2019 Governor's Rural Partnership Board Annual Report

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Prepared by: The Governor’s Rural Partnership Board The Office of Rural Development Utah Governor’s Office of Economic Development business.utah.gov/rural
Contents LetterfromSteveStyler,GRPBCo-Chair 3 Governor’sRuralPartnershipBoard2019Membership 4 CurrentStateofJobsinRuralUtah 7 ImpactofJobsinRuralUtah 9 Governor’sRuralPartnershipBoardStrategicPlan 10 RuralEconomicDevelopment 10 RuralPlanning 11 RuralLeadership 12 StatementoftheGovernor’sRuralPartnershipBoard’sTop2020LegislativePriorities 13 Appendices 14 AppendixA:2019RuralEconomicDevelopmentUpdatesfromMembersoftheGovernor’sRural PartnershipBoard 15 Tourism:JoanHammer 15 Oil,Gas,andMining:RobertMiller 16 AssociationsofGovernment:RussCowley 16 UtahLeagueofCitiesandTowns:MayorEmilyNiehaus 16 RuralUtilities:JeffPeterson 17 At-Large:JasonYerka 17 At-Large:ShannonEllsworth 17 At-Large:MichaelMcCandless 17 At-Large:BrianRaymond 18 UtahAssociationofCounties:CommissionerKentWilson 18 Agriculture:TimMunns 18 DepartmentofWorkforceServices:ZacWhitwell 19 At-Large:SteveStyler 19 Contents 2019Governor’sRuralPartnershipBoardAnnualReport 1
SouthernUtahUniversity:StephenLisonbee 19 DivisionofIndianAffairs:ShirleeSilversmith 20 At-Large:MichaelMcKee 20 UtahStateUniversityExtensionServices:Dr.BrianHigginbotham 20 AppendixB:GRPBWorkPlanFY2019toFY2020 21 Goal 21 Focus 21 Challenge 21 Opportunity 21 ObjectivesforRealignment 21 WorkPlan 22 AppendixC:RuralGrant&TaxCreditPrograms 24 AppendixD:RecipientList 25 Contents 2019Governor’sRuralPartnershipBoardAnnualReport 2

Letter from Steve Styler, GRPB Co-Chair

LetterfromSteveStyler,Co-Chair

2019Governor’sRuralPartnershipBoardAnnualReport 3

Governor’s Rural Partnership Board 2019 Membership

Co-Chair,GovernorsDesignee

Lt.GovernorSpencerCox

VP USUExtensionServices

Executive Committee Member

BrianHigginbotham

Email:brian.h@usu.edu

At-Large,Community&BusinessDevelopment

Executive Committee Member

MichaelMcCandless

Email:mmccandless@epicengnet

Co-Chair,At-Large Executive Committee Member

SteveStyler

Email:steve@stylerdaniels.com

SUU,PresidentDesignee

Executive Committee Member

StephenLisonbee

Email:lisonbee@suuedu

DepartmentofWorkforceServices

ZacWhitwell

Email:zwhitwell@utah.gov

Governor’sRuralPartnershipBoard2019Membership 2019Governor’sRuralPartnershipBoardAnnualReport 4

UtahAssociationofCounties

CommissionerKentWilson

Email:kentw@emery.utah.gov

At-Large

JasonYerka

E

RuralUtilities

JeffPeterson

Email:jpeterson@utahcooperatives.org

SixCountyAssociationofGovernments

RussCowley

Email:rcowley@sixcounty.com

At-Large

BrianRaymond

Email:braymond@daggettcounty.org

At-LargeRuralMember

MichaelMcKee

Email:mmckee@7countyutahgov

Governor’sRuralPartnershipBoard2019Membership 2019Governor’sRuralPartnershipBoardAnnualReport 5

UtahLeagueofCities&Towns

MayorEmilyNiehaus

Email:mayor@moabcity.org

UtahDivisionofIndianAffairs

ShirleeSilversmith

Email:ssilversmith@utah.gov

AgricultureRepresentative

TimT Munns

Email:timtmunns@gmailcom

GOEDStaffforGRPB

LindaClarkGillmor

Director,OfficeofRuralDevelopment

Email:Lgillmor@utahgov

JoshuaWiggins

ProgramSupportSpecialist

Email:jcwiggins@utahgov

At-Large,SmallBusiness

ShannonEllsworth

Email:Shannon.e@gmail.com

Oil,Gas&Mining

RobertMiller

Email:Robertmillerrbm@gmailcom

Tourism

JoanHammer

Email:tourism@boxelderorg

Governor’sRuralPartnershipBoard2019Membership 2019Governor’sRuralPartnershipBoardAnnualReport 6

Current State of Jobs in Rural Utah

Mr Zac Whitwell prepared the following report for the September 4 Governor’s Rural Partnership Board meeting outlining the current state of Utah’s rural economy

In2017,duringhisStateofthe Stateaddress,GovernorHerbert introducedthe25kRuralJobs Initiativewiththegoaltocreate 25,000newjobsinruralUtah withintheensuing4years. What wearedefiningas“ruralUtah”is anycountythatisn’tDavis,Weber, Utah,andSaltLake.Thesefour countiesareourdefinitionof “metroUtah”.Basedonthis definitionthereare25rural counties.

