April 8, 2009

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

President's Message

Composite Materials Continue to Generate Economic Development Enthusiasm; Falcon Hill National Research Park Another Positive for Utah


Last week, the JEC Composites Show took place in Paris, France and while the global economy is reshuffling, optimism at the show prevailed. International attendance was very strong and the show was at full capacity. As companies look to do business better, smarter and with less expense, composite materials become an obvious choice. Consequently, the use of composite materials is growing rapidly in interesting areas:

  • Wind energy: +35%
  • Aerospace: +28%
  • Construction: +18%
  • Automotive: +16%

Utah is a leader in the composites industry and EDCUtah continues to receive a lot of inquiries from composite companies. This is an area of real opportunity that we are aggressively pursuing. Here's a link to more information about the JEC Composites Show.

On another front, Utah continues to lead the way in developing public/private partnerships. As an example, take a look at the plans for the huge investment in infrastructure going on at Falcon Hill--one of the largest project of its kind in Department of Defense history--next to Hill Air Force Base. It is certainly a bright spot for economic development in the state. In fact, the scope of the project is record breaking in terms of its magnitude and significance to the local economy and the Air Force. It is expected to generate 75,000 jobs over the next 50 years. The first two buildings to be constructed include the 35,000 square-foot Hill AFB Security Forces Building and the 150,000 square-foot ICBM (intercontinental ballistic missile) facility. Here's a link to an interesting story from the Davis County Clipper about the Falcon Hill project.

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" link on the bottom of this page. Enjoy!
Jeff Edwards

Jeff Edwards
President and CEO


Feature

Tooele Valley Represents

One of the Most Attractive Locations for Business

in the Western U.S.


Just 32 miles southwest of Salt Lake City lies three of Utah's best kept economic development secrets: Tooele County, Tooele City and Grantsville. While the silver and gold mines that drew settlers there in 1849 have long since been quieted, the area is booming and its future couldn't look brighter.

"If I had a dozen shovel-ready industrial parks I could fill them in no time," says Tooele County Economic Development Director Nicole Cline. "Tooele County was once a big secret, but we are now inviting the world."

Primed for Growth

The positive economic development outlook expressed by Cline is equally felt by Tooele Mayor Patrick Dunlavy and Grantsville Mayor Byron Anderson, both of whom are aggressively pushing economic development initiatives forward in their respective cities.

"We think we do economic development really well here," says Mayor Dunlavy. "We've had significant successes over the years and feel really good about the direction the city is going. After his election, the Mayor made job creation a high priority for his office and the city council bought in. "We're all on the same page," he says.

Tooele City is home to the Utah Industrial Depot, one of Utah's premier shovel-ready economic development sites and a prime location for manufacturing and light industrial concerns. Six additional industrial parks are in various stages of development within the area--one in Grantsville, four in the county, and one in Tooele City, being constructed near the Miller Motorsports Park (MMP).

Utah Industrial Depot

The Utah Industrial Depot is a shovel-ready park that sits on 1,400 acres of land formerly used as a military truck refurbishing center for the Tooele Army Depot. The Depot is now a private facility with 2.5 million square feet of competitively priced warehouse and manufacturing space. Some 65 companies currently operate from the Depot, employing approximately 1,100 people. Dunlavy says the Depot is an attractive location because it is comprised of both buildings and improved land with rail service, and can accommodate manufacturing, distribution and light industrial uses.

Last April, Cicero, NY-based Syracuse Castings, a manufacturer of steel, aluminum, and cast iron products for the construction industry, announced it would open a manufacturing operation in the Depot. The new 20,000-square-foot facility represents a $2 million investment by the company and could employ upwards of 90 people within the next five years. Other businesses to recently locate at the Depot include Carlisle SynTech and its Hunter Panels subsidiary, which are part of North Carolina-based Carlisle Companies. Carlisle SynTech and Hunter have built adjacent factories on a 50-acre parcel. Carlisle SynTech manufactures single-ply roofing products and systems and is opening a facility to manufacture its Sure-Weld TPO membranes and accessories. The 250,000-sq. ft. facility is the company's fourth roofing membrane plant in the U.S.

Retail Development

Because a large portion of Tooele Valley residents commute to the Salt Lake City for employment and much of their shopping, both Mayor Dunlavy and Mayor Anderson feel a strong desire to create jobs in their respective cities and both cities are working to build up their retail sectors as well. Tooele City actively participates in the Utah Pavilion at the annual convention of the International Council of Shopping Centers (ICSC) in Las Vegas. Typically Mayor Dunlavy and most, if not all, of the Tooele City Council attend, where they meet with selected retailers in pre-arranged meetings and recruit other targeted retailers at the convention.

Past efforts at ICSC have been quite successful, Dunlavy says. Through ICSC and a lot of additional follow up, the city recruited Big 5, a sporting goods retailer. Initially the Big 5 corporate office wasn't interested in the city, but later changed its mind. The store opened in November 2008 and now ranks ninth in gross sales out of the 395 Big 5 stores in operation, according to Dunlavy.

