2014 Annual Report and Business Resource Guide

8/9/2019 2014 Annual Report and Business Resource Guide

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Governor’s Office of Economic Development • 2014 Annual Report • www.business.utah.gov i

2014 Annual Report andBusiness Resource Guide

World Trade Center at City Creek 60 E. South Temple, 3rd Floor Salt Lake City, Utah 84111(801) 538-8680


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Governor’s Office of Economic Development • 2014 Annual Report • www.business.utah.govii

Utah Code Annotated

Contents

Alternative Energy Manufacturing Development Tax Credit 63M-1-3103–3105 . . . . 31Board of Tourism Development 63M-1-1401–1406 . . . . . . . . . . . . . . . . . . . . 79Business Expansion and Retention Program (BEAR Program) 63M-1-903(1)(c). . . . 63Business Resource Centers (BRC) 63M-1-2701–2707 . . . . . . . . . . . . . . . . . . . 27Economic Development Tax Increment Financing (EDTIF) 63M-1-2401–2409 . . . . 31Enterprize Zones 63M-1-401–415. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62Governor’s Economic Council 63M-1-1301–1304. . . . . . . . . . . . . . . . . . . . . 88Industrial Assistance Fund (IAF) 63M-1-901–903, 905–910 . . . . . . . . . . . . . . . 44Life Science and Technology Tax Credit 63M-1-2901–2911. . . . . . . . . . . . . . . . 30Motion Picture Incentive Program (MPIP) 63M-1-1801–1805. . . . . . . . . . . . . . 75New Convention Hotel Tax Credit 63M-1-3401–3413 . . . . . . . . . . . . . . . . . . 31Ofce of Consumer Health Service, Avenue H, 63M-1-2501–2506. . . . . . . . . . . . 49Outdoor Recreation Ofce 63M-1-3301–3306. . . . . . . . . . . . . . . . . . . . . . . 53Pete Suazo Utah Athletic Commission 63C-11-101 . . . . . . . . . . . . . . . . . . . . 57Private Activity Bond Authority (PAB) 63M-1-3001–3009 . . . . . . . . . . . . . . . . 29

Rural Development Ofce 63M-1-1601–1606 . . . . . . . . . . . . . . . . . . . . . . . 61Rural Disadvantaged Communities 63M-1-2001–2006 . . . . . . . . . . . . . . . . . . 64Rural Fast Track (RFT) 63M-1-904 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62State Advisory Council on Science and Technology 63M-1-601–608 65

STEM Action Center 63M-1-3201-3211 . . . . . . . . . . . . . . . . . . . . . . . . . . 67Targeted Business Tax Credit 63M-1-501–504 . . . . . . . . . . . . . . . . . . . . . . . 63Technology Commercialization and Innovation Program (TCIP) 63M-1-701–705 . . 71Utah Capital Investment Board 63M-1-1201–1224 . . . . . . . . . . . . . . . . . . . 103

Utah Recycling Market Development Zones 63M-1-1101–1112 . . . . . . . . . . . . . 30Utah Small Business Jobs Tax Incentive 63M-1-3501–3512. . . . . . . . . . . . . . . . 31


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Contents

Governor’s Ofce of Economic Development Mission . . . . . . . . . . . . . . . . 2Letter from the Executive Director . . . . . . . . . . . . . . . . . . . . . . . . . . . 3GOED Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5GOED Board Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Governor’s Ofce of Economic Development Programs. . . . . . . . . . . . . . . . 7 Targeted Economic Clusters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Business Marketing Initiative . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Business Resource Centers: Entrepreneurial Development. . . . . . . . . . . . 27 Corporate Recruitment and Business Services . . . . . . . . . . . . . . . . . . 29 International Trade and Diplomacy Ofce (ITDO). . . . . . . . . . . . . . . . 45 Ofce of Consumer Health Services, Avenue H . . . . . . . . . . . . . . . . . . 49 Outdoor Recreation Ofce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Pete Suazo Utah Athletic Commission . . . . . . . . . . . . . . . . . . . . . . . 57 Procurement Technical Assistance Centers (PTAC). . . . . . . . . . . . . . . . 59 Rural Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 State Science Advisor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 STEM Action Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Technology Commercialization and Innovation Program (TCIP) . . . . . . . 71 Utah Broadband Project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Utah Film Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Utah Ofce of Tourism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79Governor’s Ofce of Economic Development Partners . . . . . . . . . . . . . . . 87 Governor’s Economic Council (GEC) . . . . . . . . . . . . . . . . . . . . . . . 88 Economic Development Corporation of Utah (EDCUtah) . . . . . . . . . . . 89 Manufacturing Extension Partnership . . . . . . . . . . . . . . . . . . . . . . . 93 Ofce of Energy Development . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Small Business Development Center Network (SBDC). . . . . . . . . . . . . . 99 Utah Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Utah Science Technology and Research Initiative (USTAR) . . . . . . . . . . . 105 Utah Sports Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

World Trade Center Utah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113Governor’s Ofce of Economic Development Data . . . . . . . . . . . . . . . . . .115Economic Development Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . .123 Business Resource Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 Chambers of Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 Cities and Towns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 Economic Development Contacts by County . . . . . . . . . . . . . . . . . . . 142 Higher Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Procurement Technical Assistance Centers . . . . . . . . . . . . . . . . . . . . 147

Small Business Development Centers . . . . . . . . . . . . . . . . . . . . . . . 148 USTAR Technology Outreach and Innovation Program Regional Ofces . . . 149 GOED Contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150


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Governor’s Office of Economic Development • 2014 Annual Report • www.business.utah.gov2

Vision StatementUtah will lead the nation as the best performing economy and berecognized as a premier global business destination.

Four Objectives1. Strengthen and grow existing

Utah businesses, both urban andrural

2. Increase innovation, entrepre-neurship and investment

3. Increase national andinternational business

4. Prioritize education to develop

the workforce of the future

Logan Valley in the fall.

100,000 Jobscelebration atEaston ArcheryCenter.

An aerial view of downtown Salt Lake City.


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Governor’s Office of Economic Development • 2014 Annual Report • www.business.utah.gov 3

State of UtahGARY R. HERBERT

Governor

SPENCER J. COX Lieutenant Governor

Governor’s Of ceof EconomicDevelopment

Q. VAL HALE Executive Director

To contact the Executive Director

about GOED visit www.business.utah.govor contact Mindy Vail , Executive Assistantto Val Haleat [email protected] or 801-538-8769.

Dear Legislators and Economic Development Partners,

As the new executive director of the Governor’s Ofce of Economic Development (GOED), it is my pleasure to introduce you toour Annual Report for 2014.

GOED continues to consistently execute the Governor’s Vision that, Utah will lead the nation as the best performing economy andbe recognized as a premier global business destination.

These efforts have met with great success due to the Governor’s leadership and the partnership with our legislature, local leaders,public and higher education representatives, and the most important ingredient, the private sector.

As we move forward into new economic expansion in Utah, we are facing new opportunities and challenges. For example, we arenow the beneciary of a very low unemployment rate and a very strong job growth rate. This will require us to step up our educa-tion and incumbent worker training efforts to meet the job skill demands of the coming decades. We continue to work closely withall the strategic stakeholders in this effort and we will succeed. We are reviewing each GOED program and those of our key partnersto identify areas where we can continue to keep Utah as a leading business-friendly state.

