Business Utah - 2004

10 REASONS TO BUILD YOUR BUSINESS IN UTAH

REGIONAL PROFILES

2004

BUSINESSUTAH D

S IN THE BEE S E HI V IN S E BU ST G AT IN O E

OFFICIAL PUBLICATION OF UTAH’S DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT

DCED WELCOME LETTER

Welcome to Utah! Nicknamed the Beehive State for the strong work ethic and industriousness of our people, Utah boasts a unique quality of life and dynamic business environment that makes our state a great place to live and do business.

Business Utah 2 004, published through a partnership between the Utah Department of Community and Economic Development and Utah Business magazine, highlights Utah’s compelling opportunities for individuals and businesses in the state. Business Utah introduces the people, companies, industries, regions, technologies and infrastructure that make Utah a place of extraordinary opportunity.

This edition also marks the first time the Utah Facts Book will be published inside the covers of the annual Business Utah publication. The Utah Facts Book answers many of the most common questions businesses ask when considering expanding or relocating to Utah. It is our pleasure to present both of these publications to you.

More than 2.3 million people currently call Utah home, and the state’s workforce is growing at twice the national average. It is our goal to create quality jobs for our growing workforce along with quality people for companies in the state. We invite you to explore the many opportunities our state has to offer. We’re confident you will find Utah a great place to live and work.

DAVID G. HARMER EXECUTIVE DIRECTOR, UTAH’S DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT

DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT 324 S. STATE ST., SUITE 500

4 BUSINESSUTAH2004

JEFFREY L. GOCHNOUR

SALT LAKE CITY, UTAH 84111

DIRECTOR,

801-538-8700; 801-538-8888 FAX

UTAH’S DIVISION OF BUSINESS AND ECONOMIC DEVELOPMENT

www.dced.utah.gov

CONTENTS

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UTAH’S NEW STANDARD BEARERS We highlight a new generation of vital technologies, entrepreneurs and companies in the Beehive State. These companies are a few examples of how the legacy of innovation is alive and flourishing in Utah.

17 TOP REASONS TO BUILD A BUSINESS IN UTAH 18

1. WILD BEAUTY Utah’s 41 state parks, six national forests, seven national monuments, five national parks, 13 ski areas and hundreds of lakes and streams lure executives worldwide to locate their companies in the state.

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2. HARDY ECONOMIC ECOSYSTEMS Businesses in given industries are clustering in Utah because of the state’s strong technological support system that allows them to flourish.

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3. TECHNOLOGY TRANSFER Utah’s institutions of higher learning are bringing to market exciting products and technologies with money from the Centers of Excellence Program.

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4. A ROBUST WORKFORCE Utah’s naturally growing workforce is characterized by a strong work ethic, technological expertise, good health and adaptability to new ideas. Utah’s people work hard and play hard, and their energy is paying off.

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5. FINE ARTS, CULTURE AND CUISINE Film, opera, modern art, haute cuisine and sporting opportunities dot the Utah landscape, creating a unique and rewarding cultural environment.

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6. REAL ESTATE AND THE GOOD LIFE Envision Utah and other land-planning groups are enhancing the prospects of a commercial real estate market already considered one of the healthiest in the nation

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7. HAUTE FINANCE Innovative and unique financial services legislation adds sophistication to the state’s banking and finance world.

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8. TRANSPORTATION NETWORKS Utah hosts an array of transportation systems making life easier for travelers, commuters and business owners alike.

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9. GLOBAL CONNECTIONS “All the world’s a stage” when it comes to Utah business. The people in the state are not only service-oriented but also possess a variety of job skills, including technical knowledge, adaptability and an unusual proficiency in foreign languages, that lead Utahns to secure a place in the global market.

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10. UTAH SMART SITES Utah is encouraging and supporting companies doing business off the beaten path.

The effect is big commerce popping up in small places throughout the state.

BONNEVILLE SALT FLATS

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CONTINUED ON PAGE 10

DELICATE ARCH

2004

BUSINESSUTAH 53 REGIONAL FOCUS

54 WASATCH FRONT: Utah’s Economic Hub Utah’s economic powerhouse boasts a robust economy with a diversity of industries. The five counties in the region are working together better than ever before in an effort to create even more exciting prospects in the state’s hub.

56 MOUNTAINLAND: Business Life at the Summit The new west flirts with the old west as Utah’s mountainland region combines technological prowess with wideopen spaces.

58 SOUTHWESTERN: Business Under 300 Days of Sun Business in Utah’s Dixie is as diverse as the landscape itself, bringing with it stability and a sunny outlook for the future of the area’s economy.

62 BEAR RIVER: Land of Milk and Money Literally the “breadbasket of the state” with its broad barley fields, cattle ranches and world-renowned dairy and cheese manufacturing plants, Bear River welcomes the spice technology brings to the region’s mix.

66 UINTAH: The Isolated Empire The land of the dinosaur appears primed to keep its engine running by digging into the same oil and gas mining well that kept it afloat in 2003.

70 SOUTHEASTERN: Commerce in Technicolor Country Utah’s tourist mecca proves it’s worthy of commercial consideration as the redrock region breaks down barriers to business.

72 CENTRAL: Rich Natural Resources and Cosmic Rays Dotted with tiny towns, the Central region is poised to embrace the future without forsaking the past.

PUBLISHER’S NOTE Utah Business magazine is proud to again partner with Utah’s Department of Community and Economic Development (DCED) to publish Business Utah 2004, an official guide to economic development for the state.

This edition of Business Utah is designed to give you a better understanding of the forces shaping Utah’s business environment, and to share the compelling testimonials of successful companies that have found the state an economically viable and dynamic place to build a business.

Once you’ve read Business Utah 2004, I urge you to contact the DCED by visiting the web site www.dced.utah.gov for more information on the vast opportunities for growth and prosperity that Utah offers those considering a business expansion or relocation.

Martin W. Lewis Publisher Business Utah 2004 Utah Business Publisher Martin W. Lewis Editor Kimball Thomson Associate Editors Jenie Skoy Jaclyn Olsen Contributing Writers Heather Beers John Blodgett Lucy Burningham Casey Error Alan S. Horowitz Connie Myers Pam Ostermiller Brian Staker Brooks Stevenson Tim Westby Designer Ryan Mansfield Photo Editor Weston Wride Advertising Consultants Linda Strode Tracy Brown

Matt Connelley 74 RANKINGS UTAH’S BUSINESS LEADERS Accounting Firms Law Firms Banks Commercial Builders Top 50 Public Companies Top 50 Private Companies 78 RESOURCES ECONOMIC DEVELOPMENT AGENCIES BY COUNTY

Business Manager David Sampson Cover Image by GettyOne Published by Olympus Publishers G. Franklin Lewis, Chairman

1245 E. Brickyard Rd.,Ste 90 Salt Lake City, Utah 84106 Tel: (801) 568-0114 Fax: (801) 568-0812 www.utahbusiness.com © Copyright 2004 by Olympus Publishers. All rights reserved. Business Utah 2004 is published through a contractual agreement with Utah’s Department of Community and Economic Development (DCED). Every effort has been made to ensure the accuracy of the information herein. However, Olympus Publishers and the DCED are not responsible for any omissions or errors that might occur. Furthermore, advertising material is the responsibility of the individual advertisers and appearance in Business Utah 2004 does not necessarily reflect an endorsement of the product or service contained in the advertising by the publisher or DCED, nor are the publisher or the DCED responsible for the contents of individual advertisements. Reproduction in whole or part of any text, illustration or photography without the express written permission of the publisher is prohibited.

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Utah has a storied legacy of industry innovation. In 1927, Utahn Philo T. Farnsworth invented the electronic television. The computer graphics industry developed out of the pioneering work done at the University of Utah and Evans & Sutherland in the 1960s and 1970s. The state is also the birth place of word processing, computer networking and high-density removable data storage.

Modern word processing was created in Utah by the founders of WordPerfect in 1979. In the early 1980s, Novell, based in Provo, Utah, helped define the computer networking industry, while Roy, Utah-based Iomega revolutionized high-density removable data storage.

Now another group of new and established companies in the Beehive State continues to build on Utah’s legacy of innovation leadership. Following is a profile of several of the companies bringing ideas, products and business models into the marketplace.

UTAH

STANDARD BEARERS

THE BEEHIVE STATE’S ONGOING TRADITION OF INNOVATION LEADERSHIP

1-800 CONTACTS

BY ALAN S. HOROWITZ ILLUSTRATION BY COLIN JOHNSON

10 BUSINESSUTAH2004

On the surface, 1-800 CONTACTS seems to have a rather mundane business — selling contact lenses via the telephone and Internet. Even corporate spokesperson Kevin McCallum states, “We’re not innovative.”

On one level, he’s right. Selling a product via the telephone or Internet hardly is innovative. But the company has been enough of an innovator and a sufficiently strong leader to become the largest seller of contact lenses in the country. In this highly fragmented industry, no retail chain or medical clinic beats 1-800 CONTACTS as a purveyor of contact lenses, where it accounts for about six percent of the total market.

The company has also gone to bat for consumers, supporting the Fairness to Contact Lens Consumer Act, which became law February 4, 2004. The Act assures that

consumers can automatically get their prescriptions from their health care professional. Previously, opticians and optometrists in half the states were not required to release prescriptions, which essentially meant consumers had to buy lenses and glasses from these health care professionals.

1-800 CONTACTS has 600 employees in Utah, and due to some recent acquisitions in Singapore and England, is now also manufacturing contact lenses (though it doesn’t manufacture any in the U.S.).

The company is also noteworthy for its focus on its employees; it provides a subsidized cafeteria, free fitness center and stock options. “We’re a service company,” says McCallum. “If we take care of our employees, they’ll take care of our customers, and that will take care of our shareholders.”

BUSINESSUTAH2004 11

UTAH

STANDARD BEARERS ALTIRIS

Altiris had revenues of $100 million last year, an increase of 58 percent over the previous year, and is expected to do $150 million to $155 million this year. Not bad for a company that started in 1998, when it had revenues of $3 million. How does a company grow so fast — and get listed number eight on Network World’s list of the 200 fastest growing information technology companies?

It helps to be a pioneer of IT lifecycle management software. This technology allows IT organizations to easily manage desktops, notebooks, thin clients, handhelds, servers, and software including Windows, Linux and UNIX. Altiris automates and simplifies IT projects to reduce the cost and complexity of managing those assets.

PICTURED (L TO R): CERAMATEC 1-800-CONTACTS MERIT MEDICAL PATRICK BYRNE OF OVERSTOCK.COM

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Jan Newman, the founder of Altiris and vice president of corporate development, says one reason the company has been able to become a leader is its ability to partner with other companies. Altiris convinced Compaq to load its software onto Compaq computers sold to businesses, and when HewlettPackard bought Compaq, Altiris’ software was loaded onto HP machines as well. Then Dell decided to join, and now it also loads Altiris’ products onto its machines.

The way Altiris attracted such major partners was by having innovative technology.

According to Greg Butterfield, president and CEO, Altiris’ technology allows software to be deployed and configured on a PC in about 10 minutes, versus one to two hours by traditional means. As a result, companies can enjoy a time-savings of as much as six months.

Altiris also took a leadership view of its market. “When the [Internet] bubble burst in

2000, many companies hunkered down and said, ‘Let’s wait it out.’” says Butterfield. “We viewed it as an opportunity to get more aggressive and take market share.” The company raised over $100 million (it was the first software company to go public after the bubble burst), and by being aggressive and by making acquisitions, Altiris has become a significant player in its market. The company has about 650 employees, 225 of whom work in Utah.

human resource issues. In a small company, says Joshi, it’s hard to attract and keep highly motivated, highly skilled employees, because there is little room for them to move up. Spinning off a company gives such folks a way to realize their ambitions. “People look at it as a great opportunity,” he notes.

MERIT MEDICAL

Founded in 1976 as a contract R&D firm by two University of Utah professors, Ceramatec has since built an international reputation for developing innovative technologies and products. “We move ions to develop

Merit Medical is a local success that has attracted considerable national attention.

Fortune Magazine placed Merit number 25 on its list of America’s 100 Fasted Growing Small Companies, while Business Week’s 100 Hot Growth Companies ranked it 75.

Forbes magazine ranked Merit number 43 on its list of 200 Best Small Companies in America.

products for environmental, energy and medical applications,” says Ashok Joshi, Ceramatec’s president, CEO and owner.

The company has, over the years, gone through some ownership changes. In 1989 it was acquired by a large Norwegian company, only to be bought by Joshi in 2000.

Joshi notes that Ceramatec is a major technology player but not a manufacturer.

When its technologies mature to the point of being manufactured, separate companies are spun-out to house those technologies, and often those companies are overseen by those in charge of the technology’s development. Ceramatec’s spin-offs include Maxtec and Microlin. “We develop leadingedge technology,” says Joshi. “We also develop entrepreneurs.”

This makes Ceramatec innovative not just in terms of the technology it develops (it has about 100 employees, most of them skilled technologists), but in its approach to

Why all the buzz? The company has done very well in a competitive market.

Merit, founded by Fred P. Lampropoulos in 1987, manufactures and markets over 2,000 product variations used in diagnostic and interventional cardiology and radiology procedures.

“As a company, we do things others don’t want to do,” says Lampropoulos, Merit’s chairman and CEO. For example, the company introduces a couple of new products every quarter, many of which are patented.

The company currently has a $20 million, 180,000-square-foot facility under construction in South Jordan, where it will consolidate operations and have additional capacity for research, development and manufacturing. Merit currently employs 1,300, of whom 900 are in Utah.

Lampropoulos’ leadership style is, by his account, “uncommon and sponta-

CERAMATEC INC.

WHAT UTAH INVENTOR IS KNOWN AS THE FATHER OF DIGITAL RECORDING? UTAH TRIVIA

neous.” A former Army Forces Green Beret, he likes to quote what a general once told him: “If you look at the troops, you’ll know the leader. And if you look at the leader, you’ll know the troops.”

The company, he says, looks after its own, including going the last couple of years without raising health care costs to employees, during a time of significantly rising health care costs in the marketplace. Every employee is on a merit-based pay system that results in quarterly bonuses based on performance. In return, the company gets good productivity. Lampropoulos says the company generates over $120,000 in annual sales per employee.

Merit reported record revenues of $37.7 million for the first quarter of 2004, an increase of 19 percent over the same quarter a year earlier, while net income rose 33 percent to $4.4 million. Revenues for the current year are expected to reach $155 million, up from last year’s $136 million.

“In the history of our company, we have never had a down year,” states Lampropoulos.

MRS. FIELDS FAMOUS BRANDS

MYFAMILY.COM

The deceased have never been more popular. Like ‘60s music, ‘70s fashions and ‘80s dances, we can’t seem to get enough of what went on in our families generations ago.

American Demographics magazine estimates that 120 million Americans pursue family history as a hobby. MyFamily.com is taking full advantage of peoples’ desires to climb their family trees.

Originally incorporated in 1983 as a publisher of genealogical books and magazines, MyFamily began digitizing family history records and launched Ancestry.com in 1997 as a subscription-based Website.

MyFamily now offers subscriptions to the world's largest online database of genealogical records, as well as a broad range of other products and services related to family history. MyFamily subscribers have access to over three billion searchable family history records online, and records are continually being added.

Its Web-based products include MyFamily.com, Ancestry.com, Genealogy.com, and RootsWeb.com. The company also publishes Family Tree Maker™ the top selling family tree software, Ancestry magazine, Genealogical Computing magazine, over 50 book titles, and numerous databases on CD-ROM. This privately held company has about 900 employees, almost all in Utah.

A testament to the leadership position the company enjoys in its market, MyFamily is one of a relative few Websites that has made a success of charging for its information. Having over 1.5 million paid subscriptions, it ranks among the top five online paid content Websites, with subscription packages costing between $29.95 and $239.95.

MyFamily helps people discover the records that give them insights into their own personal family stories: a record about a grandmother arriving at Ellis Island; a

glimpse of an ancestor’s civil war pension record; or a Census record that tells whether the family could read or had a radio.

“By giving customers a broad set of tools to discover the information that makes their family history come to life, we help them answer the questions, ‘Who am I?’, ‘Where do I come from?’ and ‘How am I connected?’” says Tom Stockham, president and CEO of MyFamily.com.

OVERSTOCK.COM

Overstock.com sells manufacturers’ overstock inventory, close-out items and other goods via the Internet. At any given time, the company offers about 5,000 different products for sale. Sounds pretty new-age and leading edge.

Patrick Byrne, chairman of the board, CEO and president, suggests otherwise.

“We’ve brought to the Internet basic business principles,” he says. “We’re Old Economy guys who happen to be on the Internet.”

Byrne seems to revel in his iconoclast image. He’s got a Ph.D. in Philosophy from Stanford, and when he took Overstock.com public in 2000, he did so via an innovative public auction method. He explains the company’s success (it’s got about 175 full time employees and annual sales last year of about $240 million) as a combination of disciplined expense management, concern for employees, effective planning and superior customer service. “We’ve built this whole company on customer service,” he says, noting that with the exception of folks in the information technology and accounting departments, almost all employees start off in customer service, then rise to positions in other departments.

ANSWER: TOM STOCKHAM SR.

Kids bake cookies — it’s not rocket science — yet Mrs. Fields turned baking cookies into a major business and a valuable brand name. Debbi Fields was an innovator, being the first to offer fresh-baked cookies in a retail setting. She opened her first store in Palo Alto, California, in 1977, and moved her business to Park City a few years later. Just a few years ago, the company moved its headquarters down the hill into the Salt Lake Valley.

Mrs. Fields, the cookie company (Debbi Fields herself no longer is directly connected with the company), continues this tradition of innovation. It has grown, in part, through acquisition, and now owns such retail names as TCBY soft-serve yogurt, Great American Cookies, and two pretzel monikers, Pretzel Time and Pretzel Maker.

The company has upwards of 3,000 retail locations, and about 100 employees at its Salt Lake headquarters.

Acquisition isn’t Mrs. Fields’ only growth engine. The company is also generating growth internally. A few years ago, it began selling gift packages of cookies in tins and “gift towers” (attractively-decorated boxes

arranged on top of one another). They started as mail order items, and then moved to the Internet. Now the company is experimenting with selling its gifts in kiosks located in malls. “It’s been a phenomenal success for us,” says Frann Wolfe, Mrs. Fields’ senior vice president of marketing. “It seems to have remarkable returns.”

CA. 1973, UNIVERSITY OF UTAH

BUSINESSUTAH2004 13

UTAH

STANDARD BEARERS “We’re not chasing the latest fad, we’re not chasing quarterly numbers. We know what it takes to build this business, and we’re just hammering away at it,” he says.

So is Overstock.com truly innovative?

Well, it’s in a very up-to-the-minute business (Byrne views Amazon.com, a noteworthy New Economy company, as his main competitor) but Overstock is enjoying heady growth (its revenues are doubling annually).

And yet it also tries to do things the old way — bringing up employees through the ranks, for example. It’s the combination of new and old that makes Overstock.com truly innovative and a leader among Utah’s corporate elite.

that people tend to lose hearing for, such as the soft consonant sounds, without increasing the sounds of vowels. Other hearing devices just amplify all sounds, making it hard for the hearing impaired to understand what’s being said.

You’re likely to hear more about Sonic Innovations, as its message is increasingly being heard in places far beyond Utah’s borders.

STAMPIN’ UP

SONIC INNOVATIONS

How many rubber stamps can you sell?

Probably far more than you ever imagined, at least judging by the success of Stampin’ Up. Based in Riverton, Utah, Stampin’ Up is a privately owned company that sells rubber stamps and scrap-

Despite being in the hearing aid business, Sonic Innovations has not been heard of much in the Utah business community. That’s surprising, given the company’s success.

Founded in 1991 as a research and development company, Sonic Innovations didn’t begin selling product until late 1998.

Since then, it’s been making a sonic boom in the hearing aid world. Sales were $2 million in 1998, $29 million the next year, and are expected to top $100 million this year.

According to CEO and president Andy Raguskus, Sonic Innovations is the world’s fastest growing hearing aid company, and now ranks seventh among all makers of hearing aids (there are 42). Its workforce totals 600, including 150 at its Salt Lake City headquarters.

Sonic Innovations was, for several years, a darling of the finance community. It raised $46 million during several rounds of venture capital financing, and then it went public with prestigious Wall Street firm Goldman Sachs, raising another $54 million.

The company is making its mark on the hearing aid market. “Innovation is so slow in the hearing industry,” says Raguskus, “that when someone gets a hearing aid and goes back five years later for a replacement, they are likely to get a copy of the same hearing aid they had.”

Sonic Innovations is technologically innovative. According to Raguskus, the company’s digital hearing aids do something that almost no other hearing aids do — they increase the volume of those sounds

book supplies through a direct sales force of demonstrators.

Total sales for the system (there are 38,000 demonstrators/sales people) last year were about $200 million, and Shelli Gardner, the company’s co-founder and CEO, predicts sales will reach $240 million to $250 million this year. That’s a lot of rubber stamps. The company has 100 employees in Kanab, and another 400 along the Wasatch Front. It is expanding in a big way, with a 100,000 square foot office building and a 175,000 square foot warehouse now under construction.

“We don’t offer extremely innovative products,” says Gardner. “Our innovation is to provide ‘high touch’ in the direct sales industry.” By high touch, she’s referring to the relationships her company establishes with its demonstrators.

What makes Stampin’ Up a Utah leader with huge sales in a seemingly mom-and-pop PICTURED ABOVE: SHELLI GARDNER OF STAMPIN’ UP

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business? “We have great products and we care about our employees,” says Gardner.

STSN

STSN has carved out a niche for themselves as the leading provider of managed broadband Internet service for hotels and conference centers. It is the preferred provider of such services for Marriott and Hilton, and includes among its customers CrownePlaza, La Quinta, Radisson, Ritz-Carlton, Sheraton and Swissôtel, as well as hotel investment companies that manage portfolios of hospitality properties.

After a recent acquisition of a Netherlands-based company, STSN now provides broadband service to nearly 2,000 hotels around the world, with upwards of 300,000 total rooms. The company is adding 10 to 20 properties per month. Usage is more than 400,000 connections a month and could hit 8 million for 2004. In addition to hotel rooms, STSN provided broadband service to about 13,000 conferences in 2003.

Michael Jones, STSN’s senior vice president of sales, notes, “In our industry segment, we are by far the largest provider, [yet] we are still a secret in Utah.” The company currently has a total workforce of about 200, including 80 to 90 Utah employees.

Jones says the company is a technology innovator in an industry – hospitality – that has historically not been very tech savvy.

“We have to create technology that meets the needs of this industry, which other companies have not been able to do, including Sprint, AT&T and Verizon,” says Jones.

In addition to providing wired broadband connections, STSN is increasingly moving into the wireless market. As part of its technological innovations, STSN is also a leader in security, which is of considerable importance to users who are connecting to the Internet while on the road.

An early investor in STSN was computer chip maker Intel, which continues to have a seat on STSN’s board. Revenues for 2003 exceeded $60 million, more than double the previous year’s figure. A privately-held company, STSN “will sustain a very aggressive growth path,” says Jones. He says growth will be internally generated, as well as coming from acquisitions and, perhaps down the road, an initial public offering.

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RED CASTLE PEAK, UINTAS

Photograph courtesy of Utah Travel Council

TOP REASONS TO BUILD A BUSINESS IN UTAH

BUSINESSUTAH2004 17

Utah’s deserts, plateaus and peaks have always attracted adventurers and wanderers. From the first lines Clarence E. Dutton penned describing Zion National Park as a place “with singular power and glowing response,” to the last communication from desert vagabond Everett Ruess, “I have not tired of the wilderness,” there’s been a captivating splendor surrounding Utah’s geology, recreation and natural beauty.

Utah simply inundates the experienced traveler and overwhelms the intrepid explorer with glens and gorges, carved sandstone slots and high peaks, thick forests, fertile river valleys and striking plateaus. With 41 state parks, six national forests, seven national monuments, five national parks, 13 ski areas, hundreds of

year. Utah has become a cycling destination that has something for everyone, road or mountain bike rider, and something for every level of rider.”

But Moab isn’t dedicated solely to the fat tire variety of cycling; each March the town hosts its own Skinny Tire Festival — an event that features large group tours along the Colorado River, climbs through the La Sal Mountains and a tour through Arches National Park.

During the rest of the summer season, when Moab isn’t the ideal place to recreate because of the intense heat, there are hundreds of miles of trails in Utah’s Wasatch Mountains. Only minutes from downtown Salt Lake, you can be riding in Millcreek Canyon, Big Cottonwood

1 WILD

TAKE A HIKE

There are many who believe the words “Utah” and “Uinta” come from a Ute Indian word meaning “top of the mountains.”

Despite historical discrepancies, the phrase makes sense when you take a look around the state. And when it comes to hiking, resolute foot soldiers will find Utah offers an astonishing array of trails and terrain.

Running east to west from Salt Lake to the eastern edge of the state, the Uinta Mountains are remarkable because of their height (the area above timberline exceeds that of any other mountain range in the lower 48), with trails rarely dipping below the 9,000foot mark. Routes in the Uintas can range from 2-3 mile jaunts to 60+ mile treks along the ridge tops of this backpacker’s paradise.