The city also recruited a Gold's Gym, which helped strengthen Tooele's downtown redevelopment efforts by remodeling an old Albertson's grocery store. Dunlavy says the gym reached $1 million in membership faster than any other store in the chain's history. The city also recruited a Sears store, which opened last December, and is pursuing other targeted retailers at the upcoming ICSC convention in May.

"We really see the value of ICSC. We go with a pre-set strategy; we have pre-set appointments with targeted companies, and work really hard for three days there."

Randy Sant, economic development director for Tooele, has high praise for Tooele City officials: "The mayor and city council really understand what economic development is all about. They understand the need for incentives and infrastructure in order to be competitive in this market and they have worked hard to be ready for the onslaught of companies coming to the area."

Grantsville City is Open for Business

"Any time a business looks like a fit, we go for it," says Mayor Anderson. "Grantsville is an idea place to locate, with close proximity to I-80 and rail lines, attractive land prices, nice people, a rural lifestyle and exceptional recreational opportunities."

Anderson served on the city council before being elected mayor and has developed a strong commitment to economic development in Grantsville.

"We are trying to bring in more business and retail development, so that our residents don't have to look in Tooele and Salt Lake City for their employment or shopping needs. We have two strip malls, but we are looking for something larger, like a hotel and restaurants to locate here."

Four years ago Grantsville landed a Wal-Mart distribution center and approximately 800 jobs. At full build-out the distribution center could employ 1,000 workers. The city is currently working with EDCUtah and Tooele County to recruit several other large businesses to the area, all of whom would provide a good mix of jobs, investment and opportunity.

Anderson says economic development is underway in other parts of his city, as well. One property owner is drawing up plans to create an industrial park and the city is actively promoting retail development.

Tooele Valley Amenities

The amenities that make Tooele County, Tooele City and Grantsville attractive locations for business are lengthy and impressive:

  • Exceptional logistics: easy access to Salt Lake International Airport, rail lines leading to Reno and Las Vegas, Nevada, and close access to I-80.
  • Quick access to the I-215 corridor (and avoidance of I-15 gridlock).
  • A young, skilled workforce. Median age is 28.
  • An educated workforce--Utah State University's Tooele campus is booming and many of Tooele School District's high school graduates earn associate degrees in conjunction with their high school diplomas.
  • Location of an Advanced Technical Center and Custom Fit Program.
  • Large tracts of land available for development.
  • Land use regulations that are pro business.
  • Accelerated permitting processes.
  • Attractive land prices.
  • Hub zone designation, giving businesses preferential contracting rights through the federal system.
  • Three military bases located in the county: Dugway Proving Ground, Deseret Chemical and Tooele Army Depot.
  • More enterprise zones in Tooele County than any other county in the state.
  • Location of the Miller Motorsports Park.

Such amenities drew Pittsburgh-based Allegheny Technologies, a manufacturer of specialty metals, to the county in 2008. The company built a $250 million titanium sponge production facility in Rowley and employs approximately 250 people there.

Miller Motorsports Park

Those same amenities helped make Tooele County an attractive location for the Miller Motorsports Park, the $100 million auto, motorcycle and kart racing facility opened in 2005 by the late Larry Miller. The MMP could one day make Tooele County the motor sports capital of North America. It happens to be the largest race track of its kind in North America and due to its size and versatility, is drawing interest from more than just race enthusiasts. Cline says automotive companies and developers of unmanned vehicles want to utilize the test track for their development purposes.

"All in all, the Tooele Valley represents one of the most attractive locations in the western US. We have had great success working with all the communities in the region and look forward to continued recruitment activity in the area," says Jeff Edwards, president & CEO of EDCUtah.

 

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In The News

Economic Development Headlines from the Past Week

Exports fuel Utah's economic growth

- Utah's economy has grown steadily over the past several years. This growth was due in part to a 32 percent increase in commodity exports statewide during the last year. Total exports grew from $7.8 billion in 2007 to $10.3 billion in 2008. (Utah Business Magazine) (Utah Pulse) (Standard-Examiner)

Road projects: UDOT plans $5.5 billion in capital improvements

- The Utah Department of Transportation awarded $22 million in construction contracts Tuesday, part of a record $5.5 billion infusion of capital into the state's roads. State leaders say the construction binge will mean tens of thousands of jobs to fuel the limping economy and will put in place the road network to carry an economic rebound. (Salt Lake Tribune)

International journalists visit Utah's scenic areas during tour sponsored by Utah Office of Tourism

- The Utah Office of Tourism wants the whole world to know about the natural beauty the state has to offer. To get the word out, it partnered with local travel offices to bring international journalists here for a weeklong Media Familiarization Tour, called FAM. The visitors arrived March 27 and will tour Utah through today. (Standard-Examiner)

Salt Lake aims to go global with zone

- Utah companies seeking international trade will soon receive a helping hand. Salt Lake City recently gained approval from the U.S. Department of Commerce to reorganize its foreign trade zone, a site that can reduce duties and simplify commerce procedures. (Salt Lake Tribune)

