Utah retains top ranking in economic outlook report

Utah retains top ranking in economic outlook report
Deseret News
Published: Wednesday, April 7, 2010 8:34 p.m. MDT

SALT LAKE CITY — Utah retained the top economic outlook ranking in a new report by the American Legislative Exchange Council.

The third edition of "Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index" had Utah top-ranked a year ago, based on 15 state public policy variables. Utah was ranked 18th in economic performance, based on three variables "highly influenced by state policy."

The report's authors analyzed how economic competitiveness drives income, population and job growth.

In the economic outlook rankings, Utah was followed by Colorado, Arizona, South Dakota and Florida. New York was ranked last.

The report is available at www.alec.org. ALEC is nonpartisan individual membership association of state legislators.

© 2010 Deseret News Publishing Company | All rights reserved

Provo-Orem area projected to have largest growth nationwide

Provo-Orem area projected to have largest growth nationwide

Heidi Toth - Daily Herald | Posted: Wednesday, March 31, 2010 5:43 pm

PROVO -- People may complain about Utah's large families, but if CNN Money is right, that birth rate is going to be the biggest factor in getting Utah a fourth seat in the U.S. House of Representatives.

CNN Money on Tuesday predicted that the Provo-Orem metropolis would grow by 47 percent from the last Census 10 years ago, which is more growth than any other city in the nation. One big reason for the growth: for every death, more than six babies are born.

There's more to the story than that, said Mayor John Curtis; Provo consistently has high rankings for quality of life, health, recreational opportunities, safety and well-being. New people are moving here, and people are having large families, and both new and old people are staying, which is how the city's population jumped.

"This is clearly a place where families like to stay and have extended family close by," he said.

In addition to the possible fourth seat, the cities could receive additional Census-related funding above the $300 million received in 2008 and additional sales tax funding, which is partially determined by population. Curtis will be making a cameo on CNN today to discuss the growth.

"We'll make sure we pick out his tie really wisely," Deputy Mayor Corey Norman joked.

April 1 is Census Day, and preliminary results based on the 52 percent of U.S. households who have returned their Census forms will be released. About 53 percent of Utah households have returned their Census forms, according to the U.S. Census, although that varies widely by neighborhood.

A report released in December by Election Data Services showed that if congressional districts were redrawn at the end of last year, Utah would gain a seat. CNN sourced Election Data Services in its predictions, which at the end of the day are still just predictions.

"Whether their predictions pan out, I don't know," Provo spokeswoman Helen Anderson said.

http://money.cnn.com/galleries/2010/news/1003/gallery.Census_winners_losers/index.html

http://2010.census.gov/2010census/take10map/

Salt Lake transportation system best, Forbes says

Salt Lake transportation system best, Forbes says

Deseret News
Published: Friday, Feb. 19, 2010 5:40 p.m. MST

SALT LAKE CITY — Utah's capital is the best in America for commuters, according to a new Forbes Magazine list.

Salt Lake City topped a list that featured Buffalo and Rochester, N.Y., and Milwaukee, Wis.

The magazine measured travel time, traffic delays and road congestion as it ranked the nation's 60 largest metropolitan areas.

Forbes credited the city's commuting experience to the state's investment in public transit systems, as well as the 20 percent of commuters who carpool in the city's 44 miles of HOV lanes or who ride buses and trains.

"Salt Lake City was a large part of the fastest-growing metropolitan area in the country last year and we see every promising sign of this trend continuing," Mayor Ralph Becker said in a statement Friday. "We are excited to be recognized nationally for our transportation vision and continue to strive to improve options throughout the city."

Also on Friday, city leaders said they will be initiating an independent review of the city's traffic signals to develop and implement timing plan changes. Results of the review are expected in 2012.

Forecaster: Utah population spike over next 20 years will create demand for housing

Forecaster: Utah population spike over next 20 years will create demand for housing
Real estate » Realtors told that downturn might have bottomed out.

By John Keahey, The Salt Lake Tribune
Jan. 11, 2009

Chris Nelson is way out there when he lays out the future -- say 20 years out there.

And what the director of the University of Utah's Metropolitan Research Center forecasts for the state's housing market during the next two decades gave a Salt Lake City ballroom full of hundreds of Realtors a lot of hope Monday.

Though that is countered by some uncertainty in the year ahead, his bottom line was this: By 2030, the state will be the fastest growing in the nation, pulling in another 1.5 million residents on top of the 2.7 million already here, and 700,000 new jobs will be created.

"We are -- you are -- big time," he told the audience.

That means more houses need to be built, along with more commercial square footage. And he state, particularly the Wasatch Front, is behind in what is needed.

"This pent-up demand, combined with growth, needs to be dealt with," he told the Realtors during their annual Housing Forecast breakfast at Little America Hotel.

While Nelson had the podium and was describing a world still two decades away, those in the audience also were perusing a handout from James Wood, director of the University of Utah's Bureau of Economic and Business Research. Wood dealt with more immediate issues.