BEAU

THE STATE’S NATURAL TREASURES BY BROOKS STEVENSON

PICTURED (TOP TO BOTTOM): BRYCE CANYON; GREAT SALT LAKE;

lakes and streams, and countless other natural and recreational attractions, Utah literally has it all.

BRIGHTON, WASATCH MOUNTAINS

PEDAL POWER

Talk to anyone about biking, and inevitably Moab will come up in the conversation. This southeastern mountain biking Mecca has been attracting hundreds of thousands of enthusiastic offroad riders since the early ‘80s. Popular because of its unique redrock landscape, challenging trails and intense dedication to the sport, Moab has rides for everyone from the seasoned veteran to the uninitiated enthusiast. It even has its own fat tire festival each October.

“When you compare Utah to other states,” says Red Oelerich, publisher of Outdoor Utah, an annual travel guide distributed in the Western states, “we lead the nation in out-of-state cycling visitors each

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Canyon, Emigration Canyon, Little Cottonwood Canyon and a score of other canyons from Brigham City to Payson.

Perhaps one of the most overlooked, but popular, cycling destinations is the winter haven Park City. Known primarily for skiing, the former mining-town-turned chicmountain-village has recently transformed its resort terrain into a series of interconnecting mountain bike trails that would take a month of Sundays to navigate.

And it’s all thanks to a small group of hearty local bikers, evidence of how important Utah’s outdoors is to its people.

“We have an intensely dedicated community of cyclists who maintain, build, and develop trails that most of the state doesn’t even know about,” says Jason Jones, former bike shop manager for Stein Sports in Deer Valley. “But pound for pound, we offer as many challenging trails as any other destination in the state.”

“To many the Wasatch Range is synonymous with Utah’s famous powder skiing,” says Oelerich. “But when winter snow recedes, the range becomes the most visited hiking destination in the state.”

Proximity may play a part in its popularity, but there is no shortage of breathtaking terrain to keep you coming back to the Wasatch. One of the most popular, and scenic, trails is Mount Timpanogos: towering peaks, an emerald lake, a lingering glacier, alpine meadow, and waterfalls along the route make this an Eden to photographers and hikers.

If alpine scenery doesn’t do it for you, then look no farther than the Colorado Plateau, Utah’s most famous geological province. Massive sandstone formations draw millions of visitors yearly and house all five of Utah’s national parks: Zion, Bryce, Capitol Reef, Canyonlands and Arches.

“Thousands of miles of formal and

UTAH TRIVIA

IN UTAH, WE TRULY LIVE THE HIGH LIFE. THE 11TH LARGEST STATE IN THE NATION BOASTS THE NUMBER ONE SPOT IN A TRULY MOUNTAINOUS COMPETITION. UTAH’S PEAKS ARE ON AVERAGE THE HIGHEST IN THE NATION. WHAT IS THAT AVERAGE ELEVATION? A) MORE THAN 12,000 FEET B) BETWEEN 11,000 AND 12,000 FEET C) LESS THAN 11,000 FEET

informal trails exist in the twisting red rock of southern Utah,” says Oelerich. “Add the San Rafael Swell and the Grand StaircaseEscalante National Monument to the mix of national parks, and you’ve got an outdoor playground that puts most other countries to shame.”

Calf Creek and Coyote Gulch have long been considered gems of the Grand Staircase-Escalante. However, with a little exploring and a good guidebook, you’ll find hundreds of other hikes in the Plateau region featuring brilliant waterfalls, Indian pictographs and petroglyphs, and sandstone arches.

GREATEST SNOW ON EARTH

A dissertation on Utah’s outdoors just

Photographs courtesy of Utah Travel Council

wouldn’t be complete without mentioning skiing. “With 13 resorts scattered throughout the state,” adds Oelerich, “you can access the Greatest Snow on Earth from virtually anywhere in the state. No other state can boast that.” Add to that the hundreds of miles of backcountry terrain for skiers and snowshoers, and the available Nordic skiing potential, and you have a veritable skiers paradise. It’s no wonder visitors come from around the country and the world to ski here.

“For the second straight year, Skiing Magazine has ranked Little Cottonwood Canyon neighbors Alta and Snowbird as the No. 1 resort combination in the United States,” says Ken Kraus, Utah Travel Council’s media relations manager. “When you consistently rank this high, you know you have something special – and so does the rest of the country.”

In the aftermath of the 2002 Olympic

ANSWER: B-THE STATE’S MOUNTAIN PEAKS AVERAGE 11,222 FEET, THE COUNTRY’S TALLEST.

AUTY

BUSINESSUTAH2004 19

ZION NATIONAL PARK: NARROWS (LEFT), THE WATCHMAN (RIGHT)

Winter Games, Utah has capitalized on the Olympic venues — Soldier Hollow, the Olympic Skating Oval, and the Utah Olympic Park – to bring outside visitors here, provide training grounds for competitive athletes, and to provide a great resource for our community.

“People travel to other places to do other things,” says Kraus. “What Utah has is more of those places and things to do than any other place in the nation. Our winter sports venues and opportunities are a perfect example of that.”

SOMETHING FOR THE REST OF US

Skiing, hiking and biking often get all the attention when it comes to Utah’s outdoor recreation, but there’s potential for every kind of recreation in the Beehive State.

If you like to camp, Utah has hundreds of public campgrounds scattered from St. George to Logan and everywhere in between. The Uinta and Boulder mountains alone have more than 2,000 lakes and streams to fish and more than enough campgrounds to accommodate travelers.

20 BUSINESSUTAH2004

The Green River and the Provo River are regarded as blue-ribbon trout streams and attract visitors from around the country.

If fishing from a boat better suits you, Utah offers Walleye fishing at Willard Bay, bass fishing at Lake Powell, and trout fishing at Strawberry Reservoir, just to name a few.

River rats have long adored the mighty Colorado as one of the best places to float a rubber raft. Dozens of guide services take various trips down the Colorado every summer, as well as shorter trips on the Green, San Juan or the Yampa rivers. You can also find worldclass kayaking throughout the state.

If you love to ski on water rather than snow, Utah has one of the best destinations in the world — Lake Powell. Created by the Glen Canyon Dam, Lake Powell boasts glassy water skiing conditions in a classic redrock setting. With thousands of miles of shoreline and hundreds of small, secluded canyons, Lake Powell provides unmatched solitude and skiing.

Access to superb climbing has recently put Utah on the outdoor recreation map as well. With classic granite climbs in Little

Cottonwood Canyon, unique rock formations in Maples Canyon, a range of routes in Logan Canyon and the imposing multi-day routes in Moab and Zion National Park, Utah’s terrain is as varied and challenging as any you’ll find.

Even if you're not a devoted bird watcher, you'll be converted once you get to the Great Salt Lake Shorelands Preserve Visitor Center at Farmington Bay, about 30 minutes from downtown Salt Lake City.

Bird watching has become a favorite activity for many families and those unable to get into the rugged backcountry terrain.

The Great Salt Lake and the Bear River Bird Refuge are perfect places to watch waterfowl you’d otherwise have to travel the continent to see.

“The one thing you have to do is scratch beneath the surface of the main outdoor activities in Utah,” adds Kraus. “If you do that, you’ll find more places to recreate, and more things to do, than any other place in the region, perhaps even the country.”

For more information on Utah’s outdoor recreation opportunities, visit: www.utah.com

Photographs courtesy of Utah Travel Council

UTAH SIMPLY INUNDATES THE EXPERIENCED TRAVELER AND OVERWHELMS THE INTREPID EXPLORER WITH GLENS AND GORGES, CARVED SANDSTONE SLOTS AND HIGH PEAKS, THICK FORESTS, FERTILE RIVER VALLEYS AND STRIKING PLATEAUS.

Photographs courtesy of Utah Travel Council

2

There’s strength in numbers. When businesses in a given industry cluster within a geographic area, support services aimed at that industry grow in numbers, likeminded entrepreneurs move there, existing businesses tend to become stronger and expand, talented employees are attracted, and more and more similar businesses set up shop in the area. This activity feeds on itself, generating more and more of the same.

It’s like a biological ecosystem, where everyone up and down the food chain ultimately supports each other and the system sustains itself and grows. Only, this ecosystem is economic rather than biological.

That’s the concept behind the State of Utah’s economic ecosystem initiative, which

parts, attracting even more companies and people to the area.

ECONOMIC CLUSTER ANALYSIS

Talking about economic ecosystems, Mark Renda, director of strategic business analysis for the state, says, “This type of economic analysis looks at industry segments, at how they grow and strengthen. It’s the same sort of concept as economic cluster analysis [which] looks at all the nutrients that feed those clusters.”

These nutrients, says Renda, include innovative ideas and the ability to marry those ideas to a business. People are needed to develop the ideas into products.

Universities are needed to help generate the ideas, train the people and have the tech-

that fall within that.”

Besides marketing, Simmons believes other tangible benefits are already being felt from the ecosystem approach. For example, he cites changes in state policies and laws, such as last year’s House Bill 240, which created the Fund of Funds, where the state authorized $100 million in tax credits to induce the formation of venture capital to be used for early-stage companies. Utah has historically been short of such funding for promising companies.

Another benefit is the higher-paying jobs these ecosystems create. “The companies that I have seen the state involved with, almost without exception, have average wages that are substantially higher than the county average, regardless of which county

HARDY ECONOMIC ECOSYSTEMS DYNAMIC RESOURCES FOR BUSINESS GROWTH BY ALAN S. HOROWITZ

PICTURED (L TO R): OLD BARRACKS OF EVANS & SUTHERLAND; SCIENTIFIC COMPUTING AND IMAGING (SCI) INSTITUTE

22 BUSINESSUTAH2004

is an economic development effort begun by former Utah governor Mike Leavitt.

Today’s best-known economic ecosystem is probably Northern California’s Silicon Valley, an unofficial place-name that has become known around the world as the heart and soul of the computer industry. In Silicon Valley, you’ll find computer companies, schools for training computer professionals, law and accounting firms specializing in the computer industry, venture capitalists and other financing sources attuned to high tech.

Along with these, add high-tech public relations and marketing agencies, supportive government, real estate developers building structures for high-tech companies and, of course, high-tech companies providing ideas and people to each other.

Synergies develop between the various companies and organizations, and the whole becomes greater than the sum of its

nology transfer processes in place to bring the ideas to market. Capital is necessary, and government has to ensure a businessfriendly climate.

Renda likens these nutrients to those needed to cultivate biological ecosystems that allow plants to grow faster and better.

With such nutrients, Renda believes Utah can have economic ecosystems that will grow and flourish.

Some of the economic ecosystem rhetoric sounds more like marketing hype – “branding,” to use a now-popular marketing term – than a serious economic development strategy. But David Simmons, chair of the State Department of Business and Economic Development and Simmons Media, insists there is real substance to this concept: “It is absolutely the right approach for the State to identify target areas of economic interest where Utah has a competitive advantage,” he says, “and the ecosystems

the business is located in,” says Simmons.

To make the ecosystem strategy work, observers say the companies in each cluster need to work together. IT and biotech are two that already have a track record of joining forces in Utah. Both the Utah Information Technology Association (UITA) and the Utah Life Sciences Association (ULSA) were created in the same year, 1991.

UTAH’S ECOSYSTEMS

Utah hopes to achieve significantly greater synergies with a number of economic ecosystems the State has identified as having critical-mass potential.

Why even talk in terms of ecosystems?

“It shows people who are looking at Utah as a place to do business; there are industry clusters already here,” says Cathy Rawstorne, director of strategic marketing at the State Department of Business and Economic Development.

UTAH HAS MANY OF ITS OWN INTRIGUING ECOSYSTEMS. ONE OF THE MOST ISOLATED AND EASILY STUDIED IS THAT OF ANTELOPE ISLAND, WHICH BECAME HOME FOR THE FIRST TIME TO THIS ANIMAL IN 1893. A PERSON ON FOOT HAS GREATER RISK OF BEING INJURED OR KILLED BY THIS ANIMAL THAN ANY OTHER, AS BULLS ARE SOMETIMES KNOWN TO CHARGE WITHOUT WARNING. BULLS CAN STAND SIX FEET TALL AND WEIGH UP TO ONE TON. WHAT IS THE NAME OF THIS DANGEROUS ANIMAL IN ANTELOPE ISLAND’S ECOSYSTEM? UTAH TRIVIA

Initially, four ecosystems were identified.

“We looked at our key centers of competence and economic impact, and it became obvious that there were two: the IT [information technology] and life sciences industries,” says Rod Linton, director of the State’s Office of Technology and Science. IT and life sciences account for the original four economic ecosystems: biotechnology, medical devices, digital media and web services.

Biotechnology is an industry that is largely a result of research at the University of Utah, which has identified more diseaserelated genes than any other university in the world. Leading Utah biotech companies include Myriad Genetics, Theratech (now part of Watson Pharmaceuticals) and NPS Pharmaceuticals. agement. Utah’s 2002 Olympic Winter Games were the most wired in Olympic history. Cerberian, Iodynamics and Satel are among the leading companies in this ecosystem.

ADDITIONAL POTENTIAL ECOSYSTEMS

Among the ecosystems in formal consideration of being added to the original four, there’s the aerospace group, centered around Hill Air Force Base, Alliant Techsystems (which operates the rocket and missile facilities once owned by Hercules and Thiokol), Boeing and others.

This ecosystem started organizing about a year and a half ago, and right now companies in the cluster are working to improve communications among themselves and perhaps provide cross training and other benefits to each other. “A lot of companies don’t know there are other companies [like them] out there,” says Mary Ann Flinders, associate director, Utah National Business Development Program. Perhaps the aerospace ecosystem will eventually form an industry association along the lines of UITA and ULSA. Financial services is another ecosystem, with such companies as American Express,

ANSWER: BISON

Even more long-standing in Utah is the medical device industry, which has produced coronary catheters, orthopedic implants, surgical tools, tissue engineering and, perhaps most spectacularly, the first artificial heart. Leading companies in this ecosystem include Deseret Pharmaceutical (now part of Becton Dickinson) and Sarcos.

“We have a burgeoning biotech-related medical device industry,” says Brian Moss executive director of ULSA, “clustered close to the University of Utah and its Hughes Medical Institute, Eccles Institute of Human Genetics, Huntsman Cancer Institute and Medical School. It’s been a tremendous

agent for growth,” he says. “For the fairly small population that we have, we do particularly well in this area.”

Digital media is also a “natural” ecosystem for Utah. After all, it was at the University of Utah that digital graphics got their first big boost under the tutelage of David Evans and Ivan Sutherland, and where digital audio was developed under the direction of Tom Stockham.

Today, Utah businesses are working with such digital media technologies as 3D graphics, special effects, virtual reality, simulator systems and computer-aided engineering. Salt Lake City is an important development hub for Microsoft’s Xbox video games.

Salt Lake City-based Evans & Sutherland is one of the originators of digital graphics and simulations, while AVC Graphics, also of Salt Lake City, does animation and other sophisticated computer graphics.

The Scientific Computing and Imaging (SCI) Institute at the University is creating leading edge computer imaging for the medical and geosciences industries.

The final ecosystem of the original four is Web services, which provides such Webbased solutions as virtual communities, digital security, data retrieval and network man-

ANTELOPE ISLAND

“IT IS ABSOLUTELY THE RIGHT APPROACH FOR THE STATE TO IDENTIFY TARGET AREAS OF ECONOMIC INTEREST WHERE UTAH HAS A COMPETITIVE ADVANTAGE, AND THE ECOSYSTEMS WOULD FALL WITHIN THAT.” DAVID SIMMONS

BUSINESSUTAH2004 23

Merrill Lynch, UBS and Morgan Stanley, having large operations in Utah, in part, because of the state’s favorable industrial loan corporation laws. Nutraceuticals has ecosystem potential, with such local players as NuSkin, Weider and USANA. Other potential ecosystems include sports (especially the Olympic venues), bioinformatics (focusing on population information, medical histories and genealogy to further medical research) and outdoor recreation (including the ski resorts and equipment manufacturers).

“These ecosystems are industries within the state in which we have proven to be proficient,” says Jeff Gochnour, director of the state’s Division of Business and Economic Development. “The hope is that, as we foster communication, they [companies in each ecosystem] will find synergies and work towards common goals.”

The ecosystem approach is built around companies in similar industries working together and communicating better than they have. Dave Harmer, executive director of Utah’s Community and Economic Development, says it can be as simple as asking companies within a cluster what their four or five most important problems are, and then getting them to work together towards solving them.

There can be considerable differences between the needs of one ecosystem versus another. Renda notes, for example, that Web services and biotech are industries which are not very mature, and therefore need venture capital. This compares with aerospace, which is a mature industry. Its needs focus more on incentives from government, because when aerospace projects are being developed, such as Boeing’s new 7E7 jetliner, getting a piece of that project means competing with many other states.

To date, the strategy of promoting economic ecosystems has shown some results.

It will be revealing to see which of these industry clusters ultimately coalesce into groups that help each other and assert their power in the marketplace and with government. When companies in an industry really start acting in concert and helping each other, just like a biological ecosystem, we know that “economic ecosystem” isn’t just an empty slogan.

24 BUSINESSUTAH2004

Utah’s Universities have a storied history of turning out products and ideas able to boggle the imagination. The compact disk came out of research at the University of Utah, as did much of the original thinking behind computer graphics. The first digital word processing program, WordPerfect, spun out of Brigham Young University(BYU).

Academics are often more starry-eyed than earth-based realists, however. Inventing exciting and promising products, processes or technologies involves very different skills from those needed to commercialize them.

While loaded with smart people able to invent things, universities have often displayed fewer smarts in commercializing those inventions.

This prompted the 1986 initiative to start

3

For researchers, COEP funding is often critical. “From basic research to the commercialization phase, there’s a huge gap,” observes Ravi Chandran, professor of metallurgical engineering at the U of U, and head of a Center of Excellence that is studying the surface qualities of titanium. “The state program [COEP] tries to bridge that gap.”

“I couldn’t have done it without it [COEP funding],” notes Conly Hansen, professor of biological engineering at Utah State University (USU) and another Center of Excellence director. Hansen is developing profitable uses of agricultural byproducts and is starting to go to market with some aspects of the technology right now.

“Normally, in an academic environment, you don’t necessarily entertain the idea of

UTAH’S CENTERS OF EXCELLENCE SPIN FLAX INTO GOLD

during the 2002-2003 fiscal year. Annual grants range from $75,000 to $200,000, with the average being about $125,000. Each year there are approximately 40 requests for funding, coming primarily from faculty at Utah’s three major research universities: The U of U, Utah State University and Brigham Young University.

According to Rod Linton, director of the State’s Office of Technology and Science, three primary criteria are used when deciding which projects to fund. There must be: 1. A commercial opportunity for the technology in the marketplace.

2. A window of opportunity to commercialize the technology within a five to seven-year time frame.

3. A commitment by the professor to com-

BY ALAN S. HOROWITZ

TECHNOLOGY TRANSFER the Utah Centers of Excellence Program (COEP). The legislature approved allocating annual funds to university faculty members for projects not supported by traditional sources of university research money, much of which comes from such federal agencies as the National Science Foundation and National Institutes of Health.

It was ground-breaking legislation, and the COEP continues to be viewed as an innovative program to this day. While other states have Centers of Excellence programs, Utah’s is unusual for its focus on trying to bring to market specific products and technologies.

Richard Koehn, CEO of Sentrx Surgical, a Salt Lake City medical technology start-up and former vice president of research at the University of Utah (U of U), headed a Center of Excellence in New York for advanced biomedical technology. “In New York and a number of other states, they pour a lot of money into an area of technology,” he says.

commercialization,” says Patricia Goede, research associate in the University of Utah’s Dept. of Pediatric Research, and director of a Center of Excellence involving healthcare informatics and medical education. “But Center funding allows us to focus some of our activities on market research and help the technology transfer office negotiate licenses. It has allowed us to have a dual track – commercialization and academics,” she says.

THE PROGRAM’S WORKINGS

COEP projects require researchers to attract two dollars for every dollar of state money they receive; usually, the matching funds exceed this minimum. COEP support lasts up to five years for each project and is subject to annual reviews.

Since the founding of the program, the state has invested $37.7 million, including issuing $1.81 million in grants to 16 Centers CENTER FOR ADVANCED STRUCTURAL COMPOSITES, HEADED BY DAVID W. JENSEN (BYU).

26 BUSINESSUTAH2004

WHAT FAMOUS UTAH PAIR IS WIDELY RECOGNIZED AS BEING THE PIONEERS BEHIND THE GRAPHICS INDUSTRY, AND WHICH UNIVERSITY WERE THEY PROFESSORS FOR AT THE TIME? UTAH TRIVIA

mercialize the technology and a strong probability that the technology can create a new company or generate licensing revenue.

Linton says that, to date, about 150 companies have been spun out of various Centers of Excellence, and approximately 180 license agreements have been made.

While the researchers must match each dollar of state funding with two dollars from other sources, the actual dollar amount of matching funds has been more than 10 times what the state has invested. Matching funds total over $397 million during the life of the program.

A number of successful companies have resulted from COEP, including Myriad Genetics, Theratech (now part of Watson Labs) and Sarcos. The state tracks only

CENTERS BEING FUNDED

Among the Centers being funded is the Center for Advanced Structural Composites, headed by David W. Jensen, professor of civil engineering at BYU. This research involves developing fiber reinforced plastics (composite materials) which are lightweight and efficient alternatives to traditional wood, steel and other materials. The market for this technology includes utility poles, wind-turbine structures, even bicycle frames.

Jensen says the commercial potential for this research is “huge.” For example, in the U.S. each year, 10 million utility poles are replaced and another four million new poles are installed, each costing $500. These are

CONLY HANSEN (USU) IS DEVELOPING PROFITABLE USES OF AGRICULTURAL BYPRODUCTS.

usually made of wood and require an expensive chemical treatment to keep them from decaying. Poles made with composite materials — like those originating from this Center of Excellence — are most cost effective because they don’t require chemical treatment. If this technology were to gain a 3 percent market share, over 400,000 composite poles would be sold each year, generating over $200 million in revenue, notes Jensen.

China, he says, could be an even larger market because it needs 100 million utility poles per year.

Ed Red is a professor of mechanical engineering at BYU and runs a Center developing technology that will take components designed on a computer and directly communicate that information to a machine on the factory floor where the component is manufactured. “It cuts the costs of going from CAD/CAM [computer-aided

design/computer aided-manufacturing] to manufacturing by 80 to 90 percent,” claims Red. The technology is just about ready for market. “Now we have to overcome marketing and political barriers,” he comments.

Whiz-bang digital cameras are all the rage, and a professor at USU is looking to improve this consumer favorite. Robert T. Pack, research associate professor of civil and environmental engineering heads up a Center that’s developing a camera that, using a laser system, can take three dimensional pictures of moving objects (no other camera can do this).

The camera can take both still and motion pictures. “It’s a fundamentally new type of camera,” says Pack. The military has already expressed interest in the technology for use in reconnaissance, while potential commercial uses include land surveying, photos for insurance adjustments and 3D

ANSWER: DAVID EVANS AND IVAN SUTHERLAND, UNIVERSITY OF UTAH

about 45 percent of the 150 or so known spinout companies because of name changes, acquisitions, etc., yet even this limited number of companies produce an annual payroll approaching $100 million.

BUSINESSUTAH2004 27

ED RED (BYU) RUNS A CENTER DEVELOPING TECHNOLOGY THAT WILL TAKE COMPONENTS DESIGNED ON A COMPUTER AND DIRECTLY COMMUNICATE THAT INFORMATION TO A MACHINE ON THE FACTORY FLOOR WHERE THE COMPONENT IS MANUFACTURED.

computer gaming. Pack also believes it can become a consumer product.

Olivia Sheng, presidential professor in information systems at the U of U, is directing a Center targeting the field of knowledge management. The work at this center includes automating aspects of Website design that dramatically shortens the time to redesign websites, while making it easier for users to navigate the site. Initial market research indicates, says Sheng, that the market is “in the several hundreds of millions of dollars.”

Aircrafts have miles of wiring, and when a problem develops — cracks in wire insulation, broken wires, moisture condensation — it’s difficult, if not impossible to find the fault before something dramatic happens.

Cynthia Furse, associate professor of electrical and computer engineering and director of the Center for Smart Sensors, is working on Spread Spectrum-based technology to find faults — even very brief, intermittent ones — on aircraft wiring while the plane is flying.

This trouble-shooting technology could improve safety and cut maintenance expenses. The technology can be used in any densely wired system, such as space shuttles, nuclear power plants, subways and

28 BUSINESSUTAH2004

railroads, buildings and factories and even the family car. The potential market for this technology: “Over 100 million dollars,” says Furse.

Ravi Chandran, engineering professor at the U of U, is working to harden the surface of titanium to allow its use in a variety of products, including hip, spine and knee implants, and gears and bearings. “The project is about creating a process to harden the surface of titanium so it can be used in applications like orthopedic implant devices,” says Chandran. He estimates the potential market to be “several billion dollars and growing each year.”

