Feature Story
Southern Utah Poised for Growth

Just what is up down south? That question was on the minds of many as nearly 1,000 attendees gathered at the Dixie Convention Center in St. George on January 13 for the Washington County Economic Development Summit.

Better known as "What's Up Down South?" the summit is one of the most popular economic development conferences in Utah, drawing business, government and civic leaders from across the state for the one-day event. This year's summit featured a breakfast keynote address by Senator Bob Bennett, followed by 13 breakout sessions and a luncheon address by Governor Gary Herbert.

Many of the state's most powerful and influential economic developers were there, including Spencer Eccles, executive director of the Governor's Office of Economic Development (GOED), Derek Miller, managing director of corporate recruitment and incentives for GOED, Jeff Edwards, president and CEO of the Economic Development Corporation of Utah, Ted McAleer, executive director of USTAR, and Jack Brittain, vice president of technology venture development for the University of Utah. Also on hand were Utah Speaker of the House David Clark, State Representatives Don Ipson and Brad Last, County Commissioners Jim Eardley, Alan Gardner and Denny Drake, St. George Mayor Daniel McArthur, and several other local mayors and officials.

'Impressive' Event
The summit, which is collaborative event sponsored by the Washington County Economic Development Council and the Dixie Business Alliance, has become a major event, as Governor Herbert noted during his address. "I had no idea how big this has grown. This is very impressive," he said. Scott Hirschi, director of Washington County Economic Development, agreed: "We think it's the biggest business gathering south of the Wasatch Front and probably one of the biggest such gatherings in the entire state."

"This event has grown in content and popularity over the years and has become one of the premier economic development conferences in the state," added V. Lowry Snow, outgoing chairman of the Washington County Economic Development Council, and founding partner in the law firm Snow Jensen and Reece, which has offices in St. George, Cedar City, and Kanab. "It provides a lot of interest and enthusiasm, which has helped it to be so successful year after year. Even in these challenging times our attendance has been strong, because most of the people attending are forward-thinking and the economic summit provides them with opportunities to network and obtain accurate economic forecasts and information."

While the effects of the recession have been especially hard on housing, construction and real estate in Washington County, a distinct undercurrent of optimism could be felt throughout the summit, beginning with the remarks of Sen. Bennett and concluding with the optimism of Governor Herbert. Business and civic leaders here recognize that the glory days of a real estate-driven economy are in the past and that sustained growth can only happen by diversification. "We have a growing technology sector and are looking to expand other sectors as well," said Snow. "Our goal is to support existing businesses while recruiting additional enterprises to the area."

Poised for Growth
Truly, Washington County is poised for growth and a silver lining exists, despite the current economic doldrums. Housing prices, which were off the charts a few years ago, are once again affordable, along with commercial and industrial real estate. Furthermore, construction at the new St. George Airport and multiple construction projects by the Utah Department of Transportation (UDOT) are providing jobs, while the Ford Ironman Triathlon event, coming to St. George in May, is expected to inject $8 - $10 million into the local economy. Other good news: Enrollment at Dixie State College (DSC) is setting new records and Utah's first business incubator focused on renewable energy opened its doors on Jan. 12 at University Plaza, near the DSC campus.

Construction at the airport is in full swing, with 342 workers on the site. The current cost estimate for the new facility is approximately $160 million, while the full economic impact of its construction is estimated to be more than $600 million for the local economy. Upon completion, the 9,300 foot runway will be able to land any commercial jet. The airport's infrastructure will include a full parallel taxiway, general aviation facilities, a passenger terminal building with a jet bridge, full aeronautical instrumentation, supporting parking lots and entrance roads, and approximately 1,000 acres designated for commercial development.

In regard to UDOT activity in the area, Hirschi said the freeway interchange and other public works projects could not have come at a better time for Washington County. "We were very lucky when President Obama said to put the stimulus money into shovel-ready projects. We had a number of shelved projects that were immediately propelled forward by the stimulus money," he said. Indeed, UDOT is spending millions to reconstruct several freeway interchanges in the St. George area. In one project, the department will spend $25 million in 2011 and another $45 million in 2012 to construct a new Dixie Drive Interchange on I-15 near the Dixie Center on the south side of the city.

Federal and State Economics
During his breakfast address, Senator Bennett told the audience the U.S. economy has a ways to go before the worst is over, but concluded: "I am a Pollyanna guy. America will survive." The biggest problem, he said, is the fact that entitlement spending on Social Security, Medicare and Medicaid will consume every penny of projected federal revenue. Thus, the government must borrow money to fulfill all of its other obligations.

Governor Herbert's reflection on the state economy was more upbeat. "I am very optimistic about the future. The downturn in the economy has certainly impacted Utah, and Washington County has felt the pinch as much as anybody. You had the best and now you are feeling the worst," he said, adding that there are pockets of success, such as in tourism.

Because of the recession Utah lost over $1 billion in revenue. Meanwhile, other states are facing multi-billion dollar budget shortfalls and double-digit unemployment rates. Utah, on the other hand, has been recognized as the best place to do business. "Utah is doing very well compared to other states. We have a triple-A bond rating. Our poverty level is below the national average. We are ranked seventh in the country for educational achievement. We are considered the most trusted people. We are the happiest state. We have an entrepreneurial spirit and the highest number of small businesses," said the Governor.

Laying out the primary focus of his administration, Governor Herbert said he has three priorities: First, grow the economy; second, improve education; and third, expand energy development. "We've got to kick-start the economy. We are not free falling anymore and optimism is out there. We believe we are ready to turn the corner," he said. "I don't want to stifle the economy with a tax or fee increase and that's what the market needs to hear." His plan is to do more with less regarding government services, yet "hold education harmless," meaning no cuts to public or higher education. At the same time, he said, "If we can create jobs, generally everything else will be taken care of." He noted that this past year GOED helped create 4,000 new jobs in the private sector, adding $4 billion in wages to the state's economy.

Regarding energy development, the Governor said Utah has a great opportunity in not only traditional energies, but also in renewable energy. "Utah will be at the forefront of energy development as we move forward. We are literally awash in natural gas," he said.