He predicted that Salt Lake County can expect a 3 percent growth in home sales during 2010, or 9,100 units. But there are some big caveats tied to lending.

"Could this slight up-tick signal that 2008 was the bottom of the downturn and the rebound is under way?" he asked in the report. Then he answered his own question. If so, "the contraction was short-lived, only two years but vicious in its magnitude."

As far as housing prices are concerned, they will continue to fall another 3 percent to 5 percent this year, bringing the overall price decline in Salt Lake County during the past two years to 15 percent. But there is a bright spot. Prices should be "stable to slightly improving" in 2011.

For Realtor Lavar Campbell, the prognostications were all good news.

"You don't usually see a lot of that optimism elsewhere," he said. "It's nice to see that things are looking up."

Realtor Colleen Howcroft said the forecasts "gave us a lot of hope. It looks like we're going to build back up this year, and 2011 will be better."

The big question real estate agent Ben Goodwin had after the session was, "Are banks going to be willing to lend," given tighter restrictions now in place?

That question also occurred to the U.'s Nelson.

"The demand will be there. Will the banks be there to help?" he said in an interview following his talk.

Nelson's numbers are staggering. If you push his time frame another 10 years, to 2040, he predicts the entire United States will need to add 287 billion square feet of residential and commercial real estate between now and then. Dropping back to a 2030 scenario, he estimates that along the Wasatch Range -- from Logan to Provo -- 450,000 units will need to be built, a 50 percent increase over what is available today.

And for commercial space, 1.1 billion square feet will have to be added. That's 120 percent more than the 750 million square feet that exist now.

He asked his breakfast audience, where the additional square feet will go in a region that already is filling up. It will have to come in multi-family housing and involve a new way of looking at creating neighborhoods.

Not only that, he pointed to demographics that show that Utah's non-Anglo population in Ogden, Salt Lake City and Provo will grow by 600,000 by 2030.

Because a lower percentage of this demographic is comprised of home buyers, he said, "more than half of all new houses built will have to be in rental mode."

jkeahey@sltrib.com


By the numbers A growing demand

Utah's housing industry will grow with heightened demand from a growing population, according to a University of Utah forecast. Some forecasted numbers:

3.6 - million people along the Wasatch Front by 2030.

1.35 - million housing units needed by 2030.

42 - percent rate of growth in next 20 years in Salt Lake City.

3rd - National rank of Wasatch Front's growth rate among metropolitan areas.

Adding another 1.1 million people over the next 20 years along the Wasatch Front will mean an additional 450,000 new or rebuilt housing units.

Utah Receives National Recognition As An Economic Powerhouse

Utah Receives National Recognition As An Economic Powerhouse
For third year in a row Utah is recognized as a leading pro-business State

Published: 29th June, 2009; Source: GOED; Author: Michael G. Sullivan

Salt Lake City – Utah has jumped from ninth most business friendly state in the country to second, just slightly behind Virginia. In one of the most widely recognized annual economic studies in the country, Utah was named, for the third year in a row as one of the “Top 10 Pro-Business States.” In the report released today, the “Pollina Corporate Top 10 Pro-Business States for 2009: Rebuilding America’s Economic Power” once again ranked each state in the annual study of job retention and creation by the 50 states and the federal government.

Dr. Ronald R. Pollina emphasized “the effort to make America more business-friendly must come from all levels of government. America must be an integral part of global business if it is to remain a superpower, but thus far we have done a terrible job of integrating ourselves in the 21st century marketplace,” says geo-economist and corporate relocation expert Dr. Pollina. “There are, however, states that serve as a model for the rest of the country.” The report goes on to recognize Utah as one of those states leading the way.

Jason Perry, executive director of the Governor’s Office of Economic Development and the newly named transition director for incoming Governor Gary Herbert noted, “Utah has worked tirelessly to be a business friendly state. Our productive workforce, favorable tax climate and overall business friendly environment has been successful in growing and recruiting some of America’s leading businesses. This report recognizes that success and our ongoing commitment to keep the Utah economic engine humming.”

The Pollina Corporate Top Ten Pro-Business States for 2009 are:

1. Virginia
2. Utah
3. North Carolina
4. Wyoming
5. South Carolina
6. South Dakota
7. Kansas
8. Georgia
9. Florida and
10. Nebraska

The study evaluates and ranks states based on 33 factors including taxes, human resources, right-to-work legislation, energy costs, infrastructure spending, workers compensation laws, economic incentive programs and state economic development efforts.

Utah's commercial real estate sector slower, but still performing

Utah's commercial real estate sector slower, but still performing
"Bright Spots" » Retail, industrial and office space sectors holding their own.

By Lesley Mitchell, The Salt Lake Tribune
Updated:07/09/2009 07:06:59 PM MDT

After several boom years, Utah's commercial real estate sector is slowing as companies of all sizes, stung by recession, put off expansion plans and close locations.

But as with most segments of the state's economy, conditions are far better than in many other areas of the country plagued by empty storefronts and buildings.

"In spite of what's going on nationally, Utah really continues to be a bright spot," said Brandon Fugal, director of corporate services with Coldwell Banker Commercial in Salt Lake City.