We all know what manure smells like.

But what if it didn’t smell so bad? Could it be used productively? Could places where it is produced become better neighbors?

Conley Hansen of USU is working on this. His Center is looking for profitable ways of using animal and other agricultural byproducts, like manure. The manure is put through an anaerobic digester, which removes the air. In the absence of air, bacteria break down the components in manure that cause odor.

Besides removing much of the odor, the process produces methane gas. The manure comes out of the process less smelly and objectionable than it was when it went in, and the gas becomes a source of energy. A major market for this technology is the thousands of large animal feeding operations around the country, just about all of which want to reduce the odors and pollution they produce.

The U of U’s Patricia Goede is developing, among other things, technology for cross media publishing. It can take the contents of medical reference works and publish them in such formats as CD-ROM, handheld devices and other media. In fact, the Center has already spun off one company: Amirsys Inc. in Salt Lake City, which is using the technology for cross media publishing.

Amirsys has 12 full-time and four part-time employees.

BENEFITS

The COEP has provided a number of returns to the State’s investment. Companies have been created and jobs have multiplied, including a number of higher paying posi-

tions. A 2001 state audit found companies that resulted from COEP programs had created 1,300 jobs in the state at an average wage of $68,000. Money has been attracted as well. The 16 Centers operating during the 2001 audit received matching funds of $7.25 million, resulting in a matching fund ratio of 3.5 to 1.

The reputations of Utah’s universities have also been enhanced. “State Center [of Excellence] funding helps Utah researchers with great ideas compete with those of other universities,” comments BYU’s Ed Red. Of the $1.81 million in grants during the 20022003 fiscal year, the U of U received $900,000 for its seven Centers, USU’s three Centers were granted $340,000, BYU’s four Center received $500,000 and one Center at Weber State University received $70,000. In addition, each Center receives $8,000 per year for consulting on commercialization and other business aspects of the technology.

The Centers are also a boon to students, who learn first-hand about aspects of business and might get stipends or jobs. Cynthia Furse notes: “It [COEP] helps students get a very down-to-earth approach to engineering and not go off into the ionosphere. They see what it takes to bring an idea to commercialization.” She’s had about 70 students go through her Center projects, and currently has about 18 graduates, 15 undergraduates and three high school students working on her project.

Center funding has remained at about the $2 million-a-year level for the last several years. Rod Linton thinks $3 million could be productively employed, with additional funding of 5 to 10 percent a year. The problem, he says, is that the state legislature views Center funding as an expense rather than an investment — despite the fact that the Centers have produced significant numbers of jobs and attracted considerably more capital than they received from the State.

The dollar return from the Centers is, of course, important, but more significant is the technology that’s been developed, the learning that’s been provided and the jobs that have been created as a result of the COEP. Robert Pack, who is developing the 3D camera says, “The Centers of Excellence have pushed us to do things we otherwise wouldn’t do.”

In a state where popular culture tends to eschew recreational gambling, Utah businesses are winning big as metropolitan executives migrate here in a dice-roll of national proportions. Fueled by the spirit of adventure and the promise of an expanding workforce, business owners and executives are discovering what Utah natives have known for decades: the bottom line involves more than just price and profit, and people are the true assets.

Fortunately, Utah has abundant human assets. The state’s growing population converts quite naturally into a growing workforce. According to Mark Knold, senior economist for the Utah Department of Workforce Services, “An expanding workforce is one in which more people are

4

BY CASEY ERROR

A

30 BUSINESSUTAH2004

off. It doesn’t take written reports to see that Utah’s population and workforce are expanding. Today, single-family homes rise against the western sky in sharp contrast to the sage-spotted plains of yesteryear.

Passenger cars now steal into the shadows of modern-day bus-trucks designed to transport family-sized armies to and from soccer games and on fast-food voyages.

Convenience stores, theaters, restaurants and office buildings all stand in silent tribute to the swell of Utah’s players and workers.

IN-MIGRATION

The good news is, even without this socalled internal growth machine, Utah enjoys a steady stream of in-migration. Is it our culture? Our climate? Our people? Our recre-

Now among the top 20 public companies in Utah, Overstock.com has benefited tremendously from Byrne’s original ideal (and Utah’s business climate). “Overstock is experiencing hyper growth: sales in 2003 grew 94 percent over the previous year. If we continue to grow at this pace, which I believe is possible, we’ll need talented, smart, motivated people to support our growth.”

PLAYING HARD

As senior human resources manager for BigD Corporation, Randy Price has interviewed hundreds of out-of-state candidates intent on making Utah their new home. Very often, he says, people come for the climate and the culture. “Utah’s culture definitely helps in recruitment because of the family orientation

ROBUST WORKFORCE

employed or looking for work than the previous year.”

Are we expanding? “Definitely,” says Knold. “Utah’s population has grown, on average over five years, at 2.1 percent, roughly 48 thousand people per year, of which 31,000 are active in the labor force. In fact, our internal population growth machine generates labor force growth regardless of migration.”

This prolific population creates a robust and enduring growth cycle for Utah’s workforce by attracting national and regional businesses to the state. New businesses bring new residents, and new residents help replenish the internal population (i.e. growth machine). “Even if we have out-migration,” Knold assures, “we would still have a natural rate of increase that overshadows any level of out-migration.”

Statistics don’t lie; the state’s growth machine (i.e. one armed-bandit) is paying-

GROWTH MACHINES AND ONE-ARMED BANDITS

ation? Yes. Astonishingly, Utah’s weather and unique natural beauty remain among the decisive factors — often outshining its economic landscape — for business owners and executives seeking to establish new corporate headquarters or relocate existing businesses. For some, a youthful, vital, ethical and productive workforce is merely a bonus for doing business amidst the greatest snow on earth.

“When I was looking for a place to locate Overstock’s headquarters,” says Dr. Patrick Byrne, president of Overstock.com, “I checked to see which areas of the country had the highest amount of snowfall — Utah was obviously one of these. Once we set up our offices here, I was delighted to discover that Utah has great educational institutions that have outstanding computer and hightech departments. We’ve tapped into these schools as resources for building our team.”

and our western geographical location,” says Price. “We are known for our recreation and our family friendly culture, with a value on education, strong work ethic, and ability to play as well as work. All of this makes it easy to get outsiders to consider Utah.”

According to Mark Knold, ‘easy’ may be an understatement. Knold’s research shows that a growing number of people have such a strong desire to live in Utah, some are willing to gamble with their careers — and essentially, their livelihood — for a chance to live in this ‘pretty, great’ state. “People move to Utah for a desire to be here. They come here first, and then attempt to find a job. It’s a gamble.”

A gamble indeed, particularly when you consider that Utah wages — at both the field and executive levels — fell well below the national average in 2002. According to the U.S. Bureau of Labor Statistics, Utah trailed the national mean hourly salary for manage-

UTAH’S OWN MAD SCIENTIST DEVELOPED AN EARLY PROTOTYPE FOR TELEVISION AT THE AGE OF 15 IN 1921, YET HE DIED PENNILESS IN 1971. WHO WAS HE? UTAH TRIVIA

OVERSTOCK.COM

GROWTH AND YOUR BUSINESS

“As the population expands,” says Knold, “we

GUARDED OPTIMISM

For now, Utah’s workforce is expanding.

Today, we’re filling our minds with vistas of brilliant mountain landscapes and our offices with brilliant minds. We’re enjoying the thrill of hidden mountain peaks while peeking cautiously into the future. Today, we’re betting on work-hard, play-hard individuals. And we’re winning big.

WORKING HARD

When people are willing to risk everything just to live in Utah, it’s reasonably safe to say that they will be dedicated and hard workers.

“I doubt we could have achieved the success we have in the time we have if we weren’t based in Utah,” Byrne says. “The quality and the character of the Utah people are what set the state apart.”

need more groceries, more Blockbusters, more financial services.” That’s the simple part to understand. Yet, to really understand what a growing workforce means for your business as a whole, it might help to see how a shrinking workforce can hurt business.

Over time — and depending on the people — this can lead to a loss of local (smaller) businesses as demands for products and services decrease with the population. As such, it becomes harder to find and retain qualified workers, which is directly proportional to the wages a faltering company is able (or unable) to pay.

Finally, a loss of local business — and subsequent population — can lead to operational deficiencies within larger corporations (such as the inability to recruit and retain qualified personnel). In turn, these corporations are forced to relocate to more productive geographical areas or discontinue operations altogether.

Conversely, a growing workforce acts as a stimulus for businesses to come to Utah. It enables corporations to select from a healthy and robust pool of candidates, and to fill positions with highly qualified, dedicated individuals. Inevitably, the growth of big businesses increases the potential for small businesses to thrive.

“Utah is a great place to operate any high tech company, and it has certainly been a good home to Overstock,” says Byrne. “I think being based here has given us a competitive advantage because we’re able to keep expenses down while attracting and retaining smart, dedicated individuals.”

ANSWER: PHILO T. FARNSWORTH

ment occupations by $5.60. This statistic comprises such occupations as chief executives, legislators, marketing and advertising managers, financial managers, construction managers, and general operations managers. Essentially, these totals demonstrate that executives and managers are actually willing to sacrifice nearly $12,000 a year for the privilege of living in Utah.

Yet, despite these unfavorable odds, more and more people are placing their bets. “Wages are a little lower in Utah,” says Price, “but seem to match up with the local competition. We are fortunate we get talented individuals for local market rates. Can they make more elsewhere? Yes, but Utah has much more to offer than just wages.”

“Wages at all levels tend to be lower in Utah,” adds Byrne, “because the cost of living here is so much more affordable than other parts of the country, while the quality of life is better in many ways. We’ve got people from Utah and from all over. They come for the professional opportunity, but they love being in Utah, skiing in the afternoon, or climbing in Moab on the weekend.”

Price believes that employee performance and retention benefit directly from the cultural environment here.

“People who grew up here want to stay here, because that is where their family is,” he says. “As such, you find qualified persons who are willing to do almost anything to be able to have a good job that allows them to live in this area. Coupled with a strong work ethic, employers have a great ability to keep good people if they treat them fairly.”

Clearly, there is no shortage of recreational opportunities for the people of Utah.

But what effect does all of this ‘play’ have on at-work performance? A growing work force is one thing; a productive workforce is quite another. Do climate and culture negatively affect production? Or, does playing hard enable workers to excel in the business field.

“Our climate provides a good diversion from work and brings people back refreshed and ready to go,” says Price.

“Once in a while there is the slowdown in productivity from a bike accident or a broken leg from skiing; but we would take the occasional accidents for the benefits of being able to play hard and enjoy what Utah has to offer.”

“ W E A R E F O R T U N AT E W E G E T TA L E N T E D I N D I V I D UA L S F O R LO C A L M A R K E T R AT E S . C A N T H E Y M A K E M O R E E L S E W H E R E ?

YES, BUT UTAH HAS MUCH MORE TO OFFER THAN JUST WAGES.” RANDY PRICE

BUSINESSUTAH2004 31

Sleeping Beauty and the perennial favorite, The Nutcracker, with contemporary works such as the much anticipated, The Lark Ascending, choreographed by Bruce Marks.

With several international tours on its resume, this summer, Ballet West will be among the few American ballet companies invited to Scotland for the Edinburgh International Festival.

Returning in the fall, Ballet West will herald its new season with performances of Antony Tudor’s The Leaves Are Fading, Lilac Garden, and the Utah premiere of Offenbach In the Underworld.

MODERN INTERPRETATIONS

5 PICTURED (L TO R):

Nationally recognized Repertory Dance Theatre is known as much for its perform-

FINE ARTS, CULTURE AND CUISINE

KEITH LOCKHART AND THE UTAH SYMPHONY; REPERTORY DANCE THEATRE; BALLET WEST

UTAH ARTISTS IN RESIDENCE

BY HEATHER BEERS

Ever sat through a Rorschach test? Here’s an inkblot to consider: “Utah.” What comes to mind? Snow…skiing…mountains…big salty lake?

What about film? Opera? Modern art?

Haute cuisine?

Open that mind because you may not know that Utah is one of the nation’s premiere centers for arts, fine dining and culture.

The region’s cultural legacy has been fostered since settlers entered the Salt Lake Valley in the mid-1800s, and today, that fervor is championed by a diverse community of artists, dancers, performers, writers, restaurateurs and cultural activists, who deftly reflect a community percolating with a blend of historic tradition and modern possibility.

THE STARS OF SUNDANCE

When Robert Redford decided to create a forum for independent films, he chose Utah, the home of his own Sundance ski resort.

32 BUSINESSUTAH2004

Since then, independent filmmakers, film aficionados and movie execs have lined the red carpet in boots and jeans each winter for the Sundance Film Festival, a spectacle that rivals Cannes.

The festival showcases documentaries, shorts and feature films that entertain, enlighten and examine. The event also brings the glitz of Hollywood to Park City and Salt Lake, and the synergy is invigorating.

Thousands of locals get in on the film frenzy, making the two-week adventure a Utah highlight each January.

ON POINTE

As one of the nation’s most prestigious ballet companies, Ballet West has been applauded for decades by a community that is passionate about the arts.

Celebrating its fortieth season, Jonas Kåge, the company’s acclaimed artistic director, blends traditional performances such as

ances of contemporary modern dance as for its repertory, or “living museum,” of choreographed works that spans 100 years of modern dance.

Under the lead of artistic director Linda Smith, its current season is a thought-provoking mix of new and historic pieces that delve into deeper issues. Following the theme, “A Sense of Place,” Time Zone, for example, includes works from the 60s and 70s that reflect Cold War and Vietnam era dilemmas, as well as pop art’s introspective examination.

This summer, RDT will select two new pieces from among 40 submitted by headlining choreographers nationwide. These winning pieces, to be performed next season, will again focus on the theme, “A Sense of Place.” “‘Sense of Place’ looks at pieces of dance that use the art form to make commentary on social issues. We’re really looking at dance as more than something pretty to look at, or entertaining, but really as

HOME TO KANAB, ALSO KNOWN AS LITTLE HOLLYWOOD, UTAH HAS BEEN THE LOCATION OF OVER 700 FILMS IN THE INDUSTRY’S HISTORY, INCLUDING ITS FIRST BIG FORAY INTO SILENT MOVIE PRODUCTION, AND ARGUABLY THE BEST SILENT WESTERN OF ALL TIME. IT WAS SHOT ON ANTELOPE ISLAND AND EAST OF BEAVER IN 1922 AND RELEASED IN 1923.

WHAT IS THE NAME OF THIS CRITICALLY LAUDED FILM? UTAH TRIVIA

something that has an important contribution to make in the dialogue of the community,” says Elaine Clark, RDT public relations and marketing director.

KINECTIC INNOVATIONS

Setting innovation into energetic motion, Ririe-Woodbury Dance Company pushes the envelope of modern dance each season.

Since its inception 40 years ago, this troupe of dancers has challenged the concept and content of dance with newly commissioned pieces that take music, imagery and movement to new heights.

This season, for example, Objects and Places transports the audience from the ballroom to the desert, engaging attendees through the imaginative use of flags, balls,

VIBRATO AND VIOLINS

Amid sinister intrigue, the ruler of nations falls by the hands of friends. Swept up in the tragic crescendo is a theater filled with patrons of the Utah Opera. Julius Caesar is just one of the riveting performances to spellbind audiences during this year’s performance calendar.

Just a few blocks away, the harmonies of wind, string and percussion reverberate through the majestic Abravanel Hall. The

Edward Weston’s focus changed the course of modern photography, and his historic path lines the walls of the Utah Museum of Fine Arts. The national touring exhibit chronicles Weston’s departure from traditional portraiture to still life explorations in black and white.

Weston’s show is one of the many exhibits at UMFA, and just one of thousands at museums and galleries throughout Utah.

From the St. George Museum of Art in southern Utah’s red mesa country to Weber State University’s fine arts gallery in northern Utah, the state’s visual arts venues are filled with prestigious international, national and regional work.

Among the prominent fine art feasts are

flown to London as a guest of ISPA, the premiere international organization for performing arts organizations, to speak on the merger. There she was greeted with unanimous applause for accomplishing what Europe’s opera and symphony companies have not.

Currently, Harvard Business School is compiling a case study on the merger, which eventually will be distributed to opera and symphony companies nationwide.

But beyond the cost-efficiencies, the joint venture brings even better performances to the subscribers of both organizations, says Ewers. Calendars no longer conflict, and enhanced symphony performances now easily incorporate set design, dance and vocal elements, while opera performances benefit from the symphony’s chamber players. Both groups now combine for the Deer Valley Music Festival, a five-week summer extravaganza of opera, symphony and other music performances.

the Springville Museum of Art, the Brigham Young University Museum of Art and the Salt Lake Art Center. Public libraries and even restaurants make space for fine art exhibition, such as those at Café Molise, Urban Bistro and Rio Grande Café. And galleries such as Art Access in the Artspace community of Salt Lake City enable talented, prominent artists with disabilities or challenges to exhibit their work. In addition, several private galleries throughout the state lead art enthusiasts to an impressive array of oils, watercolors, mixed media, sculpture and other works.

Evidence of the demand for visual arts is found in the upcoming Utah Museum of Art and History, to open in 2005 in Salt Lake City’s downtown business and entertainment district. The museum, which will focus on pieces that tell Utah’s story, will also make room for touring collections from other local arts organizations, such as the

ARTISTIC DISPLAY

ANSWER: COVERED WAGON

bags, sticks and stools.

As a touring company, Ririe-Woodbury has taken its dancers to Italy and France this year, where critical acclaim and audience favor resulted in as many as 25 curtain calls in a given night.

Fortunately for local audiences, RirieWoodbury also takes its show on the road here, introducing its creative energy to school students and organizations statewide.

Utah Symphony’s season includes a diverse offering, from ancient European melodies to modern pops beats. Keith Lockhart, who holds the baton for both the Boston Pops and the Utah Symphony, heads the ensemble, but Utah Symphony’s performances also include talents from around the world with guest conductors and performers.

While maintaining the uniqueness of both art forms, the Utah Symphony & Utah Opera operate with combined administrative forces — a revolutionary merger made two years ago that has captured worldwide attention.

“The interest in what we are doing has been staggering on an international and national level,” says Ann Ewers, CEO and opera general director for the Utah Symphony & Opera. Ewers was recently

BUSINESSUTAH2004 33

ON THE MENU

INDEPENDENT FILMMAKERS, FILM AFICIONADOS AND MOVIE EXECS HAVE LINED THE RED CARPET IN BOOTS AND JEANS EACH WINTER FOR THE SUNDANCE FILM FESTIVAL, A SPECTACLE THAT RIVALS CANNES.

Springville Museum of Art, UMFA and the Utah Arts Council.

CENTER STAGE

Whether in Salt Lake City, St. George, Park City or Provo, Utah audiences are seated in stunning performing arts venues.

The historic Capitol Theater, with its grand lobby and gilded sculptural ornaments, hosts several organizations, including Ballet West, Utah Opera and touring Broadway performances. In similar grandeur, Kingsbury Hall and Libby Gardner Hall on the University of Utah campus stage national touring groups and professional music performances.

The George S. and Dolores Dore Eccles Center for the Performing Arts in Park City and Rose Wagner Center in Salt Lake City are impressive, modern facilities for regional and national groups.

Southern Utah’s Tuacahn Theater is an outdoor amphitheater set amid ruby and

34 BUSINESSUTAH2004

amethyst-colored mountains, and the new Usana Amphitheater in West Valley City is ideal for outdoor concerts and performances.

The list would not be complete without a mention of Cedar City’s memorial to The Bard: the Utah Shakespearian Festival held there each summer, a favorite of both local and even international visitors. The festival transforms the quiet southern Utah town into a montage of lights, garish colors, music and passionate discourse as actors perform works from both Shakespeare’s plays and from modern playwrights. It’s success has garnered the coveted Tony Award in 2000, for America's Outstanding Regional Theatre.

University campuses boast state-of-theart facilities, such as BYU’s DeJong Concert Hall or University of Utah’s Pioneer Theater (where Equity performances fill each season’s docket). Utah State University in Logan has raised several million dollars toward the construction of a new performing arts center for the northern Utah community.

The arts aren’t the only way Utah pampers its own. Center Café’s pan-seared lamb loin with port-balsamic reduction and roasted garlic flan soothes limbs weary from Moab’s red rock ascent. Goldener Hirsch’s game chops with pinot noir beurre rouge melt the inner chill from a day on Deer Valley’s slopes. The Mandarin’s savory orange peel chicken halts the suburban rush in Bountiful’s bustling neighborhood.

Utah’s diverse landscape becomes the backdrop for an equally diverse menu of exquisite, palate-piquing restaurants. Local restaurateurs — many of them award-winning chefs transplanted from New York, San Francisco and Asia — know how to serve up fare that meets discriminating, world-traveled tastes.

At L’Avenue Bistro, for example, Executive Chef Franck Peissel transports authentic cuisine française to Salt Lake City’s east side. Amid charming, French bistro atmosphere, diners can say nothing but mais oui to an extensive wine list, entrées and les patisseries.

For those with a penchant for wrapped eel and dim sung, Utah’s award-winning Asian offerings are oh-so-rewarding.

Whether it’s sushi at the Mikado, Kyoto or Shogun; no-frills Thai at Thai Siam; comfortably elegant Vietnamese at East-West Connection; or Asian-French innovations at Park City’s Wahso, the Wasatch Front rivals the Pacific Rim for its authentic delicacies.

And while nestled against the Rocky Mountains, Utah’s seafood tastes remarkably fresh-from-the-wharf, thanks to purveyors such as Aquarius Fish Co. Working tirelessly to overnight each day’s catch; these suppliers provide fine local restaurants access to a treasure trove of gems from the sea. Among the popular eateries for seafood are Market Street Grill, Emily’s Restaurant and Fresco (also a must for authentic Italian).

For chic urban dining, Utah’s array of fine restaurants includes contemporary hot spots such as Salt Lake City’s Metropolitan, Sundance Resort’s The Tree Room, and Park City’s The Riverhorse.

But for anyone in the mood to forgo the fine linen service, Utah offers plenty of unforgettable casual dining. In West Valley City, approximately 15 minutes from downtown

Salt Lake, Q4U serves up nationally ranked ribs and sweet potato pie that leaves guests singing the blues when the plate’s empty.

Utah is also home to some of America’s most decorated brews, such as those created by Squatter’s Brew Pub in Salt Lake City — a pub that features surprisingly sophisticated menu items like Thai stir fry and fresh Ahi spring rolls.

A SOPHISTICATED APPETITE FOR THE ARTS

In all, Utah’s sophisticated arts and culture is driven by local demand. “There is a hunger and acceptance in Utah for quality performance in theater and music,” says Frank McEntire, executive director for the Utah Arts Council, the nation’s oldest state arts organization.

McEntire goes on to describe the zeal Utahns have for the arts. “Indicative to the strength of Utah’s cultural climate is the fact that we have so many new facilities and emerging companies and venues across the state,” says McEntire.

From USU’s plans for its performing arts center to municipal priorities for expanded cultural centers like those developing in West Valley City and Ogden, McEntire points out the arts are top of mind for the state’s communities.

Other cultural expansions include The Leonardo, an arts, science and cultural center slated to open in 2005. Located on Salt Lake’s Library Square, The Leonardo will be a like companion to the main branch of the Salt Lake Public Library, a new modern landmark dedicated to the “practice of democracy.” From its open architectural design, to its “no shushing” policy, internal coffee shop, auditorium and several meeting rooms, the library was designed as a “tremendous venue for inviting civic dialog,” says Chip Ward, assistant director for the Salt Lake City Library System. Ward cites the thousands of programs, lectures, film series and panel discussions hosted by the library that have brought together diverse community groups and national thinkers to discuss social

issues and find common ground.

Encouraging new thought is also Utah’s Clark Planetarium, which features a 3D IMAX theater and interactive displays. The planetarium will soon find its neighbor in the expanding Children’s Museum of Utah, an organization that will provide hands-on, community-focused projects, art apprenticeships, career development and more.

With Utah’s proactive cultural community and rich inventory of arts…let’s get back to that Rorschach card.

The next time “Utah” comes up, a myriad of critically acclaimed arts, culture and dining possibilities oughta’ just dizzy that mind.

THE LEONARDO, AN ARTS, SCIENCE AND CULTURAL CENTER SLATED TO OPEN IN 2005.

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BUSINESSUTAH2004 35

6

A strong commercial real estate market not only sustains a healthy economy in Utah, but also maintains the quality of life that citizens of the state have come to expect. Flocks of newcomers are drawn to the state by that quality of life every year. By the year 2025, the state’s population is expected to swell from just less than two million to three million. Most of the increase (70 percent) will come from the growth of existing families, the rest from newcomers.

Unless planning for that future occurs now, the picture of life in Utah may not be rosy in the future. Fortunately, a number of private and public organizations, as well as commercial real estate brokers, are working to create a positive climate for both the commercial real estate market and the people of Utah.

