Sept. 10, 2008

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

President's Message

Celebrating Another Successful Year


On September 4, EDCUtah held its 2008 Annual Meeting at the Grand America Hotel in downtown Salt Lake City. Our investors had the pleasure of hearing Dr. Anne Smith's headline discussion on climate change policy, which is highlighted in today's feature story. Please take a moment to read about how this national issue could affect regional economic development policy.

The annual meeting is also an opportunity to usher new members on to the Board of Trustees and Executive Committee as well as give thanks to the loyalty and commitment of those exiting officers who are retiring. Please note the following changes.

Retiring Members of the Board of Trustees

  • Robin Hough, Bristol Global Mobility
  • Jeff Gochnour, Cottonwood Partners
  • Lloyd Allen, NAI Utah Commercial Real Estate
  • Kevin Bischoff, Regence BlueCross BlueShield of Utah
  • Mark Smith, Utah Industrial Depot
  • Erni Armstrong, Freestyle Marketing
  • Gladys Gonzalez, Mundo Hispano
  • President Mike Benson, Southern Utah University
  • President Michael Bassis, Westminster College

New Members to the Board of Trustees

  • Mark Bouchard, CB Richard Ellis
  • Rod Castillo, The Pete Suazo Business Center
  • Earl Hurst, Humana Utah
  • Ann Millner, Weber State University
  • Rick Nydegger, Workman Nydegger
  • Chuck Penna, Penna Powers Brian Haynes
  • Glen Watkins, Jones Waldo Holbrook & McDonough

Retiring Members of the Executive Committee

  • Max Farbman, Max Farbman & Associates*
  • Lou Callister, Callister Nebeker & McCullough*
  • Mayor Bill Applegarth, Riverton City
  • Alan Allred, Questar Gas Company
  • Bob Hatch, Wells Fargo Bank*

* Emeritus members

New Members to the Executive Committee

  • Deedee Corradini, Concierge Relocation - A Division of Prudential Utah Real Estate
  • Peggy Larsen, Workers Compensation Fund
  • Mayor Russ Wall, City of Taylorsville
  • Rick Davis, Callister Nebeker & McCullough
  • Ron Jibson, Questar Gas Company
  • Mike Pazzi, Wells Fargo Bank

I would like to express my deep appreciation to Phil Thompson, EDCUtah Chair from 2006-2008, and to Alan Allred, EDCUtah Secretary/Treasurer from 2003-2008. Their service has been invaluable to our success.

As we embark on a new year, we are pleased to welcome Jerry Fenn, our incoming Chairman and look forward to his tenure and two more years of accomplishments for economic development in Utah.

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

Feature

Climate Change Expert Keynotes EDCUtah's Annual Meeting, Challenges Businesses to Let their Voices be Heard


Increasing pressure on utilities, industries and businesses to reduce their carbon emissions, and proposed “cap-and-trade” rules emerging from the climate change debate will alter our infrastructure and increase consumer costs across the board, and businesses need to engage in the debate now, according to Dr. Anne Smith vice president of consulting firm CRA International and an expert in climate change policy.

“Your voices will be very helpful, but you need to be informed before you speak up,” she told a packed house of EDCUtah investors and friends Sept. 4 at the Grand America Hotel in Salt Lake City.

EDCUtah President and CEO Jeff Edwards said Smith was selected to keynote the annual meeting because of the increasing importance of creating sustainable energy sources and the potential shifts in industry sectors that will occur as cap and trade requirements ultimately cut carbon emissions to near zero in the coming decades.

Smith urged Utahns to prepare for the fundamental, widespread changes in our markets and energy technology by becoming more energy-efficient, assessing the potential of renewable energy sources and focusing economic development efforts on sectors that are more electricity-dependent, to take advantage of Utah's low-cost power. For example, she said if stringent carbon emissions caps are in place by 2020, Utah's coal operations could close entirely, while Utah's electricity rates, which are currently among the lowest in the nation, might still remain low because of abundant natural gas supplies and potential renewable resources. On the other hand, the state could be at an economic disadvantage in other ways.