Take retail. While many "big-box" retailers, such as Target and JC Penney, are putting off new stores and many malls are on hold, a number of smaller retail and restaurant players continue to set up shop and expand in Utah.

They may not have the cachet of IKEA or Cabela's, but they are creating jobs and filling space that would otherwise remain vacant or unbuilt.

Smashburger, for example, plans to enter Utah with two restaurants: at 1028 E. 2100 South in Salt Lake City and 3513 S. 2700 West in West Valley City. Over the next two years, the chain plans to add eight more. Another popular burger joint, In-N-Out Burger, which has one location in southern Utah, is expanding into the Wasatch Front.

Despite leaner times and tighter credit, numerous small businesses continue to open and expand. In the Daybreak community in South Jordan, seven locally owned businesses are opening this summer in the SoDa Row Village Center.

The 68,000-square-foot center includes expanding companies like Black Diamond Gymnastics and Sport Centers, Tio's Mexican Restaurant and Classic Cleaners. Others, such as Oopsie Daisy, a children's boutique, and Guy's Barbershop, are debuting in the development.

The downturn also has affected Utah's industrial market, which includes buildings used for manufacturing, warehousing and distribution. Earlier this year, several large operators, including Lozier Corp., announced they were cutting back or shutting down, vacating nearly 900,000 square feet of industrial space.

Lozier, which makes fixtures for stores, such as display shelving, said it will close its 500,000-square-foot Cedar City facility by August, laying off 82 employees. The company has been hurt by the lack of retail expansion.

Compensating for these cutbacks are some high-profile, large-scale expansions. Detergent maker Sun Products Corp. is leasing a 400,000-square-foot facility in Salt Lake City. Reckitt Benckiser, which manufactures Woolite, Lysol, Electrasol, French's mustard and other products, is building a nearly 575,000-square-foot facility near Tooele.

Overall, vacancies remain low in the state's industrial sector, said Jim Sheldon, NAI Utah's director of industrial.

"Utah is in an enviable position," he said. "Our industrial market is on more solid ground than other markets."

The same appears true in the office market, which has been hurt by the downturn but is still expanding.

First, the bad news: vacant office in Salt Lake County has increased to a four-year high, according to a report by CB Richard Ellis.

It reached 14.2 percent at the end of June, up from 13.5 percent a year earlier. That translates into an estimated 4.2 million square feet of vacant office space, up from 3.9 million square feet.

Yet Utah still attracts some plum office expansions.

Online auctioneer eBay Inc., is adding 200 new jobs in Draper, where the company already employes 1,100.

Ebay also is building a $334 million computer center in South Jordan. Set to open in 2010, it will employ 50.

Microsoft, the world's largest computer software company, said last month it will open an office in Lehi, creating 100 good-paying jobs. Another large expansion involves the U.S. Census Bureau, which is taking 130,000 square feet of vacant space at the Discover Card building in Sandy.

"Utah's very fortunate to have landed these expansions," said Mike Richmond, an office leasing specialist with Commerce CRG in Salt Lake City.

lesley@sltrib.com

Beehive state No. 6 for residents faced with losing homes

Beehive state No. 6 for residents faced with losing homes
Economy » Jump in foreclosure-related filings, dip in retail sales halt stock market rally.

Salt Lake Tribune Staff And News Services
Updated:05/13/2009 09:20:45 PM MDT


Utah, which had an increase of 120 percent in foreclosure-related filings over the past year, now has the sixth-highest rate among all states, according to a report released Wednesday.

The housing news, combined with reports of disappointing retail sales nationally for April, prompted investors to retreat from the stock market Wednesday and put a two-month rally on hold amid concern that an economic recovery won't come as fast as hoped. The Dow and other key indexes dropped at least 2 percent.

The Commerce Department said retail sales fell 0.4 percent last month, while economists had expected sales to be flat. Investors watch these numbers closely because consumer spending accounts for about two-thirds of U.S. economic activity. Without improved spending, the economy is more likely to remain mired in a recession.

Adding to the worries, the foreclosure report, by RealtyTrac, shows that the number of U.S. households faced with losing their homes to foreclosure jumped 32 percent in April, compared with the same month last year. Utah is among nearly one dozen states showing a year-over-year increase of more than 100 percent.

Nationally, more than 342,000 households received at least one foreclosure-related notice in April, RealtyTrac Inc. said. That means one in every 374 U.S. housing units received a foreclosure filing last month, the highest monthly rate since the listing firm began its report in January 2005.

In Utah, nearly 3,000 households received a foreclosure-related filing, which translates to one in 312 households. The filings include a range of actions, from default notices in which home owners are simply behind on their payments but not in danger of losing their properties to notices that a bank is taking possession of their home.

Salt Lake City economist Jeff Thredgold, a consultant to Zions Bank, said he isn't surprised because Utah's economy is experiencing "the worst economic downturn in 50 years."

