Utah

U.S. Chamber Enterprising States Study – How States Promote Small Business

The U.S. Chamber of Commerce Foundation published its fourth annual “Enterprising States” study which measures and ranks states in terms of policies deployed to support small business.

Enterprising States report from U.S. Chamber

Enterprising States report from U.S. Chamber (photo – freeenterprise.com)

The study measures policy performance across five areas – exports, business climate, innovation and entrepreneurship, infrastructure, and their talent pipeline. There’s also a sixth list for best economic performance and growth.

Utah was the only state to end up with a top 10 finish across all five of the aforementioned policy areas and in the overall economic performance list.

North Dakota topped the charts for economic performance, followed by Texas and Utah.

Louisiana was ranked as the top state for exports, followed by Texas and Utah. Maryland came in first for innovation and entrepreneurship, followed by Colorado and Virginia.

South Dakota leads the way for a favorable business climate for small businesses, followed by Nevada and Wyoming.

Massachusetts and New York were ranked as the top two states with the best talent pipeline, followed by Maryland in third place. Florida topped the charts for infrastructure, followed by Nevada and Illinois.

The report notes that Nevada is in the bottom half of the state pileup for overall economic performance, but scores well on most individual policy measures, which they say is an indication that Nevada is due for a turnaround.

The report also notes that state funding of entrepreneurial development programs jumped nationwide by 30 percent from 2012 to 2013.

Thomas J. Donohue, president and CEO of the U.S. Chamber, said that small business was already leading the recovery, but the right policies can enable a move past the recovery stage and on to revitalization.

There are 23 million small businesses in the U.S., which together account for 54 percent of all sales. Small businesses have a historical record of accounting for 55 percent of all jobs and 66 percent of all new jobs, with new and young businesses creating a total of 40 million jobs in the last two decades.

The U .S. Chamber of Commerce Foundation commissioned the Praxis Strategy Group to prepare the 2013 Enterprising States study.

You can see a state-by-state interactive online map showing study results, or read the full Enterprising States study – Download (pdf)

Utah, Virginia Team up to Offer East-West U.S. Expansions

Companies entering the U.S. or expanding their presence often have to deal with choosing a location on one coast without completely giving up on the other one. That may not be a problem for much longer, if Utah and Virginia have their way.

Welcome to California sign

Welcome to California sign (photo – Twam/wikipedia)

Utah Governor Gary Herbert and Virginia Governor Bob McDonnell are undertaking a joint trip to California, where they will be co-marketing Utah and Virginia to companies looking at expanding in the United States.

This does have shades of the recent campaign undertaken by Texas to entice California companies, but CA Gov. Jerry Brown is in China on a trade mission and unable to provide free publicity to interlopers with a colorful remark.

The only official California response so far has been from Riley Ray Robbins, deputy director of Go-Biz, the California Governor’s Office of Business and Economic Development, who thanked the governors for their “double-occupancy contribution” to the Golden State’s tourism industry.

But the real news here is about the joint effort by the two states, which is an original concept since it works specifically because of their vast geographical separation. Virginia officials apparently cooked up the idea of teaming up with Utah to offer an East-West expansion strategy so that they can jointly provide more options for companies looking to expand in either the Mountain West or on the East Coast.

They choose Utah as a partner for this effort because the governors have gotten to know each other, and Utah and Virginia are the top two states for doing business, as per the annual Forbes rankings.

Governor McDonnell, talking about the 16-day economic development trip he is undertaking to California and Asia starting April 10, 2013, said in a statement issued by his office that “we will have the unique opportunity to partner with Utah and get in front of California-based companies looking to expand their national footprint.”

In California, the two governors will be jointly hosting a luncheon and receptions. They have arranged their schedules to make room for joint stops in San Francisco, Silicon Valley and Orange County. After the California trip (April 10-12), Gov McDonnell will head for China (April 14-22) and Japan (April 23-25).

Virginia is promoting its agriculture and tourism industries during this three-leg trip, and the Governor is accompanied by senior officials from the Virginia Tourism Corporation, the Virginia Economic Development Partnership (VEDP) and the Virginia Department of Agriculture and Consumer Services, among others.

Apogee Selects Owatonna, MN for $30M Viracon Investment

Architectural glass fabricator Viracon, a subsidiary of Minneapolis-based Apogee Enterprises, Inc. (NASDAQ:APOG), announced that it has chosen Owatonna, Minnesota for a previously announced $30 million expansion.