“Even with the best preparation, having greenhouse gas caps is going to be costly," Smith added. "Nothing I've said will remove the costs. It just positions you differently in this set of markets (coal, electricity and transportation). It's going to affect everyone."

The slides from Smith's PowerPoint presentation are posted here for those who would like to review them or weren't able to attend the annual meeting.

After Smith's remarks, outgoing Chairman of the Board Phil Thompson made an allusion between Utah's unique qualities and the 11 special herbs and spices that made “Colonel” Harland Sanders and his Kentucky Fried Chicken so uniquely successful. Among the state's unique qualities, Thompson noted the work of Governor Jon Huntsman, saying “He's our CEO,” then recognized the work of the LDS Church and special people like Edgar Stern, who started Deer Valley, Ogden Mayor Matthew Godfrey, “whose personal vision is changing a whole city,” and Spence Eccles, “a great mentor and steward.” Thompson also noted Utah's incredible ski industry, low healthcare costs and exceptional higher education system as part of its uniqueness.

At the close of the meeting, EDCUtah President and CEO Jeff Edwards reported that EDCUtah's efforts in 2007-08 will lead to the creation of 5,370 jobs, the retention of 867 jobs, the development of 2.6 million square feet of industrial and office space and $1.3 billion in capital investment in the state. What's more, EDCUtah handled 133 visits to Utah by companies or their representatives considering the state for operations relocations or expansions.

Procter & Gamble's 1,000-job manufacturing project in Box Elder County and the $285 million Oracle Corp. data center location in West Jordan were among this year's successes.

"I have to say that the significance of their decision to come here to Utah has already changed how we're perceived on a national level," Edwards said, speaking of the Proctor & Gamble move.

In 2006-07 EDCUtah's efforts yielded 5,585 created jobs, 840 jobs retained jobs, 2.6 million square feet of development and $884.9 million in capital investment. Over the past three years, EDCUtah's work has led to 16,591 new jobs created and 2,202 retained, 8 million square feet of development and $5.6 billion in capital investment.

"It's just an absolutely unprecedented time in Utah's history, when you look back at all of that," Edwards said. EDCUtah remains busy with 251 "open" projects. Part of the organization's focus is on recruiting in sectors that include biotechnology, aerospace, composite materials, financial services, outdoor projects and energy.

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In The News

Economic Development Headlines from the Past Week

Emissions limits could cause shifts in Utah firms

- Cutting greenhouse-gas emissions to near-zero in coming decades will come with a cost that will be borne by all U.S. households and that could cause shifts in certain industry sectors in Utah, according to Anne E. Smith, vice president of consulting firm CRA International. Speaking at the Economic Development Corp. of Utah's annual meeting on Thursday, Smith said companies emitting greenhouse gases will get involved in "cap and trade" requirements implemented by government entities. The companies also may have to invest heavily in technologies to reduce emissions. Those costs will be passed on to consumers, she said. (Deseret News)

State notes 'remarkable' success in luring firms

- The leader of the Economic Development Corp. of Utah on Thursday hailed the past fiscal year as "remarkable" and said it capped a successful three-year stretch. (Deseret News)

EDCUtah holds annual meeting; announces 251 projects underway

- Economic Development Corporation of Utah (EDCUtah) is working hard to increase the employment rate and to find alternative energy sources within the state. During its annual business meeting last Thursday, EDCUtah announced results of the 2007 fiscal year. (Utah Business—registration required)

Provo-Orem ranked No. 1 in nation for job growth

- Utah's strong job creation has helped keep the state out of some of the economic doldrums facing the nation, according to a report released today. (Deseret News) (Daily Herald) (Salt Lake Tribune)

T. Boone Pickens visits Salt Lake City

- Join T. Boone Pickens as he hosts a town hall meeting this Thursday, September 11 at the Salt Palace Convention Center. Listen as Mr. Pickens describes his energy plan for America, including his goal for 20 percent wind power for the U.S. in 10 years. Doors open at 4 pm. The event is free and open to the public For more information about T. Boone Pickens and his energy vision for America, vist his website: http://www.pickensplan.com/news/