Sincethe25kruraljobsinitiativewasimplemented,wehaveachieved79%ofourtotalgoal Giventhat WashingtonCountyisthelargestcountyeconomywithinthe25-countyruraldesignationonewould expectthattheywouldalsoaddthemostnewjobs However,itisimportanttonotethatsincethestartof the25kruraljobsinitiative24of 25countieshaveshownapositivejobgrowth

Whencomparingcurrent employmentnumberstothe pre-recessionhigh,thenthe majorityofUtahcounties havenotonlyrecovered,but exceed,thatpre-recession high

Threeoutofthetopfive countiesonthischartare consideredruralUtah: Wasatch,Washington,and Grand

CurrentStateofUtah’sRuralEconomy 2019Governor’sRuralPartnershipBoardAnnualReport 7

Notallcountieshaveyetrecoveredintermsofemploymentnumbersreturningbacktotheirpre-recession peak.Thesearethe7countieswhoseemploymentcountarestillbelowthepre-recessionpeak.

However,thispicture doesn’tnecessarilymean thattheyaren’tcurrently experiencinganygrowth, butthatthegrowth experiencedstillhasn’t broughtthembacktotheir pre-recessionpeak.For example,sixoftheseven countiesherehavehad positivejobgrowthoverthe mostrecent12-monthsdata, March2018toMarch2019

CurrentStateofUtah’sRuralEconomy 2019Governor’sRuralPartnershipBoardAnnualReport 8

Impact of Jobs in Rural Utah

Prepared by the Office of Rural Development, Utah Governor’s Office of Economic Development

ImpactofJobsGraphic

2019Governor’sRuralPartnershipBoardAnnualReport 9

Governor’s Rural Partnership Board Strategic Plan

As provided in Utah Code 63C-10-103, the Governor’s Rural Partnership Board is to serve as an advisory board to: (i) the governor on rural economic and planning issues; and (ii) the Governor’s Office of Economic Development on rural economic development issues; and prepare an annual strategic plan that: (i) identifies rural economic development, planning, and leadership training challenges, opportunities, priorities, and objectives; and (ii) includes a work plan for accomplishing the[se] objectives

The2019GRPBStrategicPlanprovidesprioritiesandrecommendationsforthefollowing:

1. RuralEconomicDevelopment, 2. RuralPlanning,and 3. RuralLeadership.

Rural Economic Development

Utahhasmadeasignificantinvestmentinthedevelopmentofbroadbandinfrastructurearoundthestate, includingruralUtah,whichopensupopportunitiesforonlinesales,aswellasonlineemployment In ordertoleveragethisnewformofconnectivityUtahStateUniversity’s(USU)CooperativeExtensionis leadingoutona3yearpilotprogramforremoteworkforcedevelopmentcalledtheRuralOnlineInitiative (ROI). SinceOctober2018,theROIhastrained653ruralcitizensin19ruralcounties. Ofthosetaking thetrainingtofindemployment,38nowhavejobs(21respondingtopostclasssurveysstatedthatthey arestilllookingforwork)usingtheavailablebroadbandinfrastructureandskillstheyhaveobtained throughtheROIprogram. ROIhasalsoissued50scholarshipsforgraduatestocontinueonlineskills training. Remotejobshavethepotentialtonotonlycreatenewruraljobs,butalsoallowunder-employed individualstoincreasetheirearningpotentialandseasonalworkersinagriculture,tourismoroutdoor recreationindustriestoaugmenttheiremploymentwithremotework.Asthetrendtowardremotework optionsgrows,USUExtensionisintheprocessofdevelopingatrainingprogramforbusinessexecutives andmanagerstolearnhowtoleadandworkbetterwithremoteemployees Forthisreason,GRPBwill continuemonitoringnumbersofindividualstrainedandemployed,andmaymakea recommendationinthefutureforthelegislaturetocontinuefundingthisprogram.

Anumberofcountyorregionalbusinesssummitsareheldaroundthestateeachyeartoeducateand developthelocalbusinesssector,includingtheiconicSouthernUtahUniversity’s(SUU)“UtahRural Summit” The2019UtahRuralSummitthemeis“InnovationThroughEntrepreneurialismand Partnership”,anditsagendademonstratesSUU’scommitmenttoruraleconomicdevelopmentthrough partnershipswiththeCedarCityChamber,SUU’sBusinessDepartment,theGovernor’sOfficeof EconomicDevelopmentandothers TheSummitwillincludea“pitchfest”competitionforthebest businessidea,andspeakerscoveringcity/countyplanning,youthleadershipandinnovation SUU businessstudentswillbeattendingtheRuralSummitastheypreparetobethenextgenerationofrural businessownersandinnovatorsinsouthwestUtah GRPBispleasedthatSUUismakingtheprivate sectorafocusoftheUtahRuralSummit.

Governor’sRuralPartnershipBoardStrategicPlan 2019Governor’sRuralPartnershipBoardAnnualReport 10

Whileruralcommunitieshavemanyattributesthatcouldattractnewbusinessesandindustriessuchas lowercostofland,ahardworkinglaborforce,availablewaterandcleanairshedsetc.,theyareoften overlookedduetotheadditionalcostofcapitalinvestmentandinfrastructureneededtorelocateorexpand inruralUtah. TheGRPBrecognizesanurgentstatewideneedtoequalizepopulationgrowthandjob opportunitiesacrossthestate.ForthisreasontheGRPBrecommendsthecreationofanew post-performance“RuralEconomicDevelopmentTaxIncrementFinance”(REDTIF)incentive,an expansionoftheexistingHighCostInfrastructureTaxCredit(HCITC),orapolicymodificationof theexistingEDTIFprogramwhichwouldincludeincentivesandemploymentlevelrequirements thataremoreaccessiblefortheexpansionofexistingruralbusinessesorrelocationofbusinessesto ruralareasofthestate. TheGRPBfurtherrecommendsthataRuralAdvisoryCommitteemade upofGRPBmembers,andruralGOEDboardmembersbecreatedtoparticipateinthereviewof ruraltaxincentiveapplications.