The accelerating expansion of Utah companies has increased our economic vibrancy, which has further enhanced our ability to at-tract more and more innovative global businesses to Utah. While we continue to receive consistently high third party ratings, earned

by maintaining our focus on the fundamentals, we are working on a new and responsive economic plan 2.0. At the same time wewill stay the course on some key economic drivers that benet all Utah businesses, such as:

• AAA bond rating• Low tax rates• Sensible regulatory environment• Superior quality of life

In this report you will nd discussed business resources that are unparalleled in the national economy or any other individualstate. I encourage you to use this document as a resource — it is designed to help you navigate through our economic develop-ment toolbox.

In the coming year, I hope to hear from many of our business and legislative leaders so we can nd productive ways to worktogether, rene and execute our strategic plans. At GOED we will continue to strengthen Utah and to capitalize on the wave ofopportunities which are coming to our great state.

Thank you,

Q. Val Hale


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4 Governor’s Office of Economic Development • 2014 Annual Report • www.business.utah.gov

GOED Management Team

Q. Val Hale , Executive Director , Governor’s Ofce of Economic Development Val Hale is the executive director of the Utah Governor’s Ofce of Economic Development(GOED), which promotes state growth in business, tourism and lm. Hale was appointed to theposition in 2014 by Gov. Gary R. Herbert.

Before accepting the position as executive director, Hale served for two years as presidentand CEO of the Utah Valley Chamber of Commerce, leading efforts in business community is-sues— including regional economic development and branding initiatives.

Prior to serving in the chamber, Hale was vice president (2010-2012) for university re-lations at Utah Valley University (UVU), overseeing legislative affairs, marketing and public,media and community relations. Hale played a key role in transitioning Utah Valley State Col-lege into Utah Valley University. Hale started at UVU as the assistant vice president for externalaffairs (2005-2006), where he served as legislative liaison and oversaw community relations andeconomic development activities. Before his career at UVU, Hale worked for the Brigham Young University (BYU) AthleticDepartment in 1982 and continued with the department for 22 years, including ve years as ath-letic director. Hale left a cherished legacy of athletic department improvements. His success infundraising resulted in the construction of Miller Park, the Student Athlete Building, the IndoorPractice Facility and the Legacy Seats in the LaVell Edwards Stadium. Hale received his bachelor’sdegree in public relations in 1981 and a master’s degree in communications in 1987—both fromBYU. Hale worked as a reporter at the Daily Herald from 1981 to 1982, covering business, gov-ernment and BYU.

Dr. Kimberly Henrie, Deputy Director Dr. Kimberly Henrie is the deputy director and chief operating ofcer of the Governor’sOfce of Economic Development. Prior to this appointment, Dr. Henrie served as the assistantvice president of Budget Services and Financial Planning at Salt Lake Community College. Dr.Henrie has worked for the Utah System of Higher Education and in manufacturing for bothsemiconductors and outdoor recreation equipment. Dr. Henrie earned her doctorate degree inthe eld of educational leadership & policy from the University of Utah and received her MBAand a Bachelor of Arts degree in international Business from Westminster College.

Theresa A. Foxley, Managing Director of Corporate Recruitment and Business Services As managing director of Corporate Recruitment and Business Services in the Governor’sOfce of Economic Development (GOED), Theresa Foxley oversees corporate recruitmentand incentives, Procurement Technical Assistance Centers (PTAC), the Ofce of Rural Devel-opment, and the Private Activity Bond Authority. Prior to her appointment at GOED, Foxleywas a business and nance attorney with the Salt Lake ofce of Ballard Spahr, a law rm with14 ofces nationwide, where she represented a diverse set of clients on corporate and nancialmatters including mergers and acquisitions. Earlier in her career. Theresa Foxley received herundergraduate degree from Utah State University and Juris Doctorate from the S.J. QuinneyCollege of Law at the University of Utah.

Vincent E. Mikolay, Managing Director of Business Outreach and International Trade Vincent Mikolay serves as the managing director of Business Outreach and International

Trade, which includes the Utah Clusters Initiative, Technology Commercialization and Inno-vation Program and State Science Advisor. His prior positions included working with severalearly-stage technology startups and he has also previously worked for Nike Inc., The Walt DisneyCompany, Advent Entertainment and Ridemakerz, among others. With over 10 years of experi-ence in operations and business strategy, Mikolay has worked in many countries worldwide andled global teams in opening concept stores.

Vicki Varela, Managing Director of Tourism, Film and Global Branding Vicki Varela is the managing director of Tourism, Film and Global Branding for the stateof Utah. She oversees the state’s national and international tourism marketing strategy. She alsoworks to use lm as a billboard for the state’s natural wonders. She is establishing Utah LifeElevated® as the state’s integrated global brand promise for all customers. Through a recentlylaunched Rourism initiative, she is working to expand rural tourism.

Varela’s career has been in the persuasion business. She has held many public and privatesector leadership roles, including vice president of Kennecott Land, deputy chief of staff andspokesperson for Governor Mike Leavitt, assistant commissioner of higher education and a keydriver for Prosperity 2020 and Utah’s hosting of the 2002 Olympics. She has two adult sons andone beautiful granddaughter.


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GOED Organizational Chart


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6

GOED Board Members

Lorena Riffo JensonVOX Creative

Term End: 2016

Salt Lake CityPresident of VOX

Creative, Riffo-Jensonhas a decade experiencein the public and private

sectors.

Winston WilkinsonWinston Wilkinson &

Associates

Term End: 2017Sandy

Winston is the President& CEO which provides

lobbying and consultingservices to clients.

Josh RomneyFounder, The Romney

Group

Term End: 2017Salt Lake City

Josh is the founder ofThe Romney Group,

which owns and operatesmultifamily, ofce and

industrial propertiesthroughout the U.S.

Board Assignments:Financial Services

Margo JacobsStrategic Marketing

Consultant

Term End: 2017Park City

After leaving OracleCorporation in 2000,Margaret formed a

marketing and publicrelations consulting rm.

She now serves on theSundance Institute Utah

Advisory Board.

Board Assignments:Incentives Committee

Brent BrownBrent Brown Automotive

Group

Term End: 2015Orem

Brown is the owner ofBrent Brown Toyota Scion

in Orem. He recentlyserved on Toyota’s

National Dealer Council.

Board Assignment:Aerospace & Defense

Mel LavittNeedham and Company, LLC

CHAIR


Lavitt’s career in investmentbanking has included

hundreds of capital markettransactions accounting for

several billion dollars ofequity and debt nancing.

Board Assignments:Chairman and Incentives

Committee

Jerry OldroydBallard Spahr Andrews &

Ingersoll


Oldroyd is a partner inthe Business & Finance

Department andCommunications Group,

and a trustee of UtahTechnology Council.

Board Assignments:Incentives

Subcommittee Chair

Clifford D. WhiteCapital Consultants

Term End: 2015

Salt Lake CityBusinessman, investorand nancial planner.

Active in Utah communityservice for 42 years.

Board Assignments:International Trade

Peter MouskondisNicholas & Company


Westminster CollegeFoundation Board Mem-ber, IFDA Board Member,Independent MarketingAlliance Board Member,

and Markon BoardMember.


Jake BoyerThe Boyer Company


President of The BoyerCompany. Managed the

Gateway Project.

Board Assignments:Incentives Committee and

Financial Services

Sam GranatoFrank GranatoImporting Co.


Granato is the presidentand owner of Frank

Granato Importing Co.and the Democratic

nominee for the U.S.Senate race in 2010.

Board Assignments:Aerospace & Defense

Governor’s Office of Economic Development • 2014 Annual Report • www.business.utah.gov

Chris M. ConabeeStrategic Marketing

Consultant


Chris spent several yearsas a real estate developerbetween New York and

Utah as a businessexecutive in the nancial

services industry. Healso served as Managing

Director for GOED’scorporate recruitmentand business services.