Viracon

Viracon (photo – viracon.com)

Last month, Apogee had announced that it would be shuttering the Viracon plant in St. George, Utah for the next two years, and moving the Utah operations to one of its two existing plants in Owatonna, Minnesota and Statesboro, Georgia.

That set off a bidding war of incentives between Owatonna and Statesboro, with Viracon publicly announcing that it was negotiating for incentives with state and local officials in both states.

At first, Owatonna offered incentives through the Minnesota JOBZ program, along with a 15-year abatement on property taxes. However, Viracon balked at this proposal because the requirements of the JOBZ program (in terms of prevailing wage standards) would wipe out any benefits provided.

So Owatonna changed its package to offer a Tax Increment Financing (TIF) deal for nine years. It is expected that the TIF will be worth as much as $4.3 million for Viracon.

The City of Owatonna has also agreed to provide a $1.4 million infrastructure grant for changes at the site, including diversion of utility systems and the shutdown of a street which runs through Viracon’s complex of buildings.

No new jobs are being created, but the deal helps to retain existing jobs at the plant that would otherwise have been at risk of being relocated. Viracon has more than 2,100 employees, of which more than half are located in Owatonna.

The $30 million investment will be used to build a 100,000-sq-ft facility to produce a new coaster. Apogee said in a statement that support from the city, county and state was a pivotal factor in the site selection decision.

“Preserving the competitiveness of a key manufacturer, such as Viracon, whose high performance architectural glass products are sold all over the globe, is a priority for the State of Minnesota,” said MN Department of Employment and Economic Development (DEED) Commissioner Katie Clark Sieben. “We congratulate Viracon on their most recent expansion and thank them for making this key investment in Minnesota.”

The company also noted that it decided to install the new coating technology in Minnesota, because the Owatonna facility contains Viracon’s most extensive product capabilities and deepest team of technical talent, and it is centrally located for serving the company’s primary North American market.

“On behalf of our employees, I would like to thank the City of Owatonna, Steele County and the State of Minnesota for their help in making this investment in our largest location possible,” said Kelly Schuller, Viracon president.

The project is expected to get under way in April 2013, and production in the new facility is expected to begin in late summer 2014.

Utah Secures Over 1000 Jobs With $27.5M in Tax Credits

The Utah Governor’s Office of Economic Development (GOED) and Economic Development Corporation of Utah (EDCUtah) announced that agreements with three different companies had created nearly 1,100 new jobs in the state.

Utah business

Utah business (photo – utah.gov)

The three companies are contact lens seller 1-800 CONTACTS, essential oils company dōTERRA, and New York-based finance company Capital Access Network.

1-800-CONTACTS will invest $59 million in a new facility that will create 654 new jobs to Salt Lake County. The company has entered into an agreement with the state that will bring more than $35 million in new state tax revenue and more than $455 million in new state wages over the lifetime of the agreement.

In return, the GOED Board of Directors has approved a post-performance Economic Development Tax Increment Financing refundable tax credit (EDTIF) of $8.8 million for 1-800-CONTACTS. This is 25 percent of the new state revenue paid by the company over the 15 year life of the agreement.

“We appreciate this partnership with the Governor’s Office of Economic Development, which will help us continue to grow and deliver our superior level of service and expanding product line to more customers,” said Brian Bethers, president of 1-800 CONTACTS. “We have made our home in Utah since our founding and look forward to creating more jobs in our home state.”

dōTERRA has chosen Pleasant Grove, UT for their new global headquarters, and plans to create 330 new jobs in Utah County. It has entered into an incentive agreement with the state that will last 10 years. Over that time, the company will pay roughly $83 million in new state tax revenue and will invest $60 million in capital investment.

“We know from experience that Utah County attracts a highly-skilled, educated workforce and we are pleased the city of Pleasant Grove will be the center of our global operations for years to come,” said president and CEO of dōTERRA David Stirling. “City, county and state government officials have been wonderful to work with through this process, showing once again why Utah continues to be among the nation’s leaders in economic development.”

For dōTERRA, the GOED board approved tax credits worth $16.65 million or 20 percent of the new state revenue paid by the company over the 10 year life of the agreement.

“It is gratifying to watch Utah companies become world leaders in their fields, and when partnering with the state has helped make a contribution to their growth and ability to remain in Utah, we know our business support systems are working the way they are intended ,” said GOED executive director Spencer Eccles.

