Oct. 17, 2006

  

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

PRESIDENT'S  

MESSAGE

Amer Announcement is a Big Win for Ogden and the State of Utah

Monday we had the opportunity to participate in Amer Sports’ announcement that it plans to relocate its North American headquarters - including well-known brands Salomon, Atomic and Suunto - to Ogden, Utah. This exciting announcement is just another indication that Utah is truly on the map for outdoor product companies and enthusiasts.

Today’s Economic Review includes additional information about the Amer Sports win, plus part two in our two-part series on the State’s research parks, as well as 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” link on the bottom of this page.

Enjoy!

Jeff Edwards
Jeff Edwards
President and CEO

FEATURE


Dignitaries on hand for the Amer Sports headquarters announcement.


Left to right: EDCUTAH CEO Jeff Edwards, GOED Managing Director Mike Nelson, Mayor Matthew Godfrey, Lt. Gov. Gary Herbert, and GOED Executive Director Jason Perry were on hand for the Amer announcement. (Mike Dowse, president and general manager of Amer’s Winter & Outdoor Division of the Americas, joined the press conference by phone from Sweden)
 

Kudos to Ogden:  World’s Largest
Winter Sports Company Will Locate Its Division Headquarters Here


Word is out: Ogden, Utah is THE PLACE to be for companies serving the ski industry.

Monday’s announcement that Finland-based Amer Sports Corp., the largest winter sports company in the world, would locate the North American headquarters for its Suunto, Salomon and Atomic brands here makes Ogden the “undisputed ‘hub’ of the ski industry,” says Mayor Matthew Godfrey.

Amer SportsAmer will move its North American headquarters from Portland, Oregon to Ogden next summer, bringing with it approximately $3.25 million in capital investment, expected new state revenue of approximately $26.5 million over 10 years, and new state wages of about $133 million over the same period.

The Amer division will have 130 employees in place in its first 12 months, with a full 230 employees in place by 2009. Between 30 percent and 40 percent are expected to be relocated from elsewhere, and the remainder will be hired locally. Salaries to be paid will be approximately 316 percent above the Weber County median.

“We see ourselves as the world’s greatest ski company. What better place to be than next to the world’s greatest snow,” says Mike Dowse, president and general manager of Amer’s Winter & Outdoor Division of the Americas, who participated in the Ogden press conference via telephone from Sweden.

Mayor Godfrey has taken Governor Jon Huntsman, Jr.’s cluster initiative to heart, focusing on the ski industry and successfully wooing 11 other ski companies to the city. “No other city in the world has more winter sports companies than Ogden,” he says. Those companies include: Descente, Scott USA, Rossignol, Goode, Kahuna, Nidecker, and Snowsports Interactive.

Kurt Gieger, vice president of Descente North America and a key point-man for Ogden’s recruitment efforts, says all of the ski companies are locating in a central area in Ogden, within walking distance of each other, all surrounding what is hoped to be the starting point of a gondola connecting Ogden with Snow Basin Ski Resort, and all within 40 miles of an international airport.

“What Ogden offers is a proximity to many unprecedented outdoor activities, with resources at a price we can afford,” says Gieger. With the clustering of ski companies, the potential gondola, easy access to the slopes, the development of commuter rail, and a 40-minute ride to the international airport, Ogden is totally unique. “No place in the world can do this except Ogden.”

And that’s just a beginning. Godfrey has a vision to make Ogden the Mecca for all things outdoors. With a high adventure recreation center six months away from completion, two kayak parks, hundreds of miles of hiking and biking trails, bouldering, boating, rock climbing—and the largest ski resort in the country near by—Ogden is well on its way to becoming just that.

EDCUTAH CEO Jeff Edwards says this project was an excellent collaboration between state and local organizations, especially in the short window the company had to make its decision. EDCUTAH worked on client handling, research, contacts with local organizations, site visit arrangements and incentive applications. GOED was involved throughout the project as well, especially with all the issues surrounding the incentive process. Both groups worked extensively with local officials as the company considered potential sites in several communities.

Dignitaries at the press conference included:

All of the headlines about Amer Corp.’s relocation decision:

Deseret Morning News
Utahns Applaud Amer Decision
Amer Coming to Ogden

Salt Lake Tribune
Ogden Scores Ski Equipment Headquarters
Ogden May Net Business HQ

Standard-Examiner
 Ski Company Bringing Up to 230 Jobs

Utah Business Magazine
Amer Sports Announces Move to Utah

KUTV
Ski-gear Company Moving To Ogden

New West
Recreation Industries See a Boost in Utah

The Oregonian
Salomon to pull headquarters out of Portland

Ski Racing
Owner of Salomon, Atomic moving U.S. HQ to Utah

First Tracks
Ski Makers Atomic, Salomon Moving to Utah

Press Release
Amer Winter & Outdoor U.S. Breaks Ground in the Greatest Snow on Earth

Boston Globe
Ski-gear Company Moving Some Brands to Utah

Ski Press World
It’s Official: Atomic, Salomon, Suunto Head to Ogden

Freeskier
Salomon, Atomic To Move To Utah

WCAX-TV (Vermont)
Ski-gear Company Moving Some Brands to Utah

U of U Research Park: a Vital Economic Development Hub



2nd in a Two-Part Series

Utah is a state that values technological innovation and commercial enterprise, as witnessed by the success of its two important research parks – Utah State University’s Innovation Campus and Research Park at the University of Utah. Like the Research ParkUSU Innovation Campus featured in last week’s edition of the Economic Review, Research Park at the University of Utah provides an environment for entrepreneurial growth and serves as a reservoir of practical research and business opportunities for university faculty and students.

