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FEATURE STORY

Constant Flow of Inquiries Leading to Fantastic Year

Utah's booming economy, quality of life, and large labor pool have been a boon to economic development. "It's been a fantastic year," says Todd Brightwell, director of economic development for EDCUTAH. "We've had the good fortune of receiving a constant flow of inquiries and we are showing up on the radar screens of many site consultants and companies doing their own due diligence." EDCUTAH will report its 2006 fiscal year (which ends July 31) at its board meeting in August.

Brightwell recently distributed an investor update highlighting EDCUTAH's current project load, which includes 155 national and 38 Utah projects, for a total of 193 open projects. According to Brightwell, 45 are hot projects, 44 are warm, 13 are neutral, and 91 are in "cold storage." With regard to jobs, the projects listed involve:

. 610 jobs announced
. 1,160 jobs to be announced
. 1,435 potential jobs from national companies
. 680 potential jobs from Utah companies

Recent Wins

EDCUTAH's recent wins include:

• Conestoga Wood Specialties, which makes cabinet doors for KraftMaid. The Conestoga project includes 150 jobs, a 100,000 square-foot facility (currently under construction in Tooele County), and an $18M capital investment.
• Viracon, the maker of high performance architectural glass, is building a 220,000 square-foot building in a $25 million capital investment, and will add 300 jobs in St. George.
• Two smaller projects that are looking to grow their operations: (1) Backroads -  which will add up to 150 new jobs and lease a 15,000 square-foot building in Salt Lake County; and (2) Fusion Technologies, which will add 10 high-wage jobs as the company slowly builds out its offices, starting with a 5,000 square-foot building.
• Allegheny Technologies, Inc., a heavy industrial manufacturing company, has announced its intentions to locate near Tooele and build a $325 million titanium sponge production facility. Brightwell says this is a big deal; however, it is contingent on a few details that are yet to be resolved. The project will bring 130 jobs.

Upcoming Announcements

Two more companies are coming to Utah as a result of KraftMaid's location here: (1) a glass manufacturer that will add 50 jobs in an 80,000 square-foot build-to-suit in Ninigret Park, Salt Lake City; and (2) a wood manufacturer that will add 30-plus jobs in a 60,000 square-foot facility in Salt Lake County.

Other upcoming announcements include:

• A food processor, that will add 550-plus jobs and a $55 million capital investment in a 160,000 square-foot facility at a rural northern Utah location.
• A consumer manufacturing company that will add 100 jobs at a 100,000 square-foot site in Washington County.
• A pharmaceutical manufacturing company that will add 300 jobs and 195,000 square feet of space in a $100 million capital investment within Salt Lake County. Brightwell says to watch for an announcement regarding this company on August 29.

Hot National Projects

Brightwell says some of EDCUTAH's hottest national projects include:

• Project Beta - a financial IT company that could add 450 jobs and 125,000 square feet of space. This is a significant relocation from California, according to Brightwell. EDCUTAH does not know the name of the company, since all work has been handled through a site consultant; however, the short list includes Salt Lake and Phoenix.
• Project Caravan - an industrial equipment servicing company looking at Eastern Utah. The company would make a $22 million capital investment and add 200 jobs. Brightwell says Utah is competing with Colorado and Wyoming for this project.
• Project Red Rocks - a food manufacturer reviewing sites in Salt Lake City, Provo and Springville. The project would add 300 jobs and 250,000 square feet of space in a $34 million capital investment.
• Project Firestorm - a plastics manufacturing company that would bring 40 jobs and 40,000 square feet of space. Iron County is on the short list for this one, according to Brightwell.
• Project Steely Dan - a metal manufacturing company with 200 jobs and 200,000 square feet in a $30 million capital investment. Brightwell says Box Elder and Weber Counties are on short list.
• Project Steelers - a manufacturing company that would add 95 jobs and 130,000 square feet of space in a $7 million capital investment. Says Brightwell: "This is a headquarters opportunity."
• Project Candy - this involves a high-tech manufacturing company that would add 100 jobs and $20 million in capital investment. Utah is competing with Kansas and Virginia, according to Brightwell.
• Project Java Hut - this is an IT software development company with 50 high-paying jobs and $10 million in capital investment. Brightwell says the company is working with a local recruiter to evaluate the Utah job market.

Current Utah Business

EDCUTAH's current Utah projects (in-state businesses) include:

• Project Apache - the potential expansion of Brush Resources' mining/defense operations in Juab County. It could add 30-50 jobs, with $50 - $70M in capital investment. Utah is competing with a Brush location in Ohio.
• Project Flamingo - Brightwell says this financial back office project would retain 80 jobs and add 200 more, with a $4 million capital investment at a site in Salt Lake County.
• Project Elvis - involving a distribution company, which would retain 250 jobs and add 250 new jobs, with 30,000 square feet of space. Utah is competing with Nevada and Idaho.
• Project Centro Material - a data center, would add 200 high-paying jobs and 300,000 square feet with a $500 million capital investment. Brightwell says the company is looking at locations in Salt Lake County, Colorado, Phoenix and Texas.
• Project Clo - a food manufacturing operation, would add 120 jobs and 225,000 square feet in a $180 million capital investment within Salt Lake County.

Recent Losses in June

Brightwell says "Project Skee Ball - VMWare" was lost to Austin, Texas. The project involved a software company looking to expand its operations and add about 300 jobs. "We didn't have a chance to go very far down the line with this one," he says. "The company already had a presence in Texas and had a short time frame to fill the jobs."