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2014 Annual Report andBusiness Resource Guide

PROGRAMS


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8

The Governor’s Ofce of Economic Development oversees

the following programs:

Targeted Economic Clusters

Business Marketing Initiative

Business Resource Centers: Entrepreneurial Development

Corporate Recruitment and Incentives

International Trade and Diplomacy

Avenue H – Small Business Health Insurance

Outdoor Recreation Ofce

Pete Suazo Utah Athletic Commission

Procurement Technical Assistance Centers

Rural Development

State Science Advisor

STEM Action Center

Technology Commercialization and Innovation Program

Utah Broadband Project Utah Film Commission

Utah Ofce of Tourism

Governor’s Office of Economic Development • 2014 Annual Report • www.business.utah.gov


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OVERVIEW Utah’s economic clusters (key industries) include aerospace and defense,energy and natural resources, nancial services, life sciences, outdoor prod-ucts and software development/information technology. These vibrant sec-tors leverage on Utah’s core compelling competencies in a broad range ofindustries, innovation and workforce. Through a framework focused on growing jobs, cluster directors reviewan industry in conjunction with trade associations, critical agency partnersand key organizations to develop strategic plans that address issues in theareas of advocacy, innovation, capital, manufacturing, infrastructure, work-

force development, international opportunities and marketing. The result is a vibrant and growing Utah economy that can be seen in the187,281 jobs in the state’s six clusters, up from 178,259 the previous year—agrowth rate of 5.1 percent. Individual cluster growth scores can be seen onthe following pages.

Cluster Jobs – 2013Utah’s 6 strategic industry clusters account for 187,281 jobs as of Q4 2013

The following chart shows each cluster’s contribution to those jobs.

Financial Services54,397

OutdoorRecreation

6,099

Software / IT54,474

Life Sciences30,009

Energy& NaturalResources

21,188

Aerospace& Defense

21,114

29%

16%11%

11%

29%

3%


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Energy and Natural Resources Utah has diverse and abundant natural resources ranging from agriculture andmineral resources (including hydrocarbons) to renewable resources including wind,solar, geothermal and others. These natural resources generate signicant revenuefor the State of Utah and are the foundation of the state’s rural communities.

Energy development is of particular importance to the state, and not only be-cause of the signicant capital investment, job creation, and revenue associated withenergy development activities, but also be-cause those activities lead to the low energyprices that provide a foundation for all ofUtah’s economic successes.

Energy jobs in Utah account for 1.6percent of the state’s jobs, (just fewer than18,000) but account for 2.6 percent of the

ADVOCACY Utah Technology Council • BioUtah • MWUSA • Outdoor Industry

USTAR

Utah Capital Investment (formerly Utah Fund of Funds)

Utah Manufacturers Association

Utah Broadband Project

Workforce Services Department

World Trade Center • ITDO

Economic Development Corporation of Utah

INNOVATION

CAPITAL

OPERATIONS

INFRASTRUCTURE

WORKFORCE DEV.

INTERNATIONAL DEV.

RECRUITMENT

GOED CLUSTER DIRECTOR

SOFTWARE/IT FINANCIALSERVICESLIFE SCIENCESENERGY AND

NATURALRESOURCES

AEROSPACEOUTDOOR

Cluster directors work in close collaboration with many stakeholders in theprivate sector, education and government, such as the examples shown below, to

help coordinate efforts around multiple pressure points in business.


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state’s total wages, sug-gesting that energy

jobs are unusuallyhigh-paying. Indeed,the average energy jobin Utah pays about 196percent of the state’smedian wage. At thesame time, Utah’sstatus as number 15among states for coal

production and nineamong states for nat-ural gas productionkeeps utility pricesamong the lowest inthe nation, leading tobusiness growth in technology, healthcare and other sectors ourishing along theWasatch Front. Fortunately, the energy boom currently underway in Utah seems to have sig-nicant staying power. Not only have new well-stimulation and drilling technolo-gies unlocked enormous reserves of conventional hydrocarbon resources, but thestate is seeing its rst oil shale and oil sands developments get underway, promis-ing signicant further growth in Utah’s hydrocarbon production. At the sametime, renewable energy resources are poised for explosive growth in the coming years due to steep declines in technology costs paired with available incentivesand other policy signals. Much has been made in recent years of the supposed conict between the de-

velopment of Utah’s natural resources and the maintenance of the pristine natu-ral environment that is also essential to the state’s economic future. FortunatelyUtahns have demonstrated repeatedly that natural resource development andconservation can, if thoughtfully undertaken, go hand in hand.

To that end, in 2011 the Utah State Legislature created the Ofce of EnergyDevelopment (OED), whose role is to promote and advance the responsible de-velopment of the state’s energy resources. OED does so by convening diversestakeholders to advance shared development and conservation goals, throughplanning and policy measures, and administering post-performance tax credits

and other development incentives.


CNG vehicles now make up part of the state eet.


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Life Sciences The Utah Life Science cluster is broad and diverse and includes medical device,

pharmaceutical, natural products, diagnostics, equipment and reagents.Utah’s life science cluster remains one of the strongest industry clusters in thestate employing more than 30,000 employees, 2.3 percent of the Utah workforceand commanding an average wage that is 150 percent above the Utah average. In 2014 GOED began closely ob-serving activities within sub-clustersof the life science industry that gowell beyond the North American In-dustry Classication System (NAICS)

code description. These observationshave allowed GOED to better under-stand the dynamics of specic indus-try growth. For example NAICS code325412, “pharmaceutical preparationand manufacturing,” generally encompasses both natural product and pharma-ceutical companies. It is well known that these two industries face very differentchallenges to their growth. Having the ability to address their individual clusterneeds is key to GOED’s success. Another interesting observation is the growth of “service based” companieswithin both medical device and pharmaceutical industries, that is, companies whoseprimary business is contract services for other companies. Within the medical devicespace, growth of the service sub-cluster averages 14 percent over the past eight yearsas compared to medical deviceinnovators at 3 percent. This ob-servation leads us to believe thatgrowth of the medical device

sub-cluster is being accompa-nied by vertical dis-integrationof the industry. Companies whohave traditionally performed allaspects of R&D, production andsales in-house are beginning tooutsource many of those func-tions. This activity goes hand inhand with an increased reliance

on specialty contract services ascompanies look to streamlineinternal processes. The existence

Kevin Jessing, GOED life science cluster director,receiving BioUtah Institute’s OutstandingContributor Award.


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and growth of a strong and diverse set of specialty contract service providers, inturn, benets not only large companies, but also lowers the barriers to entry for

start-up companies who no longer need to build extensive infrastructure to bringproducts to market. The number of companies with 10 or fewer employees in med-ical devices has tripled since 2006, thus increasing acquisition targets and the poten-tial for exponential growth in the cluster. Today, life science anchors such as Merit Medical, ARUP, Becton Dickenson andFresenius, who each employ thousands of scientists and engineers, thrive alongsidesmall newcomers from all corners of the innovation ecosystem, many of whomwould not exist without state programs. As we continue to uncover the underly-ing dynamics of industry growth, GOED’s ability to support the industry becomes

more focused and effective. Programs such as the Technology CommercializationInnovation Program (TCIP), Utah Cluster Acceleration Program (UCAP), BioIn-novations Gateway and USTAR increase innovation across the entire life sciencecluster and can be ne-tuned to address the tremendous growth opportunities.