Tourismandoutdoorrecreationareasignificantpartofmanyruraleconomies,butsuccessinthese industrieshasalsobroughtchallengessuchaslackofaffordablehousing,overcrowdingofNational Parks,andstressonexistinginfrastructureincludingroads,emergencyresponsecapacity,healthcareetc MoabCity’sMainStreetisanexampleofacitywhichisactivelyworkingwithUDOTtoresolve congestioncausedbybothtouristsandsemi-trailersonMainStreetbutisunabletoaccessTRTtaxesto helpresolvethis Numerousruralcommunitiesareunabletoprovideadequateaffordablehousingforthe numberoftourismemployeesduringaportionoftheyear Thisseasonalhousingissuehasadomino effectonotherfulltimeresidenthousingavailability.TheGRPBrecommendsthatanadditional percentageofTransientRoomTax(TRT)fundsbemadeavailabletocountiesofthe3rdto6th classaswellasflexibilityinspendingforneededinfrastructuretoaddressthedemandscreatedby robusttourismvisitation.

Rural Planning

TheGRPBcommendstheruralcountiesfortheirexcellentresponsetoGovernorHerbert’schallenge announcedduringthe2017“UtahRuralSummit”heldinCedarCitytodevelopaStrategicEconomic DevelopmentPlan Manyofthecountiesusedthestrategicplanningprocesstoexpandpartnershipswith citiesandtowns,K-12andhighereducation,businessandgovernment. Challengessuchaslackof affordablehousing,workforcedevelopmentandeconomicdiversificationwereidentifiedwithinthe Plans,aswereeachcounty’suniqueopportunitiesforgrowth. Statedepartmentseagerlyrespondedto numerousrequestsforsupportfromcountiesforspecificelementsidentifiedintheirStrategicPlans. The GRPBrecognizeshoweverthatmanyoftheopportunitiesidentifiedintheruralStrategicPlanswillnot berealizedwithoutsignificantfinancialsupport.Forthisreason,theGRPBrecommendsthatthe legislaturecreateorexpandanexistingbusinessexpansionandretentiongrantprogramforrural communitiestodirectlypromotethegrowthofexistingsmallbusiness,economicdiversification,job creation,andthedevelopmentofstrategicplansorimplementationofeconomicdevelopmentgoals identifiedincurrentstrategiceconomicdevelopmentplans.

TheGRPBfurtherrecommendsthattheOfficeofRuralDevelopmentincollaborationwithother state,federalandprivatesectorpartnerscontinuestocreateawarenessofthemanyavailable

Governor’sRuralPartnershipBoardStrategicPlan 2019Governor’sRuralPartnershipBoardAnnualReport 11

businessresourcesavailabletoruralbusinesses,andsupportthecontinueddevelopmentand implementationofruralStrategicEconomicDevelopmentPlans.

Rural Leadership

TheGRPBcommendstheDepartmentofWorkforceServicesandtheruralcountieswhoareparticipating intheInter-GenerationalPoverty(IGP)programfortheimpactthathasbeenmadeonthedevelopmentof ruralleadershipascommunitymembershavegatheredtofindlong-termsolutionstopovertywithintheir respectivecommunities.

TheGRPBcommendstheUtahAssociationofCountiesfortheirongoingtrainingofnewlyelected officials,andtheirrecentadditionofaneconomicdevelopmenttrackduringtheirannualmeetings

GRPBalsorecognizeseffortsbeingmadebystateuniversitiesandcollegestoincreaseruralleadership capacity,suchasUSU’sleadershipskillstrainingmodulesandthedevelopmentofSUU’sleadership academywhichwillsupportbothprogrammaticandleadershipskillsenhancement UtahValley Universityhasalsodevelopedaseriesofeconomicdevelopmentclassesthathavebeentakenbya numberofruraleconomicdevelopmentprofessionals

Asthe17memberGRPBismadeupofadiverserepresentationofindustry,education,andrural communityleadership,theyareuniquelysituatedtobeaconvenerofruralperspectives,anadvocatefor ruralcommunities,aswellasatraininggroundforfutureruralleadership ForthisreasontheGRPB ExecutiveCommitteeiscommittedtoincreasinglyencourageinputandengagementfromallboard membersinrelationtotheindustryororganizationtheyrepresentontheGRPB.

Asweprepareforthefutureofourchildrenandgrandchildren,weneedtoencourageyoungermembers ofourruralcommunitiestorunforoffice,serveonlocalandstatewideboardsandcommittees,andmake volunteeringintheirlocalcommunitiesapriority Anexampleofyouthleadershipcanbeseenonthe DeltaCityCouncil,as3ofits5membersareunder40 Forthisreason,theGRPBrecommendsthat theGovernorandhisstaffconsiderqualifiedapplicationsfromcandidatesofallageswhenmaking appointmentstostateboardsandcommittees.