Envision Utah is a public/private, nonprofit trust created to help do just that: create a vision of the possibilities of life in Utah and make them a reality. “Nothing that we have analyzed deals specifically with commercial real estate,” explains Executive Director Steven Holbrook. “Our analysis is broad, regional, and deals with developable land and the potential build-out in the Wasatch Front. Our strategies for land use include acreage that mixes commercial and housing, sometimes public transportation, commuter rail and light rail.

“If you assume we only have 1000 square miles of developable land, with the rest public,” he continues, “our projection is that 60 percent of that land will be used by the year 2020. We need to be very thought-

lands that people want to preserve, like those along the lakeshore.”

Other underdeveloped areas include the “Wasatch Back,” places like Upper Ogden Valley, Summit County and Morgan County. “It’s not all Forest Service-owned,” he explains. “Some is private land. It will only be preserved if transfer of development rights occurs, and that takes time.”

Holbrooke explains that the advantage of building in core areas is that developers can focus the population closer to existing and possibly future transit lines. “For example, the UTA purchase of 175 miles of right of way from Union Pacific was a once-in-alifetime example of foresight. “All of the envisioning processes we do include where the best place to locate commerce

REAL ESTATE AND THE GOOD LIFE

UTAH’S COMMERCIAL BUILDING GROWTH

BY BRIAN STAKER

ful about how we utilize our land. We encourage town centers to concentrate commercial activity near people’s homes.”

Gateway provides an example of a larger, slightly different kind of model: a commercial town center. “It’s transit-oriented, and includes housing and commercial property, as well as open space.” Holbrooke adds. “A location like that can bring people together and potentially create a 24-hour interchange.”

One of the best places to visualize development activity over the next several years, he believes, is the central strip of land that houses light rail. Some of this area includes “browned fields” or old industrial sites surrounded by underutilized properties. “The potential for redevelopment along the transportation corridor is tremendous,” Holbrooke remarks. “Another advantage of developing those areas is to take the pressure off of outlying areas with

might be,” he notes.

Kennecott Land, a sister company of Kennecott Copper, owned by London, England-based Rio Tinto, envisions planned communities on its land along the Salt Lake Valley’s West Bench. The first of them, Daybreak, will take 15 to 30 years to create, but that’s the amount of care and attention to detail that has gone into its planning, explains Kennecott Land’s Vice President of Public Policy Vicki Varela.

The 90,000 acres the company owns are the equivalent of ten Manhattan Islands in size. “Our intent is to plan very carefully to create sustainable communities, so that it will be a century from now when the last one is completed,” she explains. “Everything from transportation to infrastructure to job centers will be taken into account. These communities will be environmentally sensitive, livable, and provide jobs for a vibrant local economy. We are very committed to

KENNECOTT’S DAYBREAK WILL BE COMPOSED OF DISTINCT NEIGHBORHOODS, GROUPED INTO INTIMATE VILLAGES AND CONNECTED BY OPEN SPACE.

36 BUSINESSUTAH2004

UTAH HAS ALWAYS BEEN A LEADER IN COMMERCIAL BUILDING AND PLANNING. IT HAPPENS TO BE THE SITE OF THE NATION’S FIRST DEPARTMENT STORE. WHAT STORE OFFERING DIVERSE PRODUCTS WAS BUILT AND ESTABLISHED IN THE LATE 1800S? UTAH TRIVIA

of Utah (EDCU) is a private, statewide, nonprofit organization, formed in 1987 to provide a unified and professionally managed economic development program promoting the state of Utah. “From an economic development perspective, we are bullish on 2004,” affirms Jeff Edwards, vice president of client services. “There are more national inquiries into office developments, in addition to manufacturing and warehouse facilities. We help by recruiting businesses from outside the state, and assist local companies to expand with leasing space and build-to-suit options.

“The last two years have been fairly flat, although now we are starting to see more results,” Edwards maintains. He mentions that Merit Medical, Kimberly Clark, Malt-OMeal, Schreiber Foods in Logan, and WalMart’s distribution center in Tooele all have new facilities that have contributed to the state’s job market.

“We work to assist developments like this in public and private partnerships with local, state government and 250 local businesses,” says Edwards.

The State Department of Community and Economic Development (DCED) is doing its share to promote a commercial real estate market that will improve Utah’s quality of life. Dave Douglas, the DCED’s Director of Business Development, notes, “we’ve seen a pickup of activity in 2003, with new projects looking for existing space or buildto-suit. Both Cedar City and St. George are doing quite well with companies looking to

ANSWER: ZIONS CO-OPERATIVE MERCANTILE INSTITUTION (ZCMI)

creating sustainable communities.”

Daybreak will be composed of distinct neighborhoods, grouped into intimate villages and connected by open space. Space for residential areas, business centers, retail shops, schools, parks and transportation will all be incorporated into the development.

“It’s designed for people to live in, work, play and learn, with walk-able community centers, nearby recreation, schools and all the amenities,” Varela says. “Housing will include a variety of residences in size, architecture style and income levels, with the common thread being that all will be designed to facilitate human interaction and make neighbors feel neighborly again.”

The environment will be protected, Varela says, because 30 percent of the land will be open space. “Everything will be done with water conservation as the guiding principle. It will consume 15 percent less water than most developments. That is because we will use secondary water for irrigation, and retain all storm water. A recreational lake here will use less water than a golf course.

“Education is also an integral part of our vision,” she continues. “The school here will be the first one planned in collaboration with the Jordan School District superintendent.

He said he wants our educational program to be a model for the rest of the state. Also, the school building will be designed to also serve as a community center for lifelong education of the residents.”

The Economic Development Corporation

service the Los Angeles basin market. The Wasatch Front also continues to show growth, with a number of new projects underway.”

Douglas believes the market’s two strongest areas are manufacturing and warehouse distribution, although absorption rates are up in Salt Lake City, recently known for an epidemic of office vacancies downtown. “We continue to target California companies,” explains Douglas, “since the cost of doing business there is extremely high. We offer good commercial real estate rates as well as a cheaper workforce. We are making a concentrated effort to be pre-emptive and contact firms we think may have an interest in doing business from here. We make calls, send direct mail ads, and even list properties on our website.”

Douglas also mentions their work with city and county governments from all over the state. “Just as quality of life comparison may draw people to Utah from Southern California, the continued immigration of businesses keeps the state’s economy and quality of life high,” he says. A case in point is Burly Seal Products, an LA hydraulic and pneumatic gasket manufacturer, who recently moved to the Tooele Industrial Depot. “The reliable and productive workforce, lower cost of doing business and less adversarial business climate makes our state almost too easy a sell,” remarks Douglas.

Commercial real estate brokers are also doing their share to move the market along, and in turn, keep the state’s economy robust while maintaining its high standard of living.

Mike Lawson, president of Colliers, the largest commercial real estate brokerage in the state, explains: “commercial real estate impacts every aspect of peoples’ lives through various sectors. Land provides space for housing; retail property is developed into shopping venues; the industrial or manufacturing sector makes for more jobs.

Commercial real estate can also be an excellent investment for those seeking an alternative to the stock market.” Responsible for the growth of one thousand businesses which either expanded or relocated in Utah within the past year, the firm is bullish both on the commercial real estate market and on living in the Beehive State.

BUSINESSUTAH2004 37

7

New York. London. San Francisco. Salt Lake City?

During the past several decades, many observers believe that Utah is quietly evolving into a global center for innovative, nontraditional banking and financial services.

In the 1980s and 1990s, legislators and regulators in the state worked closely with banking and financial services leaders to establish Utah as the leading U.S. center for special purpose industrial banks (also known as industrial loan companies, or ILCs). In the past several years, another collaborative effort between Utah private and public sector leaders is helping the state develop into a hub for trust-related products and services.

“As the state attracts and develops high

HAUTE

INDUSTRIAL BANKING

Industrial banks, or ILCs, are special purpose financial institutions currently found in only a few states, including Utah, California, Colorado, Hawaii, Minnesota and Nevada.

ILCs function much like traditional banks in that they can issue credit cards, offer loans and checking accounts, and take deposits, although they typically do not operate out of branch offices. In order to receive an industrial bank charter, an applicant must be FDIC-insured.

Companies in a number of industries — notably credit card companies, brokerage firms, automobile manufacturers and other large retailers — have found industri-

as any other commercial banks in the country,” says Leary. “Here in Utah, we’ve established a close working relationship with the FDIC for supervising this industry, to ensure that it is appropriately regulated for the benefit of the people and the companies.”

Because ILCs are headquartered out of a single state and operate under the laws of that state’s charter, adds Leary, they can export their products and services to customers in other locations: “Wherever they want to provide a service to a customer, such as making a loan, they can do so under one body of law,” he says. “As a statechartered, FDIC-insured institution, they can export that loan wherever they do business, targeting the purpose they have established for themselves.”

FINANCE

UTAH’S LEGACY OF FINANCIAL SERVICES INNOVATION

level financial services professionals and companies, the sophistication of the industry and workforce in Utah is growing exponentially,” says Ed Leary, commissioner of the Utah Department of Financial Institutions.

38 BUSINESSUTAH2004

al banks to be an effective way to provide a variety of financial services to their customers. According to Leary, “Industrial banks’ business stretches across the spectrum of lending, from a local retail presence or leases to national products and services for niche markets.”

For example, Utah’s ILCs include: Merrill Lynch, Morgan Stanley, American Express Centurion Bank, and UBS in the securities arena; BMW, Volkswagen and Volvo in the auto industry; Wright Express Financial Services, a leading provider of charge cards to the fleet and fueling industry; GE Capital Financial, Inc.; and a subsidiary of Utah-based fueling stations and travel plaza company Flying J, called Transportation Alliance Bank.

At present, there are just over 50 industrial banks located in six U.S. states: Utah, California, Colorado, Hawaii, Minnesota and Nevada. Of this number, 26 are headquartered in Utah.

Together, Utah’s industrial banks have insured assets of more than $110 billion under management. According to Darryle Rude of the Utah Department of Financial Institutions, Utah’s industrial banks hold a substantial majority of the FDIC-insured assets managed in the nation’s ILCs, which he currently estimates to be between $140 billion and $150 billion. The nation’s largest ILC, Salt Lake City-based Merrill Lynch Bank, has more than $65 billion under management.

Leary attributes much of the growth of Utah’s industrial banking industry to prudent regulation and oversight, which creates a high level of comfort both for the companies involved and for government regulators.

“As banks, ILCs are as closely regulated

BY KIMBALL THOMSON

According to Howard Headlee, president of the Utah Bankers Association, ILCs operating in Utah benefit from the state’s pro-business legislative and cultural environment.

“Utah provides companies the opportunity to own a bank without being subjected to some of the more onerous, non-productive regulation they might encounter in other places,” he says. “It’s creating a unique economic opportunity that companies from around the world are taking advantage of.”

UTAH TRUSTS

In the next several decades, trillions of dollars worldwide are expected to pass from one generation to another through trusts. Trusts are financial vehicles that enable a person to leave an economic legacy to heirs or a chosen cause. Trusts allow the distribution of income on the trust’s assets after their creator’s death, extending the impact of the person’s legacy over time, often over many generations.

TRADE DUST AND THE MINING INDUSTRY LURED BANKERS AND INVESTORS TO SALT LAKE CITY DURING THE MINING BOOM OF THE EARLY 1860S AND LED TO THE CHARTER OF UTAH’S FIRST NATIONAL BANK IN 1866. WHAT WAS THE NAME OF THIS BANK THAT BOASTED CAPITAL OF $150,000?

UTAH TRIVIA

“AS THE STATE ATTRACTS AND DEVELOPS HIGH LEVEL FINANCIAL SERVICES PROFESSIONALS AND COMPANIES, T H E S O P H I ST I C AT I O N O F T H E I N D U ST RY A N D WO R K FORCE IN UTAH IS GROWING EXPONENTIALLY.” ED LEARY

GROWING FINANCIAL SERVICES

Utah’s new trust laws join the industrial banking legislation as another well-conceived addition to the legislative and regulatory legacy that has helped the state develop into a leading national center for non-traditional financial institutions.

In addition to the benefits Utah’s environment creates for ILCs and trust companies in the state, the state’s communities and economy are also reaping tremendous

ANSWER: MINERS’ NATIONAL BANK OF SALT LAKE CITY

During the past several years, the stage has been set for an enormous transfer of trust assets into Utah-based trust companies. Working in collaboration with Utahbased financial services companies and associations, the Utah Legislature passed a series of laws in the 2002 and 2003 sessions designed to enable the creation of superior trust-related products and services by Utah banking and financial services companies.

“A lot of national firms have done studies that predict trust services will be one of the fastest growth areas across the country in the near future,” says Salt Lake attorney George Sutton, a former Utah Department of Financial Institutions commissioner and a chief architect of Utah’s recent trust legislation. “As all the baby boomers begin to approach retirement, the demand for trust-related financial services is just going to explode.”

According to Headlee of the Utah Bankers Association: “We took the best parts of the various laws out there, and pulled them together into some of the most attractive, powerful and flexible trust laws in the country.”

Under the new laws, a person establishing a trust can designate one party or entity (i.e. the trustee) to establish and administer the trust, and a separate person or entity to manage the assets held in the trust. The trustee is not held liable for the performance of the assets in the trust, and the client is enabled to continue to work with his or her financial advisor of choice in the management and investment of the assets.

Utah’s legislation also put other significant components in place to differentiate it from trust laws in other states. It eliminated state income tax on the income retained in a trust.

It also eliminated the rule against “perpetuities,” enabling companies to offer trusts that last up to 1,000 years, in contrast with trust laws in most states, which restrict the duration of trusts to a few generations.

“Many people want to create a long-standing legacy,” says Sutton. “This allows them to do that.”

A third key element was the creation of a variety of legal protections for the trust assets, shielding them from many claims.

“The goal was to balance the legitimate rights of individuals establishing trusts to have their assets protected against frivolous lawsuits without preventing legitimate claims on the assets, and we think we have done that,” says Sutton.

dividends from the industries.

The industries provide thousands of quality finance- and customer service-related jobs in the state, including management and board positions. In addition, as a result of the federal Community Reinvestment Act, one percent of the companies’ assets go to community redevelopment efforts. “It’s difficult even to estimate the impact these companies have had on our economy and communities,” says Darryle Rude of Utah’s Department of Financial Institutions. “From jobs to senior and low-cost housing to venture capital investment, the benefits are just tremendous.”

Leaders in the state’s private sector are equally committed to sustaining and enhancing Utah’s business-friendly environment in the financial services arena. “If we didn’t have the effective ILC and trust laws and the sound, supportive business and regulatory environment that we have here, the business and all its advantages would go elsewhere,” says Scott Anderson, CEO of Zions Bank and current chairman of the Utah Bankers Association. “All we can possibly do to drive more business like this, we should and will do.”

Sutton adds that Utah’s strength in such areas as industrial banking and trust services is increasingly helping establish the state as a national financial services center — “and it’s no longer just because of unique legislative advantages like it was in the beginning with the ILCs.” What began with flexible legislation is evolving into a critical mass of resources, credibility and momentum. “There are companies coming here now, such as UBS, that don’t rely on legislation like ours,” says Sutton. “They could own a bank anywhere, but they chose to come here.” Why? “Because over time, a truly exceptional environment for financial services has been created in Utah.”

For more information on Utah’s industrial banking, trust services and other financial services industries, visit the Utah Department of Financial Institutions Website, http://www.dfi.utah.gov.

“IF WE DIDN’T HAVE THE EFFECTIVE ILC AND TRUST LAWS AND THE SOUND, SUPPORTIVE BUSINESS AND REGULATORY ENVIRONMENT THAT WE HAVE HERE, THE BUSINESS AND ALL ITS ADVANTAGES WOULD GO ELSEWHERE.” SCOTT ANDERSON

BUSINESSUTAH2004 39

Utah has been known as the crossroads of the west since pioneers entered the Salt Lake Valley in 1847.

“We’ve come a long way from the wagons down Emigration Canyon” — wagons which brought in the first pioneers, says Tracie Cayford, media relations director for the Utah Department of Community and Economic Development. Today the state hosts an impressive array of efficient transportation systems making life easier for travelers, commuters and business owners alike.

But some things never change. Utah is still the crossroads of the west. Two major interstates, I-15 and I-80, cross paths in Salt Lake City. I-15 runs north through Idaho and Montana and south to Las Vegas and San Diego; I-80 stretches east to Cheyenne,

PLANES

TRAINS

When it comes to airports, Salt Lake City has what matters: location, location, location.

“The airport is very accessible to downtown, just 10-15 minutes away,” says Tim Campbell, executive director of the Salt Lake City International Airport. It adjoins I-80 with easy connections in any direction. “It’s also very convenient to ski areas,” Campbell says. “We’re within 30-45 minutes of some of the best resorts in the country. We get very good marks from skiers who can be on the mountain within an hour.”

Business travelers find they can reach most destinations with ease. Salt Lake City serves as a Delta Airlines hub. The airport has two terminals and 51 passenger gates, along with international gates to accommo-

Utah has a railway heritage dating back to 1869. That's when a ceremonial golden spike marked the Promontory meeting of the east and west branches of the new transcontinental railroad.

The state is still making railway news.

TRAX, Salt Lake County's light rail system, has exceeded all expectations for ridership and is inspiring emulation across the country. Commuters use the train to get to work.

Basketball fans ride it to Jazz games at the Delta Center. Kids take the train for field trips.

University of Utah students ride it to campus.

At $2.70 for a day pass, TRAX is cheaper than parking.

“TRAX has two transit lines," says Justin Jones, spokesperson for Utah Transit

NE WORK

TRANSPORTATION

8 42 BUSINESSUTAH2004

UTAH'S PLANES, TRAINS & AUTOMOBILES

Omaha, Chicago, Cleveland and New York and west to Reno, Sacramento and San Francisco. Farther south, I-15 connects with I-70, which heads east to Denver, Topeka and Kansas City. The state's central location and freeway system offers obvious trucking and shipping advantages. National trucking company CR England is headquartered in Salt Lake City, and mass retailers JC Penney and Wal-Mart have set up huge distribution centers in the state.

Geography has posed challenges to transit system planning as Utah’s population centers around Salt Lake City, with Ogden to the north and Provo/Orem to the south. Salt Lake City is set in a valley surrounded by the mountains once traversed by pioneers and now popular with skiers. The wide valley narrows at the north and south, limiting road building options even as the population increases. But planners have met the challenge with innovation and foresight.

date passengers flying to Mexico and Canada. “In 2003 we had about 18.5 million total passengers,” Campbell says. “We currently have 386 daily departures serving 70 non-stop markets.”

The airport handles large amounts of cargo as well. “Both Federal Express and UPS have operations at the airport and provide significant amounts of the cargo lift,” Campbell says. Commercial carriers also provide cargo service. “In 2003, we handled 478 million pounds of cargo.”

Utah’s famous snow rarely affects airport traffic, he adds. “We have all the latest navigational and landing aids available so we're able to stay open in inclement weather, and have very few delays in terms of operations.”

Future plans for the airport include reconfiguring roads and parking areas and adding new terminal facilities. “We have a long term plan to expand the facilities based on traffic demand,” Campbell notes.

BY CONNIE MYERS

Authority (UTA). The main TRAX line runs from the south end of the Salt Lake Valley in Sandy to downtown Salt Lake City. “The track runs parallel to I-15, running through five different cities. A portion of the rail line runs in a Union Pacific rail corridor.” As the train enters downtown, it shares the road with automobiles.

The TRAX light rail system proved so popular, an additional line became a priority.

“The second line runs from downtown Salt Lake City to the University of Utah and two medical centers, University of Utah Medical Center and Primary Children’s Medical Center,” he adds. The four-mile line also delivers fans to the Rice-Eccles Stadium, host to University of Utah football games and the opening and closing ceremonies of the 2002 Winter Olympics. “Ridership on the University line is high,” Jones says. Initial predictions were that 4,500 riders would use the University line each day. “We’re current-

ONE FAMOUS UTAH MODE OF TRANSPORTATION HAS MADE A NAME FOR ITSELF IN OVER 31 MOTION PICTURES IN THE PAST 20 YEARS. WHAT IS IT? UTAH TRIVIA

TRAX LIGHT RAIL SYSTEM

AUTOMOBILES

Utah’s freeways are well-used by Salt Lake area residents. The highway system got a boost from the 2002 Winter Olympics. “One

of the legacies of the Olympics was the rebuild of I-15,” says the state’s Tracie Cayford. Ramps and bridges were rebuilt and the freeway was widened in a highspeed but high-quality process called design/build. “It was stepped up to meet the timetable of the 2002 Winter Olympics,” Cayford says. “The locals had to live with construction cones for awhile, but in the end it was all worth it.”

“We built 44 new bridges on that project,” says Utah Department of Transportation (UDOT) Director Tom Hudacko. “It took about four years to construct, which was pretty incredible.” Along with the rebuild came high-tech traffic systems. On-ramps have flashing merge warning lights, and an on-ramp metering system runs automatically during peak hours.

High-tech upgrades also help commuters in the Salt Lake Valley avoid traffic congestion through an information system called Commuter Link, Hudacko says.

“We’ve got a network of computers that are constantly gathering information.”

Congestion detectors buried under freeway lanes measure traffic speed. Cameras record visuals of accidents or high traffic.

Weather sensors detect temperature readings. All this information is fed back to a Traffic Operations Center and evaluated.

“Information goes back out to the public via

ANSWER: THE HEBER VALLEY RAILROAD’S STEAM ENGINE AND TEN PASSENGER RAILROAD CARS.

ly at 13,291 [daily riders]. University students use it a lot. It also offers easy accessibility for employers to send employees for further education.”

Future TRAX expansion plans are already in the works. Construction on a new line on the west side of the Salt Lake Valley should begin in two years, Jones says. The Mid-Jordan line will connect to the main line in Murray and run west and south for about ten miles. Another planned line will connect West Valley City to the main line in South Salt Lake. A third light rail expansion will connect the airport to downtown Salt Lake City.

UTA also plans to serve long-distance commuters traveling from Ogden to the Salt Lake Valley. “The next rail line that we complete will be a commuter rail from Pleasant View, just north of Ogden, to Salt Lake City,” Jones says. The new train system will differ from the local light rail TRAX service. “Commuter rail runs by diesel locomotive and reaches speeds of 80-90 miles an hour,” Jones says. “It will seat 188 or more passengers in each double-decker car.” The commuter line should be complete in 2007.

To ensure rapid and reliable travel times for the commuter rail system, UTA purchased rail corridor rights from Union Pacific. “We won’t have to pull over and wait while a freight train goes by,” Jones says.

“It’s going to make our system very reliable.”

The right-of-way also ensures the success of the commuter rail. “When we study what’s most important for people in Utah, it’s time,”

he adds. “If it doesn’t get me to my destination just as fast or faster, then I’d just as soon get in my automobile.”

The high speed train will travel from Ogden to Salt Lake City in 55 minutes, making it a viable alternative to auto travel. In Salt Lake City, the commuter train will meet up with TRAX, Greyhound, UTA buses, and Amtrak in an inter-modal hub, allowing an easy commuter transfer.

Jones believes UTA’s plans will succeed because Utahns appreciate the system.

“Seventy-five percent of our riders on UTA are choice riders,” he says. “They have a car in their garage, but they choose to ride TRAX and our buses. That’s because they’re clean and they’re reliable.”

UTA continues to change to meet market demand. “Next year we’re redesigning the bus system,” Jones says. “We’ll have increased shuttle service, high speed and more frequent commuter buses.” He believes this change will match past UTA successes. “We have a high standard now at UTA,” he says. That standard extends beyond service to include finance. “We like to be ahead of schedule and under budget.”

TRAFFIC OPERATIONS CENTER

BUSINESSUTAH2004 43

electronic highway signs called variable message signs,” Hudacko says. The Utah Highway Patrol also dispatches from the Traffic Operations Center, speeding accident response time.

Information is available as well for those outside the Salt Lake Valley. “Dial 511 from anywhere in the state for voice-activated real-time information on traffic conditions,” Hudacko says.

UDOT is working to meet the needs of Utah’s growing population. Construction should begin in the next few years on the new Legacy Highway providing Salt Lake County with an alternate connection with Davis County to the north.

But building isn’t the answer to every question, Hudacko says. “We’re not ever going to be able to build our way out of congestion,” he says. “We’ve got to look at the system that’s already out there and find ways to make it work better.” UDOT has contributed $20 million toward purchasing rightof-way for the new commuter rail system.

“We also put in $6 million toward widening bridges so they can handle commuter rail,” Hudacko says. “We work very closely [with other agencies] on projects.”

Utah drivers seem generally pleased with UDOT’s initiatives. “If you talk people here, you’ll find that they’re pretty happy with their commute,” Hudacko says. “We’re constantly looking at innovative ways to move more people in fewer cars. We’re in the business of moving people, not vehicles.”

Hudacko sees transportation solutions as a team effort. “There’s a real atmosphere of cooperation between transportation agencies here,” he says. “Everyone has the objective in mind of moving more people.

It’s not just a highway independent of a transit system or a transit system independent of a highway. All these systems have to work together.”

The systems work well, says Cayford.

With planes, trains, automobiles, buses, trucks and highways, “It’s easy to get around Utah,” she claims.