Information Technology & Software DevelopmentUtah’s software and information technology industry has continued to see un-precedented growth as represented bythe increase in establishments, jobs andhigher average annual wage. As well,the leading trade association for the in-dustry, the Utah Technology Council(UTC), found itself leading the way inremoving the barrier of workforce issuesin collaboration with GOED in the de-velopment and ongoing funding of theSTEM Action Center. The industry was

also highlighted by signicant achieve-ments including:• 9/5 - Logan based PluralSight (www.PluralSight.com) acquired Chicago-based

TrainSignal• 9/26 - C7 Data Centers acquired Interatechs Corporation• 10/1 - Utah State University received grant to increase cloning ef ciency • 10/2 - Cymphonix acquired by California Company • 10/21 - Vivint Solar received $540 million for residential solar installs

• 10/25 - Utah State University received $6 million for Center for Entrepreneurship• 11/4 - Vivint named one of the biggest job creators in the U.S.


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• 11/8 - i.TV acquired New York-based GetGlue• 11/8 - University of Utah Business School ranked in top 25 for entrepreneur -

ship• 1/29 - Utah Technology Council unveiled Hottest 50 Utah STEM Jobs for 2014• 2/6 - Domo raised $125 million from TPG, Fidelity, Salesforce• 2/18 - Utah computer science grads jumped 47 percent to 534• 6/10 - Utah added computer science to math, science tracks in high schools• 7/14 - QuotaDeck became rst Utah company into TechStars Boulder, four

months after creation• 7/15 - NetDocuments secured $25million from Frontier Capital to fuel growth• 8/11 - BoomStartup summer cohort on track to raise $7 million after Demo

Day

Utah Technology Council The Utah Technology Council (UTC) is the state’s premier professionalassociation for “growing and protecting” more than 5,000 high tech, cleantech and life science companies. At its core, UTC exists to help Utah technol-ogy businesses become more relevant and competitive by creating valuableconnections with members and others who offer peer experience and advice,by addressing the serious talent shortage faced by member companies andby assisting members to gain access to funding. Members join UTC to shareinsights with industry peers, counsel with government and academic leadersand receive help from professional service providers and funding resources.

Silicon Slopes Silicon Slopes was conceived to promote Utah’s growing technology

community. After sitting through numerous meetings strategizing waysto promote Utah’s image, Omnitureco-founder and current Domo Inc.CEO Josh James decided to initiate abranding effort for Utah’s tech com-munity – Silicon Slopes.

SiliconSlopes.com SiliconSlopes.com provides re-

sources for technology and life sci-ences companies, investors and jobseekers, such as detailed company

Governor Gary R. Herbert at eBay openingin Draper


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proles, industry news, community calendar and a blog. There is also asection that tracks investors and their activity including deal ow in Utah.

Silicon Slopes Calendar Every year, Silicon Slopes produces a 2’x3’ calendar that colorfully dis-plays Utah and its top technology and life science companies. The calendaris sent to thousands of recipients throughout the state and nation includ-ing venture capital rms and angel groups, service providers, universities,state and local legislature and executives of Utah tech companies.

Outdoor Products and Recreation

The Outdoor Recreation Ofce, which was created by the legislature in 2013,had a successful rst year as the outdoor products and recreation cluster con-tinued to grow. The outdoor industry as a whole continues to take notice ofthe building momentum for growing outdoor products companies to relocateto Utah. It is also becoming apparentthat Utah’s outdoor recreation ameni-ties contribute to a high quality of life,which helps to attract great companiesand talented employees to the state. The Outdoor Products and Recre-ation Cluster works with a broad rangeof well-known outdoor companies:Amer Sports, Rossignol, Voile, Black Dia-mond, Goal Zero, Easton, Hoyt Archery,Lifetime Products, Reynolds Cycling, and Quality Bicycle Products. According to arecent analysis of Utah’s outdoor recreation industry done by BEBR, employmentin the outdoor recreation sector in Utah has increased by more than 30 percent

over the past decade. The study noted that Utah ranks second out of all 50 states inthe number of sporting goods manufacturing jobs, which represents more than 10percent of the nation’s jobs in that sector.

Outdoor recreation is a big driver for the state’s tourism industry. Commu-nities in rural areas around the state receive big economic boosts from tourists


Climber on the summit of Castleton Tower in Castle Valley, Utah.

P h

o t o b y B r a

d P

e t e r s e n


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who choose to recreate in Utah’s scenic landscapes. There is a direct correlationbetween the purchase of outdoor products and outdoor recreation-based tour-ism. The Outdoor Industry Association’s latest economic report indicated that forevery dollar that consumers spend on outdoor gear and recreational vehicles, theywill spend four times that using the product.

In order to bring more of the outdoor recreation tourism dollars to Utah’srural communities, the Outdoor Recreation Ofce is partnering with the Ofceof Tourism and the Rural Programs ofce to develop workable programs that canaid counties in developing their tourism amenities. The rural tourism programhas been dubbed “Rourism.”

Aerospace and Defense The aerospace and defense cluster suffered to some extent due to the U.S.congressional debates that “sequestered” the defense budgeting process. Also, thedrawdown of the activities in Afghani-stan and Iraq along with the shifting ofDoD program priorities signicantlyaffected Utah’s defense related indus-try partners. However the resurgenceof airframe manufacturing to support

the worldwide expansion of airlines andtheir capacity enabled the Utah compa-nies engaged in aircraft manufacturingto expand. As such, in the 2012 to 2013 reporting timeframe, the aerospace anddefense cluster’s contraction of jobs growth rates slowed from -2.9 percent to -2.5percent.

Employees at ATK work on an F-35 wing skin. ATK is one company of about 105 aerospaceindustry companies currently in Utah. These companies employ a workforce of about20,000 people, making Utah one of the top states in aerospace and defense employment.


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In 2013, a workforce base of 21,114 jobs made up the sector, representingabout 2.9 percent of all state wages and 1.6 percent of all jobs in Utah with averagewages about 75 percent higher than the Utah average wage. The average numberof establishments for the sector continued increasing in 2013, adding a total of venew establishments since 2011. (Source: DWS data). Utah’s high concentration of aerospace, defense and aviation companies makesit one of the top states in the nation in terms of aerospace employment.

Currently, about 105 aerospace- and defense-related companies in Utah em-ploy 21,114 people. The state’s core aerospace and defense competencies includeadvanced composite materials, propulsion systems and avionics and control sys-tems. These three industries are thriving with a healthy Aviation/Aerospace indus-try – with major players such as Boeing, Northrup Grumman, Rockwell Collins,L-3, Lockheed, ATK, Hill Air Force Base, SyberJet, Parker-Hannin, FMC Jetway,Barnes Aerospace, Metalcraft, Million Air, and Triumph Gear Systems – all addingto the strong supply chain. Growth in the aircraft/airframe manufacturing sector is strong throughout thewhole state. MSC Aerospace (MSC) and its subsidiaries, Metalcraft Technologies(MTI) and SyberJet Aircraft (SJA), announced that MSC will expand their currentCedar City facilities in order to create more manufacturing capabilities and jobs.

At the end of 2013, Exelis was selected by Boeing to produce composite airframesubstructures for the 787 Dreamliner. Work will begin immediately at the Exeliscomposite design and manufacturing center in Salt Lake City. Along with this,Boeing is nearing the completion of its West Jordan 850,000-square-foot factoryand has started making deliveries of airframe components to Boeing Seattle. Utah presently maintains a sizable concentration throughout the state of Un-manned Aerial Systems (UAS) activity for commercial, public, military and higher-education applications. UAS is a key component of Utah’s aerospace and defenseindustry and represents a signicantpart of Utah’s initiative for growthof high-technology employment. The present size and scope ofthe Utah non-defense related pri-vate sector UAS industry was deter-mined by a 2013 survey of aerospaceand defense contractors and highereducation institutions in Utah. That

survey indicated that Utahns in ap-proximately 70 companies had jobsrelated to UAS activities. Employ-ment at the Utah military installa-

UACID and UVU collaborate to build “rotor-copter” UAS for public safety applications.