TheGRPBfurtherrecommendsthattheGOEDandtheGRPBidentifyrural“nextgeneration” leadersandhighlighttheiraccomplishmentsandserviceatGRPBmeetings,theUtahRural Summit,theGOEDRuralDayontheHill,andtheORDquarterlynewsletteretc.

AdditionalDocumentation:

For2019RuralEconomicDevelopmentUpdatesfromMembersoftheGRPB,seeAppendixA For2019GRPBWorkPlan,seeAppendixB ForListofRuralGrant&TaxCreditPrograms,seeAppendixC ForReportRecipientList,seeAppendixD

Governor’sRuralPartnershipBoardStrategicPlan 2019Governor’sRuralPartnershipBoardAnnualReport 12

Statement of the Governor’s Rural Partnership Board’s Top 2020 Legislative Priorities

1) TheGRPBrecommendsthecreationofanewpost-performance“RuralEconomicDevelopmentTax IncrementFinance”(REDTIF)incentive,anexpansionoftheexistingHighCostInfrastructureTax Credit(HCITC),orapolicymodificationoftheexistingEDTIFprogramtoincludetieredincentives andemploymentlevelrequirementsthataremoreaccessiblefortheexpansionofexistingrural businessesorrelocationofbusinessestoruralareasofthestate. TheGRPBfurtherrecommendsthat aRuralAdvisoryCommitteemadeupofGRPBmembers,andruralGOEDboardmembersbe createdtoparticipateinthereviewofruraltaxincentiveapplications.

2) TheGRPBrecommendsthatthelegislaturecreateorexpandanexistingbusinessexpansionand retentiongrantprogramforruralcommunitiestodirectlypromotethegrowthofexistingsmall business,economicdiversification,jobcreation,andthedevelopmentofstrategicplansor implementationofeconomicdevelopmentgoalsidentifiedincurrentstrategicplans.

3) TheGRPBrecommendsthatanadditionalpercentageofTransientRoomTax(TRT)fundsbemade availabletocountiesofthe3rdto6thclassaswellasflexibilityinspendingforneededinfrastructure toaddressthedemandscreatedbyrobusttourismvisitation.

StatementsofGRPBPriorities 2019Governor’sRuralPartnershipBoardAnnualReport 13

Appendices

Appendices 2019Governor’sRuralPartnershipBoardAnnualReport 14

Appendix A: 2019 Rural Economic Development Updates from Members of the Governor’s Rural Partnership Board

At the Governor’s Rural Partnership Board Meeting on February 22, 2019, the Board leadership requested input from all Board members for strategic proposals to advance toward potential legislation Board members submitted proposals outlining current challenges, opportunities, and requests for state support from the industry or position they represent on the board Below are summaries of the proposals submitted April 16, 2019

Tourism: Joan Hammer

● Tourism,avitalaspectofthestate’seconomy,facesabroadarrayofchallenges

● Challenges

○ Tourismisnotoftenrecognizedaseconomicdevelopment.

○ Thereareissuescollectingandremittingalltourism-orientedtaxescurrentlyowedtothe correctjurisdiction.

○ Boththepublicandprivatetourismsectorsneedfunding.

○ Qualityexperiencesforvisitorscanbedifficulttocraftduetounderdeveloped infrastructureandlackoffunding.

○ Employeeslackadequatehousing.

○ Theemploymentfortourismisseasonalandlowwage.

○ Tourismisalmostcompletelydependentonfederallands.

● Requests

○ Organizeamethodtoprovidetechnicalassistancetocountiesandcommunitieswith specifictourismprojectswithouttheexpertisetocompletethem

○ Enforcecomplianceforalltaxesrelatedtothetourismindustry:TRT,TRCC,Resort Communities,statewideTRT,etc Collectandremitalltaxescurrentlyowedtothe correctjurisdiction(possiblyincludedaspartoftaxreform) Increasethenumberof auditsconductedbytheStateTaxCommission

○ Identifythedistinctionbetweenadvertisingandmarketing,whichvariesbythetourism office.AformaldefinitionprovidedbytheUtahAttorneyGeneral’sOfficewouldbe helpful.

Appendices 2019Governor’sRuralPartnershipBoardAnnualReport 15

Oil, Gas, and Mining: Robert Miller

● Theoil,gas,andminingindustries,whicharevitalpartsofruralUtah’seconomy,facesignificant challenges.

● Challenges

○ Widelyfluctuatingpricesdetrimentallyaffecttheoil,gas,andminingindustries.

○ Politicalandenvironmentalfactorsimposeincreasinglystringentrestrictionsonthe industry,hamperingnewdevelopments

○ Astheoldergenerationisbeginningtoretire,theindustryisfindingthattheyounger generationisnotreadytotakeover

Associations of Government: Russ Cowley

● TheAssociationsofGovernmentneedhelpcommunicatingtheirvalue

● Challenges

○ Biggestchallengeisoutreach;theAssociationsofGovernment(AOGs)needtobetter communicatetheirsuccessesandchallenges

○ RuralUtahhasincreasinglyagingpopulationsbecausetheyoungergenerationsare movingtourbanareas

○ Thelargepercentageofgovernment-ownedlandprovesachallenge

○ Thereisnostatefundingtoeaseintergenerationalpovertyandhomelessnessinrural areas.

● Opportunities

○ TheAOGsareworkingonacomprehensiveeconomicdevelopmentstrategy.

● Requests

○ Assistanceineducatinglegislatorsandprogramadministratorsaboutthefunctionand purposeofAOGstoimprovefunding.

