Nov. 29, 2006

 

A Publication of the Economic Development Corporation of Utah

CEO Jeff Edwards

PRESIDENT'S  

MESSAGE

A Home for Intermountain Medical Center; Murray Receives Phoenix Award for Smelter Site Cleanup


In 2003, Intermountain Health Care broke ground for its new medical center campus in Murray; a $560 million development built on what was once a blighted and environmentally dangerous area. The economic impact of the new medical center and the growth expected to follow it will have a tremendous impact on the state’s economy.

Today’s feature story covers the effort to clean up and redevelop the Murray Smelter Site and the presentation of the EPA’s prestigious Phoenix Award to Murray City for its leadership and foresight.

In addition, this issue of the Economic Review includes links to many of the ED-related news stories from the past week. If you have comments, suggestions or topics you’d like to see in the Economic Review, please contact us by clicking the “Comments” link on the bottom of this page.

Enjoy!

Jeff Edwards
Jeff Edwards
President and CEO


FEATURE

Murray City Turns Lead into Lemonade


When the American Smelting and Refining Company (ASARCO) ceased its Murray operations in 1949, the smelter site was left with approximately 500,000 tons of heavy metal slag and the soil, ground and surface water were contaminated with high levels of arsenic and lead. “The area was stigmatized by the health risks,” says Murray Mayor Dan Snarr. “No one wanted to develop near the smelter for fear of contamination and the associated legal liabilities.”

And that’s the way the smelter site remained—a blighted, environmentally dangerous area destined to make the EPA’s Superfund list—until twelve years ago. Knowing the Smelter area might become a Superfund site, the city made what is termed an extraordinary move by a local government. Murray proposed to the EPA that the city become the lead agency in the cleanup and the two entities entered into a Memorandum of Understanding in 1996, which formally established the city’s role in the development of cleanup options and identifying potential future land uses at the site.

The Intermountain Medical Center

Now, after years of collaboration, planning and cleanup, the site is actively being developed into a $560 million campus for Intermountain Healthcare’s state-of-the-art Intermountain Medical Center, and Snarr is ecstatic. What’s more, this past November 14 Murray City was awarded the EPA’s prestigious Phoenix Award at a ceremony in Boston, MA, for excellence in the Brownfields redevelopment of the Murray Smelter site. Snarr received the award on behalf of Murray City, the property owners, and the many others that helped make the remediation and redevelopment of the 142-acre Smelter site a reality.

“The significance of the Phoenix Award is that it shows what can happen when a disparate group of individuals and groups come together for a common good,” Snarr says. And the irony of it all, according to Snarr, is that an area which once posed serious health risks will now be home to a world-renowned facility whose sole purpose is to improve health. “Intermountain Healthcare is building the most advanced hospital in the world here,” he says.

In September 2003 Intermountain Healthcare broke ground for its new complex, which will cover over 100 acres of the original smelting and refinery site. The campus will include a nine-story medical office tower and 1.5 million square feet of hospital space. The Intermountain Medical Center will include an ambulatory and outpatient diagnostics hospital, a birthing center, a cancer treatment hospital, a heart and lung hospital, and a tertiary inpatient, critical care level one trauma hospital. It will also be home to one of only two super-large hyperbaric oxygen therapy chambers in the world, according to Snarr.

Besides the direct benefits of having a state-of-the-art medical center available, Snarr says the development will provide additional tax revenues, stimulate the local economy through the addition of approximately 4,500 new jobs, and also include the construction of more than $1 billion in physical structures over the next 10 years.

Another 42 acres of the smelter site is being used by the Utah Transit Authority for a TRAX light rail station, and by two local developers interested in commercial opportunities. In addition, Intermountain Healthcare rented a segment of its original share of land to Costco, and GE has made a commitment to locate its software development there.

Snarr credits former Murray Mayor Lynn Pett and his Executive Assistant Jack DeMann for their foresight and hard work to get the smelter site remediation and redevelopment rolling. The city brought together the 17 different land owners and over a six-month period convinced them to cooperate in the cleanup process without litigation. Armed with a Brownfields grant from EPA in January 1997, the city hired a real estate consultant to advise the city and property owners about the land-value implications of various remedial strategies and redevelopment potential.

Brownfields are properties designated by the EPA in which the expansion, redevelopment, or reuse may be complicated by the presence of a hazardous substance, pollutant, or contaminant. Created in 1997, the Phoenix Award honors individuals and groups who are working to solve the critical environmental challenge of transforming blighted and contaminated areas into productive new uses. Criteria for The Phoenix Awards™ focus on the magnitude of the project, innovative techniques, solutions to regulatory issues, and impact upon the community. A panel of environmental professionals and business, academic and government leaders select the winners.