The third company, Capital Access Network Inc. (CAN), is going to relocate a Boston, Massachusetts-based subsidiary named NewLogic Business Loans, Inc. to Salt Lake City, and will create 108 new jobs with an investment of $1.9 million. New Logic helps small businesses by providing access to alternative business loan sourcing. CAN and its subsidiaries have helped provide small businesses with nearly $3B in capital.

The GOED has approved $2 million in tax credits for Capital Access Network. During the seven year agreement period, Capital Access Network is still expected to pay $8 million in state taxes, and more than $38 million in new state wages and benefits.

“Capital Access Network will be a great addition to the small business resources the state already provides,” GOED executive director Spencer Eccles said. “We look forward to working with this company as a partner in assisting the small business community in our state.”

Forbes List of Best States for Business

The seventh annual Forbes list of the best states for business published last week shows that Utah once again topped the list. The second spot is also the same from last year, and goes to Virginia.

North Dakota went up one place to third, with North Carolina being pushed down one step to fourth place. Colorado retained its 5th place ranking from last year. See the list of the top 10 best states for business below.

  1. Welcome to Utah

    Photo credit – Phillie Casablanca (flickr)

    Utah

  2. Virginia
  3. North Dakota
  4. North Carolina
  5. Colorado
  6. Nebraska
  7. Texas
  8. Georgia
  9. Oklahoma
  10. Iowa

See the full 50-state Forbes list of the best states for business.

“It’s almost becoming impolite to other states-but Utah just can’t help it,” Utah Gov. Gary R. Herbert said. “But in all seriousness, our economy continues to outpace the national trend because we budget on sound principles and maintain a business-friendly environment. You simply cannot tax your way to prosperity, as others in our country try to do-you can only grow your way to prosperity. That is the Utah model.”

“This study reaffirms what those working and doing business in Virginia already know,” Virginia Gov. Bob McDonnell said. “My administration has been aggressive in making sure that Virginia has the best possible environment for private sector businesses to start up, grow and create jobs. Our focus on economic development and jobs has yielded results, with the unemployment rate dropping from 7.3 percent when I took office to 5.7 percent in October.”

What’s interesting is that Forbes writer Kurt Badenhausen analyzed the results as a vindication of “Right to Work” laws adopted by the top states on the list, since every state listed above (except Colorado) has these laws on the books. For the record, Michigan, which just passed a right to work law, is ranked at No. 47. Just above it at No. 46 is Mississippi, also a right to work state.

In the individual category rankings, Texas retains top slot for the best business climate. Virginia topped the list as the state with the most favorable regulatory environment. Colorado was No.1 for its labor supply. South Dakota tops the list for business costs, and Massachusetts for quality of life. California topped the list in the growth prospects category.

Boeing Signs 20-Year Incentives Deal With Utah to Add 104 New Jobs

The Utah Governor’s Office of Economic Development (GOED) announced that it will enter into a 20-year incentive agreement with The Boeing Co. (NYSE:BA) in order to boost high-tech manufacturing jobs in the company’s Utah facilities.

Boeing

Photo courtesy Boeing

“Utah’s manufacturing industry is growing, and the expansion of Boeing will bring us even higher,” said Utah Gov. Gary Herbert. “I look forward to the growth this expansion will bring to Utah’s infrastructure and economy.”

The Boeing Salt Lake City facility currently supports fabrication activities across all Boeing Commercial Airplane models. However, it is currently being used for Boeing’s 787-8 and 787-9 Dreamliner vertical fin assembly in Utah. Earlier this year in March, Boeing announced they would also assemble the 787-9 horizontal stabilizer.

The first phase of this latest employment will include the addition of 104 positions that will pay at least 125 percent of Salt Lake County’s average yearly wage, including benefits, over the life of the 20-year agreement.

Total wages paid out in this two decade period will exceed $146 million. Over the lifetime of the agreement, Boeing will pay over $5.5 million in additional state taxes.

The GOED Board of Directors approved a $1.37 million in EDTIF (Economic Development Tax Increment Financing) refundable tax credits, which is the equivalent of 25 percent of Boeing’s new state revenues over the incentive’s 20 year lifetime.

“Boeing’s reputation for innovation and leadership has in part helped Utah gain a reputation as one of the leading states for business,” GOED executive director Spencer Eccles said. “We look forward to seeing what this new project will bring.”