Utah League of Cities and Towns: Mayor Emily Niehaus

● AttherootofissuesfacingruralUtahisalackofhousing.

● Challenges

○ ThemainchallengesfacingcitiesinruralUtahareashortageofhousing,limited housing,limitedaccesstobroadband,alackofpublictransportationtourbancenters, intergenerationalpoverty,alossofhumancapital,andcompetitionforfundingwiththe WasatchFront.

● Opportunities

○ Housingisthefirststeptoeconomicdevelopmentinruralcities

● Requests

○ Ruralcitiesneedstategovernmentfundingforhousingandeconomicdiversification efforts

Appendices 2019Governor’sRuralPartnershipBoardAnnualReport 16

Rural Utilities: Jeff Peterson

● Challenges

○ Wildfiresfrequentlythreatenruralutilities.

○ Powermarketsarechanging,andthepublicisuneducatedastohowrenewablesworkon apowergrid,whyregulatedmarketsarebetterforthepublic,andwhattheincreasing complexitiesofthepowermarketare.

○ Transitioningtomorerenewableenergysourcesposesuniquechallenges,likean increasedneedinbatterystorage,increasedstressontraditionalresources,andaccurate forecastingofdemand

● Requests

○ Increasedcoordinationwithstate,area,andlocalfirepreventiongroupstoprevent wildfiresormitigatetheirdamage

At-Large: Jason Yerka

● Smallbusinessesneedaccesstonon-loancapitalandonlinetrainingprograms

● Challenges

○ Small,ruralbusinessesneedaccesstohigh-quality,onlineeducationaltrainingprograms

○ Smallbusinesseshavetroubleaccessingnon-loancapital,suchasgrantsandequity investments

● Requests

○ Assistancewithbothin-personandonlineconsultingandtrainingopportunities,aswell asincreasedaccesstograntfundingforsmallbusinesses.

○ TheUtahSBDChasbeenworkingtocreateanonlineEntrepreneurAcademythatwill provideonlinetrainingacrossallaspectsofbusiness.Withongoingsupportfromthe legislature,theycancreateanextensivenetworkofonlineresourcesforsmallbusiness owners.

At-Large: Shannon Ellsworth

● Atwo-prongedapproachmayproveeffectiveintheBoard’sstrategyforinvigoratingtherural economyofUtah.

● Requests

○ TheGovernor’sRuralPartnershipBoardshouldfocusonpopulationcentersandignore countylines.

○ Ruralincentivesshouldbeoptimizedtoensurethebestuseofstatefunds

At-Large: Michael McCandless

● ‘De-risking’miningandrenewablefueldevelopmentsinruralUtahwillaccelerateeconomic developmentinruralUtah.

● Challenges

Appendices

2019Governor’sRuralPartnershipBoardAnnualReport 17

○ Thepermittingprocessconstantlychanges,dampeningbusinessinitiative.

○ Substantialpressuresfromfederalpoliciesonpubliclanduseincreasesrisktobusinesses.

● Requests

○ Develophighschoolprogramsintradesandtechnicalskills.

○ Providelong-termassurancestobusinessesthatregulationswillnotchangeovernight.

○ CreatearevolvingloanguaranteefundtoleadtomoreinvestmentinruralUtah.

At-Large: Brian Raymond

● Challenges

○ ThesizeofthepopulationsinruralUtahistoosmallinrelationtothecostof infrastructure.

○ Therearetoofewyear-round,full-timejobsavailable

○ Therearetoofewadequate,affordablehousingoptions

○ ThereistoolittlefundingtoimprovetheeconomicdevelopmentsituationinruralUtah

○ ServicesandproductsarenotreadilyavailableformanyinruralUtah

● Requests

○ Createormovestateprofessionaljobstoruralcounties Continuetosupportruralonline employment

○ Matchgrantsforadditionaleconomicdevelopmentatcountyandcitylevels

○ Legislatearevolvingloanfundfornewbusinessesandaffordablehousing.

Utah Association of Counties: Commissioner Kent Wilson

● Localleadershipshouldbeheavilyinvolvedineconomicdevelopment Stategovernmentcan contributefundingforlocalinitiatives

● Challenges

○ EmeryCounty’spopulationhasdropped,mostlikelyduetopolicy(i.e.the‘waron coal’).

○ Infrastructurechangesarenecessarytoovercomecurrentchallenges.Changestakemuch moremoneythancountiescangeneratealone.

● Opportunities

○ Bottom-upleadershipwillbekeytoeconomicdevelopment.

● Requests

○ AllowruralUtahtobepartofthesolutionandtotakeresponsibilityforlocaleconomic development

Agriculture: Tim Munns

● Agriculturefacessignificantchallengesonmultiplefronts:labor,government-ownedland,water, trade,andlegalissues.

● Challenges

○ Agriculturalproducersstruggletofindanaffordableandreliableworkforce

Appendices 2019Governor’sRuralPartnershipBoardAnnualReport 18

○ Utah’sgrowthandeconomicsuccessputspressureonconvertingagriculturallandinto residentialorcommerciallandduetothehighpercentageofgovernment-ownedland.

○ Thelimitednatureofwatercreatesfrictionbetweenagriculturalproducersandlarge cities.

○ Largepricefluctuationsandglobalpoliticsnegativelyaffectfarmers.

