Economic Development Corporation of Utah

March 28, 2006

  

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

PRESIDENT'S  

MESSAGE

EDCUTAH is Launching State-Wide SURE Sites Program

Over the past few years, the speed of corporate relocations has increased. When a company decides to move, time is money and 'speed-to-market' is critical. To assist the site consultants we work with, EDCUTAH is launching a new statewide program identifying potential development sites and the 'readiness' of each. Today's feature article outlines our new SURE (Select Utah Real Estate) Sites program and how it represents both urban and rural Utah, incorporating the necessary due diligence on development sites consultants and companies need at the beginning of projects, expediting the entire process.

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

As Time-to-Market Factors Compress Economic Development Dynamics, EDCUTAH Develops an Edge

Time-to-market factors have accelerated economic development dynamics, compressing proposal response times and due diligence efforts. When site consultants call, they want information within days or weeks, not months.

Consequently, EDCUTAH and its partners are quickly moving away from reactionary, old-school processes and fast-tracking efforts to identify, evaluate, and market site locations. Michael Flynn, director of public development, says later this summer EDCUTAH will roll out its SURE Sites program (Select Utah Real Estate), which will dramatically change Utah's economic development dynamic. "We want to have answers immediately. The SURE Sites program will help us respond to site consultant questions in days, rather than a few weeks or months," he says.

EDCUTAH's SURE Sites program entails the advance compilation of due diligence and standardized site information that consultants want to see. The data will be entered into a database connected to an advanced geographical information system (GIS). The database and GIS will be connected to the Internet. When the system is complete, site consultants from anywhere in the world will be able to analyze Utah site data and generate customized maps to view transportation corridors, utilities, population sectors, etc., all from the Internet.

Much More Than a Database

Flynn says EDCUTAH is developing the program with the help of PacifiCorp, Questar, and the Worker's Compensation Fund. When complete, he expects the SURE Sites program to be much more than a database. "It will be a dynamic, powerful economic development asset. It will make the due diligence phase much shorter, more efficient, and more competent." Furthermore, because the program involves proactive planning and the identification and mitigation of site problems, Flynn says it will make the state more competitive and provide a powerful marketing tool to target and solicit potential industries and companies.

Todd Brightwell, EDCUTAH's director of business development, says the SURE Sites program will benefit the entire state, but he expects it to be the primary vehicle for showcasing rural Utah sites. "We are finding more and more interest in rural areas, and the SURE Sites program will help us offer a greater number of sites with greater detail. There are literally hundreds of rural Utah sites available, and we need to get this information in front of the site consultants."

The SURE Sites program is especially critical to rural economic development because the compressed time factors exacerbate the challenges many rural communities face-they don't have the resources to get ahead of the curve, performing due diligence and resolving site problems in advance, and they don't have the dollars to adequately showcase their sites. "As a result, site consultants often overlook the hundreds of rural Utah sites available, even though there is great interest in rural locations," says Brightwell.

Flynn says the SURE Sites program will also help dispel the myth that most rural locations don't have workforces sufficient to sustain major business locations. "Right now it is difficult to present a clear picture of the employment potential in rural Utah." He cites the community of Salina, with a population of 2,500, as an example. Based upon Census data and outward appearances, Salina would not have the workforce to support a large business. "But rural Utahns are much more willing to commute to a job site," Flynn says, "and the Salina trade area has a population of about 60,000-a significantly larger potential workforce. We need the site consultants to see the bigger picture and the SURE Site program will help us do that."

Pilot Program

EDCUTAH is currently testing a SURE Sites pilot program, collecting information and performing due diligence on sites in Salina, Beaver, Brigham City and Salt Lake (County). Flynn says EDCUTAH hopes to complete due diligence on a total of 14 different sites between now and Aug. 31, 2006.

Ultimately, Flynn says he'd like to see every county have at least two locations qualified as SURE Sites - of course this will vary from region to region - some could have more. "Realistically, we could have 150 to 200 sites in the database, but we expect to have a minimum of at least 60 sites; about 10 counties could do 10 sites a piece."

Brightwell says the program will also help EDCUTAH better balance the interests of rural Utah with business interests. Some counties just want to solidify their industrial base; they don't want to grow too much. The bigger projects, with larger workforce demands, can be daunting to a small, rural county, he says. "We want to balance the interests of rural Utah with the needs of our customers. The SURE Sites program will have information about the types of projects rural Utah communities can support."

Flynn says the program will help EDCUTAH demonstrate the great qualities offered in rural Utah (low start up and operating costs, stable and predictable operating conditions, available transportation corridors, and short time to market). At the same time, it will also ensure each location decision is a good fit for the community involved (satisfactory wages and benefits, stable employment, and no disruption to the quality of life). EDCUTAH is keenly interested in bringing prosperity to rural Utah without sacrificing the rural lifestyle, he says.

Given the accelerated economic development dynamics and global competition, the SURE Sites program will help Utah keep its competitive edge and enhance EDCUTAH's ability to showcase the state.