As part of the incentives deal, the Utah Department of Workforce Services (DWS) and the Industrial Assistance Fund (IAF) will be matching Boeing training funds up to $225,000 for specialty training.DWS will also be providing up to $100,000 in inaugural “WorkKeys” funding in Utah.

“EDCUtah is thrilled to see the continued expansion of Boeing in Utah.” says Jeff Edwards, president and CEO of Economic Development Corporation of Utah. “Boeing’s impact on the aerospace industry in Utah is significant to the success of this important economic cluster in the State.”

The Chicago, IL-based Boeing has more than 174,000 employees and operations in 70 countries, with customers in nearly 150 countries. They are one of the largest exporters in the U.S. in terms of sales.

Automotive Safety Supplier Autoliv Investing $18M in Utah

Stockholm, Sweden-based Autoliv Inc. (NYSE: ALV) announced that it will be investing $13 million for adding a sixth processing facility at its Promontory, Utah location. Autoliv also announced that it will be spending $5 million for expanding its Tremonton, Utah facility.

Autoliv

Photo – Autoliv/wikimedia

Autoliv, which develops and manufactures automotive safety systems for all the major automotive manufacturers, says the expansion for both plants put together will create 50 new jobs by 2013.

The new facility in Promontory will add 20 percent more capacity to Autoliv’s existing global gas generant production capabilities. This capacity increase will position the company to take advantage of growing worldwide demand for Autoliv airbag inflators.

Autoliv Promontory has been at the heart of the company’s airbag operations since the late 1960′s. Today, the facility produces gas generant used to inflate more than 50 million vehicle safety airbags that Autoliv builds in the Americas annually.

The plant also houses the company’s state-of-the-art Airbag Recovery Center for the deactivation and recycling of airbags.

Autoliv’s Tremonton facility, which produces initiators and micro gas generators for automotive safety products, will get a 33,000 sq ft expansion. The majority of floor space added in this $5 million expansion is slated for new production lines which could supply up to 30 percent more capacity. As of now, they plan to add two new lines to be completed in 2013 adding, which will 10 percent more initiator capacity.

These announcements about an expansion in Autoliv’s Utah plants somewhat mitigate the impact of Autoliv’s announced last month that they were investing $33 million for a new facility in China to manufacture propellant for its airbags in the Asian markets. Up until now, the propellants for Autoliv’s airbags for the Chinese market have been imported from the U.S.

The propellant plant will be Autoliv’s twelfth manufacturing facility in China. Autoliv and its joint ventures put together have with 50,000 employees in more than 80 facilities in 29 countries. Their American headquarters is located in Auburn Hills, Michigan.

In addition, the company has ten technical centers in nine countries around the world, with 21 test tracks, more than any other automotive safety supplier. Autoliv’s sales grew by 15 percent last year to $8.2 billion.

Utah Tax Credits Prompt ENVE Inshoring

Tax credits offered by the Utah Governor’s Office of Economic Development (GOED) to ENVE Composites, Inc. have prompted the Ogden, UT-based company to bring 324 new jobs to the state and make a $20 million capital investment.

Enve - Made in America

Enve – Made in America (Photo – enve.com)

Enve makes carbon fiber composite products for the cycling industry, and is famed for its durable wheels, and bicycle rims that are 100 percent “made in America.”

However, some of their manufacturing including handlebar and seat posts has until now been made in China. The deal with the GOED has enabled the company to bring this manufacturing back to Ogden, and they also plan to expand their wheel manufacturing facility.

“ENVE is committed to U.S. manufacturing,” said Enve CEO Sarah Lehman. “The State’s support will make on-shoring jobs from Asia and our expansion possible.”

The support Lehman mentions includes an Economic Development Tax Increment Finance (EDTIF) post-performance refundable tax credit of up to $1,336,424. This figure represents 25 percent of the $5.3 million in new state tax revenues that are expected to be collected from the company over the incentive’s seven year lifetime.

“With the expansion of ENVE’s facility in Utah, we will continue to maintain our reputation of producing some of the best goods in the nation,” said GOED executive director Spencer Eccles. “We are also happy to work with ENVE to keep high-paying jobs from going overseas.”

Enve will begin hiring for the 324 new jobs immediately, and will offer wages that are at least 125 percent of the Weber County average wage, including benefits. Enve expects to pay $63 million in additional wages for the new hires over the seven year period of the incentive package. This will in addition to what they pay the 70 existing Enve workers in Ogden, Utah.