And even though the Utah's economy is faring better than many other states -- unemployment is much lower, for example -- Utah families have some distinctive characteristics that make them especially vulnerable to financial distress in bad times.

"You have fewer two-income households in Utah and more large families," he said.

Utah's foreclosure-related filings still are better than Nevada, where one in every 68 households receive a notice last month -- the nation's highest rate. In No. 2 Florida, one in every 135 households received a filing. For California, the rate was one in every 138 households.

Utah is No. 6, also behind Arizona and Idaho. Rounding out the top 10 are No. 7 Georgia, followed by Illinois, Colorado and Ohio.

Nationally, April was the second straight month with more than 300,000 households receiving a foreclosure filing.

"We've never seen two consecutive months like this," said Rick Sharga, RealtyTrac's senior vice president for marketing. "It's the volume that's surprising."

Although total filing activity was up, the number of repossessions by banks was down on a monthly and annual basis to their lowest levels since March of last year, RealtyTrac said.

But that is far from positive news. Because much of the foreclosure activity in April was in the default and auction stages -- the first parts of the foreclosure process -- it is likely that repossessions will increase in coming months, RealtyTrac said.

Help might be on the way. The Obama administration announced a plan in March to provide $75 billion in incentive payments for the mortgage industry to modify loans to help up to 9 million borrowers avoid foreclosure. But the extent of the relief remains unclear, with questions lingering about how much the lending industry will cooperate in modifying loans.

Utah hits home-buying, construction stimulus cash bonanza

Utah hits home-buying, construction stimulus cash bonanza
Economy » One grant went toward a $700,000 house.

By Robert Gehrke, The Salt Lake Tribune
Updated: 04/28/2009 07:31:58 AM MDT

Home builders say a state grant program designed to entice Utahns to buy new homes is working, with people flocking to take advantage of the $6,000 incentive and creating a demand that they hope will get the construction industry moving again.

To date, the Home Run Program has awarded more than 530 grants to homebuyers, about $3.2 million in all. But not all of the grants are going to prospective homeowners who are scraping together money to buy a house.

In fact, there is no limit on the price of homes that qualify for the program. As a result, a handful of the 312 taxpayer-funded grants awarded in the first month have gone to help buy homes worth more than $500,000, with one home purchased for more than $700,000. The
Utah Housing Corp. provided a breakdown of grants in the program's first month. Another 219 grants were awarded in the past two weeks.

"Is that the best use of public funds?" asks Steve Graham, director of the Utah Community Reinvestment Coalition. "Obviously the Legislature and the governor felt it was. I focus on affordable housing, so certainly we would have loved to see that kind of funding go to low- and moderate-income homes."

But, Graham said, the program was aimed at recharging the construction industry, not helping people afford a home. In that sense, he thinks the program will probably prove beneficial.

And backers say the Home Run program is paying early dividends, with developers seeing increased salesand one real estate expert, Ivy Zelman of Zelman & Associates in New York, picking Utah as the No. 1 market in the country poised to recover from the housing slump, in part because of the grants.

"The response has been overwhelming," said Curt Dowdle, executive officer with the Salt Lake Homebuilders Association. "It's been the single greatest stimulus that the local homebuilders have had."

The program which started March 16 uses $10 million of federal stimulus money to provide $6,000 grants to individuals buying never-lived-in homes to get those houses off the market and create demand for construction, an industry that has lost 18,000 jobs during the recession.

The state grant can be combined with a federal tax rebate of $8,000 for first-time homebuyers. Some builders also are adding their own incentives.

A study by University of Utah economist James Wood said the demand created by the program would put an estimated 8,800 people to work.

Not surprisingly, the bulk of the grants have been awarded to homes in the suburbs and exurbs, which were Ground Zero for the housing construction boom in the early half of the decade.

One in six of the homes qualifying for the grants were in South Jordan, West Jordan or Herriman. Another 17 percent were purchased in Eagle Mountain, Lehi, Saratoga Springs or American Fork.

Echo Hall said the $6,000 in assistance was "huge" for her when she bought her South Jordan townhome.

"It just made it all possible for me, because I was really struggling to find an existing place that I loved and was in a good location for the right price," she said.

Kim Hagedorn said she had already made the decision to buy her new home in the Daybreak community and was about to close when the Home Run program kicked in. She used the $6,000 to pay her closing costs, rather than roll them into her loan.

"It was just perfect timing," she said.

More than 80 percent of the Home Run-qualifying homes were bought for less than $300,000. But a handful -- sixteen of the 312 grants awarded in the first month -- went to homes worth more than $400,000.

The Utah Housing Corp. would not provide details on those purchases, citing federal privacy laws.

Wood's study found that 400 of the 2,900 surplus new homes on the market were priced at more than $500,000. In those cases, says Wood, the enticement of $6,000 is probably marginal. "I would think, though, for those several hundred under $300,000, it was very important," he said.

"That is a little difficult to swallow. I think people, their eyebrows should rise a little bit," said Graham of those unusual cases where the grant was given to high-priced homes.