USTAR receives $33M stimulus

- Utah State University will be getting two new USTAR teams thanks to $33 million from President Barack Obama's stimulus package. The money has gone to the governing authority of the Utah Science Technology and Research initiative--a program created by the Legislature in 2006 to turn university experiments into spin-off tech businesses. (Herald Journal)

UTC suggests Utah companies to be positive through economic recession

- Utah companies should "lead toward the upturn" rather than getting bogged down in the negative aspects of a down economy, says Thomas Harrison, chairman and CEO of the Omnicom Group, Inc. (Utah Business Magazine)

Councilman wants Salt Lake City to accommodate recharging electric cars

- City Councilman Soren Simonsen plans to soon introduce a set of four initiatives aimed at putting basic infrastructure in place for electric cars. (Deseret News)

Economic forum informs, involves local business owners

- In an effort to stimulate the local economy and educate local business owners, the Washington County Economic Development Council is sponsoring the Dixie Area Economic Forum. (Spectrum)

Utah nuclear power proposal has a powerful thirst

- A state representative pushing to bring nuclear energy to Utah has applied to the state to take billions of gallons of water from the Green River to supply reactors that could produce electricity for 3 million households. (Salt Lake Tribune)

Utah online business leaders creatively utilize technology to beat odds

- Utah online business leaders today face several challenges, including the struggling economy, information overload and using social media and other Internet platforms to effectively drive customers.(Utah Business Magazine)

SLC hotel proposal raises hope, eyebrows

- Should Salt Lake County accommodate a new 1,000-room hotel overlooking the Salt Palace -- and lean on taxpayers to help build it? That's the question the County Council will raise today as officials consider creating an exploratory committee to figure out whether a Salt Palace hotel makes financial sense for Utah's capital and whether public funds should support it. (Salt Lake Tribune)

Power Move / Work begins on high-voltage line from Salt Lake into Idaho

- Work is finally starting on Rocky Mountain Power's high-voltage power line stretching from Idaho to Salt Lake City. (Standard-Examiner)

Pedicabs rolling into SLC

- Downtown Salt Lake City's public transportation scene just got a leg up. Well, two. A new bicycle taxi service called Stick Dog Pedicabs is cruising the capital's bar and restaurant scene -- ready to pedal people between stops, back to the hotel and even home for a "driver" tip. (Salt Lake Tribune)

SBA to honor Utah lenders

- Utah financial companies that make loans backed by the Small Business Administration will be saluted by the federal agency Monday. Lenders made 3,075 SBA-backed loans in Utah totaling $420.8 million in the fiscal year ended Sept. 30, according to the SBA. (Salt Lake Tribune)

Energy mix vital, CEOs say

- Getting America on the long path to a secure energy future is going to take time, patience and a whole lot of different sources, according to the top executives of two of Utah's largest multi-national energy companies. (Deseret News)

Copper King Mining opens mill in Beaver County

- When Mark Dotson talks about his days as a prospector in the 1980s, he recounts the years spent roaming central Utah searching for mineral deposits that could be turned into a profitable mining operation. (Salt Lake Tribune)


CALENDAR

- Apr. 13-15:  Utah City Manager Assn.
- Apr. 15:  Executive Committee (EDCUtah)
- Apr. 15-17:  Utah League of Cities and Towns (St. George)
- Apr. 14:  Senator Bennett's 8th Annual Rural Business Conference (Heber Valley-Zermatt Resort in Midway)
- Apr. 15-17:  Utah League of Cities and Towns Midyear Conference (Dixie Center, St. George)
- Apr. 26-28:  CoreNet (Dallas, TX)
- Apr. 29-May1:  SME (San Diego, CA)
- Apr. 30:  New Investor Orientation (EDCUtah)
- May 2-6:  IAMC (Asheville, NC)
- May 4-7:  Windpower 2009 (Chicago)
- May 14 or 27 (TBD):  EDCUtah Board meeting (Hope Gallery)
- May 17-20:  ICSC (Las Vegas)
- May 18-21:  SAMPE (Baltimore)
- May 18-21:  BIO (Atlanta)
- June 3:  EDCUtah Golf for Grants Match Grant Tournament (Eaglewood Golf Course in North Salt Lake). This is the main fundraiser for EDCUtah's Community Match Grants Program. Sponsorship opportunities for 2009 are limited to investors in EDCUtah and are now available. Please call Arthur Franks, membership director for EDCUtah at (801) 323-4242 to secure your sponsorship opportunity!
- June 11:  Quarterly Investor Update (TBD)
- June 16:  New Investor Orientation (EDCUtah)
- June 17:  Executive Committee Meeting (EDCUtah)
- July 20:  OIA Thought Leader (TBD)
- July 21-24:  Outdoor Retailer Summer Market (SL Convention Center)
- Aug. 10-13:  AUVSI (Washington, D.C.)


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