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tions, Dugway Proving Grounds and Hill Air Force Base represents another sig-nicant number of jobs related to UAS activities.

Over the last two years it has become evident that a large number of Utahentrepreneurs have begun operations entailing small UAS manufacture and ap-plications developments. Much of this is to support Utah’s lm industry. Utahschools are beginning to incorporate UAS applications in their curricular to sup-port their Digital Media and lm programs. Utah Valley University’s College ofAviation and Public Safety (UVU/CAPS) is responsible, through the Utah Fireand Rescue Academy (UFRA), for training and certifying reghting and rescuepersonnel from around the state, and UVU/CAPS is contemplating incorporatinguse of UAS as part of its program to show how UAS can be utilized for reghting,

rescue and public safety operations.Utah will continue to support the growth of this key segment of the Aerospaceand Defense industry as it opens up many entrepreneurial opportunities for Utahsmall businesses and start-ups. GOED and EDCUtah recently promoted the stateat the Association of Unmanned Vehicle Systems International Conference in Or-lando, Florida. It was exciting to see a number of key Utah businesses such asImSAR and Procerus also exhibiting there.

At Hill Air Force Base, the 75th Air Base Wing supports more than 20,000 mili-tary members, civilians and contractors assigned to the Ogden Air Logistics Com-

plex, the Nuclear Weapons Center, Life Cycle Management Center, two FighterWings, 82 weapons test programs, Strategic Arms Reduction Treaty inspectionsand 60 mission partners.

Activities at Hill Air Force Base (HAFB), which represents a signicant part ofUtah’s Aerospace and Defense cluster stabilized. Hill Air Force Base is a signicantcontributor to the state’s economy, and the basing of 72 new F-35 ghter jets atHill Air Force Base provides a positive future to the continued relevance of HAFBin the future. The basing of the most advanced aircraft in aviation history at HillAFB further recognizes the capabilities of Utah to support the most forward tech-nologies in Aerospace. HAFB experienced $170 million in construction supporting the bed down ofthe F-35 Joint Strike Fighter, as well as depot maintenance of F-22 and F-35 aircraft.

The Ogden Air Logistics Complex teamed up with the F-35 Joint Strike FighterProgram Ofce and the Product Support Integrator - Lockheed Martin Corpora-tion to establish initial repair capability for the F-35 Joint Strike Fighter. Boastinga potential eet size of more than 2,400 aircraft and expected maintenance repairand overhaul operations required to maintain the F-35 ghter eet the Ogden

ALC has viability and signicant growth potential for years to come.The Ogden ALC continues to expand new opportunities using advanced tech-nologies found with Unmanned Aircraft Systems (UAS) and robotic industries.



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The Ogden ALC recently completed new construction and facility upgrades todevelop the test and repair capabilities for UAS servo/actuator maintenance repairand overhaul for future Air Force, Army, and Navy planned workloads. Future vi-sion and strong resource base enabled Ogden ALC to secure the Air Force assign-ment of Explosive Ordnance Disposal robotic repair. Teaming through PublicPrivate Partnerships for robotic repair, current capabilities using advanced tech-nologies have increased and will enable the Ogden ALC to gain future roboticworkloads.

The A-10 workload will maintain a workforce of approximately 160 employeesdue to postponement of the retirement of the eet. Software workload is expectedto increase approximately 10 percent from FY13 to FY15 requiring an expected in-

crease in the workforce of HAFB employees.The aerospace and defense cluster companies are poised to grow as the economystabilizes.

Financial Services With 89 state-chartered institutionsand a combined total of $444.7 billionin total asset distribution, the State ofUtah has become a major player in the

nancial services industry. As well, majornancial institutions such as GoldmanSachs, Wells Fargo, Royal Bank of Scot-land and world-renowned Zions Bank allcall Utah home. Utah boasts 20 charteredindustrial banks. Industry Sectors and AssociationsCommercial Leasing For companies who lack the resources to purchase equipment, or would liketo improve their balance sheets and ability to borrow, equipment leasing maybe an attractive option. Working through commercial leasing companies andmost traditional commercial banks in Utah, equipment leasing can be done forequipment ranging in price from tens of thousands of dollars to tens of millionsof dollars.

Small Business Administration (SBA)

The U.S. Small Business Administration (SBA) was created in 1953 as an inde-pendent agency of the federal government to aid, counsel, assist and protect the


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interests of small business concerns, to preserve free competitive enterprise andto maintain and strengthen the overall economy of our nation. The SBA is criti-

cal to our economic recovery and strength, to building America’s future, and tohelping the United States compete in today’s global marketplace. Although SBAhas grown and evolved in the years since it was established in 1953, the bottomline mission remains the same: The SBA helps Americans start, build and growbusinesses. Through an extensive network of eld ofces and partnerships withpublic and private organizations, SBA delivers its services to people throughoutthe United States, Puerto Rico, the U. S. Virgin Islands and Guam.

Industrial Banks

Industrial banks (IB’s) are nancial institutions authorized to make consumer/commercial loans and to accept federally insured deposits. IB charters are uniquein that the owners of these banks are not required to be regulated by the FederalReserve as bank holding companies. The Utah Department of Financial Institu-tions supervises IB owners which are chartered under Utah law and the FDICunder a special program developed principally for the IB industry. The exibilityof an IB charter has made it an attractive vehicle for many large and well-knowncorporations. The state of Utah has proven to be a particularly attractive place tooperate IB’s and now hosts the most IB’s in the country. IB’s chartered in Utahcurrently hold the bulk of IB industry assets. Utah boasts the highest number ofindustrial banks in the nation with 31 chartered industrial banks, including eightof the top ten in the country by asset size.

Seven of the top 10 state chartered industrial banks are based in Utah.

P h

o t o b y S o ph i a D i C

a r o


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MountainWest Capital Network (MWCN)The MountainWest Capital Network (formerly the MountainWest Venture

Group) is Utah’s rst and largest business networking organization devoted tosupporting entrepreneurial success through:• Fostering the dynamic ow of information about capital formation and distri -

bution

• Educating and mentoring excellence

• Recognizing and rewarding performance

• Networking activities to promote synergistic relationships

For 2013 there were 231 private placement deals reported and valued at $1.16billion, 22 public deals reported and valued at $5.67B and 173 mergers/acquisi -tions deals reported and valued at $5.88 billion.