○ Newlegalissuesthreatencurrentfarmingpracticesandpropertyrights,suchas controllingwhatcomesoffoffarms(suchaswater,pesticides,manure,ordust)

● Requests

○ ProvideastatementonpubliclandstoclarifytheBoard’sposition

Department of Workforce Services: Zac Whitwell

● RemoteworkcouldmitigateworkforcetrendsseenalongtheWasatchFrontandinruralUtah

● Challenges

○ TheWasatchFronthasmorejobsavailablethanthecurrentworkforcecanfill;ruralUtah hastheoppositechallenge

● Opportunities

○ CompaniescouldidentifyandmigratepositionsthatcouldbemovedfromtheWasatch FronttoruralUtah

● Requests

○ RuralUtahrequiresinfrastructuresupport(i.e.fibernetworkaccess)forrural,remote worktobefeasible.

At-Large: Steve Styler

● BecausetheStateofUtahhasseensuccesswiththeEconomicDevelopmentTaxIncrement Financing(EDTIF)alongtheWasatchFront,aruralversionoftheprogramcouldinvigorate otherpartsofUtah.

● Challenges

○ Thenumberofruralprogramscanbechallengingforconstituents;amoreconcentrated approachmaybemoreeffective.

● Requests

○ CreatearuralversionoftheEDTIF;dropthe$10millionrequirementto$500,000in third,fourth,fifth,andsixthclasscounties.Thisversionwouldnotalterthecurrent EDTIFincentive.

Southern Utah University: Stephen Lisonbee

● Inordertohelptheeconomyinruralareasofthestate,SouthernUtahUniversityisfocusingon gettingstudentsgraduatedfaster,withlessdebt,andintocareers.

● Opportunities

○ Highereducationinstitutionsshouldbeviewedaspartners,notascompetitors,with industry OneofthewaysthiscanhappenisthroughtheGRPB Theboardiscomprised

Appendices 2019Governor’sRuralPartnershipBoardAnnualReport 19

ofmembersfromavarietyoffieldsandbackgrounds,andcollectivelytheboardhasthe resourcestoeffectivelyaideachindustryorarea.

Division

of Indian Affairs: Shirlee Silversmith

● TribeswithinUtahoftenfacethemostextremeproblemsofruralUtah.

● Challenges

○ Tribesarelocatedinremote,ruralareasofthestatewheretheinternetisnotavailable. Unemploymentishighbecausejobsaren’tavailable.Infrastructureproblems,suchas needingroadrepairs,causestransportationissues.Accesstocleanandsafedrinking waterisaconcernformanyofthetribes.

● Opportunities

○ Jobtrainingprograms,skillbuilding,education,andscholarshipsarekeytomovingtribe membersoutofpoverty

● Requests

○ Countygovernmentsandreservationsneedtocollaboratetosolvetheissuesfacing NativeAmericantribes

At-Large: Michael McKee

● TwoupcomingopportunitiescouldbekeyforEmeryCounty’sfutureeconomicdevelopment

● Opportunities

○ Aresearchfacilityformedicalisotoperesearchreceiveda$1millionappropriationfrom theState Thefacilityisexpectedtocreatethousandsofjobs Additionally,the constructionofrailroadsinthecountyisinthefundingandplanningstage;thisnewline wouldallowmovingoilandgasfromUtahtotheGulfCoast

Utah State University Extension Services: Dr Brian Higginbotham

● Economicdevelopmentinitiativesneedtotakethetrendofautomationintoaccounttopreserve futuregrowth

● Challenges

○ AutomationinruralUtahisbecomingconcerning Drivingcarsforaliving,forexample, coulddisappearwithintenyearsduetodisplacementfromautomatedcarsandtrucks.

● Opportunities

○ Highereducationinstitutionscouldretooltheindividualtoallowemployeestostillbethe expertsintheirindustry.

2019Governor’sRuralPartnershipBoardAnnualReport 20
Appendices

Appendix B: GRPB Work Plan FY2019 to FY2020

Goal

Determinewhichruralprogramscanbestcreatestrongerruraleconomies.

Focus

GRPBwillreviewGOED’sexistingruralprogramsandmakerecommendationsforoptimizationor replacement.

Challenge

TheOfficeofRuralDevelopment(ORD)undertheGovernor’sOfficeofEconomicDevelopment (GOED)administerstenruralprogramsforruralbusinesses,communities,andworkforce.Eachprogram hasdifferenteligibilityrequirements,andtheyvaryineffectivenesstoencouragecapitalinvestment, createjobsandrecruitcompaniestoruralUtah.Thenumberandcomplexityoftheseprogramsis confusingtopotentialapplicantseventhoughORDhascreatedaRuralProgramGuide,videotutorials andinformationdocumentsforeachprogram. TheGOED’sEconomicDevelopmentIncrement Financing(EDTIF)taxcredithasexperiencedenormoussuccessalongtheurbanWasatchFront,butis notanaccessibletoolformostcompanieswantingtoexpandorlocateinruralUtah.

Opportunity

GOEDinitiatedareviewprocessofallruralgrantsandtaxcreditprogramsin2018. Economic developmentdirectorsfromeachcounty,alongwithrurallegislators,GOEDleadership,ruralGOED BoardmembersandallGRPBmemberswereinvitedtoparticipateinthereviewprocess.

