Aug. 22, 2008

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

President's Message

Annual Meeting Reminder – Two Weeks & Counting


EDCUtah’s annual meeting on September 4, 2008 is going to be a showcase event for the accomplishments of the past year and a kickoff to another stellar year for economic development in Utah. It will also be an opportunity to thank EDCUtah’s outgoing chairman of the board, Phil Thompson of Industrial Supply Company, and welcome incoming chairman Jerry Fenn, with Qwest Communications.

The highlight of the meeting will be hearing from Dr. Anne Smith, an expert on climate change policy. Her keynote address on the potential impacts of climate change policy are sure to inform the audience on where economic development could head in the future.

You have one week left to register. Please e-mail or call Amie Salazar at 801.328.8842 or asalazar@edcutah.org and RSVP by Wednesday, August 27, 2008. For more information click here.

On another positive note, please take a minute to read our feature story regarding Sephora U.S.A.’s exciting Grand Opening and Ribbon Cutting held this Monday in Salt Lake City.

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


Sephora U.S.A. Ribbon-Cutting and Grand Opening, Monday, Aug. 18.

Feature

From Zero to Fully Operational in 20 Weeks: Sephora U.S.A. Celebrates with Ribbon-Cutting


Monday’s ribbon-cutting event at Sephora U.S.A.’s new, 312,000 square-foot western distribution center, 6075 W. 300 South, Salt Lake City, celebrated the culmination of a year-and-half long courtship between the beauty products giant and the Beehive State.

“It is certainly a big cause for celebration in the city,” says Bob Farrington, Salt Lake City’s economic development director. “It represents 120 current jobs, significant expansion to 500 jobs, and it’s a great connection to have since Sephora is a French-owned, international company and we now have direct flights from Salt Lake City to Paris. Utah-based companies are able to take advantage of our many domestic connections and increasing international connections.”

The list of dignitaries on hand for the event included Sephora U.S.A. CEO David Suliteanu, Patrick Murray, Sephora U.S.A.’s senior vice president and CFO, Martin Flaherty, Sephora U.S.A.’s vice president of logistics, Utah Governor Jon M. Huntsman and First Lady Mary Kaye Huntsman, Salt Lake City Mayor Ralph Becker, Salt Lake County Mayor Peter Corroon, Jason Perry, executive director of the Governor’s Office of Economic Development (GOED), Bhaskar Ragula, chair of the GOED Board, Jeff Edwards, president and CEO of EDCUtah, Deedee Coradini, former mayor of Salt Lake City and member of EDCUtah's Board of Trustees, Bob Farrington, and Farmington City Mayor Scott Harbertson.

“This is a huge win for Utah,” says Edwards. “Sephora is a wonderful corporate citizen and we look forward to a long, prosperous relationship.”

During the ribbon-cutting event, Flaherty announced Sephora will make a donation to First Lady Huntsman’s “Power in You” charity.

“It is part of Sephora’s culture to give back to the communities we serve,” he says. “When we learned that First Lady Huntsman is a champion of the Power in You charity, we saw it as an opportunity to demonstrate our commitment to the community.”

Flaherty says Sephora takes its corporate citizenship seriously and the company intends to be involved in the local educational community, working with the community colleges and local high schools in particular. Sephora offers fantastic tuition reimbursement benefits and advancement programs. In fact, the company has already purchased season tickets to University of Utah athletic events and will provide them to its distribution center associates.

During the site selection process, Sephora looked seriously at 14 geographical locations such as New Mexico, Arizona, Colorado, Nevada, Colorado and California. Flaherty says Utah had it all together: collaborative government and business leadership, a great transportation system, close proximity to the Salt Lake International Airport, the availability of a quality labor force, lower costs of doing business, a vibrant city center, quality of life and a beautiful, scenic environment.

“But it was the work of Governor Huntsman, EDCUtah and Mayor Becker that cinched the deal for us,” he adds. “We were under a tight deadline and would have been in serious straits if we had not been able to make our new distribution center operational by July 7. Utah’s leadership promised to work energetically to expedite the permitting process and get us plugged in to the electric grid—that was the type of partnership we were looking for. We couldn’t be happier with the degree of assistance and support we received.”

Samantha Mary Julian, EDCUtah’s business development manager and Sephora project lead, says Sephora took the building from an empty shell to a fully functioning distribution center in 20 weeks, which is an amazing feat. The facility is now taking the pressure off the company’s East Coast distribution center in Maryland and helping ramp up for the holiday season. As a result, patrons of Sephora beauty products west of the Mississippi can experience more rapid service as well as more efficient and cost-effective transportation. Sephora's new facility will also provide a disaster recovery option for the company and ensure that its supply is seamless during critical times. Julian adds that the company is environmentally conscious and implemented green lighting, sound reduction practices and temperature control methods to the distribution center during its build-out.

Sephora clients are not the only ones to benefit from the new distribution center. The company hired approximately 120 local employees and Julian says another 130 or so will be working there by year-end. Flaherty says Sephora will add e-commerce fulfillment to the distribution center next year and expand its operations by another 250 jobs. What’s more, the company is moving approximately 80 back-office jobs to Utah from its corporate headquarters in San Francisco.

“We love Salt Lake City and Utah. Everyone on my team raves about the place and the people. Some have already relocated to Utah,” Flaherty says. “I want to express my appreciation and gratitude to the many people in Salt Lake City and especially to EDCUtah, for helping facilitate our move. We are quite please to be part of this vibrant and wonderful city.”