The 2006 Phoenix Award winners for the 10 U.S. EPA regions are:

Region 1: Kendall Square Redevelopment, Cambridge, Massachusetts
Region 2: Fulton Fish Market at Hunts Point, Bronx, New York
Region 3: Bethlehem Commerce Center, Bethlehem, Pennsylvania
Region 4: Baldwin Park Redevelopment Project, Orlando, Florida
Region 5: Toledo Loves Its Jeeps, Toledo, Ohio
Region 6: Heifer International Center, Little Rock, Arkansas
Region 7: Alberici Corporate Headquarters, St. Louis, Missouri
Region 8: Murray Smelter Site, Murray, Utah
Region 9: Lion Creek Crossings, Oakland, California
Region 10: Trail of the Coeur d’Alenes


'Doing Business in India' Seminar Dec. 5 in Salt Lake


The Governor's Office of Economic Development is hosting a "Doing Business in India" seminar from 8 to 11 a.m. Dec. 5 at the Little America Hotel. The event will include comments from representatives of companies already operating in India. Key speakers include:  Ragula Bhaskar, president and chief executive officer of FatPipe Networks; Ashok Joshi, CEO of Ceramatec; Krishna Shenai, USTAR professor at Utah State University; Mark Davis of the law firm Davis & Leimann; and Paul K. Savage, an attorney with Kirton & McConkie.

The event is free. Register here: www.international.utah.gov. The seminar is co-sponsored by the Governor's Office of Economic Development, Zions Bank, Kirton & McConkie and the U.S. Department of Commerce.


CALENDAR

Dec. 5:

Doing Business in India Seminar, 8 a.m. to 11:00 a.m. at the Little America Hotel. The event is free, but registration is required at www.international.utah.gov.

Dec. 20:

EDCUTAH Holiday Open House (Salt Lake), 4 p.m. to 6:00 p.m. Please RSVP to Trina Stanley by Thursday, Dec. 7 at 801-328-8824 or by email at tstanley@edcutah.org.

Jan. 10, 2007:

Washington County Economic Summit (St. George)
7:30 a.m. - 2:30 p.m., for more information contact: Dixie Business Alliance, 225 South 700 East, St. George, 84770. Call (435) 652-7724 or email; website:
http://www.whatsupdownsouth.com

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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IN THE NEWS

Economic Development Headlines

Fifth Office Building to be Constructed at The Gateway

- Office space at The Gateway is currently at 100 percent occupancy, spurring the need for a new office tower to be built by The Boyer Company.  (Enterprise)

Tourism Budget Hits S. Utah

- Utah's expanded tourism budget is making strides, even here in Southern Utah. (The Spectrum)

Night Spots & Strip Malls

- Yes, Iggy’s Sports Grill is still coming to town. The popular Wasatch Front-based chain of restaurants is under construction next to Winger’s at 2281 N. Main St., and will open next year along with a spate of other retail shops south of it. (Herald Journal)

Downtown Provo Gets a Facelift

- Through major renovations, city officials hope to turn downtown Provo into a 24-hour town where people can work, play and live. (News Net)

Beaver County: Mighty Winds Attract Proposal

- The vast open spaces and persistent wind in northern Beaver County have lured a Massachusetts company with plans for a $400 million electricity-generating wind farm. (SL Tribune) (The Boston Globe)

Wells Fargo Leads Utah in Lending to Small Businesses

- Wells Fargo Bank was the biggest lender to small businesses in the Salt Lake City metropolitan area last year, providing slightly more than a third of the loans made by almost 70 financial institutions operating in the area, according to government figures. (SL Tribune)

Fashion Place to Expand

- Fashion Place Mall confirmed Monday that it is planning a significant expansion, tentatively expected to be complete in 2009. (Morning News)

Port 15 Gets Second Business

- Quantum Development Group announced Monday it has closed a deal with the second tenant in the Port 15 Economic Development Area. (The Spectrum)

Ogden Council to Consider Action for East Bench Luxury Homes, Gondola

- The Ogden City Council intends to pay for an independent economic and environmental analysis of a project that could transform the east bench of the city with luxury homes and a mountainside gondola.
(SL Tribune)

Paiute Tech Company Climbs Ranks in Just Three Years

- In just three years, Suh'dutsing Technologies has risen from a struggling startup to an American Indian success story - and more. (SL Tribune)

Housing Boom May Be Cooling Off in Utah

- The number of building permits issued for new houses, condominiums and apartments is falling across Utah, but in Utah County permits are skyrocketing, according to a new report. (Morning News)

Developer Buys 92 Acres for Commercial Project in Sp. Fork

- Spanish Fork's industrial sector could get a major boost after a developer purchased 92 acres of land in the area, the largest commercial land purchase in Utah County in 2006. (Daily Herald)

Resounding Resort

- A resort nestled in a mountainside and linked to downtown Ogden via gondola might sound like a revolutionary idea -- like something that would take a 21st-century forward-looking young mind to think up. (Standard-Examiner)