InadditiontothisinitialGOEDreview,the2019LegislaturechargedGOEDwiththetaskofreviewing allstateincentives,andtoworkincollaborationwithotherstatepartnerstodevelopastatewideStrategic EconomicPlan. SenateBill172specificallycallsattentiontotheneedforevaluationofruralincentives andruraleconomicdevelopmentplanning.TheGRPBseesthisasauniqueopportunitytoworkwith GOEDandotherstakeholderstodeterminethebesttoolsforelevatingruralbusinesses,communitiesand economies

Objectives for Realignment

GRPBwillconsiderthefollowingareasofneedforruralUtahwhencreatingprioritiesforrealignmentof ruralsupportprograms:

1. BusinessandIndustry:

a. accesstobusinesstrainingandsupport

b. accesstocapitalforinvestment

Appendices 2019Governor’sRuralPartnershipBoardAnnualReport 21

c. accesstocapitalforruralhousing

d. creationofnewhighpayingruralfull-timepositions

2. CommunityInfrastructure:

a. adequateroads,

b. broadband,and

c. utilities(gas,power,waterandsewer)

3 Workforce:

a alignmentofeducationtoexistingandnewrural jobopportunities

b supportforremoteworktrainingandjobopportunities

Work Plan

1 ExtensiveReviewofGOED’sRuralPrograms

a GRPBparticipationinthe“RuralLegislativeRetreat” inRichfield,October11,2018 Boardmembersjoinedrurallegislatorsandeconomicdevelopmentprofessionsin regionalbreakoutsessionswhichreviewedexistingGOEDruralprograms KemGardner PolicyInstitutestaffandSnowCollegeprofessorsactedasmoderators

b GRPBparticipationinGOED’s“RuralAdvisoryCommittee”whichispartofthe responsetoSB172’sdirectivetocreateastrategicstatewideeconomicdevelopmentplan, reviewallcurrentstateincentivesandmakerecommendationstothelegislature Results fromtheCommitteebecomepartofthestatewideStrategicPlanwhichwillbepresented totheEconomicDevelopmentandWorkforceServicesInterimCommitteeby October1, 2019

i. GRPBco-chairactingastheco-chairoftheRuralAdvisoryCommittee.

ii. GRPBparticipationinthedevelopmentofpotential“RuralEDTIF”language

c. PreparationoftheFY2019-FY2020GRPBStrategicPlan

i. GRPBmemberpreparationandpresentationsof“whitepapers”atthe2019 springGRPBmeetingaddressingchallengesandopportunitiesfortheindustryor organizationtheyrepresentontheboard.NOTE:GRPBexecutivecommittee stronglyencouragesGRPBmemberstoinvolveprivatesectorbusinessesinthe preparationoftheirrespectivewhitepapers

ii DeterminewhichGRPBprioritiespresentedarereadyforlegislativeaction

iii DraftStrategicPlanbasedonGRPBpriorities

iv Interview GRPBExecutiveCommitteemembers

v ProvidedraftStrategicPlantoallGRPBmembersfortheirreviewandcomment

vi ScheduleadatetopresentattheEconomicDevelopmentandWorkforceServices InterimCommitteemeeting(beforeOctober1,2019)

2. Advocacyforrealignmentofruralsupportprograms

a. DevelopmentofGRPBStrategicPlanincludingprioritiesandrecommendationsforrural incentives.

Appendices 2019Governor’sRuralPartnershipBoardAnnualReport 22

b. PresentationoftheGRPBStrategicPlaninanannualreporttotheGovernor,Legislature, EconomicDevelopment&WorkforceServicesInterimCommitteeandtheGovernor’s OfficeofEconomicDevelopmentbyOctober1,2019

c. IncludeGRPBStrategicPlanprioritiesasanagendaitematwinterGRPBmeeting (during2020legislativesession)

d. Makethe2019GRPBStrategicPlanavailabletoruralconstituentsvia: i newsletters ii newspaperarticles iii ruralwebinars

Appendices 2019Governor’sRuralPartnershipBoardAnnualReport 23

Appendix C: Rural Grant & Tax Credit Programs

Programs which support growth in rural communities and businesses

TheOfficeofRuralDevelopment(ORD)attheGovernor’sOfficeofEconomicDevelopment(GOED) administersthefollowing10communityandbusinessdevelopmentgrantsandtaxcredits TheGRPB boardhasastatutoryresponsibilitytoreviewapplicationsfortheORDprogramslistedinbold,andmake recommendationstotheORDforprogramawards

1. BusinessExpansionandRetention(BEAR)

2 EnterpriseZoneTaxCredit(EZ)

3. EnterpriseZoneNonprofit(EZNP)

4 RecyclingMarketDevelopmentZoneTaxCredit(RZ)

5. RuralCoworkingandInnovationCenter(RCIC)

6. RuralEconomicDevelopmentIncentive(REDI)

7. RuralFastTrack(RFT)

8. RuralRapidManufacturing(RRM)

9. TargetedBusinessTaxCredit(TBTC)

10. UtahRuralJobsAct

Note:A2019reportonallruralprograms,includingthosethattheGRPBboardreviews,canbefound (November2019)athttps://business.utah.gov/business-resources/publications/

Appendices 2019Governor’sRuralPartnershipBoardAnnualReport 24

Appendix D: Recipient List

Thisreport,inaccordancewithUtahCode§63C-10-103(2019)andUtahCode§68-3-14(2019),is submittedtothefollowingindividuals:

GovernorGaryHerbert

Governor’sOfficeofEconomicDevelopment

EconomicDevelopmentandWorkforce ServicesInterimCommittee

SenatorDanielMcCay(R),Chair

RepresentativeMikeWinder(R),Chair

SenatorJacobL Anderegg(R)