Utah is faring well, Fed official says

- Economic times are tough, but Utah's doing relatively well, and 2009 is likely to be better, according to Janet L. Yellen, president and chief executive officer of the Federal Reserve Bank of San Francisco. (Deseret News)

Welcome to the Silicon Slopes; Utah's tech sector suffers an image problem and one Orem CEO wants to fix that

- Utah. A quirky state at the edge of the desert dominated by a single religion and defined by its far-right politics and weird liquor laws. There is a bit of high-tech industry but it's not much. (Salt Lake Tribune)

HUD grants $600,000 to help rural Utah

- Residents of two of Utah's most rural areas could soon receive assistance buying a home or starting a business. Two Utah community development organizations have received $300,000 grants from the Department of Housing and Urban Development. (KCPW)

Becker to visit Japanese sister city

- Legacy Parkway opens to public on Saturday
Forget that the Legacy Parkway is joyfully expected to take 30 percent of the cars off I-15 in south Davis County. (Deseret News) (Salt Lake Tribune) (Davis Clipper)

Davis County splits economic development, planning offices

- With the departure of the longtime director of Community and Economic Development, the Davis County Board of Commissioners has opted to split the department. (Deseret News)

Utah may play part in China's new air industry

- Western companies, including some with a presence in Utah, are playing a prominent role helping China become a serious new competitor in the global aerospace industry. (Salt Lake Tribune)

U. among top tech-savvy U.S. campuses

- Round-the-clock computer labs and 24/7 tech support landed the University of Utah a spot as the third most teched-out campus in the country, according to PC Magazine's latest survey. (Deseret News)

Ski areas busy with off-season upgrades

- Even more than Monday's premature snow flurries, a succession of helicopter flights here on a clear blue Wednesday morning signaled that winter is not far off. (Salt Lake Tribune)

Early solar farm work approved

- The St. George City Council passed motions Thursday awarding bids of $674,000 for work related to the first phase of a city solar farm project. (Spectrum)

Op-Ed: Salt Lake City Mayor Peter Corroon: Jordan River has potential to be a spectacular regional attraction

- Several months ago, I canoed down the Jordan River, one of Salt Lake County's amazing natural amenities. But over the past decades it has been largely ignored and become polluted. (Salt Lake Tribune)

County to weigh in on battle for Broadway-class playhouse

- In the ongoing Salt Lake City-vs.-Sandy melodrama to capture Utah's first big Broadway-class theater, Salt Lake County is about to throw in its own plot twist.
(Salt Lake Tribune)

Editorial: Keep economy in perspective

- Recent good news from the local real estate industry reminds us to keep economic news in perspective. The economy has suffered a bumpy 2008. Nationally, the housing market stalled, gas prices soared above $4 a gallon, Wall Street trembled, and news reports warned of economic catastrophe. (Daily Herald)

Bigger tests ahead at Delta

- One year into Richard Anderson's tenure at the helm of Delta Air Lines, the company is on the brink of becoming the world's largest carrier through its purchase of Northwest Airlines. But some of the biggest challenges may be yet to come. (Salt Lake Tribune)

Oil-shale plans take step forward

- Plans have been finalized to set aside 1.9 million acres of public land in Utah, Colorado and Wyoming for commercial development of about 800 billion barrels of recoverable oil, the Bureau of Land Management announced Thursday. (Deseret News)

Draft Blueprint Jordan River plan unveiled next week

- The year-long Blueprint Jordan River process is drawing to a close. Envision Utah will unveil its draft vision for the Jordan River corridor next Wednesday. The proposal includes 10 suggestions ranging from a lake to lake trail along the banks and both neighborhood and regional mixed-use commercial developments.
(KCPW)

Mayor plans busy September overseas

- Salt Lake City's first-year mayor is in Japan this week for the 50th-anniversary commemoration with sister-city Matsumoto. From there, Becker's Far East trek takes him to China, where the National League of Cities is sponsoring a mayoral tour of sustainability practices from Beijing to Shanghai. He returns Sept. 14. (Salt Lake Tribune)

CALENDAR

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)