Sen. Wayne Neiderhauser, R-Sandy, who was on the committee that formulated the program, said there was discussion of putting a $400,000 cap on the value of the home prices. That was ultimately abandoned in favor of income limitations of $75,000 per person or $150,000 per household.

But homeowners who have equity in their existing home could sell and get the grant if they want to upgrade.

"We knew there might be a couple of the outliers," said Niederhauser, "but we weren't that concerned as long as the bulk of the homes were in range of the target we had."

Dowdle, of the Homebuilders group, said that, in hindsight, some price restrictions probably would have been helpful.

"I think [the Legislature's] intent was to apply it to people who really needed the help," he said. "I think there are some cases where this grant didn't really go to people who needed it. But you've still stimulated a transaction."

Making the best of crisis in Utah

Making the best of crisis in Utah

By Bob Bernick Jr., Deseret News
Published: Thursday, April 23, 2009 11:53 p.m. MDT

They argued over money versus people. They cut programs and employees. And they were saved by a federal government that many of them love to hate.

Now, a new report shows that Utah legislators have placed this state in a better financial situation than most of their lawmaking colleagues in the 49 other states.

Across the nation, state governments have been hit especially hard by the economic recession — facing total budget shortfalls of $62.4 billion, says the National Conference of State Legislatures, a study and training association for the elected bodies and their staffs.

Utah and 43 other states have already held their annual legislative sessions this year, balancing budgets for both the current and next fiscal years. So the new NCSL report has complete budget data for most states.

Utah's 45-day session ended March 12, with legislators trimming around $1 billion from the state's $10.6 billion spending plan for next fiscal year, which starts July 1.

Unlike most states, Utah lawmakers did it without raising any general taxes. The vehicle-registration fee was increased by $20, however.

Speaking for the 50 legislatures, NCSL executive director William T. Pound said, "Legislators were left with only tough and unpopular options to balance state budgets."

Utah is a small state, in terms of its population and the size of its state budget. Many U.S. cities and counties have more people and higher budgets than Utah.

"State fiscal directors are using terms like 'grim,' 'bleak' and 'dire' to describe the situation," the new report says.

Hawaii's revenues have dropped dramatically, as have visitor arrivals. Its unemployment rate is at a 30-year high. New Jersey's fiscal situation "is the most dire in recent history."

But as bad as 2009 is for the states, 2010 will be even worse, says Corina Eckl, director of NCSL's Fiscal Program.

Among all the states, there will be a "jaw-dropping gap" between revenues and set budgets "of at least $121 billion" next year, she said.

And many states are also predicting further shortfalls for 2011 and beyond.

That is exactly what worries Utah House Speaker David Clark, R-Santa Clara, who recently said he greatly fears what may be coming for Utah. That's one reason GOP legislative leaders balanced the 2010 budget without tapping the state's $414 million Rainy Day Fund, or spending any of the $100 million set aside in the state's education fund a year ago.

Gov. Jon Huntsman Jr. had a similar note of concern, saying that while Utah is still better off than many states, it's too soon to say the economy has turned the corner.

"I think we're bouncing along the bottom," he said during a taping Thursday of his monthly press conference on KUED Channel 7.

The only bright spot for the states, says the NCSL report, was the federal stimulus money. "Without this money, state finances would be even worse," the report says.

Still, Utah legislators were not opposed to biting the hand that fed them. Conservative lawmakers actually passed a resolution criticizing President Barack Obama and the Democratic-controlled Congress' $800-billion-plus stimulus-package spending bill.

But that bill brought Utah $1.6 billion, much of it allocated by those conservative legislators to slim down program and employee cuts.

Instead of having to cut next year's spending by 15 percent, most programs will see 7 percent cuts, with public education getting only a 5.2 percent cut.

Thousands of state jobs were saved, at least through next fiscal year, which ends June 30, 2010.

"The fiscal situation facing states is like a bad horror movie," Eckl said. "The details get more gruesome, and the story never seems to end."

The report said the "current state fiscal crisis began in fiscal year 2008 for 19 states and Puerto Rico. This means that fiscal year 2011 will be the fourth consecutive year of fiscal problems for many states, with no immediate end in sight."

E-MAIL: bbjr@desnews.com
© 2009 Deseret News Publishing Company | All rights reserved

4 states have worst problems with failed mortgages

4 states have worst problems with failed mortgages

Associated Press
Published: Wednesday, April 22, 2009 12:04 a.m. MDT

WASHINGTON — The 26 U.S. cities with the worst foreclosure problems are concentrated in four states — California, Florida, Arizona and Nevada, a report released shows.

The report on foreclosures for the first quarter by RealtyTrac Inc. said the highest foreclosure rates were found in Las Vegas; Merced, Calif.; and the Cape Coral-Fort Myers area in Florida. Next on the list were the California metro areas of Stockton, Riverside, Modesto, Bakersfield and Vallejo-Fairfield.

Rounding out the top 10 were Phoenix and Port St. Lucie, Fla. Outside of the four high-foreclosure states, the worst foreclosure rates were in Boise City, Idaho (No. 27) and Greeley, Colo. (No. 29).