CALENDAR

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

April 11: ACG Conference (Click here for information/registration)

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

April 26: Utah Technology Council Industry Breakfast (Click here for information/registration)

May 2-4:  SAMPE Advanced Materials Conference, Long Beach, CA

May 3-4:  Salt Lake Chamber Business-to-Business Expo, SLC

May 21-24:  ICSC Spring Convention, Las Vegas

EDCUTAH PARTNERS


Current Partners
Why Be a Partner?
 Board of Trustees

PROJECT REPORT


Current EDCUTAH project load = 182
Utah Expansion projects = 40
National Recruiting projects = 142
Total hot projects = 47

Three rural projects have great potential:
Project Super Bowl
130,000 square-foot manufacturing facility
# of Jobs: 550
Looking at several rural locations
Project Steely Dan
200,000 square-foot manufacturing facility
Several Utah site visits completed, looking closely at 2 rural sites in northern Utah
# of Jobs: 200
Average Wage Level: 221% of county median
New State Revenues: $7,884,500 over 10 years
Incentive: Tax Rebate of up to $2,353,350
Project Apache
Possible local expansion of Brush Resources mining operations in Juab County
Utah is competing with a location in Ohio for the project.
# of Jobs: Up to 35
Average Wage Level: 268% of county median
New State Revenues: $2,333,000 over 10 years
Incentive: Tax Rebate of up to $700,000

IN THE NEWS

Economic Development Headlines

Nation's Largest Plumbing Distributor Leases Orem Building

Commerce CRG reports that Ferguson, one of the nation's largest distributors of plumbing supplies, has signed a ten-year lease for a building located in Orem at 1540 West 1250 South. The leased space totals nearly 24,000 square-feet and an additional 20,000 square-feet of space will be added to accommodate the company's needs. Rusty Bollow and Greg Hunter of Commerce CRG negotiated the lease. Ferguson employs 18,500 associates in over 1,000 locations in 50 states, the District of Columbia, Puerto Rico, and Mexico. It is headquartered in New Port News, VA. The landlord is M. Scott Fisher of Orem. (See also Utah Business Magazine)

Dixie Booming; Historic Growth Setting Records

- Land speculators, a wave of retiring baby boomers and second-home buyers are fueling the biggest real estate rush in the county's history, according to a report commissioned by the Deseret Morning News and prepared by James Wood, director of the University of Utah's Bureau of Economic and Business Research. (Morning News here, here, here and here)

3 Utah Regions Get ED Funds

- The U.S. Commerce Department's Economic Development Administration on Friday announced $153,000 for Utah economic development planning efforts. (Morning News)

Utah's Taxable Sales Increase of 11.1 Percent Best Since 1993

- Utah's $3.9 billion growth in taxable sales in 2005 is the highest in 13 years, reflecting an economy that should remain strong through 2006, according to a state report. (SL Tribune)

Kanab Businesses Issue Their Own Label

- Worried that their City Council's "natural family" resolution could leave them tagged as intolerant, unfriendly or worse, Kanab business owners are banding together and issuing their own label. (SL Tribune)

Hazardous Waste Firms' Merger to Move Ahead

- The U.S. Justice Department has decided there are no further antitrust issues to consider in the merger of Salt Lake City-based EnergySolutions with Duratek Inc. (SL Tribune)

Davis May Reach 440,000 by '30

- Kent Sulser, Davis County manager of economic development, said that by the year 2030 the county's population is probably going to top out at about 440,000 people. That, he said, is just another reason why the county needs to promote quality growth. (Morning News)

Sales-Tax Revenues Surging in Utah

- In-migration, children of baby boomers and higher spending habits are increasing the sales tax revenues in many Utah cities. (Morning News)

Office Space Tight in Downtown SLC

- The LDS Church's planned major renovation of its property in downtown Salt Lake City is putting a crunch on office space in the city. (Utah Business Magazine)

Glass Plant to Bring St. George 300 Jobs

- A glassmaking company made it clear Wednesday: It will put a new architectural glass fabrication plant in St. George. (Morning News) (Spectrum) (SL Tribune) (KSL)

Utah Job Outlook Remains Robust

- Utah's job-growth rate ranks among the top five states in the nation. (Herald) (SL Tribune)

Cedar City Council, RDA Approve Port 15

- Residents filled every seat in the Cedar City Council Chambers on Wednesday night during the Redevelopment Agency meeting, and while several asked questions, no one spoke against the Port 15 Economic Development Area. (Spectrum)

Businesses Win SLC Commerce Awards

- The Salt Lake Chamber of Commerce on Wednesday honored four organizations, including Cooper Roberts Simonsen Architects, which was named Small Business of the Year. (SL Tribune)

Growth of Hispanic Businesses Lags

- The growth of Hispanic businesses in Utah isn't even close to keeping pace with a nationwide spurt, according to a new U.S. Census Bureau report. (Morning News)

Latino Businesses Booming in Utah

- Utah's Hispanic and Latino population is growing exceptionally fast. If you drive around Salt Lake, Ogden or West Valley City, many Utah towns you may be noticing more stores and shops with signs in Spanish. (KSL) (Standard-Examiner) (SL Tribune)

Banking on Hill

- Science Applications International Corp. might be able to survive without Hill Air Force Base, but doing business with the base has helped the Layton-based engineering firm thrive. (Standard-Examiner)

Utah Jobless Rate Dips

- Utah's latest jobs numbers show signs of moderation, but a state economist said there is no cause for alarm. (Morning News)

Utah Wages Still Lagging Says Governor's Aide

- Even with a robust economy, the fifth fastest growing in the country, Utah's average wage continues to significantly trail the national average. (Clipper)

Preserve Land for Business so Residents Will Have Jobs

- Despite expanding employment and economic growth exceeding the state average, Davis County still cannot produce enough jobs to meet the needs of its rapidly growing work force. (Clipper)

The Leonardo Achieves $10M Bond Match

- The Leonardo officially announced that it has raised the $10 million match required to release a $10 million voter-approved bond. (Utah Business Magazine)