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In The News

Economic Development Headlines from the Past Week

Silicon Slopes Initiative Aims to Make Utah the Next Silicon Valley

- Most people have heard of Silicon Valley and many have heard of Silicon Alley and Silicon Forrest. But what about Silicon Slopes? Silicon Slopes is an initiative, started and funded largely by Orem-based Omniture, to bring attention to Utah’s high tech innovations and companies. (Utah Business Magazine

Falcon Hill National Aerospace Research Park to Boost Utah’s Economy

- Falcon Hill National Aerospace Research Park got a final thumbs-up this week, as Air Force officials and a private developer signed an agreement to develop the research park. And that means jobs and dollars for Utah’s economy; the development is expected to add more than 15,000 high paying jobs and bring in a nearly a billion dollars to the Beehive State.
(Utah Business Magazine) (Standard Examiner) (SL Tribune) (Morning News)

Utah’s Unemployment Up; Still Lower than National Rate

- Utah’s unemployment rate rose to 3.5 percent last month, up from June’s 3.3 percent rate, according to a report released yesterday by the Department of Workforce Services. Though increasing, the state’s unemployment rate remains lower than the national rate, which is at 5.7 percent, up from 5.5 percent during June.
(Utah Business Magazine

U of U Receives $12 Million from Sorenson Legacy Foundation

- The University of Utah announced that the Sorenson Legacy Foundation has pledged $12 million to the university for the construction of an interdisciplinary arts and education complex at its Salt Lake City campus. It is the largest donation in support of fine arts or arts and education in university history. (Utah Business Magazine

16 Companies Getting Funds from Rural-Aid Program

- The legislation creating the Rural Fast Track Program passed the Utah Legislature in early 2007. Beverly Evans, director of the Utah Office of Rural Development, said the program now has 16 companies that have received Industrial Assistance Fund grants to help them hire employees or otherwise grow their businesses. (Morning News)

Many New Businesses are Coming to the Downtown Area

- An air-freshener distribution center, a kid's hair salon, a yoga studio and a Dairy Queen, along with other well-known businesses, have the city's business growth looking up in down economic times. (Standard Examiner)

Times are Tough, but Utahns are Still Giving

- Utahns are pinching their own pennies while pouring them into the hands of others.
Despite dinged wallets due to high gas and food prices, Utah residents are giving more to at least some charities. (Morning News)

Great Salt Lake Still Eyed for Oil Rigs

- A Canadian company isn't giving up on its hopes to drill for oil in the Great Salt Lake near the Spiral Jetty art installation. Keith Hill, president of Pearl Montana Exploration of Calgary, Alberta, said in an e-mail to The Associated Press that the company is addressing shortcomings in its previous applications and will resubmit them as soon as possible. (Morning News)

Officials Use Marketing, Incentives to Lure Businesses

- Marketing has turned this dying railroad town into a nationally recognized hub for outdoor recreation, attracting related businesses that boost the local economy. "Ogden has gotten worldwide publicity we couldn't have afforded," said David Harmer, Ogden director of community and economic development. "The more publicity we get, the more it sells people to come here." (Standard Examiner)

Developer Pitches an International Gateway to WVC

- Imagine 5600 West with an international twist. That's one developer's vision for 33 acres that city leaders see as a gateway to Utah's second largest city. (SL Tribune)

Wasatch Cost of Living Catapults Past National Average

- Utahns, who pay the third-highest gas prices in the country, also are getting hammered by inflation in other areas, such as food, utilities and rents. The cost of living along the Wasatch Front jumped 1.1 percent from June to July - a huge increase in just one month, Wells Fargo & Co. said Thursday. Nationally, consumer prices went up just 0.8 percent, according to the Labor Department. (SL Tribune)

Sugar House Project Gets Conditional OK

- The start-and-stop demolition/construction project on the corner of 2100 South and Highland Drive in Sugar House can get started again. The Salt Lake City Planning Commission unanimously voted Wednesday to grant conditional approval for the 4 1/2-acre residential, retail and office development proposed by Craig Mecham, allowing construction to begin. (Morning News)

Work on Station Park Gets Under Way

- $200M center will have 6-story hotel, shops, restaurants. FARMINGTON — So what if the earth movers, graders, steamrollers and front-end loaders jumped the gun by a week? It's about time that developers officially began work on Station Park, a mixed-use development on 62 acres right next to Farmington's FrontRunner station. (Morning News)


CALENDAR

Sept. 4: EDCUtah Annual Meeting, 11:30 a.m. (Grand America)
Sept. 8: 2nd Annual What's IN OUT Back Economic Summit and Golf Tournament  (Zermatt Resort/Homestead Resort & Golf Course)
Sept. 10: Blueprint Jordan River Open House, Utah Cultural Celebration Center, 1355 West 3100 South, West Valley City and Sept. 11 at Lehi Legacy Center, 123 North Center Street, Lehi or the Gale Center, 10300 Beckstead Lane, South Jordan
Sept. 13-17: IAMC (Oklahoma)
Sept. 25: What's Goin' Down Up North - Northern Utah Economic Summit,  9 a.m. - 3 p.m. (Utah State University Innovation Campus, North Logan) Registration form.
Sept. 30: Utah Chapter NAIOP Survivor 2008 Bus Tour
Oct. 9-12: CoreNet (Orlando)
Oct. 21: 3rd Annual Procurement Symposium
Oct. 22: Quarterly Update
Dec. 17: Holiday Open House (EDCUtah)