"EVERYONE HAS THE OBJECTIVE IN MIND OF MOVING MORE PEOPLE. IT’S NOT JUST A HIGHWAY INDEPENDENT OF A TRANSIT SYSTEM OR A TRANSIT SYSTEM INDEPENDENT OF A HIGHWAY. ALL THESE SYSTEMS HAVE TO WORK TOGETHER." TOM HUDACKO

44 BUSINESSUTAH2004

PLANNING UTAH’S TRANSPORTATION FUTURE Utah’s Wasatch Front Regional Council evaluates and coordinates the state’s long term transportation plans, says Sam Klemm, community affairs representative for the organization. “We’re a metropolitan planning organization,” Klemm says. “We use demographics to determine how many people we have today and how many people we’ll have in twenty or thirty years.” Current estimates predict Salt Lake Valley’s population will increase from 900,000 to 1.4 million by 2030. “What kind of transportation system will we need to meet the demand from that many people?” Klemm asks.

The Wasatch Front Regional Council creates mathematical demand models and traffic estimates area by area to determine what additional transportation facilities might be needed. “We debate the merits and come up with a plan,” Klemm says.

“UTA and UDOT are bound by this plan.”

The Council’s plan is implemented in ten-year phases and includes light rail, commuter rail, and highway systems. “In the densely packed corridors where you can’t build any new roads, the only real option is transit,” Klemm says. “A good example is commuter rail through South Davis County.”

“What we’re trying to do is create a system where people have choices,” Klemm says. “They can either take a car, or in high density corridors, they have options like light rail. The principle here is that we’re not moving cars, we’re moving people.”

Transportation plans also include trucking concerns for Utah businesses. “We’re centrally located where we can ship to Denver or Oakland or the Northwest overnight,” Klemm says. “The transportation network is good. When they say Utah is the crossroads of the west, they’re not kidding.”

Congestion detectors buried under freeway lanes measure traffic speed.

Cameras record visuals of accidents or high traffic. Weather sensors detect temperature readings. All this information is fed back to a Traffic Operations Center and evaluated.

9

What business does Utah have playing on the stage of the global economy?

Plenty, it turns out.

“The global economy has an important impact on Utah and its economy,” says Franz Kolb of the Utah International Business Development Office (IBDO). “More than 100,000 people in Utah are employed because of international business. It has to do in part with our industrial structure.” Kolb says not only is Utah a very service-oriented state, but it also has strong IT and biomedical sectors.

The IBDO, a program of the Utah Department of Community and Economic Development (DCED) under the Division of Business and Economic Development (DBED), has been helping Utah businesses

GLOBAL

BY JOHN BLODGETT succeed in foreign markets since 1982. Its staff of trade experts works with a worldwide network of trade representatives to best position the state’s business resources. The office also sponsors a Government Executive Exchange Program with Japan and South Korea, hosting business leaders from these countries in Salt Lake City to increase awareness of Utah business.

PERFORMING ON A GLOBAL STAGE

Utah’s well-educated workforce steps to center stage again as a vital factor in Utah’s rising role as a global economic force. “Our workforce is trained to deal with international cultures,” Kolb says, explaining that Utah schools teach more than 50 foreign languages — and not just entry-level courses.

“There are not many universities where you can take a course in advanced business German,” he says, citing Brigham Young University. Students not only learn how to

46 BUSINESSUTAH2004

speak a language, they also learn how to do business within the context and framework of a foreign culture.

Kolb, an Austrian transplant whose native language is German, uses Germany as an example to show how Utah performs on the global stage. “We’ve seen a 61 percent increase in trade with Germany from 2002 to 2003,” he says, adding that part if it has to do with the U.S. Dollar’s performance against the Euro, but Germany also identifies with Utah’s emphasis on a high-quality educational system.

It is commonalities such as a good educational system that influence the regions, countries and cities Utah works with, Kolb maintains. Currently, Utah has trade agreements with Austria, Germany, China and,

“The door is still open for us to leverage the Utah brand of competence, natural beauty and great people.”

AN OPEN DOOR

Jeff Gochnour, director of the Utah Division of Business and Economic Development, offers a glimpse of the variety of people and entities touched by the trade missions. “The state has created a unified effort by inviting businesses, chambers of commerce, sports and tourism professionals, agricultural interests, cultural leaders, the educational community, athletes and others to join us.”

The door is still open and Utah is walking through it. “There has been a significant change in Utah’s perception in the international community the last two or three

THE WORLD’S A STAGE FOR UTAH BUSINESS

CONNECTIONS

most recently, Italy. On both sides of the agreements, the governments make important contributions to goodwill between the partnering countries. “In international business, you see government’s role as a facilitator of goodwill and trade,” Kolb explains.

Utah business leaders are impressed with what the state government is helping them accomplish. Kolb has been approached more than once by an executive who exclaimed that “it would have taken us five years to make the level of introductions” that the state’s International Business Development Office makes possible through its frequent trade missions. The tentative schedule for 2004 visits includes cities in Europe, Asia, South America and others as upcoming destinations.

“We need to build our international image and support Utah businesses in their efforts to be effective players in the global economy,” says Governor Olene Walker.

years,” Kolb says — and we all know how that came about. “It’s exciting to see the impact of the 2002 Olympic Winter Games.

They put Utah on the map.”

Prior to the games, it may not surprise many Utahns that our state was subject to stereotyping in the press; but what is surprising is the amount of bad press Utah got in European papers, and it wasn’t necessarily to do with the state’s oft-maligned liquor laws. “Originally, the European press was sarcastic,” Kolb says. “They said, ’The people in Utah can’t be so nice’.” But after the 2002 Olympic Winter Games, known for having one of the best groups of volunteers in Olympics history, Kolb says even the most jaded media outlets turned around. “Utah was praised up to high heaven,” he says, adding that all his office ever wanted was to make the world understand that good people live within the state’s boundaries.

The successful impressions and con-

ONE OF UTAH’S CLAIMS TO FAME IS THE IMMIGRATION OF PIONEERS TO THE STATE FROM SCANDINAVIAN COUNTRIES. ONE OUTLANDISH NORWEGIAN ALMOST SINGLE-HANDEDLY DEVELOPED UTAH AS A SKIER’S PARADISE. WHICH UTAH IMMIGRANT, WHO CAME TO TOWN IN 1919, IS KNOWN AS THE GRANDFATHER OF UTAH SKIING? UTAH TRIVIA

nections made during the 2002 Olympic Winter Games were not accidental; the International Business Development Office made plans far in advance.

“The Olympics are very important in Europe,” Kolb says. The first thing the office did was to gather businesses and spectators alike in Hospitality Houses, so that they could mingle with their Utah counterparts.

Kolb says many businesses were “floored” that here in the “American Wild West” they were able to find educated people not only versed in so many foreign languages, but also foreign cultures, and most importantly, foreign business cultures.

The state’s efforts have continued long after the Winter Games left town, such as the recent exchanges between Utah and Russian youth athletes over the past couple of years. “All these activities contribute to international understanding,” Kolb says.

“Such a proactive approach is rare in the United States.”

According to Kolb, it’s difficult to determine the exact value of a state’s exports and therefore how it compares to other states’ involvement in the global economy. Direct exports, such as when a Utah product is shipped from Salt Lake City directly to Munich, are relatively easy to track. But if that product is first shipped to, say, Boston, and

then put into a container for shipping to Munich, it is Massachusetts that receives credit for the export, not Utah. Another factor that contributes to accounting for dollar amounts is when people low-ball the value of a shipment on the customs forms.

Kolb can still maintain a pulse on Utah’s export performance. “Utah products are very much in demand,” he says. “The state has some of the best technology, research and development and universities.” He adds that Utah also has one of the oldest business park infrastructures in the nation and an excellent reputation of getting technology out of the developers and into the marketplace.

Nevertheless, Utah’s exports dropped in 2003, after rising each year since 1998. After an increase of almost 30 percent between 2001 and 2002, in 2003 exports dropped more than nine percent. The cause was a drop in exports of gold to countries such as Switzerland; gold typically accounts for upwards of 40 percent of Utah’s total exports, much of it produced by Kennecott Utah Copper.

But Utah’s exports still exceed the mark hit in 2001.

Far and away, Switzerland continues to receive the most exports from Utah, most of it gold: In 2002, Utah exported almost twice

ANSWER: ALF ENGEN

as much to Switzerland as it did to the United Kingdom, which holds the number two spot. Canada, Japan, and Singapore fill out the top five. (Utah exports to Singapore rose more than fivefold from 2001 to 2002.)

Precious stones and metals are Utah’s most common export, followed by electrical machinery, vehicles, optical fibers and medical instruments, and machinery.

Looking ahead, Kolb is optimistic about Utah’s increasing global business presence.

“We need to identify what our competitive excellence positions are,” he says. Stating the need in international business to take a medium and long-term outlook, and comparing it to the traditional United States short-term perspective, he acknowledges the “need to make a paradigm shift.”

Part of this shift involves changing the perceptions of those who think that joining the global business community means losing jobs to other countries. Kolb says this is not true at all. “We are not exporting jobs,” he emphasizes. “We want to strengthen our domestic employee base. For every $1 million in exports, we create 22 to 24 jobs [in the United States]. Our aim is to have enough opportunities for people who want to work.”

Besides, Kolb says, “The world is going to continue to shrink, and we cannot live in isolation.”

Participation in the global economy requires some unique job skills, not the least of which is language. Indeed, language is perhaps the last border to tear down before we can truly have ‘business without borders.’ “Language is important, because it shows that a person is culturally sensitive,” Kolb says. And, he says, words carry different weight from one language to another; often nuance and proper understanding are lost in mere translation. Learning a language from within its cultural perspective almost guarantees a full grasp of meaning.

Kolb points out, too, the need for greater technical adaptability and for those wellversed in international management and marketing. But his confidence in Utah, and Utahns, doesn’t waver: “We’ve got a lot of things going for us.”

To learn more about what Utah can do for your business in the global economy, visit www.international.utah.gov.

INTERNATIONAL BUSINESS OFFICE TEAM (R TO L): EDGAR GOMEZ, INFORMATION & TRADE EXECUTIVE; LORRAINE DALY, PROGRAM SUPPORT SPECIALIST; MATTHEW MCCONKIE, DIRECTOR ASIA; GOVERNOR OLENE WALKER; TINA STAHLKE LEWS, DIRECTOR; FRANZ KOLB, DIRECTOR, EUROPE; LIEUTENANT GOVERNOR GAYLE F. MCKEACHNIE; HENRIQUE DEAGOSTINI, DIRECTOR, THE AMERICAS BUSINESSUTAH2004 47

MEMBERS OF THE NWB SHOSHONE ECONOMIC DEVELOPMENT CORPORATION, THE STATE OF UTAH DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT, THE NATIONAL VIRTUAL TRANSLATION CENTER AND NWB TECHNOLOGY.

An exciting transition is happening in Utah — the middle of nowhere is becoming somewhere. Small towns and cities are challenging preconceptions and fostering successful businesses, far from major population centers, that reach and attract customers well beyond the state’s borders.

WHAT MAKES A SITE SMART?

The State of Utah encourages and supports such companies off the beaten business path. The Utah Smart Site Program, an effort of the state’s Department of Community and Economic Development, was established to encourage businesses worldwide to outsource to high-technology providers in rural Utah. Under its banner, the state’s Rural Partnership awards the

UTAH SMART SITES

10

DOING BIG BUSINESS IN SMALL PLACES

BY JOHN BLODGETT

designation of “Utah Smart Site” to towns with the infrastructure and desire to attract companies who use computers and the Internet to conduct business.

The requirements for consideration are: the town must have a Smart Site Team, composed of local business leaders and others, to support the initiative and attract viable businesses; it must be able to grow access to a technology workforce of at least 10 employees; and it must have available at least one facility equipped with the technology infrastructure (high-speed Internet access, etc.) to attract a company that can employ at least ten Smart Site employees.

The “Utah Smart Site” designation is also awarded to companies that provide outsourcing services via the Internet and an employment opportunity for technology workers in these towns. The benefits available to such businesses include state job tax credits and investment tax credits, attractive NWB TECHNOLOGY TRANSLATOR CANDIDATES QUALIFYING FOR FBI CERTIFICATION

48 BUSINESSUTAH2004

PEOPLE IN UTAH’S FAR REACHES HAVE ALWAYS POSSESSED A GREAT WORK ETHIC. ONE OF UTAH’S MOST RECOGNIZABLE LANDMARKS, THE LDS TEMPLE IN SALT LAKE CITY, WAS NOT THE FIRST SUCH ARCHITECTURAL MASTERPIECE TO BE COMPLETED IN THE STATE. WHICH THREE LDS TEMPLES IN THE STATE WERE BUILT FIRST, AND HOW LONG DID IT TAKE TO FINISH THE SALT LAKE TEMPLE? UTAH TRIVIA

rates for leasing computer equipment and involvement in targeted marketing campaigns that promote Smart Site businesses.

In the 25 years that he has worked in rural development, Smart Site Program Director Ed Meyer says that the Utah program is the best he has seen anywhere. “I am not saying this because I am some kind of genius,” says Meyer. “It’s just that there are so many people pulling in the same direction that good things have happened.”

GROWTH

Grumman’s Native America Business development team, in a letter to Wold in early 2004. “That the Utah tribes have 8(a) and LLC status underscores your efforts and their collective recognition for doing business with industry and government.”

Such community and economic development is an arena that the State’s telecom companies are becoming more involved in as they expand broadband services. When the Sanpete County Office of Economic Development helped open Mt. Pleasant’s Skyline Drive Technology Smart Site in 2002, Central Utah Telephone (CUT) agreed to provide free installation and use of phone and Internet services until the Smart Site acquired jobs. “Farming is just dying,” says CUT manager Ed Cox, whose family has owned the company since 1919. “(The Smart Site) gives the area an opportunity to compete with the folks on the Wasatch Front.”

According to Brian Cottam of the Wayne County Economic Development Council, there is little opportunity for their county, which is composed of 97 percent public land, to create jobs in the “traditional” economic development manner. “We have to be creative in our economic development, and the Smart Site Program fits this strategy of creativity in enhancing our local economy, as well as providing opportunities for residents and individual entrepreneurs,” Cottam says.

ANSWER: ST. GEORGE, MANTI AND LOGAN; 40 YEARS

There are currently 39 rural companies participating in the Utah Smart Site Program, accounting for 750 net new jobs. Though the number of jobs and companies continues to increase, Meyer says that they are experiencing a lull as potential clients around the nation have cut back on outsourcing during hard economic times. Still, Meyer feels good about what the program has been able to accomplish. “There aren’t many companies that can show comparable growth during this period of disaster and recession,” he says.

Meyer says federal contracting is one area that has been a challenge for the program. “It’s not because we can’t do the work, but because our folks don’t know how to do it,” he says. But progress is being made.

Late last year, two Utah Tribal Smart Sites—Suh’dutsing Technologies, established by the Cedar Band of the Paiute Tribe, and NWB Technology of the Northwestern Band of the Shoshone Nation --received 8(a) certification from the U.S. Small Business Administration, allowing them the ability to better compete for government contracts.

Uinta River Technology, owned and operated by the Northern Ute Tribe, received its certification in 2001. The company provides forms processing, document handling and management and data conversion, among other services.

Meyer calls the tribes’ experiences a “huge” success of the Utah Smart Site Program.

Located in Brigham City, NWB Technology markets IT products and services used by government agencies such as the United States Department of Agriculture, the Air Force, and the Justice Department.

Company president Ivan Wongan says that the company expects to hire upwards of 100

employees by late 2004.

Suh’dutsing Technologies, of Cedar City, helps to connect rural Utah firms with the world so that global firms can outsource services (software testing, call centers, data entry and more) to companies along the back roads of Utah. Suh’dutsing Technologies plans to employ up to 50 people in its 1,400 square foot facility in the tribal community building.

According to Carey Wold, Tribal Smart Site 8(a) development specialist for the Utah Division of Business and Economic Development, both tribally owned companies have found experienced mentor companies in the Washington D.C. area to help them procure government contracts.

The certification announcement came almost a year after Joseph Diamond, director of the Department of Defense Air Force Office of Small and Disadvantaged Business Utilization, visited Salt Lake City to sign a memorandum to expand the Native American Small Business Initiative nationwide.

Wold has also been in contact with Northrop Grumman, which has expressed interest in teaming with the Utah Tribal Technology Companies. “Doing so will be the venue for both organizations to complement one another and profit accordingly,” said Richard Hughes, of Northrop

GOVERNOR WALKER AT RIBBON CUTTING FOR NEW SMART SITE AT SNOW COLLEGE EPHRAIM (SANPETE COUNTY)

BUSINESSUTAH2004 49

TEAM MEMBERS CUT THE RIBBON TO UTAH’S NEWEST SMART SITE IN LOA. ON HAND FOR THE CEREMONY WERE (L TO R) ED MEYER, DIRECTOR OF THE UTAH SMART SITE PROGRAM; RYAN DAVIS, OWNER OF SNAPSHOT MULTIMEDIA; BRIAN COTTAM, WAYNE COUNTY ECONOMIC DEVELOPMENT DIRECTOR; AND WAYNE COUNTY COMMISSIONER ALLEN JONES.

Cottam attributes Wayne County’s success to arriving just a bit late to the table.

“Our experience could very well be a result of our local initiative not happening until the Smart Site Program was already a few years old,” he says. “This allowed us to learn from others’ mistakes and challenges and some of the pitfalls that other Smart Sites have fallen into.”

It also helps that Wayne County has the “undivided” attention and support of program personnel. “This has made our learning curve much shorter,” Cottam says.

RESOURCEFULNESS AND RESILIENCE

The experience of Aviacode, a Salt Lake City-based medical coding service provider and reimbursement management company, is a good example of how the state will work with businesses in order to improve the Smart Site Program for all. The company announced that it would hire 100 rural medical coders after former Governor Mike Leavitt introduced the Health Informatics Ecosystem, an initiative to establish rural jobs in medical coding, transcription and billing.

“While our model of working from home provided us with a surplus of coders that wanted to work with us in the short term, we knew it was just a matter of time when recruiting, training and hiring of certified medical coders would become problematic,” explains CEO Steve Green. Faced with an 18 percent nationwide shortage of certified coders, Green says they needed to find a labor pool they could tap for present and

50 BUSINESSUTAH2004

future needs.

The Smart Site Program seemed the ideal solution to provide the remote workers Aviacode sought, but for one significant factor — none of the potential candidates were certified in medical coding.

Aviacode was not deterred. Working with the State as well as the American Academy of Professional Coders, Aviacode and the College of Eastern Utah introduced a new curriculum to provide students the training and certification they needed. The students could use the College’s computer lab and Smart Site resources to become employable.

“The program has been a big success,” Green says. “Since the first 30 students began the program in the summer of 2003, Aviacode has been able to train 11 students to acceptable standards and hire them. We hope this is just the first sign of success.”

Smart Site Program director, Meyer is most excited about a recent effort to provide online learning to rural communities, through a tool that just so happens to be provided by a Utah Smart Site — Learnkey, based in St. George. “They have a product called OnlineExpert that is, bar none, the best interactive, Internet-based e-learning product I’ve seen anywhere,” Meyer says.

Courses can be as simple as how to use a computer or as complex as learning how to design Web sites with Macromedia Dreamweaver. The end result, of course, is more rural people trained to take outsourced employment.

“OnlineExpert is a comprehensive solution that allows the Utah Smart Site Program to determine current skill levels of learners, deliver Web-based courses, monitor study and verify skill progression,” explains Ken Perkins of Learnkey. The product first gives users a skills assessment test, after which it can begin instruction at the individual’s level of understanding. Progress is automatically recorded in an online database, and at a course’s completion a final exam demonstrates mastery of new skills.

“Since our [Smart Site] Program is funded by multiple grants, it’s important that we are able to demonstrate the outcomes of our [e-learning] effort,” Meyer says. “The numbers don’t lie.” Plus, Meyer says, the ability to prove competencies in such a manner gives Utah a “leg up” on competing states vying for outsourced jobs.

OnlineExpert is not Learnkey’s first contribution to the Smart Site Program. In late 2001, the company donated self-paced, interactive CD-ROMs to Smart Sites and other locations throughout Utah to help people learn how to use Microsoft Office Suite.

The donation was valued at $435,000.

OnlineExpert has helped a lot of people so far. “We have been able to provide online training to 1,500 rural people over the past nine months,” says Meyer.

Learnkey’s Perkins shares a few poignant success stories — an injured rural farmer able to start a second career as an executive assistant, a widowed grandmother who was able to enter the workforce for the first time in her life thanks to training provided by OnlineExpert.

One group of students, however, was particularly impressive. At least 250 of the 1,500 students taught thus far were from low-income families with children. “Many educators and workforce counselors were adamant in their belief that individuals from families receiving public assistance lacked the initiative to complete a self-paced elearning course.”

How did they perform? Their average score, it turns out, was 87 percent.

It would be smart, indeed, to do business with and in rural Utah. For more information, visit the Utah Department of Community and Economic Development Web site at www.dced.utah.gov.

W

MESA ARCH, CANYONLANDS

REGIONAL FOCUS Photograph courtesy of Utah Travel Council

WASATCH FRONT / MOUNTAINLAND / SOUTHWESTERN / BEAR RIVER / UINTAH / SOUTHEASTERN / CENTRAL

BUSINESSUTAH2004 53

As Utah’s economic and cultural powerhouse, the Wasatch Front boasts a robust economy based on a diversity of industries.

Because of rapid growth, the five counties in the region share more economic goals and development strategies than ever before, creating exciting prospects for the region around the state’s capital, Salt Lake City.

Approximately 1.5 million people live along the Wasatch Front, making it home to 76 percent of the state’s total population. Salt Lake City has the largest concentration of people with 174,409 city residents and 929,315 people in the adjacent Salt Lake County. The Economic Development Corporation of Utah predicts that the population of the front will reach two million by 2007.

Because of this rapid population growth, the five Wasatch Front counties — Weber, Davis, Morgan, Salt Lake and Tooele — are learning new patterns of conduct in their dynamically changing relationship says Christopher Roybal, president and CEO of the Economic Development Corporation of Utah (EDCU).

The counties are being forced to combine, not only in a physical sense, but ideologically as well. “As land becomes more scarce, we will see them grow together even more during the next five years,” Roybal says. “We’re seeing these communities build out and attach labor bases and economies.”

As the counties begin to understand their interdependency, Roybal predicts an

increase in cooperative efforts to improve transportation, labor and the quality of life for residents.

“Realizing that economic boundaries are disappearing, Draper sees that for it to be successful, Sandy needs to be successful. For Murray to succeed, Salt Lake needs to succeed,” notes Roybal.

SALT LAKE COUNTY

Although the 2002 Winter Olympic Games put Salt Lake City on the map for much of the world, the city is more than just the former site of a world-class event.

The capital city, nestled next to the Wasatch mountains, is home to a variety of thriving industries, including biotechnology, which flourishes at state-of-the-art research

WASATCH FRONT: UTAH’S ECONOMIC HUB

BY LUCY BURNINGHAM

facilities such as the University of Utah and the Huntsman Cancer Institute, as well as at privately owned Myriad Genetics and NPS Pharmaceuticals.

A burgeoning manufacturing sector also calls Salt Lake City home, as do many in the financial industry. And with Salt Lake City impeccably positioned in the national distribution scheme as the Crossroads of the West, the city houses not only a thriving ground transportation network, but also lays claim to the Salt Lake City International Airport, the 32nd busiest in the nation.

Utah’s capital is one of the country’s top high-tech hot spots, with a large concentration of upstart high-tech firms, software engineers and programmers who consistently create new digital applications and other leading technological marvels.

Most employees within Salt Lake City find a workplace home with local govern-

54 BUSINESSUTAH2004

THOUGH IT PROFESSES TO HAVE THE GREATEST SNOW ON EARTH, UTAH IS A DESERT CLIMATE DESPERATE FOR MOISTURE THROUGHOUT THE YEAR. YOU MIGHT BE SURPRISED TO DISCOVER SALT LAKE CITY BOASTS AN AVERAGE OF 17 MORE INCHES OF ANNUAL SNOWFALL THAN THIS FAMOUS COLD AND SNOWY CITY TO THE NORTH. UTAH TRIVIA

ment entities, including those in the education industry, such as the University of Utah and Granite and Jordan school districts.

In the private sector, Novus Services, Delta Airlines and the LDS Hospital provide diverse livelihoods for the largest number of individuals.

DAVIS COUNTY

Immediately to the north, Davis County has endured its long-standing reputation as Salt Lake City’s primary “bedroom community.”

But with a population of nearly a quarter of a million people and its own growing economy, this county is no longer just an extension of the capital city.

Layton, Bountiful and Clearfield are Davis County’s most populated cities, and

TOOELE COUNTY

WEBER COUNTY

many of their residents work at Hill Air Force Base (HAFB), the county’s largest employer.

The Base retains the services of more than 23,000 people, and base officials report that Hill’s impact on the Utah economy totals more than $2.5 billion annually. Base closures elsewhere have brought even more jobs to Hill, but a new round of closures is scheduled for 2005, and Wilf Sommerkorn, director of community and economic development for Davis, says there is nothing to do but wait and see if Hill will remain operational or not.