“This important incentive offered to ENVE by the GOED Board is a tangible demonstration of our state’s commitment to expanding Utah businesses,” said Mike Caldwell, Mayor of Ogden. “ENVE’S decision to expand within Ogden’s Outdoor Recreation Cluster was based on their thorough evaluation of all regional and international expansion options.”

$40M Project Converts Utah School Campus To Film Studio

Cherie Wood, Mayor of South Salt Lake, Utah announced that the former Granite High Campus which was shut down in 2009 will be developed into a motion picture and television production facility.

Granite High, South Salt Lake, Utah

Granite High, South Salt Lake, Utah (photo – southsaltlakecity.com)

The developer, Woodbury Corporation, and their partner, Redman Movies and Stories, a Utah Film Company, formed a joint venture that will be investing $40 million into the project.

Up to 1,000 jobs, including full, part-time, seasonal and temporary employment could be created over the course of the development and implementation of the project.

The investment will be used to renovate the historic Granite High School buildings to be used as settings in future films, construct 90,000 sq. ft. of new motion picture sound stages, office and retail space for the entertainment industry, and use the existing green space on the 26.85 acre campus for both indoor and outdoor on site film production.

The property purchase cost will be around $8.45 million, and up to $6 million will be spent in restoring existing buildings, with the remaining $25 million to be used for constructing future sound stages, office space, restaurants, and retail buildings.

South Salt Lake Economic Development director Randy Sant put in a lot of effort to bring this project to fruition by pushing for a change to the Utah State Law regarding school district surplus property. The law now allows any Utah city to purchase surplus properties for economic development purposes, and not just for community facilities.

“The City understood that it couldn’t raise the funds but still wanted the best possible project here,” said Sant. “With that in mind, we retained our first right of refusal, changed the legislation, requested proposals from developers and chose the one that most closely met our goals.”

The Utah Motion Picture Incentive Program also helped the Woodbury-Redman partnership solidify their business plan by offering an up to 25 percent post performance incentive to motion picture and television production companies interested in filming in Utah.

The school opened in 1906, and has buildings of different architectural styles. Many movies and TV shows have already been filmed on the campus, and the Utah Film Commission frequently sends location scouts to Granite because of its possibilities for filming and sets.

“South Salt Lake’s beloved community activities will carry on at Granite,” says Mayor Cherie Wood “Because of a partnership attitude among the City, Woodbury Corporation, and Redman Movies and Stories, we can continue to use the green space and host our community events.”

“This is a one-of-a-kind project of statewide economic importance that celebrates the historic value, quality, and size of the campus and our neighborhood,” added Wood.

Economic Development Specialists Seeking High Paying Jobs in Layton, Utah

www.standard.net/

Many of the economic development specialists in the region of Layton, Utah are seeking more high paying jobs for the local community.

An economic development specialist named Kent Andersen is planning on expanding the economic base in the region of Layton as more high quality jobs are brought to the area. Andersen pinpoints that there are many key components of the job as he is meeting with a variety of organizations whose aim is to “ensure the economic success” of the surrounding region. Kent Andersen is so busy that he still has not unpacked all of his goods in his new office.

Andersen recently replaced the economic development specialist named Ben Hart. Kent Andersen is also familiar with economic policy as he has been a city planner for the region of Syracuse.

Andersen wants to keep Layton economically viable by focusing upon:

  1. Office, manufacturing and retail space
  2. Developing the regions of Falcon Hill and East Gate

Andersen is also in charge of the grant writing in Layton. Kent Andersen originally learned how to write grants by assisting an affordable housing organization. Andersen always wanted to serve the state of Utah. Kent Andersen wanted to diversify the retail businesses by establishing a steady flow of sales tax revenue.

Some of the new businesses that will be assisted include: Texas Roadhouse and Buffalo Wild Wings. A train station will be renovated near the Commuter Rail Station as well. Andersen wants to also focus upon growing property tax revenue by securing East Gate and manufacturing development. Many of the manufacturing companies will increase the personal property tax revenue and the amount of jobs created. Andersen wants to make sure that Layton supports the HAFB. Andersen wants the focus to be on the Wasatch Front instead of Layton City.

Overall, seeking more high paying jobs will be beneficial to the region of Layton.

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