Visit MWCN Deal Flow Data Visualization Table at: http://www.mwcn.org/deal-ow-data/

Deal Flow Data

2013 231Private Placement

173Merger/Acquisition

Internet Software and… 27

Other Technology 16

Application Software 15

Nulo 14

Biotechnology 12

Pharmaceuticals 10

Software 10

Regional Banks 9

Electronic Equipment 8

Health Care Technology 8

Other Health Care 8

Education Services 7

Communications 6

Communications Equi… 6

Consumer Electronics 6

Healthcare Distribution 6

Healthcare Equipment 6

Manufacturing 6

Oil and Gas Exploration 6

Industries Company Huntsman International LLC 03/25/13 $250,000K

09/17/13 $1,325,000K

12/10/13 $413,650K

APX Group, Inc. (Vivint) 05/28/13 $203,500K

09/12/13 $1,505,000K

12/13/13 $250,000K

Zions Bancorporation 01/28/13 $171,830K(NasdaqGS:ZION)

04/22/13 $126,220K

05/13/13 $300,890K

06/10/13 $299,160K

07/24/13 $5,090K

08/05/13 $195,150K

09/09/13 $87,890K

10/28/13 $162,000K

Energy Solutions, Inc 01/07/13 $1,177,920K

Neways, Inc. 07/12/13 $750,000K

SOS Stafng Services, Inc. 02/20/13 $750,000K

Ancestry.com LLC 06/06/13 $300,000K

09/10/13 $297,000K


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For additional information aboutTargeted Economic Clustersvisit business.utah.gov or contactVincent E. Mikolay , Managing Director, [email protected] or 801-538-8799

Utah Microenterprise Loan Fund Over the past twenty years, theUtah Microenterprise Loan Fund hasworked in partnership with membersof Utah’s nancial banking communi-ty to help launch or expand more than840 small businesses across the state. Through their $1,000 loans, to$25,000, the Utah MicroenterpriseLoan Fund has been able to help peo-ple with low to moderate incomessupplement their earnings. They’vehelped women nd the exibility theyneed to balance their work and fami-lies. They’ve worked with child careproviders to increase the number ofchildren they are able to have in theircare. They’ve also helped minorities,immigrants and people who have been injured in the workplace nd economicsecurity through ownership and operation of their own small businesses.


Resident receiving banking servces.

Utah’s State Chartered Institutions by Total Asset Distribution

52.8%45.5%

1.7% 0%

Savings & Loans

Banks

Industrial Banks

Credit Unions


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OVERVIEW GOED Business Marketing activities promote Utah as a premier globalbusiness destination. Integrated marketing activities portray the State ofUtah as a business friendly place where companies can grow and prosper.The State also markets Utah as a prime location for company relocation andexpansion, particularly in high-growth industry clusters. GOED marketingefforts build awareness of GOED services for in-state businesses includinginternational market opportunities.

Major focus areas include: Clusters, Corporate Recruitment, In-stateBusiness Services, Online/General Marketing and Global Branding. Tactical

promotional tools range from print and online advertising, social media,events, sponsorships and related public relations.

In Fiscal Year 2013:

General Marketing GOED Business Marketing supported the revamping of the business.utah.govwebsite for launch in December 2013. The site added blogging capabilities andsearchable databases for corporate recruitment and in-state services promotion. Web trafc increased approximately 25 percent year over year from 94,991visitors/301,162 page views in FY2013 to 119,345 visitors/372,181 page views inFY2014.

Governor hosts roundtable for the software/IT industry.


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Through an increased use of “pro-moted posts,” social media followers

increased 52 percent year over yearfrom 3,575 in June 2013 to 5,450 inJune 2014. Monthly email contacts in-creased 81 percent year over year from4,347 in June 2013 to 7,885 in June2014. Another key aspect of general mar-keting is the expansion of the Gov-ernor’s Utah Business Ambassadors

(UBA) program, an outreach effortthat targets C-level executives aroundthe country and provides them withtools to promote Utah advantages totheir peers. This program emulates analumni network, developing contacts with a personal connection to Utah, wheth-er that be educational or business related. The UBA contact list expanded from250 to 448 in FY2014, and recipients received monthly emails throughout the year.

Clusters Industry roundtables were a sup-porting effort of cluster development.The marketing department orches-trated four roundtables through the s-cal year, providing the Governor withlistening sessions focused on the soft-

ware/IT, aerospace/defense, outdoorproducts, and innovation communities.More than 120 executives met with theGovernor at these events. The team was also instrumental inlaunching the rst annual Governor’sOutdoor Recreation Summit, in sup-port of the newly formed Outdoor Rec-reation Ofce. A monthly email – “Utah

Talks Tech” – was also launched duringthe year to target in-state software/ITindustry leaders.

Attendees network at a Utah businessambassador reception in January.

Austin Jensen, USU research engineer atthe AUVSI Utah booth in Orlando, showingoff the AggieAir unmanned aerial system.


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Corporate Recruitment Promotional efforts assisted the Economic Development Corporation of Utah

(EDCU) in engaging with large companies and site selection consultants. Theseincluded development and placement of 14 print ads and seven advertorial sec-tions. On the event side, GOED Business Marketing collaborated with EDCU atmajor trade shows including ICSC (retail), AUVSI (aerospace/defense), SAMPE(advanced composites) and site selection consultants (IAMC). GOED print and online advertising generated 75 inquiries – about six permonth – which were passed to EDCU for evaluation. In the spring of 2014, the team spearheaded a pilot social media/email pro-gram designed to promote trafc to the Utah Technology Council job board. Co-

ordinating with local universities, the pilot aims to build job awareness out ofstate among IT professionals that may have a Utah connection and would con-sider a career change.

In-state Business Services Two print ads with Utah-based publications promoted Business ResourceCenters and other GOED services. Sponsorships drove awareness with stakehold-ers and out-of-state business visitors. Key efforts included the Utah TechnologyCouncil, Sundance Film Festival, Utah Private Equity Summit, Wayne Brown In-stitute and Utah Hispanic Chamber of Commerce.


Troy Flanagan, high performance director and sports scientist with Utah Ski and Snow-board Association, speaks at a Utah business ambassador reception in January.


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In addition, the team produced an average of eight GOED senior managementpublic presentations a month to local business and community groups. Thesepresentations routinely cover the range of services GOED offers. In January, the team executed an online/print campaign to increase awarenessamong Utah business owners of GOED services such as PTAC and International.The campaign generated 1.4 million impressions, 4,004 clicks, 0.28CTR and morethan 22 hours spent on the new website.

Global BrandingBusiness marketing coordinated a request for proposal process to identify an

agency to conduct research and develop strategy for a unied global brand based

on “Utah: Life Elevated.” The competitive search identied the Salt Lake City of-ce of MRM/McMann, and the rm has executed phase one of its multi-yearplan.

For additional information about theBusiness Marketing Initiativevisit business.utah.gov or contactMichael O’Malley , Marketing Director, [email protected] or 801-538-8879


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Business Resources Centers: Entrepreneurial Development

OVERVIEWU.C.A. 63M-1-2701–2707 Business Resource Centers (BRCs) are convenient “one-stop-shops” foraddressing the needs of a new or growing business. Through a friendly staffand on-site or over the phone assessment with clients, BRCs offer a plethoraof service options and on-going assistance to help businesses grow. BRCs house various businessservice providers in a single locationand the on-site staff is equippedto answer questions ranging from

business planning to nding fund-ing and much, much, more. BRCstaffs coordinate the services of lo-cal business service provider part-ners to make the delivery of solu-tions more effective for the businesscustomer.

BRCs are tailored to the localcommunity they serve and haveservice providers who are expertsin their elds. Some of the part-ners found at the BRCs include theSmall Business Development Cen-ter (SBDC) which is sponsored by the U.S. Small Business Administration,Procurement Technical Assistance Center (PTAC) which provides govern-mental contracting assistance, Manufacturers Extension Partnership (MEP),Service Corps of Retired Executives (SCORE), Utah Science Technology andResearch Initiative (USTAR), investors, microloan organizations, businessincubators, chambers of commerce, local economic development organiza-tions and resources available at the local educational sponsor. And becauseBRCs are interconnected state-wide, if businesses needs can’t be met withintheir local ofce, directors can access their fellow centers to nd a solution.

