CENTER FOR RURAL DEVELOPMENT

GO UTAH PROVIDES PROGRAMS AND RESOURCES FOR RURAL COMMUNITIES

Enhancing economic opportunities

The Center for Rural Development, a Governor’s Office of Economic Opportunity initiative, works with businesses in rural counties to provide resources and programs to sustain business and improve employment opportunities. The center collaborates with local government entities to connect and empower entrepreneurs and businesses.

“Our office remains committed to fulfilling Gov. Cox’s One Utah Roadmap strategic priorities, including ‘Rural Matters,’” said Ryan Starks, managing director of Business Services in the Economic Opportunity office. “All Utah residents should have opportunities for business success, no matter their geographic location, and our Center for Rural Development connects those possibilities.”

The center’s mission is to foster a healthy and diverse rural ecosystem by connecting rural businesses and communities with state and federal resources and programs. With 24 of Utah’s 29 counties classified as rural, Go Utah’s Center for Rural Development embraces its mission to support these locations as they address future economic development planning and implementation.

Rural County Economic Development

One of the center’s most successful programs is the Rural County Grant program. This program empowers rural county governments to take ownership of for their economic development planning, projects, and activities. First, counties identify business development needs, including recruitment, workforce training, and facility improvements. Then, in cooperation with each county’s economic development advisory board, planners, community development professionals, and elected officials, they mobilize to address needs.

“The Utah Rural Grant program is proving to be extremely helpful, as it brings together a local committee to create goals and projects that have an immediate impact on their communities’ unique economic development needs,” said Danny Stewart, economic development director for Iron County.

The center administers $4.8 million per year in upfront grants and another $1.75 million in grants under a competitive application through the Rural County Grant Program.

Job Creation Incentives and Remote Work

The center has managed other grant projects to help grow rural economies. Two of those grants, the Rural Economic Development Incentive Grant (REDI) and the Rural Coworking and Innovation Center Grant (RCIC), have produced impressive results.

Rural Economic Development Incentive Grant (REDI)

The mission of the REDI Grant is to economically unite Utah, helping companies statewide build a quality workforce in rural Utah. The grant awards $4,000 to $6,000 per position to companies willing to create new high-paying jobs in most rural Utah counties. These jobs can be remote, in a satellite hub or office, or physically located in the same rural county as the company.

In Fiscal Year 2021, 26 businesses applied for the grant. It’s projected that these companies will create 114 new high-paying rural jobs. In the 2022 fiscal year, applications are on track to exceed all previous years’ outcomes.

One REDI Grant recipient noted, “The support of REDI, and the state of Utah, was very influential in helping us decide to maintain our headquarters in Carbon County. This program helped continue to spin the flywheel of growth and add more jobs to the local community.”

Rural Coworking and Innovation Center Grant (RCIC)

The purpose of the RCIC is to help create facilities that provide individuals working within designated rural areas with the infrastructure and equipment they need to participate in the online workforce. Qualifying activities of this grant include construction or renovation of a facility, extending or improving utilities and broadband service connections, and purchasing equipment, furniture, and security systems.

Fifteen coworking centers are open or under development, from Blanding to Panguitch and Price to Moab. The Vernal Innovation Hub, housed in a remodeled municipal building, has seen exceptional growth and success. The Innovation Hub houses coworking spaces, conference rooms, and private offices that help support new startup businesses.

“The Hub is very busy and increasing in use and popularity. All nine offices are full with a waitlist of four,” said Quinn Bennion, city administrator for Vernal. “There are now 35 dues-paying members at the Hub.”

With the assistance of a full-time manager, the Innovation Hub is facilitating local business meetings, networking opportunities, and business training sessions.

Rural Business Expansion

The Center for Rural Development also collaborates with Go Utah’s Corporate Retention and Recruitment team to identify companies that may grow in rural parts of the state.

Corporate Retention & Recruitment Incentives

Incentives are available to select companies that create new, high-paying jobs that improve quality of life, increase the tax base, and help diversify the state’s economy.

The Rural Economic Development Tax Increment Financing (REDTIF) program helps companies begin or expand operations in rural Utah. In counties classified as third-class, the program is a post-performance, refundable tax credit rebate of up to 50% of new state revenues (sales, corporate, and withholding taxes paid to the state) over the life of the project (up to 20 years, but typically 5-10 years). In fourth-, fifth-, and sixth-class counties, qualifying companies receive a rebate of 50% of new state revenues.