Three Utah metro areas were among the 100 cities listed in the report. Provo-Orem ranked 37th, with Salt Lake City at 62nd and Ogden-Clearfield ranked 75th.

The number of American households threatened with losing their homes grew 24 percent in the first three months of this year and is poised to rise further as major lenders restart foreclosures after a temporary break.

Nationwide, nearly 804,000 homes received at least one foreclosure-related notice from January through March, up from about 650,000 in the same period a year earlier, RealtyTrac said last week.

The big unknown for the coming months is President Barack Obama's plan to help up to 9 million borrowers avoid foreclosure through refinanced mortgages or modified loans.

The Obama administration expects it to make a big dent in the foreclosure crisis. But it remains to be seen whether the lending industry will fully embrace the efforts, despite a promise of $75 billion in incentive payments.

Contributing: Jasen Lee, Deseret News
© 2009 Deseret News Publishing Company | All rights reserved

Tooele Valley Represents One of the Most Attractive Locations for Business in the Western U.S.

by EDCUtah

Just 32 miles southwest of Salt Lake City lies three of Utah's best kept economic development secrets: Tooele County, Tooele City and Grantsville. While the silver and gold mines that drew settlers there in 1849 have long since been quieted, the area is booming and its future couldn't look brighter.

"If I had a dozen shovel-ready industrial parks I could fill them in no time," says Tooele County Economic Development Director Nicole Cline. "Tooele County was once a big secret, but we are now inviting the world."
Primed for Growth

The positive economic development outlook expressed by Cline is equally felt by Tooele Mayor Patrick Dunlavy and Grantsville Mayor Byron Anderson, both of whom are aggressively pushing economic development initiatives forward in their respective cities.

"We think we do economic development really well here," says Mayor Dunlavy. "We've had significant successes over the years and feel really good about the direction the city is going. After his election, the Mayor made job creation a high priority for his office and the city council bought in. "We're all on the same page," he says.

Tooele City is home to the Utah Industrial Depot, one of Utah's premier shovel-ready economic development sites and a prime location for manufacturing and light industrial concerns. Six additional industrial parks are in various stages of development within the area--one in Grantsville, four in the county, and one in Tooele City, being constructed near the Miller Motorsports Park (MMP).
Utah Industrial Depot

The Utah Industrial Depot is a shovel-ready park that sits on 1,400 acres of land formerly used as a military truck refurbishing center for the Tooele Army Depot. The Depot is now a private facility with 2.5 million square feet of competitively priced warehouse and manufacturing space. Some 65 companies currently operate from the Depot, employing approximately 1,100 people. Dunlavy says the Depot is an attractive location because it is comprised of both buildings and improved land with rail service, and can accommodate manufacturing, distribution and light industrial uses.

Last April, Cicero, NY-based Syracuse Castings, a manufacturer of steel, aluminum, and cast iron products for the construction industry, announced it would open a manufacturing operation in the Depot. The new 20,000-square-foot facility represents a $2 million investment by the company and could employ upwards of 90 people within the next five years. Other businesses to recently locate at the Depot include Carlisle SynTech and its Hunter Panels subsidiary, which are part of North Carolina-based Carlisle Companies. Carlisle SynTech and Hunter have built adjacent factories on a 50-acre parcel. Carlisle SynTech manufactures single-ply roofing products and systems and is opening a facility to manufacture its Sure-Weld TPO membranes and accessories. The 250,000-sq. ft. facility is the company's fourth roofing membrane plant in the U.S.
Retail Development

Because a large portion of Tooele Valley residents commute to the Salt Lake City for employment and much of their shopping, both Mayor Dunlavy and Mayor Anderson feel a strong desire to create jobs in their respective cities and both cities are working to build up their retail sectors as well. Tooele City actively participates in the Utah Pavilion at the annual convention of the International Council of Shopping Centers (ICSC) in Las Vegas. Typically Mayor Dunlavy and most, if not all, of the Tooele City Council attend, where they meet with selected retailers in pre-arranged meetings and recruit other targeted retailers at the convention.

Past efforts at ICSC have been quite successful, Dunlavy says. Through ICSC and a lot of additional follow up, the city recruited Big 5, a sporting goods retailer. Initially the Big 5 corporate office wasn't interested in the city, but later changed its mind. The store opened in November 2008 and now ranks ninth in gross sales out of the 395 Big 5 stores in operation, according to Dunlavy.

The city also recruited a Gold's Gym, which helped strengthen Tooele's downtown redevelopment efforts by remodeling an old Albertson's grocery store. Dunlavy says the gym reached $1 million in membership faster than any other store in the chain's history. The city also recruited a Sears store, which opened last December, and is pursuing other targeted retailers at the upcoming ICSC convention in May.

"We really see the value of ICSC. We go with a pre-set strategy; we have pre-set appointments with targeted companies, and work really hard for three days there."

