. He was instrumental in institutionalizing GOED and bringing about important programs like USTAR and Utah's World Trade Center," Governor Huntsman said. "I express my sincere thanks to him for his efforts and wish him well in his next step."
 

Roybal will be missed by EDCUTAH as well. "Chris has been a true advocate of business and economic development, first as president and CEO of EDCUTAH and then as an advisor to the Governor. We are grateful for his service and look forward to seeing him thrive in the private sector once again," said Jeff Edwards, EDCUTAH president and CEO.

Roybal was one of Governor Huntsman's first appointments when he was elected in November 2004. His position was created by Governor Huntsman as part of the transition process to focus on his economic development platform and implement the Governor's 10 Point Economic Revitalization Plan. Under Roybal, the Governor's Office of Economic Development was created with four main areas of concentration: to create, grow, recruit and promote Utah's economy. Additionally, Roybal worked to get legislation passed to create the Utah Science, Technology and Research program last legislative session and shepherded the process to create the World Trade Center Utah.

"It has been my privilege to serve Governor Huntsman these past two years," Roybal said. "My assignment was one of transition. We now have key action officers in all functions of economic development including tourism, recruitment, energy among others. It's now time to enter another phase of my career."

Roybal will join the privately-held Northwest Research Corporation as President and COO, a 250-employee company specializing in research and logistics work for major transportation-related companies.

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Utah Rated in Top Seven States
for Economic Development

The Corporation for Enterprise Development (CFED) rates Utah as one of the top seven states in the country for economic development.

CFED's "20th Development Report Card for the States," released last week, uses 67 measures to provide a relative, state-by-state assessment of economic development, assigning grades in three main areas: Performance (economic climate for a wage-earner), Business Vitality (economic climate for a business), and Development Capacity (how a state is positioned for the future).

The top performers in 2007 are Connecticut and Delaware—the only states to earn straight As. Five other states—Colorado, Massachusetts, Minnesota, Utah, and Wisconsin—joined them on the "honor roll" by earning all As and Bs.

Utah received "B" grades in the Performance and Business Vitality categories, and an "A" grade in Development Capacity.

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CALENDAR

Feb. 8, 2007:

23rd Annual Investors Choice® Venture Capital Conference (Salt Lake City)
Learn the venture process, build a fundraising presentation and meet with venture, corporate and angel investors.  Submission deadline is October 30th. For more information visit: www.venturecapital.org/utah.

June 6-8, 2007:

The New West Summit, in Big Sky, Montana will bring together business leaders, entrepreneurs, politicians, journalists, academicians, and engaged citizens to talk about the future of the Rocky Mountain West.

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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. If you prefer not to receive this newsletter, please use the link below. Subscribe or Unsubscribe Your comments and suggestions regarding this newsletter are always welcome. Click here: Comments