During the 2008 General Session, the Utah State Legislature provided for theestablishment and administration of business resource centers. Business Resource

Centers (BRC) are entities established by the Governor’s Ofce of Economic De-velopment (GOED) in partnership with the state public institutions of highereducation to provide private businesses with one-stop technical assistance andaccess to statewide resources and programs. They are formed at a local level with


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Business Resources Centers: Entrepreneurial Development

For BRC contact information, seeResource Section at back of report.• Cache BRC in Logan• Box Elder County BRC in Brigham City • North Front BRC in Kaysville• Zions BRC in Salt Lake City • Tooele BRC in Tooele• Park City BRC in Park City • Heber Valley BRC in Heber City • Salt Lake Community College BRC in Sandy

• Utah Valley University BRC in Orem• Uintah Basin BRC in Vernal• Castle Country BRC in Price• Moab BRC in Moab• Southern Utah University BRC in Cedar City • Dixie BRC in St. George

Currently there are 14 Business ResourceCenters (BRC) operating across Utah

Tooele CountyBusiness ResourceCenter

For additional information aboutBusiness Resource Centersvisit business.utah.gov or contactKevin Jessing , Life Science Cluster Director, [email protected]

partners who are federal, state,county, city, public or private

business service providers.THOUSANDS of uniquebusiness customers have visitedUtah BRCs, creating or retainingHUNDREDS of jobs and start-ing more than 100 businesses!In addition, more than 10,000business personnel have visitedbusiness partners operating out

of the BRCs.


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Corporate Recruitment and Business Services

OVERVIEWU.C.A. 63M-1-901–910 IAF U.C.A. 63M-1-2401–2409 EDTIF The mission of Corporate Recruitment and Business Services (CRBS)is to “increase the number of quality jobs in Utah and increase new Staterevenue by helping existing companies expand and by recruiting new com-panies to the State.” Financial incentives are available for business relocation and expansionfor select companies that create new, high-paying jobs to help improve thestandard of living, increase the tax base, attract and retain top-level manage-

ment, and diversify the state economy. Incentives are offered as either tax credits or grants. The incentiveamount and duration is decided by the GOED board and executive directorbased on statutory guidelines and evaluation criteria including the nancialstrength of the company, the number and salary of jobs created, amount ofnew state tax revenue, long-term capital investment, competition with otherlocations and whether the company is a headquarters or in a targeted cluster. Incentives are based on the following “three pillars of success and sus-tainability:”

1. Post-performance — Incentives are disbursed after the company has metcontractual performance benchmarks, such as job creation and paymentof new state taxes.

2. Single Taxpayer — Incentive amounts are based on new state taxesgenerated by the project.

3. Competition — Incentives must make Utah competitive with other locations.

Private Activity Bond Authority,U.C.A 63M-1-3001–3009 The Private Activity Bond Author-ity Review Board is charged with man-aging the State’s volume cap for thefollowing programs: Private ActivityBond Authority Program (PAB) andthe Qualied Energy ConservationBond Program (QECB). PAB is Utah’stax-exempt bonding authority for cre-ating a lower-cost, long-term source of

Liberty Village, an affordable low-income multi- family housing development located in Sugar-house, nanced with Private Activity Bonds.


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Approved Projects for CY2013Note: PAB operates on a calendar year. Figures reect 2013 allocation amounts, but2014 estimated job creation gures. Project and dollar gures reect projects state-wideawarded from January – December 2013.

N/AP – Not Applicable; N/AV – Not Available* Direct, Indirect and Induced Jobs.

Approved Funding Volume Cap Number Number Number of Number of Categories Allocation of of Permanent Construction Amount Projects Loans Jobs Jobs Created Created

Multi-Family Housing $66,200,000 5 N/AP N/AP N/AV

Manufacturing $2,000,000 1

Single Family Homes $122,587,500 N/AP 3,492 N/AP 350*

Student Loans $0

Qualied Redevelopment $0ProjectsQualied Energy $0Conservation Bonds

capital under the Federal Tax Act of 1986. QECBs are taxable bonds issued for

“qualied conservation purposes.”

Utah Recycling Market Development Zones, U.C.A. 63M-1-1101–1112 Businesses within a Recycling Zone can claim state income tax credits of 5percent on the investment in eligible equipment for the handling and/or con-sumption of recycled materials. Currently recycling zones are located in 12 of the29 counties. Fifty companies within these zones have invested more than $372million in machinery and equipment since 1997. In 2013, 15 companies haveinvested more than $18.1 million, and received tax credits totaling $900,000.

Life Science and Technology Tax Credits U.C.A. 63M-1-2901–2911 Life science and technology companies generating new state revenues are eli-gible for a post-performance refundable tax credit of up to the amount of newstate revenues generated over three years. Investors in a Utah life science com-pany are eligible for a non-refundable, post-performance tax credit of up to 35percent of their investment, paid over three years.


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In 2011, GOED awarded four life science companies a total of up to $1 millionin tax credits to be distributed over three years. 2014 was the third year to measureeconomic impact; the new projects associated with the tax credits resulted in thecreation of 79 jobs since the inception of the program.

In 2012, GOED awarded 10 investors up to $204,750 in post-performance taxcredits to be distributed over three years. These 10 investors make up $585,000 indirect investment in three life science companies. We no longer have funding tocontinue the tax credit.

Funds for Employee Training The State Legislature appropriated Job Growth Funds during the 2010 Gener-

al Session to be used by DWS for workforce development and labor exchange ac-tivities. Since the 2010 General Session, the Utah State Legislature has continuedto authorize the use of these funds. Workforce development includes job creation, job retention, and job training.

Alternative Energy Manufacturing Tax Credit, U.C.A. 63M-1-3103–3105 As of this date no credits have been issued.

Convention Hotel Legislation, U.C.A. 63M-1-3401–3413

As of this date, no credits have been applied for or issued.

Small Business Jobs Tax Credit, U.C.A. 63M-1-3501–3512 In 2014 the Utah State Legislature enacted the Utah Small Business Jobs Act toattract additional investment in the most severely distressed areas of the State. Asof this print date, GOED has allocated the total tax credit allotment and is movinginto the next phase of the program as permitted by statute.

Economic Development Tax Increment Financing (EDTIF)U.C.A. 63M-1-2401–2409 An EDTIF is a post-performance incentive with a maximum cap tax creditthat can be up to 30 percent of the state corporate income, sales and withholdingtaxes paid or withheld by the company over a maximum 20 year term. Each yearas the company meets the criteria in its contract with the state, it may earn a por-tion of the tax credit incentive.


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F ol d - O

u t P

a g e

State Incentives Program Utah’s 5 percent at tax rate is used primarily to fund public education. One pur-pose of the post-performance incentive programs, which were created by the leg-

islature, is to grow or attract new commercial projects to increase state revenue, which in turn funds the education fund. Post-performance incented companiesprovide jobs that have good, family sustaining wages for Utah residents, who thenadd revenue to the state in the form of personal taxes.

The metrics by which the success of incentives are measured include:1. The new jobs created over the 5 to 20 year maximum and 11 year average life

of a corporate incentive

2. The new or increased taxes paid by a company

3. The increased wages paid to the new employees4. The capital investment of a company that adds new infrastructure to the state

As a result of the state’s corporate recruitment and business climate creation ef-forts, Utah is recognized as one of the most successful states in the country based onits size and population.

Thousands of hours are spent to locate, qualify, develop and negotiate with com-panies that are considering locating or expanding their business in Utah. The decisionto initiate a new commercial project is a million, or sometimes a billion dollar deci-

sion and consequently creates global competition. Many states have robust corporaterecruitment programs, and other intermountain states, such as Idaho, have developedprograms based on Utah’s successful model. The worldwide competition for economicdevelopment is intense. Nevertheless, company executives must certify, as part of Utah’sincentive requirements, that the process whereby Utah won their business was competi-tive with other locations nationally and sometimes globally. The incentives team workshard to faithfully administer the program in the way intended by the Legislature. Boardmembers volunteer their time and expertise to review incentive applications and toadvise GOED on which business projects to incent.