In 1965, when the concept for a research park at the U had its beginnings, 25 percent of Utah’s workforce was tied to the federal government, according to Charles Evans, Research Park director. The major employers at the time were Hill Air Force Base, Kennecott Copper and the LDS Church, and “[Gov. Calvin] Rampton’s Raiders” were trying to broaden Utah’s economic base.

About the same time, the Army decided to divest itself of Fort Douglas, adjacent to the U’s campus. L. Ralph Mecham, former U of U vice president of special projects, lead the university’s effort to obtain the Fort Douglas property and turn it into a research park. Evans, who says he’s 20 percent retired now, worked with Meacham in those early days to help secure the property for the university and develop a master plan. The U of U obtained title to Fort Douglas in 1968, but couldn’t access the land until 1970. The first building in the new Research Park was occupied in January 1972. Evans served as an assistant to Mark L. Money, the first director. Evans became acting director in 1983 and was named Research Park director in 1984.

Today, Research Park features three million square feet of office and lab space covering 320 acres. More than 40 private companies call the Research Park home, where they and 71 university functions employ 7,200 people. At full capacity the park will hold an estimated 8,000 to 9,000 employees.

Evans conservatively estimates that park residents generate $550 million in annual in-state productivity. “It’s hard to put an exact number on it,” he says, “but we know the contribution of the park is substantial.” The indirect benefits of Research Park are invaluable to the U, the community, and the state. University Park tenants often hire university faculty as consultants, lease university equipment, access the university library, hire university grad and undergrad students, participate in joint research with the U, contribute to university programs, and teach or supervise graduate research projects.

Research Park enjoys a consistently high occupancy rate, which varies from 93-95 percent. Some of the more well-known companies occupying space there include:
Myriad, Evans and Sutherland, and ARUP are spin-off companies from university research, while Rockwell Collins and Watson Pharmaceuticals came to the park through the acquisition of spin-off companies.

Improving Transportation Along the Wasatch Front


EDCUTAH supports efforts to improve transportation infrastructure that promote sound economic development. We also support local governments' and voters' right to have a voice on this issue. Click here www.2015Utah.com to find out more about plans to accelerate the construction of our transportation infrastructure.

IN THE NEWS

Economic Development Headlines

Utah 16th in Business Tax Climate

- Utah ranks 16th nationally in having the best business tax climate, according to a report released this week by the Tax Foundation, a nonpartisan tax research group based in Washington, D.C. (Morning News)

Adam Aircraft Expanding

- On Friday, Adam Aircraft celebrated the groundbreaking of its new jet manufacturing and assembly facility. Along with the A500, Adam Aircraft also will design, test and build its A700 Adam Jet, which is still under Federal Aviation Administration review. The new facility, located at the Kemp Ogden Gateway Center, 4282 S. 1650 West in Ogden, will be 96,000 square feet when complete and eventually will employ about 430 workers. (Morning News) (Standard-Examiner) (KSL) (Salt Lake Tribune)

More Steel Business in Top of Utah

- Another steel company is expanding to Northern Utah. Utah's Private Activity Bond Board allotted $5 million to one of U.S. Holdings Inc.'s four parts, U.S.F. Fabrication, to acquire and renovate an 80,000-square-foot building on "Bell Helmet" land, said Roxanne Graham, PAB program manager. (Standard Examiner)

Tunnel for Skiers?

- Someday, in the distant future, skiers coming to Utah may be able to drive from Alta to Brighton in minutes instead of an hour, or head straight from Snowbird to Park City over a scenic route instead of a busy freeway. (Morning News) (Salt Lake Tribune)

Firms Hope that China Will Enjoy Taste of Utah

- Chinese workers have assembled Orbit Irrigation parts for years - pipes, sprinkler heads, timers and drip systems - and shipped them for sale at Home Depot stores all across America. But they can't buy the watering gadgets themselves. That will change if Orbit CEO K.C. Erickson has anything to do with it. Erickson is one of two executives from the North Salt Lake-based irrigation company who is signed on for a trade mission led by Gov. Jon Huntsman Jr. that begins Monday in Beijing. (Salt Lake Tribune)

Huntsman is Leading Trade Mission to China

- It isn't difficult to get Gov. Jon Huntsman Jr. talking about China. Just a mention of the country can spark a lengthy discussion of everything from trade agreements to exotic foods — some of it in perfectly pronounced Mandarin. Today, the governor heads back to China to lead a weeklong trade mission that will include meetings with government leaders in Beijing and Shanghai. He heads a delegation that includes representatives of more than a dozen Utah companies. (Morning News here, here, here, and here) (Salt Lake Tribune here, and here) (Daily Herald)