But while Davis County’s economy was once fueled almost entirely by HAFB and agriculture, it now boasts a strong professional and business services sector as well, especially in the financial industry. The outlook for the county is positive, as the growing population with a median household income of $58,329 requires additional housing and commercial centers.

Weber County’s residents enjoy a unique blend of urban and rural life in the northernmost regions of the Wasatch Mountains.

Though hit hard by the national economic downturn of the past few years, the county continues its recovery efforts.

Despite job losses in 2001 and 2002, many industries are now experiencing job growth, such as the nutraceutical, health services and automotive businesses. Ron Kusina, executive director for the Weber Economic Development Corporation, reports that one of Weber’s greatest strengths is the manufacturing sector, which is the second largest in the state.

The U.S. Internal Revenue Service in Ogden tops the employment charts in Weber County, with the Weber County School District and Weber State University in second and third places respectively.

The city of Ogden, with a population of 80,000 people, is undergoing a “renaissance in redevelopment,” says Kusina. The city invested heavily in downtown businesses, and the remarkable changes are obvious

all along Ogden’s revamped historic 25th Street as residents and visitors enjoy new shops and restaurants.

MORGAN COUNTY

The quiet, natural beauty of Morgan County makes agriculture the natural backbone for the region’s economy. But in addition to livestock and crop production, the county is home to Browning Arms, a leading manufacturer of sporting arms and other sporting goods. Holnam Inc., a cement manufacturing plant, employs the second greatest number of people in Morgan County.

The county’s population of just 7,500 people would greatly benefit from expanding the region’s tourism and recreation industries, says District 2 Councilman Dan Hancock. The Morgan County Council hopes to revive Como Springs, once a popular recreation center based around natural hot springs. They also hope to improve the facilities at the East Canyon and Lost Creek reservoirs and develop areas on the “Wasatch Back” for resort activities. The county airport is currently being expanded to accommodate more recreational traffic in this quiet rural community huddled deep in the Wasatch Mountain valleys.

ANSWER: FAIRBANKS, ALASKA

Just west of the Salt Lake valley, Tooele County occupies a rural, desert area flanked by two mountain ranges, all in close proximity to the capital city. Tooele County’s population of over 46,000 people continues to grow due to the westward expansion of the Salt Lake valley.

The county, which has relied heavily on the military for jobs in the past, is now experiencing changes brought on by the downsizing of the national defense budget. Many new industries have emerged, however, especially in the leisure and hospitality industries.

County Commissioner Gene White cites the arrival of a Wal-Mart distribution center, slated to open in the spring of 2005, as a sign that Tooele is being discovered for its prime location. The new center will require a fulltime workforce of at least 600 people immediately upon its opening and should add more jobs as needed. Despite these overall changes, Tooele’s largest employers still include Dugway Proving Ground and EG&G Defense Material.

WASATCH FAST FACTS:

Counties: Salt Lake, Davis, Tooele, Weber, Morgan Major Cities: Tooele (22,502), Ogden (78,641), Roy (34,997), Layton (60,064), Bountiful (41,270), Salt Lake (181,743), West Valley (108,896), Sandy (88,418) Regional Civilian Labor Force: 765,167 Per Capita Income: $28,188 (Salt Lake), $18,542 (Tooele), $23,269 (Weber), $22,411 (Morgan), $24,974 (Davis) Major Employers: University of Utah, Intermountain Health Care, Delta Airlines, Dugway Proving Grounds, AG and G Defense Materials, Weber State University, McKay Dee Hospital Center, Holnam Inc., Hill Air Force Base, Lifetime Products Inc., Smiths Food King Average Sale Price of Homes, First Quarter 2004: Salt Lake $189,598, Tooele $123,644, Weber $134,056

BUSINESSUTAH2004 55

Take a safe and bustling urban center known for its best of the best technology companies. Stir in a top-notch university and a four-year college. Then take a spectacular mountain range, add some idyllic small towns — one with deep Swiss roots, another a charming old mining town turned ski resort — and dump a regular heaping of dry-as-flour snow. Add a long history of farming and ranching. Then for extra zest, sprinkle with a world famous film festival, and you have Utah’s three-county Mountainland region.

In the mountain counties of Wasatch and Summit, farming and ranching are still core to the economy. But the New West unabashedly flirts with the Old West on the Main Streets of Heber, Midway and Park

City. Drive down the mountain to Utah County and you will find yourself in the midst of a tech-savvy enclave that attracted many of the companies that helped kick-start the 1990s boom. Here, old and new come together in an irresistible mix.

SUMMIT COUNTY

Nowhere in the region is the dichotomy between the old and new more apparent than in Summit County. Eastern Summit County remains true to its agricultural beginnings, with ranching and farming still staples of the economy. But an abundance of Olympic-quality snow helped transform Park City, on the western edge of Summit County, from a ramshackle mining community on the verge of becoming a ghost town, into a

world-class ski destination with three resorts.

Skiing started bringing tourists to Park City in the winter, but now golf, hiking, mountain biking and horseback riding keep them coming year round. The resort atmosphere, the concentration of luxury properties and the 20-minute drive to Salt Lake City has attracted people with flush pockets. For most of the 1990s, Summit County was Utah’s fastest growing county. While growth has slowed some in recent years, Summit is likely to see strong growth for years to come.

At just over $42,000, the per capita income is Utah’s highest.

WASATCH COUNTY

When you offer a highly educated workforce, a quiet rural community within close

MOUNTAINLAND: BUSINESS LIFE AT THE SUMMIT

BY TIM WESTBY

proximity to Park City’s slopes and the Wasatch Front’s urban areas, a new college campus and beautiful scenery, you can afford to be selective.

As people seeking a less expensive small-town lifestyle spill over from the Park City area, they’re quickly discovering the charms of the county to the south — Wasatch County, which has overtaken Summit as the fastest growing county in Utah. Recreation is a mainstay of Wasatch’s economy: With three large reservoirs, Soldier Hollow --– the Olympic cross country skiing and biathlon venue and a new 36-hole golf course.

But this small county of approximately 16,000 has diversified its business base in the last several years as well. The county’s 40-acre industrial park proved so popular that another 40 acres was added — and now that is largely sold out as well. Meanwhile, in Heber, a recently opened branch campus of PARK CITY’S HISTORIC MAIN STREET

56 BUSINESSUTAH2004

UTAH’S BOOMTOWN, PARK CITY, STARTED MINING PRECIOUS METALS LONG BEFORE THE SKI INDUSTRY MADE SUMMIT COUNTY A TOURIST DESTINATION. IT WAS FOUNDED IN 1869 AS A SILVER MINING TOWN AND BY 1900 WAS BRIMMING WITH 10,000 RESIDENTS AND 100 SALOONS. IT ENDED UP BOASTING THE UNITED STATES’ SECOND LARGEST SILVER STRIKE AND NOW FEATURES HOW MANY MILES OF MINING TUNNELS? UTAH TRIVIA

The county has the highest percentage of adults in the country that are fluent in a second language, thanks in part to the presence of missionaries from the Church of Jesus Christ of Latter Day Saints returning from international locations and attending Brigham Young University (BYU) in Provo and UVSC in Orem.

Every year BYU and UVSC graduate over 11,000 students, providing a young, well-educated workforce. “About 15 percent of our population is in some kind of college pursuit,” says Russ Fotheringham, Utah County’s economic development director.

“There is no place like this in the United States. The largest demand right now is for a bright, strong and loyal workforce. And human resources are one of the things we’re

300 employees nationwide. In addition, H & R Block, which recently moved its regional office from Salt Lake City to Midway, homegrown startup Bear Creek Country Kitchens and the Homestead Resort are also major employers in the area.

going to promote.”

But Utah County isn’t about all work and no play. There are resorts like Thanksgiving Point, a business, retail and recreational park — the largest resort in the Intermountain West — located halfway between Salt Lake City and Provo/Orem, Thanksgiving Point is the brainchild of WordPerfect founder Alan Ashton. The resort includes retail shops, restaurants, animal farms, educational centers, greenhouses, conference centers, a Johnny Miller Signature championship golf course, the largest dinosaur museum in the world and 55 acres of themed gardens.

Sundance Resort, located between Provo and Heber, is consistently rated as one of the most environmentally-friendly ski resorts in the country. It also offers excellent skiing in a low-key atmosphere, but if you’re looking for something a bit more adventurous, Park City is only 45 minutes away.

And despite the large metropolitan area

UTAH COUNTY

With nearly 388,000 people, Utah County is the second most populous county in Utah, but so much about this county needs to be compared at the national level. For starters, Utah County is consistently ranked as one of the best places to raise a family and the healthiest city in the country for women. It also has one of the lowest crime rates in the country, it’s second in the nation in Internet usage and 96 percent of homes have personal computers.

Utah County is also considered one of the most conservative counties in the nation.

But that doesn’t mean residents are uptight.

of Provo/Orem, Utah County offers plenty of small towns for those who want to keep the hustle and bustle of big city life at arm’s length. Even agriculture continues to play a major role in the county’s economy. Utah County has more farms (1,790) than any other county in Utah, and its agricultural products pump well over $100 million into the state’s economy every year.

Location is another strong selling point for Utah County. Provo residents, for instance, are only 30 minutes away from the Salt Lake International Airport. Fishing holes, hunting spots and snowmobile trails are nearby as well. With an economic rebound underway, Utah County officials report a sharp increase in the number of out-of-state businesses requesting information about sites around the county.

With so much going for it, Utah County has been able to attract and keep companies like Novell, NuSkin and Micron. Its hightech industry is once again booming. One significant company is the IT firm Altiris.

Since its founding in 1998, Altiris has seen the NASDAQ bubble burst and four years of sluggish economic growth that has hit the technology sector particularly hard. Yet Altiris, which develops software meant to simplify and reduce the cost of owning information technology, has shrugged off the dire economic news and grown at a pace that makes other technology companies green with envy. Altiris was recently named to the Forbes Magazine list of 25 Fastest Growing Technology Stars.

MOUNTAINLAND FAST FACTS

Counties: Utah, Summit, Wasatch Major Cities: Provo (105,170), Orem (83,662), Pleasant Grove (23,597), Park City (7,714), Heber (8,470) Regional civilian labor force: 205,537 Per capita income: $42,102 (Summit), $21,969 (Wasatch), $19,271 (Utah) Top private-sector employees: Brigham Young University, Novell, NuSkin, Nestle Frozen Foods, The Homestead Resort, Deer Valley Resort Average sale price of homes, fourth quarter 2003: Park City $515,000, Utah County $178,237, Wasatch County $198,737

FLAG STAFF MINE, PARK CITY 1869

ANSWER: 1,200 MILES OF MINING TUNNELS UNDER THE CITY — THE DEEPEST DELVING 2,600 FEET INTO THE EARTH.

Utah Valley State College (UVSC) offers degrees in accounting, behavioral science, business and general education.

“We’re not looking for a whole lot of businesses,” says Robyn Pearson, Wasatch County’s economic development director, “just a few good ones. We’re not looking for smoke stacks, low paying jobs or companies that use a lot of water.”

The ability to be choosey has allowed Wasatch to attract a mix of information technology, pharmaceutical, biomedical, small manufacturing and food processing companies. One such company is Park City Solutions, which implements and integrates IT systems for healthcare companies. From the company’s headquarters in the Swissthemed town of Midway, leaders oversee

REHEARSAL HALL, SUNDANCE

BUSINESSUTAH2004 57

A multitude of tourists flock to southwestern Utah every year for the dazzling scenery and inviting climate. Some return to make their homes in the area. But it’s not just tourists who feel the draw of this unique region. Companies also recognize the advantages of locating to southwestern Utah: the simplicity of doing business in the state and the ease of living among some of nature’s finest landscapes. St. George, the region's popular hub, was recently listed as one of the “Hot Small Towns in the West” by Sunset magazine, and Newsweek cited its housing costs as some of the most affordable in the nation.

The economy of the region is as diverse as the colors of the landscape, with a seemingly endless list of advan-

tages: easy access, strategic location, room to grow, affordable development costs and, above all, an educated and skilled labor force.

All of these factors figured in Wells Dairy’s move to the region. Dave Smetter, public information officer says that much of the growth of the Blue Bunny brand is moving towards the western part of the United States. “We were looking for a manufacturing plant closer to that customer. St. George came out on top against locations in 25 other states. The proximity, an eight-hour drive to every West Coast city, and the quality of life our employees would enjoy here mirrors that in our headquarters, LeMars, Iowa.” The company — in the top half-dozen in the ice cream market — opened their St.

George plant last April with initial personnel of 45-50, but they hope to eventually employ 70 people.

WASHINGTON COUNTY

Known as “Utah’s Dixie,” an appellation stemming from the area’s warm climate, southern location and late 19th century production of cotton, Washington County has seen its economy evolve from one centered on agriculture to the areas of tourism, trade and services. With ten championship golf courses playable year-round due to the region’s mild winters, the golf industry has become an important part of the county’s economic growth and development. St. George, its largest community, enjoys over 300 days of sunshine annually and is

SOUTHWESTERN UTAH: BUSINESS UNDER 300 DAYS OF SUN

BY BRIAN STAKER

known as the “Year Round Golf Capital of Utah.” The city, which operates four courses, is home to Sunbrook Golf Course, considered the jewel of St. George and rated

by Golf Digest as Utah’s No. 1 publicly owned course.

Washington is Utah’s second-fastestgrowing county, with an annual growth rate of 6.4 percent between 1990 and 2000, according to 2000 census data. Speculating on Washington County’s popularity as a destination spot and retirement community, economists project its steady growth will continue, with St. George’s current population of 50,000 burgeoning to 112,000 within 30 years.

“Our strengths are diversity, both economic and demographic,” says Scott Hirschi, director of economic development for Washington County. “There’s no one dominant industry here. The largest employer is still relatively small.” IHC is SUNBROOK GOLF COURSE, HOLE 9

58 BUSINESSUTAH2004

THOUGH UTAHNS GENERALLY LIKE TO BELIEVE MOST PEOPLE IN THE STATE ARE INHERENTLY GOOD, UTAH DOESN’T MIND CLAIMING ITS VERY OWN INFAMOUS BAD BOY. WHAT NEFARIOUS CHARACTER IN THE STATE’S PAST HAILS FROM THE SOUTHWESTERN REGION, AND IN WHAT TOWN WAS HE BORN? UTAH TRIVIA

THE ECONOMY OF THE REGION IS AS DIVERSE AS THE COLORS OF THE LANDSCAPE, WITH A SEEMINGLY ENDLESS LIST OF ADVANTAGES: EASY ACCESS, STRATEGIC LOCATION, ROOM TO GROW, AFFORDABLE DEVELOPMENT COSTS AND, ABOVE ALL, AN EDUCATED AND SKILLED LABOR FORCE.

services because of its proximity to Bryce Canyon, Zion and Grand Canyon national parks. In the 1920s, Hollywood discovered the vermilion cliffs and pinion desert of Kane County’s largest community, Kanab, and the town was suddenly transformed into “Little Hollywood.” Kanab has since become a well-known backdrop for filmmaking. With a current population of 3,500, Kanab will grow to nearly 11,000 within the next 30 years, economists forecast.

IRON COUNTY

With a historic economy based in mining and smelting, Iron County earned its name from the presence of iron deposits in the area. Today, Iron County’s employment base comes from Southern Utah University (SUU) in Cedar City and from government offices, manufacturing and a variety of niche service and trade-related companies such as the business marketing firm Convergys.

The county hosts the Tony Award-winning Utah Shakespearean Festival, which draws thousands of visitors to the SUU cam-

pus grounds each summer to enjoy some of the best theatrical productions in the nation.

Iron County is also home to Brian Head, an alpine and Nordic ski resort located near Cedar Breaks Monument.

GARFIELD COUNTY

Lumber and agriculture were the mainstays of scenic Garfield County until the early 1900s, when the creation of area national parks introduced tourism to the local business environment. Garfield is a gateway to the sandstone spires and colorful formations of two national parks, Bryce Canyon and Capitol Reef, and is also home to the Glen Canyon National Recreation Area and the newly-created Grand StaircaseEscalante National Monument. Historic Ruby’s Inn Incorporated, a major hotel and resort located near the entrance of Bryce Canyon, is the county’s largest employer according to state labor figures.

BEAVER COUNTY

Networked by the state’s primary northsouth transportation corridor, Beaver County ANSWER: BUTCH CASSIDY, BEAVER

building a new hospital in St. George, which will make them the largest private employer in the county and the second largest employer overall.

Washington County has long served as the regional center of commerce for southern Utah and southeast Nevada, a status that’s reflected in its diverse niche industries, including medical and legal services and retail home furnishings. St. George features a high concentration of retail suppliers including Super Wal-Mart, Target, K-Mart, Costco, Home Depot and Lowes. Other retail centers include the 38-acre Red Cliffs Mall with its 53 stores, and the Zion Factory Stores at Red Cliff.

“The attractions of living here are pretty widely known,” Hirschi explains, “including the weather, open space, small town feel and big town conveniences. Our workforce is motivated and expanding. Utility costs are low. We have great logistics for shipping and business-friendly government. We’ve been largely insulated from the recent economic downturn due to our diversity.”

Orgill Inc., a Memphis, Tennesseebased company among the largest independent distributors of hardware and home improvement products, is slated to built a $20 million distribution center in Hurricane.

Orgill President Bill Fondren says groundbreaking on the 520,000 square foot facility began early spring. “Previously, our company’s distribution was centered in the eastern part of the country,” Fondren says. “The site’s logistics and location were perfect for us because we will be able to service customers in the western US and expand our business nationally.” He adds that local government’s tireless efforts to provide an incentive package totaling one million dollars was also instrumental in the move.

KANE COUNTY

In the early part of the 20th century, neighboring Kane County boomed in tourism WELLS DAIRY GRAND OPENING

BUSINESSUTAH2004 59

offers a unique mix of tradition and innovation. The county boomed during the glory years of local mining in the late 1800s and has since served as a regional shipping hub for area livestock producers. It is currently distinguished as the state’s largest pork-producing region. Like other counties in the southwestern region, Beaver County has begun to tap into the tourism industry through its proximity to national parks and local alpine ski resorts.

The diversity of the region alone might not create strong business advantages without the transportation network linking everything together. Interstates 15 and 70 connect Las Vegas and Phoenix to Salt Lake City and Denver. The business community confirms that the five-county area is strategically poised as a gateway to the West.

In addition to Interstate highways, daily flight service through St. George and Cedar City municipal airports connects the region’s communities with Salt Lake City and points onward. Flights from St. George to such metro areas as Los Angeles, for example, take only one hour and fifteen minutes. Delta Air Lines, operated by partner SkyWest Airlines, sends six or more non-stop flights each day from St. George to Salt Lake City.

SOUTHWEST FAST FACTS

Counties: Washington, Beaver, Kane, Iron, Garfield Major Cities: St.George (54,049), Kanab (3,566), Beaver (2,501), Cedar City (21,427), Panguitch (1,549) Regional Civilian Labor Force: 72,058 Per Capita Income: $19,303 (Washington), $23,344 (Beaver), $24,751 (Kane), $16,873 (Iron), $17,546 (Garfield) Major Employers: Ruby’s Inn, South Central Utah Telephone, Southern Utah University, Convergys, Market Reps Comm., Best Friends Animal Sanctuary, Bullfrog Resort and Marina, Circle Four Farms, Milford Valley Healthcare Services, Union Pacific Railroad, Dixie College, Intermountain Health Care, SkyWest Airlines Average Sale Price of Homes, First Quarter 2004: Washington County $198,559

60 BUSINESSUTAH2004

The FAA recently approved construction of St. George’s replacement airport to improve service even more. Regional cities are also served by several daily shuttle-van services to Las Vegas.

Over twenty trucking companies and commercial freight operators make good use of the southwestern region’s central location between Phoenix, Las Vegas and Los Angeles in the south, and Salt Lake City in the north.

Even rail transport is used to get markets moving. WL Plastics of Mills, Wyoming, found the transportation logistics of Cedar City made the area an ideal location to do business. “Draw a distribution circle around Cedar City, and you can reach almost all of the Western population by truck within one day,” says company President Mark Wason.

When its 33,000 square foot facility is completed by May, the firm’s production of pipe for oil, gas, mining and industrial companies will nearly double that produced by the company’s Wyoming plant.

With a regional workforce of more than 62,000, the southwestern region enjoys a ready labor pool of skilled and educated workers drawn to the area by its clean living, warm climate and extensive outdoor recreation opportunities. Scott Truman of the Utah Rural Development Council affirms the region’s bright business climate: “We are anticipating strong economic outlooks.

Tourism and travel is a significant part of the economy, and last year the region's tourism was up 6-7 percent.”

More and more people see that the odds favor southwestern Utah over its more glitzy neighbors. Kevin Nelson of Ruesch Media Group says his company relocated to Cedar City from Las Vegas for a change in lifestyle, as its brick and mortar scrapbooking operation morphed into a dynamic media company. “The company came for the wages, workforce and work ethic,” he explains, “but stayed for the atmosphere.” Dave Grin of Lone Mountain Dental Studio began his business in Las Vegas but relocated to St. George five years ago because he and his wife, Stephanie, wanted a more family-oriented lifestyle. Grin says it was a good decision: “business is excellent, and we truly enjoy our new surroundings.”

PROFILE OF SUCCESS: RAM MANUFACTURING

Raymond J. Ganowsky and his wife Melzie founded RAM in 1975, and from somewhat humble beginnings it has become a world leader in its industry. The St. George firm designs and manufactures solenoids and valves with the exacting standards of NASA, the military, undersea submersibles, and a variety of commercial applications.

Ganowsky holds 23 US and foreign patents for solenoid design, and in 1993 was awarded the Governor’s Medal for Science and Technology. Recently, he was recognized by the City of St. George with the prestigious “Entrepreneur of the Year” award.

RAM, chosen by Parker Hannifin, CSD, Ogden, Utah as the "supplier of the year" for 2003, is known not only for unsurpassed design and manufacturing capabilities, but superior customer service. “We have the ability to provide custom design, to attach an engineer directly to a customer’s request,” explains plant manager Bruce Doty. “That way we can tailor the end result to their specifications better than anyone else.”

From the green expanses of Randolph and the raspberry bushes flanking Bear Lake to the cattle of Cache Valley and broad barley fields of Box Elder, the Bear River Region reigns as Utah’s top agricultural producer. For its dairy output and world-renowned cheeses, Cache County milks the competition statewide. Yet, even though Utah is the 11th largest state in the nation, less than five percent of our land is cultivated. Leaders in the soil-rich Bear River region see a future that supports agriculture, heritage and technology.

CACHE COUNTY

Ironically, the big news in Cache County last year had nothing to do with high-tech advancements. If you’ve eaten a fast food

tribution capabilities in the Northwest.”

Schreiber Foods’ expansion is just one indication that agribusiness is still the staple industry in Cache Valley. Gossner Foods, Inc. remains a force in the local market, using over a half-million pounds of milk a day, from some 1,400 dairy farmers in Utah and Idaho, to process its dairy delights. And in the dairy town of Amalga, Cache Valley Cheese employs a crew that continues to turn out popular, award-winning cheeses; the company’s Swiss took second place at the 2003 U.S. Championship Cheese Contest.

From E.A. Miller Beef in Hyrum (still unaffected by mad cow disease cutbacks) to Cox Honey on the outskirts of Logan, Cache Valley’s environment is still right for

7,000 acres of North Carolina pine forest.

A star of the North Logan campus is Space Dynamics Laboratory (SDL), a unit of the Utah State University Research Foundation, a not-for-profit research corporation. SDL designs, fabricates and operates over 400 payloads ranging from aircraft to space shuttle experiments and satellitebased sensor systems. Most recently NASA awarded SDL a $750,000 contract to research the best types of vegetables to grow in space, how to clean them and the psychological effects that tending them has on astronauts and cosmonauts.

Innovation Campus continues to play a major role in the momentum of Cache County’s economy, but it is only one seg-

BEAR RIVER: LAND OF MILK AND MONEY

BY PAM OSTERMILLER

MALT-O-MEAL

cheeseburger lately, chances are — nine out of ten, to be exact — that the slice of processed cheese melting all over your beef patty came from Schreiber Foods, Inc. Headquartered in Green Bay, Wisconsin, Schreiber owns fourteen plants nationwide, the second-largest and most productive being in Cache Valley. Well, it was the second largest. In 2003 Schreiber announced plans to expand the Logan plant by 35,000 square feet, providing 80 to 95 new jobs that will pay $27,000 plus benefits — a good “home-buying” wage in that market.

Schreiber needs to make room for its recent acquisition of Philadelphia cream cheese, 30 million pounds of which will now be distributed from Cache Valley, in addition to the 170 million pounds of other cheese products Schreiber already produces. Debra VanDyke, vice president of Industry and Regulatory Affairs, says, “Schreiber is delighted to be expanding our facility in Utah.

The expansion will support our product dis-

62 BUSINESSUTAH2004

replenishing America’s pantry.

Beyond bees and bovine, the county is growing and diversifying its revenue base with technology, retail and transportation.