Employees of the state and the multitude of private sector partners, who volun-teer their time and talents to Utah’s business growth and recruitment efforts, workvery hard to faithfully administer the laws and direction given to them by the Legis-lature. These employees and volunteers give several years of their careers to the statefor the benet of the community. Though not as highly compensated as private sectorpositions, state employees do have good benets, wages and a clear sense of contrib-uting to Utah.

In the spirit of constant improvement and in partnership with the Legislature,many changes have been made by the staff to the state recruitment programs sinceGOED was created in 2006. These enhancements have improved transparency, ac-counting and process. GOED expects to keep making additional improvements, andrecognizes that exibility coupled with expertise, good judgment and devotion is re-quired if Utah is going to remain among the best performing states in the nation.


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State Economic Development Incentives — A Great Deal for Utah!

$809 million $3.14 billion $7.74 billion $32.85 billion 45,959 new jobs

Between 2008-2014* billions of dollars of investment in infrastructure, new taxes & workforce were cultivated and will berealized over the coming decades as a result of the thoughtful use of millions of dollars of post-performance tax credits.

125% Including Benets In urban counties such as Salt Lake, Utah, Davis and Weber, businesses seeking a post-performance incentive must create new jobs that pay in aggregate on average 125 percentabove the county average wage, including benets. As a motivator for businesses to locate inrural counties, those expanding in rural areas must meet 100 percent of the average countywage to receive an incentive, including benets.

GOED counts only qualifying jobs in its calculations for incented jobs, however, it isclear that in most cases the high wage jobs the state incents, most often with wages wellexceeding 125 percent, will drive additional job creation in support positions. The 125 percent benchmark is not arbitrary in nature, but accounts for the inclusion ofrequired benet packages, which may vary from company to company. In surveying benetprograms of employers, GOED determined that 125 percent is an appropriate average thatcould account for the value of most benets packages. In this way, GOED follows legis-lative direction, 63M-1-2403(4)(a), which encourages the creation of jobs that “comparefavorably” with the community average wage. Thus through the incentives programs GOED

ensures that incented jobs in the aggregate and on average pay at least county average.Incented companies often pay signicantly more than the average wage and providebenets for employees.

Companies may receive many incremental tax credits over the 5 to 20 year lifeof an incentive if they perform. In fact, out of the 57 companies that have re-ceived 183 payments made by the program to date, many of the state incentedcompanies paid signicantly better wages than the 125 percent requirement:

- 100 of the payments were to companies that provided wages that aver-aged more than 200 percent of the county average, even when benets were not included.

- 39 of the payments were to companies that provided wages that aver-aged more than 150 percent of the county average, even when benets were not included.

*on open and active company contracts


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For additional information on theseincentive programs, visit business.utah.govor contact Theresa A. Foxley , Managing Director

of Corporate Recruitment and Business Servicesat [email protected] or 801-538-8850

Total EDTIF Commitments (balances of contractually obligated incentivepayments):• Cash rebates up to $92,973,552 representing 3 companies (discontinued program

with outstanding commitment)• Tax credits up to $596,304,436 representing 105 companies

Actual Partial Rebates for FY2014:• 2 projects with actual payouts totaling $1,722,932 (discontinued program with out -

standing commitment) resulting from $3,360,802 in gross new tax revenues paid Actual Tax Credits for FY2014:• 18 projects with issued tax credits totaling $ 6,620,728 resulting from $22,222,314

gross new state taxes paid

Total IAF Commitments (remaining balances of contractually obligatedincentive payments):• Economic Opportunities: $ 2,551,071 representing 5 organizations• Rural Fast Track: $ 773,295 representing 24 companies• BEAR Funding: $ 489,985 representing 16 organizations• Smart Schools: $ 76,314• Post-Performance Grants: $ 7,178,674 representing 20 companies

FY2014 Summary:• Sum of Contracted Jobs from 2006 to 2014: 20,735• Jobs created to date by aggregate from 2006 to 2014: 12,736 or 61%

Industrial Assistance Fund (IAF), U.C.A. 63M-1-901–903, 905–910 The State Industrial Assistance Fund (IAF) is a post-performance appropri-ated fund for the creation of high paying jobs in the state. This incentive can beearned as Utah jobs created meet the IAF requirements resulting in higher quality jobs, and occasionally for specic “economic opportunities” that have signicanteconomic impact on the state depending on the amount of purchases made inUtah and the economic impact associated with the project.


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Frank Joklik, Honorary Consul of the United Kingdom in Utah, Governor Gary R. Herbertand Sir Peter Westcott, Ambassador of the United Kingdom during the Ambassador’sdiplomatic visit to Utah.

OVERVIEWWe are growing Utah’s economy by:1. Foreign Direct Investment (FDI): facilitating FDI opportunities in Utah

through the promotion of Utah’s dedicated workforce and vibrant econo-my to foreign investors.

2. Global Market Development: assisting Utah businesses to secure interna-tional business contacts and increase goods and service exports.

3. Diplomacy: facilitating diplomacy meetings for the State and leveragingdiplomatic contacts to develop and expand foreign markets for Utah.

Foreign Direct InvestmentUtah has a stable and business friendly climate. It consistently receives rec-

ognition for its low operating costs, high economic growth and excellent gover-nance. Innovation, industry, education and good governance culminate in Utahto create a diverse and thriving economy that is now home to multiple world-classcorporations. The importance of the U.S. market to global rms will continue tofacilitate inward investment opportunities into the various states. Utah’s unique

advantages provide excellent opportunities to bring many of those global compa-nies here.


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From left to right: - Spencer P. Eccles - Governor’s Ofce of Economic Development - Derek Miller - World Trade Center Utah - Cynthia Chen - China Trade Representative - Anna Derschang - European Union Trade Representative - Lieutenant Governor Cox - State of Utah - Thomas Schuck - European Union Trade Representative - Uri Attir - Israel Trade Representative - Cristina Hernandez - Mexico Trade Representative - Marlon Barrett - European Union Representative in Utah

There are already 188 foreign rms from 29 countries currently doing busi-ness in Utah. Together they employ 29,000 Utahns across various industries. Thetop ve countries for the number of foreign rms doing business in Utah repre-sent 63 percent of the total foreign direct investment within Utah. These countriesand the number of businesses they have in Utah are: Canada (35), the UnitedKingdom (27), Japan (20), France (19), and Germany (18).

Our new international trade strategy continues to support export expansionwhile placing greater emphasis on increasing foreign direct investment into Utah.ITDO recently contracted new trade representatives in the European Union, Chi-na, Mexico, and Israel, where signicant opportunities to promote foreign directinvestment in Utah have been identied.

Global Market Development More than 70 percent of the world’s purchasing power is located outside ofthe United States making the export of Utah’s high-quality, innovative goods andservices very protable for Utah businesses of all sizes. On average, businesses thatexport experience faster sales, increased job creation and higher employee wages

over non-exporting businesses. Additionally, businesses that export are generallymore stable and able to weather economic downturns more successfully becausethey sell to a diverse portfolio of global markets.


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Exports from Utah totaled $16.1 billion in 2013 of which $7.6 billion werevalue-add exports. From 2009 to 2013, Utah’s exports grew by 35.8 percent (com-

pared to the national average of 29.5 percent) enabling Utah businesses that ex-port to employ more than 320,000 Utahns.Governor Herbert has set the goal to increase Utah’s value-add exports to $9

billion by the end of 2015. Reaching the Governor’s goal begins with helpingUtah businesses across the state secure international business contac

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