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Gov. Huntsman Hosts ASEAN Delegation

Governor Huntsman is hosting a delegation of ambassadors and trade representatives from the Association of Southeast Asian Nations (ASEAN) this week.  As the main event for this visit, the governor will hold a business conference July 19th. Governor Huntsman will speak along with delegation members on business opportunities in 10 Southeast Asian countries. One-on-one meetings will also be held where Utah businesses will meet directly with ASEAN ambassadors and/or trade representatives. This is a rare opportunity to learn about this dynamic and growing region of 500 million people.  Read the Salt Lake Tribune story (link below) for more information.

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IN THE NEWS

Economic Development Headlines

Jammin' - Film Spending in Utah Up 32%

- Buoyed by a new financial incentive program, hits like "High School Musical" and a flurry of current projects, Utah's film industry is experiencing its biggest upswing in years. (Salt Lake Tribune) (Morning News here and here)

Utah Businesses to Meet With Southeast Asian Delegation

- When economists talk about the markets of the future, the burgeoning economies of and billions of potential customers in China and India are the topics of choice. Not so for neighboring Southeast Asia. (Salt Lake Tribune)

Lawmaker is Named Business-Center Chief

- Rep. Stephen Clark, R-Provo, has been hired as director of the Small Business Development Center, a program run in part by Utah Valley State College. (Morning News)

DAWHAC to Gather Money

- Discussion surrounding two funding proposals designed to support area work force housing programs continued Thursday morning as members of the Dixie Area Workforce Housing Affordability Committee met. (Spectrum)

Geneva Developer: We'd buy Real Salt Lake

- The developer of the former Geneva Steel property that has offered free land for Real Salt Lake's soccer stadium is making a bold pitch to buy the team too. (Herald)

Rocky Wins OK to Push Fairpark Soccer Stadium

- The Salt Lake City Council has given Mayor Rocky Anderson their seven thumbs up to pursue a soccer stadium at the Utah State Fairpark. (Morning News)

Local Businesses Staying Alive

- Growth in Washington County has attracted some of the larger chain stores to the area, which often can siphon customers from the smaller hometown shops. But many local merchants say business remains strong. (Spectrum)

Mega-Development Dies

- The sign on Sandy Mayor Tom Dolan's door will understandably read "Gone fishing" today. The mayor is planning a fishing trip after the city's funding plan for a lucrative Real Salt Lake soccer stadium was shot down Tuesday. Dolan had worked for over a year trying to secure the project. He now is waving goodbye to a massive Gateway-esque, super-development that would have gone with it. (Morning News)

Wal-Mart Rumors Create Hot Discussion in Moab

- A recent meeting has raised the Wal-Mart specter in Moab, but business leaders say they are taking a "wait-and-see" approach before getting too worried. (Morning News)

Davis Conference Center Expansion Gets Closer

- Dedicated exhibition space at the Davis Conference Center appears to be getting closer. That's if the Davis County Commission adopts a resolution Tuesday morning, July 11, authorizing the sale of sales tax revenue bonds. (Clipper) (KCPW)

Borders Will Close Soon

- Borders Group Inc. confirmed Tuesday it will close its Crossroads Plaza store effective July 21, a move it attributed to the LDS Church's planned downtown redevelopment project. (Morning News) (Salt Lake Tribune)

St. George Chamber Announces New President

- The St. George Area Chamber of Commerce has announced that Russell Behrmann, of Salt Lake City, will be the new chamber president. Behrmann's first day will be July 24. (Spectrum)

Economic Development Official Will Take on a Similar Post at USU

- The director of the Life Sciences Cluster in the Utah Governor's Office of Economic Development has been appointed to a restructured position as vice president for Strategic Ventures and Economic Development at Utah State University. (Salt Lake Tribune)

Beefing Up Utah's Revenues

- For Brian Shaffer, a fourth-generation cattle rancher, there isn't a better place to raise a herd than in Box Elder County. "There's a lot of rangeland here, wide-open spaces, mixed with the ability to raise good seed for the winter," he said. (Standard-Examiner)

USU, Education Network Hail New Net Connection

- Utah State University and the Utah Education Network on Monday were hailing the completion of a backup high-speed Internet connection as beneficial to students, UEN and businesses, among others. (Morning News)

Dixie Labor Market Tight

- The tight labor market in Washington County brings bad news and good news. The bad news first: Employers can't seem to find enough workers to handle their growth. (Spectrum)

Wages Behind Housing Costs in Cedar City

- There's a price to pay to live in Cedar City. It's a price that more and more folks simply can't afford. Since 2000, Cedar City's average home price has skyrocketed, from $107,560 to more than $200,000, according to the Utah Association of Realtors. (Spectrum)

Made in Utah

- Companies like Storm Products Inc. are helping Utah continue to bowl strikes in the global marketplace. Many of the top bowlers in the United States use bowling balls produced by the Brigham City-based manufacturer, but it's international sales that have really driven the company's rapid growth in recent years, technical director Steve Kloempken said. (Standard-Examiner)

Editorial:
Prepare Utah's Students for USTAR Jobs

- If you build it, they will come. But who? From where? The Utah State Legislature had the foresight to approve USTAR (Utah Science, Technology And Research) - a $200 million economic development initiative. They thought it critical in order for Utah to compete in the new economy where knowledge and innovation are key to success. (Morning News)

Utah in the News: U.S. Cities Can Tap Muni Market to Fund Broadband

- Hundreds of U.S. cities and towns are working to build their own broadband networks and tapping the municipal bond market may be one way to finance such projects. The Utah Telecommunication Open Infrastructure Agency plans to raise funds in the muni market to complete its $300 million to $400 million fiber optic network between 14 cities, according to its executive director Paul Morris. (Reuters)

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CALENDAR

July 21:  GOED Board Meeting

August:  EDCUTAH Annual Meeting

Aug. 10-13:  Outdoor Retailer Summer Market

Sept.: 13-15: Utah League of Cities and Towns (St. George)

Nov. 12-15: CoreNet Global Summit, (Orlando, FL.)

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