It’s what Nevin Limburg, director of economic development for Logan, calls its “technology-led development plan,” that incorporates the idea that growth begins by helping existing businesses and industries become tech-oriented. The nexus of the valley’s hightech and research industries is Utah State University’s Innovation Campus, where more than 50 large research and development companies, USU department units and government agencies create everything from software for public transit agencies to plants that reclaim contaminated soils.

“The campus was a takeoff of the U of U’s [University of Utah] Research Park,” says Limburg, “but they are now modeling it after North Carolina’s Research Triangle Park,” where more than 100 research and development facilities employ 35,000 on

ment of an energetic plan for the region’s future — and another, more broad-reaching “triangle.” The second segment is the Cache Valley Initiative, a five-year community and economic and development plan now in its third year. The initiative has three prongs under the umbrella moniker, Access: 1) reliable access to surface (highway/corridor) transportation; 2) an interconnected and redundant telecommunications system; and 3) an expanded corporate, cargo, and regional destination airport. According to the initiative’s Website (www.cachevalleyinitiative.com), it has received $460,000 in investments thus far to be used as matching funds to assist with the above projects ($1.35 million has been pledged).

Fulfilling the city’s technology-led development plan, more than 500 jobs have been created by expanding existing companies and developing the Innovation Campus.

Initiative leaders are “predicting another 100 high-wage jobs to be announced by the end

HE WAS KNOWN AS THE FASTEST, SMARTEST AND STRONGEST OF THEM ALL WHEN HE ROAMED CACHE NATIONAL FOREST FROM 1911 TO 1923, AND THE FIERCE GRIZZLY BEAR BAITED HUNTERS AND SHEEPHERDERS FOR 12 YEARS BEFORE BEING TRACKED AND KILLED BY FRANK CLARK. WHAT WAS ONE OF THE LEGENDARY GRIZZLY’S TWO NICKNAMES? UTAH TRIVIA

of the year,” the Web site notes. Tom Jensen, chair, says, “No one said it would be quick or easy but the initiative is on target to achieve its stated goals and objectives as promised.”

The third segment of the economic development triad is retail, specifically the revitalization of Logan’s historic downtown, as well as careful growth in the city’s northern and southern borders. “Downtown is our largest commercial project,” says Limburg, and an examination of the plan reveals an exciting, progressive approach to attracting businesses, pedestrians, tourists, public parking and mass transit.

The city has considered architectural details, open space, security, public art and, key to the city’s character, historic charm.

Logan Mayor Doug Thompson spearheaded the launch of the plan, bringing together a 150-person community coalition to contribute. Limburg says the 15-year plan will begin by the end of 2004. “We’ll be off and running in a matter of weeks.”

Speaking as the economic watchdog, Limburg says he and his peers are wholly optimistic. “We’re really happy about the fact that throughout the downturn, we stayed positive — three percent unemployment was constant and the best in the state!” he adds.

From December 2002-2003, 2,000 jobs were created in the valley. “Overall, we’re excited about the prospects for the future.”

Positioned at the junction of I-15 and the north/south extension of I-84, Box Elder County is also at the crossroads of a new era of possibilities. Grappling with change, community and government leaders seek to capitalize on the area’s heritage while planting new seeds of prosperity.

Box Elder is attractive to tourists, nature buffs and big business alike. It is home to the renowned Bear River Bird Refuge. Brigham City’s Peach Days, the oldest continuing harvest festival in Utah, draws thousands each summer. ATK Thiokol, a leading developer and producer of solid rocket motors, is the county’s largest employer, with 3,200 employees.

This January, the Malt-O-Meal Company opened its new 225,000- square-foot, stateof-the-art cereal manufacturing plant in Tremonton. On the company’s Website, Malt-O-Meal President John Lettmann says,

Companies that have found a home in Box Elder range from high-tech to pre-industrial. There are four Smart Sites in the county, including NWB Technology LLC, an information processing and development company of the Northwest Band of the Shoshone Nation.

Compared with IsoTruss, which manufactures high-strength carbon structural materials, the new tourist destination Buggy Town, where visitors can see a restored collection of the antique vehicles, as well as shop and dine, is as low-tech as you can get. But tourism fuels Box Elder’s economic engine as much as manufacturing. The northern gateway to Utah, the county is rich in history. As part of the Bear River Heritage Area of north-

ern Utah and southern Idaho, the region is a cornucopia of local events, scenic drives, crafts and foods.

RICH COUNTY

In Rich County, not much has changed over the past five years. As the water levels of Bear Lake continue to drop, the number of tourists climbs as they flock to the expanding beachCACHE FAST FACTS:

Counties: Cache, Rich, Box Elder Major Cities: Logan (42,922), Brigham City (17,389), Smithfield (7,604) Regional Civilian Labor Force: 67,475 Major Employers: Utah State University, Thiokol Corporation, ICON, E. A. Miller, Convergys, Autoliv, Lodge at Bear Lake Per Capita Income: $19,531 (Cache), $22,852 (Box Elder), $16,293 (Rich) Average Sale Price of Homes, First Quarter 2004: Cache/Rich $145,592

USU INNOVATION CAMPUS

ANSWER: OLD EPHRAIM, OLD THREE TOES

BOX ELDER

“This plant is key to Malt-O-Meal’s plans for growth. We are extremely grateful to the residents and city officials of Tremonton and to the state of Utah for their support and warm welcome.”

Because of its geographic position, the Tremonton plant offers access to Malt-OMeal’s growing West Coast markets; in fact, the company plans to build an additional distribution center in Tremonton within the next three years. “This is a big deal for Tremonton,” says Mayor Max Weese. “MaltO-Meal is a good-paying company, offering excellent benefits. And it’s a clean industry.”

Malt-O-Meal received financial incentives from the State of Utah for construction in the form of an Industrial Assistance Fund Rural Incentive for new job creation; the incentives provide up to $2,500 per position for up to 250 employees within the next five years. The facility currently employs 80 full-time workers.

They also invested $2.2 million to upgrade the community’s water treatment facility.

Susan Thackery, project coordinator for county and community development, says Malt-O-Meal’s arrival was the life of an otherwise uneventful economic party. “There weren’t too many surprises,” she says. “We lost some manufacturing jobs but were less harmed than some areas.”

One of the county’s major attractions for entrepreneurs is the 100-acre Agribusiness Park in Corinne. Conceived three years ago through a feasibility study involving Box Elder County Economic Development and the State of Utah Departments of Agriculture, Environmental Quality and Business and Community Development, the concept of the park is to help area farmers by attracting businesses that could process the growers’ products.

The park is a designated Enterprise Zone and a Recycling Zone for qualifying state tax credits. To date, local company Archibald Propane has relocated to the park, and Thackery says another yet-to-beannounced company will occupy 30 of the 100 acres and provide 125 jobs when it moves in this year.

Like most of America, Box Elder County is in flux, struggling to maintain its distinctive identity while welcoming big-box retailers.

“We’re growing at an even keel,” says Thackery. “We’ve got a lot of good businesses and are always looking to diversify.”

BUSINESSUTAH2004 63

es of the “Caribbean of the Rockies.”

Executive Director of the Bear River Association of Governments Roger Jones says, “There’s nothing new happening. The lake is the lowest level it’s been in years — which is good for tourism. It’s not good for farmers, but they’re holding their own.”

Allen Harrison, executive director of the Bear Lake Regional Commission, says that while the county’s agricultural and tourism industries are fairly healthy, they haven’t generated growth. “There are some new hotels, fast food, second homes, but no real industry,” he laments. The most disappointing result of the stagnation is that almost all residents of Rich County are forced to find work beyond the county lines. “There is zero manufacturing, no job base and no job creation.”

But things have the potential to change with the right catalyst. Because Bridgerland Applied Technology College in Randolph can provide custom-fit training and education, a relocating manufacturing company would have a built-in workforce. Harrison’s ideas for development include attracting some kind of manufacturing that deals with recreation, such as experimental watercraft. With a resident population of skilled labor and one of the most beautiful testing grounds in the state, it seems like a well-conceived match.

PROFILE OF SUCCESS SCHREIBER FOODS, INC. Type of Firm: $2+ billion global enterprise; world’s largest privately held cheese company Founded: In 1945 by L.D. Schreiber, in partnership with Merlin G. Bush and Daniel D. Nusbaum, in Green Bay, Wis. Employees: 4,200 nationwide, 350 in Utah News: Schreiber plans to expand its current Logan plant by 35,000 square feet, providing 80 to 95 new jobs. Wages will be 40 percent higher than similar positions in Cache Valley, according to the Economic Development Corporation of Utah. The company will receive $1 million in financial incentives from the city and the state, according to the January 2004 issue of Dairy Foods.

Key to New Development: Debra VanDyke, vice president of Industry and Regulatory Affairs, says, “Schreiber is delighted to be expanding our facility in Utah. The expansion will support our product distribution capabilities in the Northwest.”

64 BUSINESSUTAH2004

Across the arid landscapes of the Uintah Basin, through its serpentine canyons and over-stacked plateaus of limestone and shale, the earth sends a message to the modern traveler: You are in the land of the dinosaur. This area is a wind- sculpted, wild seabed bearing stories, minerals and bones that are, in a manner of speaking, ancient history.

The economy of the Uintah region relies on the past, on its super-sized former inhabitants and their value as tourist attractions, on fossil fuels and clues that help us understand the history of the Earth. It’s a region we sometimes think of as beyond Utah’s borders — it seems so remote, a sort of hinterland — yet it’s a mere few hours-drive from Salt Lake City. Locals call it the Isolated

Empire. In this independent region, government leaders and entrepreneurs strive to generate revenue in traditional, miningbased industries as well as in previously untapped economic pools.

UINTAH: SCANNING BENEATH THE SURFACE

Interestingly, it was oil and gas mining that grew in 2003, and the same well is primed to keep Uintah’s economic engine running smoothly this year. In the third quarter of 2003, according to the Utah Department of Workforce Services (UDWS), the industry added 240 jobs “as expanding oil and gas activity for extraction and exploration kept the county’s economic engine humming.”

“We are the gas and oil capital of Utah,” says Bill Johnson, executive director for eco-

UINTAH: THE ISOLATED EMPIRE

BY PAM OSTERMILLER

66 BUSINESSUTAH2004

nomic development of Uintah County and Vernal City. Questar and smaller, independent companies such as Westport and Barrett Resources are conducting the majority of the exploration in the region, primarily in natural gas. “We’re so dramatically affected by oil and gas; the natural gas industry has generated jobs, which in turn generates support jobs,” says Johnson. “It’s a trickle down into other sectors.”

Changing dynamics in the natural gas industry have made the Uintah region a national player, notes Alan E. Isaacson, a research analyst with the University of Utah’s Bureau of Economic and Business Research. In a January 6, 2004 article in The Salt Lake Tribune, Isaacson said, “Over the past five years, Utah has gone from a net

DINOSAUR NATIONAL MONUMENT IN VERNAL PAYS TRIBUTE TO THE LAND BEFORE RECORDED TIME AS IT DELVES INTO THE HISTORY OF UTAH’S VERY OWN “TERRIBLE LIZARDS” THAT ROAMED THE STATE LONG BEFORE HUMANS. WHICH ROARING DINOSAUR PERIOD IS THE UTAH SITE NOTED FOR? UTAH TRIVIA

museum was first proposed by a forest service employee, Arthur G. Nord, who said, "In some corner of most every museum of natural history there is found remnants of prehistoric life — much of which has come from Uintah Basin.

Nothing could be more appropriate than to have a field museum with specimens of the natural…prehistoric life right in the heart of the area in which it is found." Down the road, more than 1,600 bones await those with a penchant for paleontology at Dinosaur National Monument, which covers roughly 325 square miles of Utah and Colorado.

EXPANDING RETAIL AND RECREATION

INNOVATION AND INCENTIVES

As Bill Johnson likes to say, “We’re oil, gas and a whole lot more!” Because of its geographic position, Uintah County draws shoppers like a watering hole draws elk.

“We’re 170 miles from Salt Lake City and 130 miles from Denver, and that makes us a retail hub for western Colorado and southern Wyoming,” he says proudly.

Johnson says Uintah County is going to see a few new large retailers in 2004, including some major chains. Vernal already has one of the most successful Wal-Marts in the state; last year, in a basin that holds only 40,000 people, that Wal-Mart Supercenter brimmed with some $75 million in sales.

But natural beauty — more than a yellow, price-slashing smiley face — actually attracts most visitors to Uintah County, as it does to the entire region. Vernal is the center of an adventurer’s paradise, surrounded by ponderosa forests and pastel-hued deserts, waters for cliff jumping and rivers for experiencing blue-ribbon fishing. To promote the region, Uintah teamed up with Daggett County to host the Wildlife & Rivers Festival in June to promote the U.S Scenic Byway that runs from Vernal to Manila. All over the area, festival goers can jig to western music, feast on barbecued fare and listen to the latest works of cowboy poets.

And then, of course, there are dinosaurs. This June, the Utah State Field House will celebrate the opening of its newly constructed museum, which will serve to better interpret and preserve its collection of ancient fossils through interactive exhibits, gardens and displays. Built in 1945, the

For residents of Uintah, opportunities continue to present themselves in areas of medical and computer technologies, as well as in education and business. The Ashley Valley Medical Center in Vernal is in Phase one of a $7 million expansion, indicating its record of service and its importance to the region.

The basin is home to Uintah College of Applied Technology and an extension campus of Utah State University in Vernal; together they enroll close to 5,000 students.

The towns of Vernal, Naples and Ballard, as well as Uintah County, are designated Utah Enterprise Zones, where eligible businesses, whether new to the area or expanding, may claim tax credits on state income tax forms, an advantage for entrepreneurs as well as established business owners.

Overall, the economic outlook is good for Uintah County. After a 2003 slump, construction jobs are up, as they are in the retail, lodging and food industries. The March 2004 UDWS publication reported that the county had positive employment gains during the last 18 quarters; and from January 2003 to January 2004, unemployment fell from 7.1 percent to 5.7. Analysts say that as long as energy demand remains high, Uintah’s economic river will continue to flow — and trickle down — through all sectors.

DESTINATION: DAGGETT

If you’re one of about 900 people living in the fabulously scenic but tiny corner of Utah known as Daggett County, chances are you work in land management or tourism. Your neighbors are fly-fishing guides, forest

rangers or owners of the marina on the shores of Flaming Gorge.

The 2002 Mustang Fire and the economic downturn temporarily obliterated tourism and made for a few tough years. But the county rose from the ashes. Even though the Flaming Gorge Ranger District announced that it would decommission facilities at Gooseneck Boat-in Campground and Dowd Spring Picnic Area due to low occupancy rates, local leaders have an optimistic outlook on the upcoming season.

"Tourism is our main source of income," says County Commissioner Craig Collett, "and we’ve been working on some things."

He says 2003 was better than the previously dismal year, and scanning the horizon, indicators are positive, specifically the early, high numbers of reservations at lodging facilities.

As noted above, Daggett will welcome visitors this June to the Wildlife & Rivers Festival, promoting the event with radio and billboard advertising. A road trip to the area promises more than a sampling of hearty fare and some swing dancing, however.

Adventurers could soon be touring Utah’s only All-American Road if the application process goes well. Already a U.S Scenic Byway, the Flaming Gorge-Uintas road has a good chance of obtaining this esteemed designation, says Collett.

To economic forecasters, Daggett County looks mostly sunny. The area shares growth with its northern neighbor, Wyoming,

UTAH MINI-RANCHES

ANSWER: JURASSIC

importer of natural gas to a net exporter.”

Utah and the other Rocky Mountain states now account for nearly 20 percent of the country’s natural gas production — good news for the region’s economy.

Uintah County is also home to American Gilsonite, one of only three extractors of this lightweight, glossy black, bituminous asphaltite in the world. It is the primary hydrocarbon mined in Utah, believed to be a solid residue of petroleum. Named in honor of Samuel H. Gilson, a Salt Laker who developed its uses in paints, varnishes and other building products, Gilsonite is still mixed into similar formulas today.

BUSINESSUTAH2004 67

THIS AREA IS A WIND SCULPTED, WILD SEABED BEARING STORIES, MINERALS AND BONES THAT ARE, IN A MANNER OF SPEAKING, ANCIENT HISTORY. where Halliburton is establishing a large office in Rock Springs — a natural fit for a company that provides products and services to the oil and gas industry. According to a UDWS March 2004 report, jobs have remained steady and should stay on that path, and construction is up — both goods signs of a recovery.

DUCHESNE: RECREATION AND REINVENTION

Joan Steed knew at first sight that Duchesne County was a place of distinct natural charm and endless potential. She and her husband, Frank, real estate developers from Tennessee, came to Utah to ski in 1984 and immediately recognized their destiny. “We knew we were going to relocate then,” she says. “We love this rural area.”

The Steeds own Utah Mini Ranches, five thousand acres on a plateau above Duchesne, divided into hundreds of twoacre lots that feature 360-degree views of King’s Peak, Blue Mountain and Ashley National Forest. With a two-bedroom cabin included in the price, the lots sell for $59,000. “Our concept was simple: make sure it appraises for more than what you’re paying,” says Joan. “We sell it for $59,000 and it appraises for $79,000. The banks love it.” She adds that 325 lots have sold thus far, 75 of which have houses on them.

This kind of investment in a community is the energy infusion tired economies crave. The Steeds are not the only ones to capitalize on the region’s possibilities as a travel and retirement destination. Bird watchers and hunters can hole up at Falcon’s Ledge; urban refugees can find Zen through meditation and yoga at The Edge Retreat; and nouveau dudes can rustle cattle. Duchesne County offers its commodities — adventure, silence, mysticism, the Wild West — on a platter.

“It’s kind of unique!" laughs Irene Hansen, executive director of the Duchesne County Chamber of Commerce. “One time, The Edge had Tibetan monks! Right here in Duchesne.”

But Hansen is serious about economic development, and in her mind the diversity of visitors is evidence of a dream

68 BUSINESSUTAH2004

being realized. “Our plan to promote Duchesne County as a retirement community seems to be working,” she says, noting the influx of fun, interesting, positive people with no kids and disposable incomes for dining and shopping. “We are a stand-alone community,” she says, with everything seniors would want or need, including top-notch medical facilities and services offered at highly competitive prices. “The only thing we can’t do here is brain surgery,” Hansen says.

Only 90 minutes from Salt Lake City, Duchesne may not be the next Park City, but $200,000 will buy you a lot more than an 800-square-foot miner’s shack on Old Main, a value that many people looking for second homes will consider.

Yet, while snowbirds may be flocking, Duchesne’s economy is struggling. Last year was rough, with job losses in retail, construction, machine manufacturing and, most heavily, in oil and gas. According to the UDWS, the county will continue to falter until it overcomes three hurdles to growth in oil and gas: falling production, over-capacity and hindered access to Ute tribal lands. On the other hand, retail sales are up, despite the fact that most county residents travel to "the hub" in Vernal to shop.

"We have a fragile economy," says Hansen. "We have no rail, no interstate, no airport, and business recruitment is tough, so we just have to look at what we have and build on that." This means supporting local utilities, such as Uinta Basin Telecommunications Association, a community-owned telephone company with 15,000 customers and 170 employees.

Hansen says that in her 25 years, the formation of UBTA was one of the most important developments in the county.

Leaders are also proud of Moon Lake Electric Association, a local company that provides power at some of the best rates in Utah.

In the technology sector, Uinta River Technology (URT), founded in 2001, continues to be a leader in tribal business savvy.

Owned and operated by the Northern Ute Indian Tribe, the data technology firm has

more than 50 employees and has been successful in obtaining and completing government-awarded contracts.

The big news of 2004, however, is that URT will team with Northrop Grumman Information Technology, a leading provider of information technology solutions and services to federal agencies, defense, state and local government and commercial customers. Together, URT and Northrop Grumman will seek out and acquire government contracts, using URT’s 8(a), LLC and Hubzone status (URT) and Northrop Grumman’s strength as an international service provider to beat the competition.

Rick Hughes, Native American Business Development & Liaisons for Northrop Grumman IT says, “We serve as a partner to the Utah tribes to pursue together government projects otherwise unattainable by the Utah tribes alone. The relationship will provide mutual long-term benefits, eventually leading to full participation within Northrop Grumman’s Mentor-Protégé program.”

The bottom line, says Carey Wold, associate director of Government Contract Development with the Utah Division of Business and Economic Development, is that the partnership is a win-win situation.

“URT is substantially qualified in information technologies and Northrop Grumman can do the heavy lifting. It eliminates the risk."

In a few years, Hansen envisions up to a 1,000 people working statewide for tribally owned companies, a remarkable improvement from the first days at URT, when the parking lot was punctuated with a few old, dented-fender cars. "Now, the lot is full of new cars,” says Hansen. “That oughtta tell you something."

UINTA FAST FACTS:

Counties: Daggett, Duchesne Major Cities: Manilla (308), Roosevelt (4,299), Duchesne (1,408) Regional Civilian Labor Force: 7,011 Per Capita Income: $16,299 (Daggett), $20,153 (Duchesne) Major Employers: Flaming Gorge Lodge, Uintah Basin Telecomm, Second Nature Therapeutics Average Sale Price of Homes, First Quarter 2004: Uintah Basin $109,219

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For many people, this region’s rugged red rock plateaus, chiseled canyons and snowcovered mountains symbolize Utah’s landscape. Every year millions of people flock to southeast Utah to hike its Technicolor canyons, bike its plateaus and raft its rivers.

Much of this region was the last place in the United States to be explored and developed by white settlers. Parts of Canyonlands National Park, for instance, weren’t fully explored until the 1950s. And although Interstate 70 slices through the region, parts of southeastern Utah still remain isolated. This does not mean, however, that it’s not a great place to do business.

TOURIST MECCA

When the region finally was settled, it was

mostly for the minerals that lay beneath the redrock desert. In the late 1800s, mining towns sprouted up alongside rich veins of coal, particularly in Carbon and Emery counties. Early settlers to Grand and San Juan counties also found the fertile ground along the Green and Colorado rivers’ valleys, nearly ideal for raising livestock and growing crops and fruit. During the height of the Cold War in the 1950s, rich deposits of uranium created an economic boom and population explosion in these two counties that still catches the imagination of old-timers.

An unrivaled wealth of natural wonders has transformed southeastern Utah into a tourist mecca. One example of this transformation is San Juan County. For decades San Juan’s economy relied almost entirely

on ranching, agriculture and natural resource extraction, but tourism is becoming increasingly important as people visiting the Moab area start to discover the wonders that lie south.

In southern San Juan County near the Arizona border is Monument Valley, perhaps one of the West’s best-known landmarks.

The historic Goldings Lodge on the Navajo Nation Indian Reservation in Monument Valley employs over 100 people. San Juan is also home to a large chunk of Lake Powell and the Glen Canyon National Recreation Area that surrounds the lake.

San Juan’s isolation can be a turnoff for some people, but the tradeoff is a clean environment, almost non-existent crime rate, pro-business environment and beautiful

SOUTHEASTERN: COMMERCE IN TECHNICOLOR COUNTRY

BY TIM WESTBY

LAKE POWELL

70 BUSINESSUTAH2004

UTAH LAYS CLAIM TO IT’S OWN BRAND OF GEOLOGICAL FAME — NO ONE KNEW A RIVER RAN THROUGH THIS SOUTHEASTERN AREA UNTIL ALL OTHER RIVERS IN THE CONTIGUOUS UNITED STATES HAD ALREADY BEEN DISCOVERED. WHICH UTAH RIVER WAS THE LAST TO BE FOUND? UTAH TRIVIA

landscape.

San Juan’s neighbor to the north, Grand County, is home to Arches and Canyonlands national parks. The popularity of these parks and the writings of Edward Abbey have made the small town of Moab, with a population just under 5,000, a household name throughout the country.

Just four hours from Salt Lake City, Moab is often considered the center of the mountain biking universe. As a result of the area’s stellar recreation opportunities, Grand County’s economy has shifted dramatically from natural resource extraction to touristrelated industries.

Now, Moab area leaders are launching various projects in an attempt to take the local economy to the next level. This summer, con-

MINING FOR BUSINESS

Much of the region still relies on natural resource extraction. Energy production, for example, is still the main industry in Carbon and Emery counties. Coal bed methane has also become a major player in recent years, particularly in Carbon. While coal bed methane development provides little in the way of jobs, tax revenue from the wells has helped fatten county coffers.

The Carbon county seat of Price is also a regional center for the area. With a population of approximately 8,500, Price has a major hospital, a commercial center and the College of Eastern Utah.

Local officials in the region have taken the lead in developing a number of programs to ensure a strong and diversified business climate. “We’re trying to promote the area to outside companies while also trying to grow local small businesses,” says Delynn Fielding, Carbon County’s economic development director. A two-year grant program that ended in October 2003 provided seed money for close to 50 startup businesses in the county. Fielding adds that the workforce in Carbon County is well educated, “with a long blue collar tradition.”

The Southeastern Utah Association of Governments (SEUAOG) has spawned a “small business incubator” program in Price.