Randy Sant, economic development director for Tooele, has high praise for Tooele City officials: "The mayor and city council really understand what economic development is all about. They understand the need for incentives and infrastructure in order to be competitive in this market and they have worked hard to be ready for the onslaught of companies coming to the area."
Grantsville City is Open for Business

"Any time a business looks like a fit, we go for it," says Mayor Anderson. "Grantsville is an idea place to locate, with close proximity to I-80 and rail lines, attractive land prices, nice people, a rural lifestyle and exceptional recreational opportunities."

Anderson served on the city council before being elected mayor and has developed a strong commitment to economic development in Grantsville.

"We are trying to bring in more business and retail development, so that our residents don't have to look in Tooele and Salt Lake City for their employment or shopping needs. We have two strip malls, but we are looking for something larger, like a hotel and restaurants to locate here."

Four years ago Grantsville landed a Wal-Mart distribution center and approximately 800 jobs. At full build-out the distribution center could employ 1,000 workers. The city is currently working with EDCUtah and Tooele County to recruit several other large businesses to the area, all of whom would provide a good mix of jobs, investment and opportunity.

Anderson says economic development is underway in other parts of his city, as well. One property owner is drawing up plans to create an industrial park and the city is actively promoting retail development.
Tooele Valley Amenities

The amenities that make Tooele County, Tooele City and Grantsville attractive locations for business are lengthy and impressive:

* Exceptional logistics: easy access to Salt Lake International Airport, rail lines leading to Reno and Las Vegas, Nevada, and close access to I-80.
* Quick access to the I-215 corridor (and avoidance of I-15 gridlock).
* A young, skilled workforce. Median age is 28.
* An educated workforce--Utah State University's Tooele campus is booming and many of Tooele School District's high school graduates earn associate degrees in conjunction with their high school diplomas.
* Location of an Advanced Technical Center and Custom Fit Program.
* Large tracts of land available for development.
* Land use regulations that are pro business.
* Accelerated permitting processes.
* Attractive land prices.
* Hub zone designation, giving businesses preferential contracting rights through the federal system.
* Three military bases located in the county: Dugway Proving Ground, Deseret Chemical and Tooele Army Depot.
* More enterprise zones in Tooele County than any other county in the state.
* Location of the Miller Motorsports Park.



Such amenities drew Pittsburgh-based Allegheny Technologies, a manufacturer of specialty metals, to the county in 2008. The company built a $250 million titanium sponge production facility in Rowley and employs approximately 250 people there.
Miller Motorsports Park

Those same amenities helped make Tooele County an attractive location for the Miller Motorsports Park, the $100 million auto, motorcycle and kart racing facility opened in 2005 by the late Larry Miller. The MMP could one day make Tooele County the motor sports capital of North America. It happens to be the largest race track of its kind in North America and due to its size and versatility, is drawing interest from more than just race enthusiasts. Cline says automotive companies and developers of unmanned vehicles want to utilize the test track for their development purposes.

"All in all, the Tooele Valley represents one of the most attractive locations in the western US. We have had great success working with all the communities in the region and look forward to continued recruitment activity in the area," says Jeff Edwards, president & CEO of EDCUtah.

Utah ranked among top states for manufacturing and logistics

Utah ranked among top states for manufacturing and logistics

Deseret News
Published: Thursday, March 26, 2009 5:36 p.m. MDT

Utah is among the top five states for manufacturing and logistics, according to a report released Thursday.

The 2009 Manufacturing and Logistics Report Card was produced by the Ball State University Center for Business and Economic Research. It lists Utah, Indiana, Missouri, Kansas and Alabama as the top states.

Each state received letter grades in seven categories. Utah received As for human capital and benefit costs; Bs for productivity and innovation and tax climate; a C for manufacturing and global position; and a C-plus for logistics. Utah was third-ranked for human capital and fifth in benefit costs.

The worst five states are Alaska, Maine, New York, West Virginia and Rhode Island, the report said.

Details are available at cber.iweb.bsu.edu/research/conexus09.

Utah #1 in New Report Showing Path to Economic Recovery for States

Utah #1 in New Report Showing Path to Economic Recovery for States

by Zions Business Resource Center

Utah has been ranked number one again for economic competitiveness in a new report from the American Legislative Exchange Council (ALEC). The "Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index" places Utah first, followed by Colorado, Arizona, Virginia and South Dakota, to round out the top five.

The second edition of the index, which was just released, shows how the federal bailout of the states may simply encourage out-of-control spending by states-up 124 percent over the last 10 years-without requiring the states to make the tough decisions necessary to bring about financial stability. In the midst of the economic turmoil, federal bailouts and budget deficits in more than 40 states, the report offers a concise roadmap to recovery based upon economic performance trends from states over the last 10 years.

"As legislators, we know that we are in direct competition with other states for human and investment capital," says Utah State Senator Wayne Niederhauser, who chairs the Utah Revenue and Taxation Committee. "Rich States, Poor States has provided invaluable information to strengthen our efforts to reduce tax burdens in Utah and we are happy to again be ranked as the most competitive state in the nation."