Panel Calls Soccer Stadium a Solid Investment

- A soccer stadium is a solid investment for Sandy, Salt Lake County and Utah: That's the message delivered Tuesday by two mayors and the Real Salt Lake team owner to local Rotary Club members. (Morning News)
(Salt Lake Tribune)

Labor Shortages Slow Utah Economy

- Labor shortages have and will slow Utah's economy, straining the health care, oil and gas exploration and transportation industries and, possibly, the LDS Church's downtown redevelopment project, according to a report released Tuesday by Zions Bank. (Morning News)

West Liberty Breaks Ground

- Groundbreaking ceremonies often are perfunctory, routine affairs. West Liberty Food's Tremonton food processing facility eventually will employ about 500 people. (Morning News here and here)

Record-High Drill Permits

- The number of oil and natural gas permits issued to companies seeking to drill in Utah climbed to record levels in this year's third quarter, according to the Utah Division of Oil, Gas and Mining. The division issued 519 permits in the three months ended Sept. 30, up 6 percent from 489 permits issued during the same quarter in 2005. (Morning News)

Spanish Fork Wind Farm Closer to Reality

- There is wind in the hills of Spanish Fork Canyon, but harnessing it for power and money hasn't been easy. (Daily Herald)

Bountiful is Looking to Revitalize Main Street Environs

- Main Street, for the most part, is quiet here. A store in Georgetown, Texas, looks similar to what is being proposed for the development of downtown Bountiful. (Morning News)

Ritzy Resort to Open in Lake Powell Area

- Luxury spa operator Amanresorts will run a $200 million resort near Lake Powell for wealthy world travelers. The 100,000-square-foot spa, offering $1,200-a-night hotel rooms and villas for up to $6 million, is scheduled to open by mid-2008. (Morning News)

GOED Hosts Utah Procurement Symposium Thursday

- Government contracts are big business in Utah, but have the potential to be bigger. Local companies do $1.9 billion per year in business in government and military contracts, according to the Governor’s Office of Economic Development (GOED), which also estimates that Utah companies could qualify for more than an additional $3 billion in sales. (Utah Business Magazine)

Questar Gas To Propose Rebate Programs for Businesses

- Utah’s business owners may see additional cuts to their usual utility bills this winter. A change in the state’s tariff-collection program has prompted Questar Gas to propose rebate programs for homes and businesses that conserve natural gas. (Utah Business Magazine)

Sorenson Legacy Foundation Donates $150K to Western Governors University

- The Sorenson Legacy Foundation has donated $150,000 to help start Western Governors University's new College of Health Professions. (Utah Business Magazine)

ATK to Donate $1M to Clark Planetarium Over 10 Years

- An investment meant to inspire imagination has been made in Clark Planetarium by Alliant Techsystems, parent company of ATK Launch Systems Group of Utah. (Utah Business Magazine)

Partnership Creates Lean Manufacturing Training Center at OWATC

- A partnership between Williams International and the Ogden-Weber Applied Technology College (OWATC) has brought more than $25 million worth of equipment to the campus to create a capstone course for the school’s machining program students. (Utah Business Magazine)

ZCMI Center: Some Just Too Small For the Mall

- Shara Beckstead calls it a "miracle." The fact that her dress shop, Bliss, shows strong sales - even "fabulous" sales - despite its location at the half-empty ZCMI Center mall in downtown Salt Lake City is hard for the owner to explain. (SL Tribune) (Morning News)

VISTA Staffing to Move Headquarters Downtown SLC

- VISTA Staffing Solutions, a firm that is a leading provider of temporary physician staffing in the United States, will move its corporate headquarters to the Olympus Building at 275 E. 200 S. in downtown Salt Lake City. (The Enterprise)

California-based Private Mortgage Banking Firm Opens Utah Office

- CS Financial, a California-based independent private mortgage banking firm, has entered the Utah market with a new office to in Park City.
(The Enterprise)

CALENDAR

Oct. 18:

21st Century Entrepreneur: Building a Business Plan that Can Raise Money - Workshop sponsored by the Wayne Brown Institute, 5:30 PM - 8:00 PM, Neumont University, 10701 S. River Front Pkwy, Suite 300, South Jordan. Admission fee: $25. For additional information please go online or call us at 801-595-1141.

Oct. 19:

PTAC Procurement Symposium - hosted by GOED October 19, 2006. Utah companies interested in government contracting opportunities should plan to attend the symposium at the SouthTowne Exposition Center (9575 S. State Street, Sandy) from 7:45 a.m. to 4 p.m. Register online or email registration information to PTAC@utah.gov. For more information call Myrna Hill, (801) 538-8775.

Nov. 12-15:

CoreNet Global Summit (Orlando, FL.)

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. If your company has or is near sales and/or has previous investment, a strong management team, proprietary technology, and has a credible expectation of doing $30-$100 million USD a year in sales in 3-7 years, you should submit an expanded executive summary and one-page fact sheet to this conference. Submission deadline is October 30th. For more information visit: www.venturecapital.org/utah.

EDCUTAH PARTNERS


Current Partners
Why Be a Partner?
 Board of Trustees