SenatorDerekL Kitchen(D)

SenatorAnnMillner(R)

SenatorJerryW Stevenson(R)

RepresentativePatriceM Arent(D)

RepresentativeJamesA Dunnigan(R)

RepresentativeFrancisD Gibson(R)

RepresentativeStephenG Handy(R)

RepresentativeSuzanneHarrison(D)

RepresentativeA.CoryMaloy(R)

RepresentativeCarolSpackmanMoss(D)

RepresentativeDerrinR.Owens(R)

RepresentativeSusanPulsipher(R)

RepresentativeMarcK.Roberts(R)

JulieHumberstone,PolicyAnalyst

PeterAsplund,AssociateGeneralCounsel

LeilaReynolds,AdministrativeAssistant

MembersoftheUtahStateLegislature

Utah House of Representatives

RepresentativeJoelFerry(R)

RepresentativeJeffersonMoss(R)

RepresentativeDanN Johnson(R)

RepresentativeCaseySnider(R)

RepresentativeA.CoryMaloy(R)

RepresentativeKyleR.Andersen(R)

RepresentativeSteveWaldrip(R)

RepresentativeCalvinR.Musselman(R)

Appendices

RepresentativeLawannaShurtliff(D)

RepresentativeKellyB.Miles(R)

RepresentativeMikeSchultz(R)

RepresentativePaulRay(R)

RepresentativeKarianneLisonbee(R) RepresentativeBradR.Wilson(R) RepresentativeStewartE.Barlow(R) RepresentativeTimothyD.Hawkes(R) RepresentativeRaymondP Ward(R) RepresentativeMelissaG Ballard(R) RepresentativeDouglasV Sagers(R) RepresentativeSusanDuckworth(D) RepresentativeSandraHollins(D) RepresentativeJenniferDailey-Provost(D) RepresentativeJoelK Briscoe(D) RepresentativeAngelaRomero(D) RepresentativeBradyBrammer(R) RepresentativeBrianS.King(D) RepresentativeLeeB.Perry(R) RepresentativeMikeWinder(R) RepresentativeElizabethWeight(D) RepresentativeSuzanneHarrison(D) RepresentativeCraigHall(R) RepresentativeKarenKwan(D) RepresentativeMarkA.Wheatley(D) RepresentativePatriceM Arent(D) RepresentativeCarolSpackmanMoss(D) RepresentativeEricK Hutchings(R) RepresentativeJamesA Dunnigan(R) RepresentativeStephaniePitcher(D) RepresentativeMarkA Strong(R) RepresentativeKimF Coleman(R) RepresentativeCherylK Acton(R) RepresentativeAndrewStoddard(D) RepresentativeSteveEliason(R) RepresentativeMarieH.Poulson(D) RepresentativeKevenJ.Stratton(R)

2019Governor’sRuralPartnershipBoardAnnualReport 25

RepresentativeRobertM.Spendlove(R)

RepresentativeSusanPulsipher(R)

RepresentativeJeffreyD.Stenquist(R)

RepresentativeJohnKnotwell(R)

RepresentativeLoganWilde(R)

RepresentativeTimQuinn(R)

RepresentativeScottH Chew(R)

RepresentativeKayJ Christofferson(R)

RepresentativeJonHawkins(R)

RepresentativeDerrinR Owens(R)

RepresentativeValL Peterson(R)

RepresentativeBradM Daw(R)

RepresentativeMarshaJudkins(R)

RepresentativeTravisM Seegmiller(R)

RepresentativeAdamRobertson(R)

RepresentativeNormanK.Thurston(R)

RepresentativeFrancisD.Gibson(R)

RepresentativeMichaelK.McKell(R)

RepresentativeMarcK.Roberts(R)

RepresentativeMerrillF.Nelson(R)

RepresentativeChristineF.Watkins(R)

RepresentativeCarlR.Albrecht(R)

RepresentativeBradleyG.Last(R)

RepresentativeRexP Shipp(R)

RepresentativePhilLyman(R)

RepresentativeV LowrySnow(R)

RepresentativeWaltBrooks(R)

Utah Senate

SenatorLuzEscamilla(D)

SenatorDerekL Kitchen(D)

SenatorGeneDavis(D)

SenatorJaniIwamoto(D)

SenatorKarenMayne(D)

SenatorWayneA.Harper(R)

SenatorDeidreM.Henderson(R)

SenatorKathleenRiebe(D)

SenatorKirkA.Cullimore(R)

SenatorLincolnFillmore(R)

SenatorDanielMcCay(R)

SenatorDanielW Thatcher(R)

SenatorJacobL Anderegg(R)

SenatorDanielHemmert(R)

SenatorKeithGrover(R)

SenatorCurtisS.Bramble(R)

SenatorScottD.Sandall(R)

SenatorAnnMillner(R)

SenatorAllenM.Christensen(R)

SenatorDavidG Buxton(R)

SenatorJerryW Stevenson(R)

SenatorJ StuartAdams(R)

SenatorToddWeiler(R)

SenatorRalphOkerlund(R)

SenatorLyleW Hillyard(R)

SenatorRonaldWinterton(R)

SenatorDavidP Hinkins(R)

SenatorEvanJ.Vickers(R)

SenatorDonL.Ipson(R)

Appendices 2019Governor’sRuralPartnershipBoardAnnualReport 26

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