Downtown: The Next Generation

- Seattle has Pike Place Market. San Antonio has Riverwalk. In Denver, the 16th Street Mall gathers tourists and residents alike...Salt Lake City will soon have its own such place, a thriving twenty-plus-block area designed to bring people together. (Utah Ledger)

Business Booming at Kennecott

- An unprecedented boom in drilling and mining has reached proportions in Utah that's being called astonishing; we can largely thank China for it. Nowhere is the boom more welcome than at the Kennecott mine in Salt Lake County. (KSL)

Skywest, Inc. Selected for Additional Regional Jet Flying

- SkyWest, Inc., a St. George-based airline, has been selected for the first allocation of regional jet flying related to an existing request for proposal by Delta Air Lines, Inc. (Utah Business Magazine)

Ski Industry Primed for the Winter Run

- Coming off two years of record-breaking attendance on the slopes, the Utah ski industry is primed for another strong season as snow came early enough for the resorts to open before Thanksgiving. (Utah Business Magazine)

Wireless Phone Firm Execs Launch Chain of Mac Computer Stores

- The Capital Partner Group plans to expand Utah presence of Simply Mac computer retail stores. (The Enterprise)

Arizona-Based Bakery Plans Significant Expansion in Utah

- Paradise Bakery and Cafe Inc. is planning a significant expansion in the Utah market, with several new stores opening within the next year. (The Enterprise)

Expansion Set for Jan. 2008 Finish

- If all goes as planned, the Davis Conference Center expansion should allow for a January 2008 occupancy. (Clipper Today)

Cluster Program Hits Ogden

- A new economic clustering program designed to bring more recreation and outdoor products companies to Utah will complement Ogden's burgeoning success as a hub for the snow sports industry, a state official said. (Standard Examiner) (Utah Business Magazine) (Morning News)

Beaver Canyon-Based Luxury Development Clears a Hurdle

- A gated community with its own ski area, world-class golf course and million-dollar homes has cleared its initial hurdle, but neighbors fear the southwestern Utah resort for the super-rich won't be so super. (SL Tribune) (Daily Herald)

SLC Takes Step Toward Cheap-Hotel Fixes

- Salt Lake City Council members have known for more than a year they need to find a solution to the two dilapidated single-room occupancy hotels (SROs) on State Street in the downtown area. (SL Tribune)

Sports Drives Economic Engine

- Of course sports and recreation represent big business in Utah. (SL Tribune)

Guide Offers Strategies to Meet Needs of Residents

- By 2040, Wasatch Front residents want: housing options, well-developed city centers, a variety of bike and pedestrian routes, mass transit and good roads.  (Morning News)

Zions Bancorporation Ranks as the Top Provider of SBA 504 Loans in the U.S.

- Zions Bancorporation, a Salt Lake City-based financial services company, ranks as the top third-party lender in 2006 of U.S. Small Business Administration (SBA) 504 first mortgage loans. (Utah Business Magazine)

Utah Funding Targets Next 'High School Musical'

- The state will use $500,000 to ensure that production of the next "High School Musical" made-for-TV movie high-steps its way back to Utah. (Morning News) (KCPW) (Utah Business Magazine)

Hot Job Market Brightens Outlook for Utah's Grads

- The hot job market is paying off for Utah's college students, with recruiters wooing soon-to-be graduates in record numbers. (Morning News)

Layton OKs Site for Fiber-Optics Hub

- Though Layton residents won't see any fiber optics coming to town soon, the City Council voted Nov. 9 to approve the future location of a fiber-optics hub. (Morning News)

Utah Reacts: A Delta Takeover Worries Business

- Utah business leaders on Wednesday fretted about US Airways' proposed hostile takeover of Delta, while passengers at Salt Lake City International Airport were mostly unconcerned, though some worried about the potential for higher ticket prices. (SL Tribune)

'Fast-track' Bill for Rural Firms Gets OK

- A legislative interim committee passed out a bill Wednesday designed to give companies in rural Utah a better crack at getting job-creation incentives. (Morning News)

Titanium, Vegetable Plants, Cabinets on Industrial Horizon

- Several new industrial operations will be setting up shop in Tooele County in the near future. (Toole Transcript Bulletin)

Pleasant Grove to Get Share of Tax Pie

- No doubt it won't be a laughing matter for guests to Utah Valley hotels come April 1 when hotel bills increase because of a no-joke tax increase that will kick in across the county. (Morning News)

Starbucks to Build 13 More Coffee Shops in Utah

- Starbucks, which has 53 Utah coffee shops, has plans to open 13 more throughout the state. (Enterprise)

Utah Unemployment Rate is Record 2.5%

- Utah's jobless rate fell to an unprecedented low last month, according to the latest data from the Department of Workforce Services. (Morning News) (SL Tribune)

GOED Business Development Board Approves Economic Development Zones

- At its monthly board meeting the Business and Economic Development Board of the Governor’s Office of Economic Development (GOED) approved economic development zones for three Utah cities. (Utah Business Magazine)