The program is housed in a 19,000-squarefoot facility and provides support services such as office space, clerical services, a professional address, and fax and copy machines for someone trying to get a small business off the ground. Budding entrepreneurs can rent the space for up to three years at significantly reduced rates. SEUAOG offers a revolving loan fund that provides small business owners with gap financing if they want to start or expand a business.

Southeastern Utah also has the highest concentration of “Smart Sites” in the state. The Rural Smart Site initiative, spearheaded by the Utah governor’s office, provides wellequipped facilities, high-speed Internet access and a trained workforce for technology companies looking to outsource services to rural areas. The initiative specifically targets companies that provide jobs in the $10-to-

$20-per-hour range. In return, companies receive an excellent facility and a well-trained workforce committed to maintaining their rural lifestyle, which means less employee turnover.

Successful examples of the initiative are numerous in this part of Utah. Healthaxis, a healthcare information technology company based in Texas, recently hired 30 new people at the Castle Dale Smart Site in Emery County. MedUSA, a medical billing company based along the Wasatch Front, recently moved part of its operation to Price.

Software company Footprints, Inc., which has operations in Salt Lake City and Seattle, recently chose the Moab Smart Site for its headquarters. Footprints provides its worldwide clientele custom information management software solutions for busi-

nesses, engineering, finance, medical accounting and government. And building on owner Clay Conway’s 25 years of experience as a geologist, Gaeaorama, Inc. chose the Blanding site to perform the company’s digital-mapping services.

SOUTHEASTERN FAST FACTS

Counties: Carbon, Emery, Grand, San Juan Major cities: Price (8,330), Moab (4,852), Blanding (3,004), Huntington (2,084) Regional Civilian Labor Force: 23,609 Per Capita Income: $22,524 (Carbon), $17,874 (Emery), $20,710 (Grand), $13,108 (San Juan) Leading Private-sector Employers: Canyon Fuels Company, Energy West, PacifiCorp, Monument Valley Lodge Average sale price of homes, fourth quarter 2003: Carbon/Emery $80,670 Grand/San Juan $127,853.

ANSWER: THE ESCALANTE RIVER

struction is slated to begin on the Moab Regional Medical Center, which is expected to be completed in 2006. A new city library, three times larger than the current library, is also in the works. And Main Street will be getting a new look with landscaped medians and lighting to add to the city’s charm.

“By improving the quality of life in Moab, we hope to attract new businesses and diversify our economy,” says Randy Martin, president of the Moab Chamber of Commerce. In particular, Moab city leaders are hoping to attract light manufacturing and tech jobs, says Martin.

Grand County’s neighbor to the west, Emery County, offers a less well-known but perhaps equally spectacular natural attraction in the San Rafael Swell. The 80-milelong, 35-mile-wide geologic formation of canyons and plateaus is as rugged as it is isolated. Recent attempts to turn “the Swell,” as locals refer to it, draw upwards of 400,000

visitors per year according to the U.S. Bureau of Land Management.

BUSINESSUTAH2004 71

CONSTRUCTION WILL BEGIN THIS YEAR ON AN $18 MILLION COSMIC RAY OBSERVATORY CALLED THE TELESCOPE ARRAY, OUTSIDE THE COUNTY SEAT OF DELTA.

and agriculture as cornerstones of the economy. The largest town, Richfield, has fewer than 7,000 residents and maintains its ranching and farming roots. Utah’s largest coal mine is located in Sevier County, which is also the state’s largest producer of gypsum, a material used in building products like plaster and plasterboard.

COSMIC RAY

Starting this spring, Millard County will take the worldwide stage — with what could turn into a leading role — in the important field of astrophysics research. The University of Tokyo, with help from U.S. universities including the University of Utah, will begin construction this year on an $18 million cosmic ray observatory called the Telescope

phenomenon in the universe is hurling ultra-high energy cosmic rays through space? Scientists believe these rays may offer insights into the first moments of the universe. The area’s dark night skies and dry air attracts scientists to Millard County.

“If we succeed in landing these projects, then Millard County will be home to the largest, most state of the art center for astrophysics in the world,” says state science advisor Mike Keene.

Gary Church with Millard County Economic Development Association acknowledges that the Telescope Array and the Pierre Auger Project will bring only a handful of high paying jobs to the county. “But we’re excited about it,” he says.

“We think it will give us good exposure.”

CENTRAL: RICH NATURAL RESOURCES AND COSMIC RAYS

BY TIM WESTBY

THE ILLUSION ACADEMY

With the draw of major urban centers to the north and an almost embarrassing wealth of national parks and monuments to the south, it would be easy to dismiss Central Utah. But in many ways, the heart and soul of Utah — and some would say the West itself — lies in this six-county region.

Idyllic small towns, some of the first communities settled by Mormon pioneers some 150 years ago, lie along the two main routes through this region, U.S. 89 and Interstate 15. Many of these towns maintain their early character, especially along U.S. 89.

Central Utah isn’t just another pretty landscape. Scratch below the surface and you’ll quickly discover a region with a business-friendly foundation ready to embrace the 21st century while not forsaking its past.

The six-county area of Central Utah remains almost entirely rural, with mining

72 BUSINESSUTAH2004

Array, outside the county seat of Delta.

In addition, Millard County is on the short list of sites for a second cosmic ray facility called the Pierre Auger Project.

In 1996, an international group of physicists proposed building twin $50 million cosmic ray observatories in Argentina and either Utah or Colorado. Construction of the Argentina facility is underway with the first scientific results expected in 2005.

A decision on the final location of the northern observatory is expected by the end of this year.

Cosmic rays have baffled scientists for hundreds of years. But the cosmic rays scientists will be studying in Millard County are particularly mysterious because they produce so much power, they are one of the few challenges to the standard model of particle physics.

Both projects seek to understand a major puzzle: What incredibly powerful

SMART SITE

Today the central region has a mix of assets going for it that make it attractive for a growing variety of businesses. Interstate 15 offers easy and relatively quick access to the Wasatch Front and Las Vegas. The I-15 corridor has also allowed telecommunications development to spread into the area. Recent fiber optic connections now provide high-

YOU AREN’T LIKELY TO FIND IT MENTIONED IN A HISTORY BOOK OR EVEN ON A MAP. THERE ISN’T MUCH LEFT BUT A FEW CONCRETE FOUNDATIONS AND A MONUMENT USED MAINLY FOR TARGET PRACTICE. SOME PEOPLE WERE FORCED TO CALL IT HOME DURING WORLD WAR II. IT WAS A RELOCATION CENTER, A PRISON, AND A CONCENTRATION CAMP. WHAT WAS ITS NAME? UTAH TRIVIA

TRADITIONAL BUILDING SKILLS INSTITUTE

speed access throughout much of the area, allowing the region to successfully utilize the state’s Smart Site program.

A Smart Site provides well-equipped facilities, high-speed Internet access and a trained workforce for technology companies looking to outsource services to rural areas. The Rural Smart Site initiative specifically targets companies that provide jobs in the $10-to-$20-per-hour range. In return, companies receive an excellent facility and a well-trained workforce committed to maintaining their rural lifestyle, which means less employee turnover.

The Illusion Academy in Mt. Pleasant, a town of 3,000 in Sanpete County, is one such Smart Site. The Illusion Academy

provides art and design services to Disney, Pixar and Dreamworks among others. It has five full-time employees and works with nearby Snow College at developing local talent.

The Torrey-based Southern Utah Forest Products Association (SUFPA) is another example of an innovative business approach taking hold in the region.

SUFPA promotes small-scale, sustainable forestry on national forest lands in Wayne County that can also provide communities with an economic base. “We think that doing logging on a small scale is absolutely critical both to the land and to communities,” says Susan Snow director of SUFPA. In 2002, SUFPA opened the for-profit Torrey Home and Garden store on Main Street. The store sells products and crafts

GEARED FOR GROWTH

The Central region has plenty more going for it. Snow College, a two-year higher learning institution in Ephraim, the county seat of Sanpete, works with local businesses in the region to provide hands-on training for its

students. Under the college’s Traditional Buildings Skills Institute, students as well as contractors from around the region can attend introductory level building workshops.

In addition to Snow College’s growth and training efforts, other small towns are providing economic expansion in this region. Although it’s only a third the size of Cedar City (120 miles to the south), Richfield maintains its distinction as the hub of economic activity for the region as it has for decades. With a vibrant and walkable Main Street, the town provides the kind of atmosphere quickly disappearing in small towns in the West.

Richfield is home to the Utah Department of Transportation Region 4, which covers a large swath of central and southern Utah. The city recently completed construction on a $22 million multievent facility with an auditorium, 14 class-

rooms, and a theater.

Richfield’s location near the intersection of I-15 and I-70 means it’s close to cross-country shipping routes. Freeway Access explains, in part, the success of the Richfield Industrial Park. Currently, the industrial center is home to a display and custom-trailer manufacturer, a cabinetmaker, an oil distributor, a trucking-company dispatch center and a soda distributing plant.

Not to be outdone, rural Juab County, with its easy access to the Wasatch Front, has become one of the state’s fastest growing counties. People seeking a less costly and slower lifestyle have moved from the Provo/Orem area into Juab. This population growth has helped diversify the economy as several small manufacturing firms have moved to the county in recent years.

CENTRAL FAST FACTS

Counties: Juab, Millard, Sevier, Sanpete, Piute, Wayne Major cities: Richfield (6,873), Nephi (4,873), Ephraim (4,966), Delta (3,191) Regional civilian labor force: 29,023 Per capita income: 15,849 (Juab), 18,634 (Millard), 17,195 (Piute), 15,077 (Sanpete) 18,505 (Sevier) 19,776 (Wayne) Top private-sector employers: Moroni Feed, Canyon Fuels Company, Flying V Bar Ranch Average sale price of homes: $84,606

ANSWER: TOPAZ

WORKING WITH THE LAND

made by local residents using wood purchased locally and offers everything from $20 flutes to furniture costing thousands of dollars, as well as water-saving native plants.

“Before the store, many of our members didn’t sell their own products,” says Snow.

The store now fills a crucial need for the community and benefits from a steady stream of tourists heading to nearby Capitol Reef National Park.

BUSINESSUTAH2004 73

UTAH’S BUSINESS LEADERS

Accounting Firms by number of accountants COMPANY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Law Firms by number of attorneys

Ernst & Young, LLP KPMG, LLP Deloitte & Touche PricewaterhouseCoopers, LLP Grant Thornton, LLP Kemp, Burdick, CPAs & Advisors Squire & Company CBIZ-FPG Business Services, Inc. Wisan, Smith, Racker & Prescott, LLP Tanner & Company Hawkins, Cloward & Simister, L.C. Hansen, Barnett & Maxwell Pinnock, Robbins, Posey & Richins PC Jones Simkins LLP Haynie & Company Jensen Keddington Schmitt, Griffiths, Smith & Co., PC The Leverich Group Gilbert & Stewart Stayner, Bates & Jensen Huber, Erickson & Bowman, LLC Hafen, Buckner, Everett & Graff PC Robison, Hill & Company Drollinger, Judd & Associates Wiggins & Company

84 73 65 38 30 26 25 24 24 23 22 19 16 15 14 14 13 13 12 11 10 9 9 8 8

Banks by total assets 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

ATTORNEYS

Parsons Behle & Latimer Ray, Quinney & Nebeker Jones, Waldo, Holbrook & McDonough, PC Kirton & McConkie Parr, Waddoups, Brown, Gee & Loveless Snell & Wilmer Stoel Rives LLP Workman Nydegger Snow, Christensen & Martineau VanCott, Bagley, Cornwall & McCarthy Durham, Jones & Pinegar Callister, Nebeker & McCullough Fabian & Clendenin Ballard Spahr Andrews & Ingersoll, LLP Richards, Brandt, Miller & Nelson Holme, Roberts & Owen, LLP Prince, Yeates & Geldzahler Strong & Hanni, PC Holland & Hart Trask Britt PC Cohne, Rappaport & Segal LeBoeuf, Lamb, Greene & MacRae Clyde Snow Sessions & Swenson Bendinger, Crockett, Peterson & Casey Suitter, Axland

116 82 77 66 50 49 49 49 48 45 43 43 40 38 37 32 30 30 27 21 20 20 20 19 16

Commercial Builders by total revenue TOTAL LIABILITIES

TOTAL ASSETS (in millions of dollars)

Wells Fargo Bank Northwest, NA 16.26 billion 9.92 billion Zions First National Bank 840.30 Washington Mutual Bank FSB 469.1 Bank of Utah 426.1 Barnes Banking Company 413.2 Bank of American Fork 380 Heritage Bank 317.7 Merrick Bank 268.8 American Investment Bank, NA 311.4 Central Bank 278.10 State Bank of Southern Utah 259.1 Far West Bank 204.00 The First National Bank of Layton 157.02 Brighton Bank 131.4 Cache Valley Bank 76.9 Chevron Credit Bank, NA 111.6 First Utah Bank 105.1 Lewiston State Bank 89.7 Centennial Bank 89.2 Frontier Bank, FSB 72.6 Capital Community Bank 65.9 Home Savings Bank 63.4 The Village Bank 53.4 Holladay Bank & Trust 51.3 Bank of Ephraim

17.96 billion 10.6 billion 924.2 514.1 495.6 474.6 460.3 381 377 375.4 316.2 294.9 224.1 174.2 142.8 136 119.5 116.6 96.1 94.5 79.1 73 69.8 60.4 56.4

COMPANY

COMPANY

FULL-TIME CPAs

TOTAL VALUE

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

COMPANY

YEAR EST. EMPL.

Jacobsen Construction The Layton Companies Big-D Corporation Okland Construction Union Pointe Construction R & O Construction Bud Bailey Construction Inc. Sahara Inc. Bodell Construction Hogan & Associates Wadman Corporation Furst Construction Hughes General Contractors Inc. Camco Construction, Inc. The Quantum Group C & A Construction Arnell West Stacey Enterprises Inc. Kier Construction Associated Brigham Contractors Inc. E K Bailey Construction Cameron Construction Brubaker Construction M-13 Watts Construction

1922 1953 1967 1918 1986 1980 1985 1972 1976 1995 1951 1981 1958 1976 1956 1986 1986 1965 1986 1959 1954 1986 1979 1980 1968

505 800 301 277 85 200 235 50 142 180 DND 50 175 39 14 60+ 45 35 45 135 43 20 15-25 12-15 3

(millions) $366 $352.8 $273.6 $198.3 $170 $143 $105 $90 $80.8 $75 $75 $53 $44 $40 $32 $31.3 $227.8 $25 $24.3 $23.6 $21.3 $15 $15 $13.8 $12

* Total assets are national figures.

Rankings based on 2003 data. DND=Did Not Disclose. For a more extensive list of companies in this category and others see http://www.utahbusiness.com.

Download the Book of Lists at http://www.utahbusiness.clickdata.com or to purchase it on disk, call (801) 568-0114. Source: Utah Business magazine’s Book of Lists, 2003. ® 2003 Olympus Publishers.

74 BUSINESSUTAH2004

Ken Brown

UTAH’S BUSINESS LEADERS (CONTINUED)

Top 50 Public Companies by sales revenue from most recent 10-K filings with the SEC 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

COMPANY

TICKER SYMBOL

Zions Bancorp.

Questar Corp.

Novell Inc. Nu Skin Enterprises Inc. Skywest Inc. Franklin Covey Corp.

Weider Nutrition Intl Inc. Nature's Sunshine Products Inc. Simon Transportation Services Inc. SOS Staffing Services 1-800 Contacts Inc. USANA Health Sciences Inc. Evans & Sutherland Computer Corp Headwaters, Inc. (formerly Covol) Merit Medical Systems Inc. Nutraceutical International Security National Financial Overstock.com Star Buffet Inc. Sonic Innovations, Inc. SCO (formerly Caldera) Altiris Inc. ClearOne Communications Corp.

Myriad Genetics Inc. MITY Enterprises, Inc.

ZION (NASDAQ) STR (NYSE) NOVL (NASDAQ) NUS (NYSE) SKYW (NASDAQ) FC (NYSE) WNI (NYSE) NATR (NASDAQ) SIMN (NASDAQ) SOSS (NASDAQ) CTAC (NASDAQ) USNA (NASDAQ) ESCC (NASDAQ) HDWR (NASDAQ) MMSI (NASDAQ) NUTR (NASDAQ) SNFCA (NASDAQ) OSTK (NASDAQ) STRZ (NASDAQ) SNCI (NASDAQ) SCOX (NASDAQ) ATRS (NASDAQ) GTNR (NASDAQ) MYGN (NASDAQ) MITY (NASDAQ)

REVENUE 1.4 billion 1.2 billion 1.13 billion 964 million 774 million 333 million 311 million 299 million 279 million 180 million 168.6 million 134 million 123 million 119 million 116 million 111million 96 million 92 million 75 million 68 million 64.2 million 62.9 million 55 million 54 million 40.2 million

26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

COMPANY

TICKER SYMBOL

BuyersOnline Paradigm Medical Industries TenFold Corp.

Utah Medical Products Inc. Zevex International Inc. Equity Oil Co. Q Comm International Sento Corp.

Crown Energy Corp.

Dynatronics Corp.

Digital Courier Technologies Inc. IDI Global United Park City Mines Iomed Inc. Whole Living English Language Learning MK Gold Co. Interline Resources Corporation Nevada Chemicals NEBO LifeSmart Nutrition Technologies Fonix Corp.

Cimetrix Inc. BSD Medical Corp.

Pacific Web Works

BUYO (OTC) PMED (OTC) TENF (NASDAQ) UM (NYSE) ZVXI (NASDAQ) EQTY (NASDAQ) QMM (AMEX) SNTO (NASDAQ) CROE (OTC) DYNT (NASDAQ) DCTI (NASDAQ) IDIB (OTC) UPK (NASDAQ) IOX (AMEX) WLIV (OTC) ELLG (OTC) MKAU (OTC) IRCE (OTC) NCEM (NASDAQ) NEBO (OTC) LSNU (OTC) FNIX (OTC) CMXX (OTC) BSDM (OTC) PWEB (OTC)

REVENUE 30 30 28 27.4 25 25 24 23 18 16.3 16 14.7 13.5 11.8 7.8 6.6 4.8 4.2 3.9 3.6 3.5 3 2.9 2.7 2.6

million million million million million million million million million million million million million million million million million million million million million million million million million

Top 50 Private Companies by number of employees 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

COMPANY

YEAR EST.

Mrs Field’s Famous Brands Intermountain Health Care Brigham Young University Huntsman LLC Flying J Inc. Management & Training Corporation Sinclair Oil Icon Health & Fitness Inc. C.R. England Inc. Larry H. Miller Group Lagoon Corporation Huish Detergents Lifetime Products O.C. Tanner Western Watts Deer Valley Resort Market Star Corporation Harmon City Inc ARUP Laboratories Sportsman’s Warehouse Clyde Companies Associated Food Stores Inc. Slaymaker Group Inc. America First Credit Union Young Electric Sign Company

1996 1975 1875 1970 1968 1980 1976 1977 1920 1979 1886 1975 1972 1927 1987 1981 1988 1932 1984 1986 1926 1940 1996 1939 1920

EMPLOYEES 30000 25300 20000 15000 12000 5350 5000 4200 4000 3409 *2400 2235 2150 1940 1900 *1816 1800 1800 1600 1600 1500 1280 1200 1200 1164

26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

COMPANY

YEAR EST.

Tahitian Noni International Deseret Management Corporation Garff Enterprises Inc. DATS Trucking/Overland Petroleum Moroni Feed MyFamily.com Newspaper Agency Corporation CHG (formerly CompHealth) Regence BlueCrossBlueShield of Utah Layton Companies Feature Films for Families Reams Food Stores Snowbird Corporation Gastronomy Inc. Ultradent Products Inc. Chuck-A-Rama Arctic Circle Restaurants Phone Directories Company Inc. Layton Companies Sundance Mountain America Credit Union Cache Valley Electric SME Steel Contractors Dee's Inc. Lube Management Corp.

1996 1966 1997 1988 1938 1982 1952 1979 1944 1953 1986 1946 1971 1978 1978 1966 1950 1973 1953 1969 1934 1915 1992 1931 1999

EMPLOYEES

# PEAK SEASON

Rankings based on 2003 data. DND=Did Not Disclose. For a more extensive list of companies in this category and others see http://www.utahbusiness.com. Download the Book of Lists at http://www.utahbusiness.clickdata.com or to purchase it on disk, call (801) 568-0114. Source: Utah Business magazine’s Book of Lists, 2003. ® 2003 by Olympus Publishers.

76 BUSINESSUTAH2004

1100 1000 1000 1000 950 925 887 848 822 800 750 750 *740 650 650 650 615 600 590 *579 585 549 535 523 505

TBD

BUSINESSUTAH2004 77

ECONOMIC DEVELOPMENT CONTACTS (BY COUNTY)

ECONOMIC DEVELOPMENT CORPORATION OF UTAH

201 S. Main Street #2010 Salt Lake City, Utah 84111 (801) 328-8824 edcu.utah.org

BEAVER

EMERY

Emery County Economic Development 94 E. Main Street Castle Dale, Utah 84513 (435) 381-5576 www.co.emery.ut.us

Beaver County Economic Development 105 E. Center Beaver, Utah 84713 (435) 438-6490 www.beaver.state.ut.us

GARFIELD

BOX ELDER

GRAND

CACHE

IRON

CARBON

JUAB

Box Elder County Economic Development 01 S. Main Street 3rd Floor Brigham City, Utah 84302 (435) 734-3397 www.boxelder.org Cache Valley Chamber of Commerce 160 N. Main Street Logan, Utah 84321 (435) 752-2161 www.sunrem.com Carbon County Future 120 E. Main Street Price, Utah 84501 (435) 636-3295 www.co.carbon.ut.us

DAGGET

Daggett County Economic Development P.O. Box 219 Manila, Utah 84046 (435) 784-3154

DAVIS

Davis County Economic Development P.O. Box 618 Farmington, Utah 84025 (801) 451-3278 www.co.davis.ut.us

DUCHESNE

Duchesne County Economic Development Board 50 E. 200 South Roosevelt, Utah 84066 (435) 722-4598

78 BUSINESSUTAH2004

Garfield County Economic Development 25 S. 200 East Panguitch, Utah 84759 (435) 676-8585 Grand County Economic Development 55 S. Main Street Moab, Utah 84532 (435) 676-8826 x 102 www.canyonlands-utah.com Iron County Economic Development 110 N. Main Street Cedar City, Utah 84721 (435) 586-2950 www.cedarcity.org Juab County Economic Development Agency 160 N. Main Street, Rm. 102 Nephi, Utah 84648 (435) 623-3400 www.co.juab.ut.us

KANE

Kane County Economic Development 135 W. Kanab Creek Dr. Kanab, Utah 84741 (435) 644-8841 www.fcaog.state.ut.us

MILLARD

Millard County Economic Development Association P.O. Box 854 Delta, Utah 84624 (435) 864-1406 www.millardcounty.com

MORGAN

Morgan County Economic Development 1270 W. Old Highway Road Morgan, Utah 84050 (435) 829-6811

PIUTE

UINTAH

RICH

UTAH

Piute County Economic Development 550 N. Main Street Junction, Utah 84740 (435) 577-2949 Rich County Economic Development P.O. Box 26 Fish Haven, Idaho 83287 (208) 945-2333

SALT LAKE

Uintah County Economic Development 147 E. Main Street Vernal, Utah 84078 (435) 781-6731 Utah County Business Development 100 E. Center Street, Ste. 3200 Provo, Utah 84606 (801) 370-8100 www.utahvalley.org/uveda

Economic Development and Community Resources Division 2001 S. State Street, Ste. N4300 Salt Lake City, Utah 84190 (801) 468-2181 www.co.slc.ut.us

SAN JUAN

San Juan County Economic Development 117 S. Main Street Monticello, Utah 84535 (435) 587-3235 www.southeastutah.com

SANPETE

Sanpete County Economic Development Association 345 W. 100 North Ephraim, Utah 84627 (435) 283-4321 www.sanpeteut.com

WASATCH

SEVIER

WASHINGTON

SUMMIT

WAYNE

Sevier County Economic Development 250 N. Main Street Richfield, Utah 84701 (435) 896-9262 ext. 254 www.sevierutah.net Park City Chamber/Bureau P.O. Box 1630 Park City, Utah 84060 (435) 649-6100 www.parkcityinfo.com

TOOELE

Tooele County Economic Development 47 S. Main Street Tooele, Utah 84074 (435) 843-3100 www.co.tooele.ut.us

Wasatch County Commission 475 N. Main Street Heber City, Utah 84032 (435) 654-3666 www.hebervalleycc.org Washington County Economic Development Council 225 S. 700 East St. George, Utah 84770 (435) 652-7750 www.wcedc.stgeorgechamber.com Wayne County Economic Development P.O. Box 132 Bicknell, Utah 84715 (435) 425-3930 www.capitolreef.org

WEBER

Ogden/Weber Chamber of Commerce 2393 Washington Blvd., Ste. 400 Ogden, Utah 84401 (801) 621-8300 ext. 3013 www.echamber.cc

Source: Economic Development Corporation of Utah