TOP FIVE STATES
1. Utah
2. Colorado
3. Arizona
4. Virginia
5. South Dakota

BOTTOM FIVE STATES
46. New Jersey
47. Maine
48. Rhode Island
49. Vermont
50. New York

The index also ranks Utah first for economic outlook and 22nd for economic performance. Click here to view the state's individual analysis.

New York earns the dubious distinction of having the worst economic outlook of any state, according to the report. "The New York governor just might have broken the record for the number of bad ideas he put forward during a recent 17-minute budget address-most notably his 137 proposed tax increases come to mind," the reports authors say.

"Too many states were too eager to add programs and increase spending during the good times, but we now face very difficult choices," says Indiana Senator Jim Buck, Chairman of ALEC's Tax and Fiscal Policy Task Force. "While we need to make tough choices to live within our means, we also need to remain focused on policies that foster economic development and job growth as the best solution to our budget woes."

Co-author and renowned economist Dr. Arthur B. Laffer summarized the report's findings by saying, "States cannot tax their way into prosperity." Rich States, Poor States presents rankings of the 50 states based upon the relationship between policies and performance, revealing which states are best positioned to make a recovery, and which are not.

Laffer and his co-authors, Stephen Moore, senior economics writer at The Wall Street Journal, and Jonathan Williams, director of the Tax and Fiscal Policy Task Force for ALEC, analyzed how economic competitiveness drives income, population and job growth in the states. They found that states with a high and rising tax burden are more likely to suffer through economic decline, while those with lower and falling tax burdens are more likely to enjoy robust economic growth.

"The top performing states keep taxes, spending, and regulatory burdens low, while the biggest losers in the book tend to share similar policies of high tax rates, unsustainable spending and regulation," says Williams.

According to the Rich States, Poor States report, "The decline of California is probably the best evidence that we can present as to the impact of poor state policy making on the economic pulse of a state." In chapter two, the report contrasts the fiscal policy structures of California and Texas to demonstrate how economic theory actually works in the real world.

"California continues to increase regulations, raise taxes and spend profligately," say the report's authors. "Texas, on the other hand, has a pro-growth economic environment with a competitive tax system, sound regulations and spending discipline that will help Texas maintain its superior performance well into the future."

To view the full report, download it here: http://www.alec.org/am/pdf/tax/09RSPS/26969_REPORT_full.pdf

The American Legislative Exchange Council is the nation's largest individual membership organization of state legislators dedicated to advancing the principles of free markets, limited government, federalism and individual liberty.

3 Utah metro areas among fastest growing in U.S.

3 Utah metro areas among fastest growing in U.S.
Utah's continuing baby boom credited for most of increase

By Lee Davidson, Deseret News
Published: March 19, 2009

Thanks largely to a continuing baby boom, Utah produced three of the nation's top 10 fastest-growing metropolitan areas last year, the Census Bureau reported Thursday.

The Provo-Orem metro area was No. 6 in the nation with 3.4 percent growth, adding an estimated 17,989 people between July 1, 2007, and the same date in 2008 — meaning it added the equivalent of a city with the population of Payson in a year.

The Logan metro area was No. 9 nationally with a 3.2 percent increase (adding about 3,917 people), and the St. George metro area was No. 10 at 3.1 percent (adding 4,142 residents). The nation has 363 separate metropolitan areas.

Census estimates show that about a third of such Utah growth came from people immigrating, likely attracted by economic conditions that were still generally better here than elsewhere. But about two-thirds of that growth came from Utah's much higher-than-normal birth rates (and long life expectancy).

"We have the highest fertility rate in the nation, and a lot of women in their child-bearing years," explained Utah state demographer Juliette Tennert. "It speaks to the fact that we have a culture here that places an important emphasis on families and children."

Pam Perlich, a research economist at the University of Utah, added, "We've got kind of a permanent youth movement to the state." She said each of the past 12 years have set a record for births here. On top of births to longtime residents, immigrants seeking work here tend to be young "and also are in their peak child-bearing years."

Helen Anderson, Provo community relations director, said of Provo: "It tends to be a conservative place politically, with high value on traditional marriage and children. … Not only do we have a high rate of births, but those children grow up and want to say close to home and continue to enjoy the quality of life here."

Tennert noted that the Census reported a few months ago that Utah was the fastest-growing state between 2007 and 2008. "So, of course, the smaller parts (like metro areas and counties) will show up high in the rankings, too."

Besides the three metro areas in the top 10 for growth, the Ogden-Clearfield metro area ranked No. 18 nationally with a 2.7 percent increase (adding 13,983 people). The Salt Lake City metro area ranked No. 59 nationally with a 1.9 percent hike (adding 20,330 residents — or the equivalent of the population of South Salt Lake in a year).

Also, Utah generated 10 of the nation's 100 fastest-growing counties: Rich (ranked 9th nationally), Piute (No. 17), Juab (28), Duchesne (38), San Juan (40), Tooele and Morgan (tied at 43), Sanpete (56), Utah (81) and Cache (87).

While Utah's economy was already beginning to slow down between 2007 and 2008, "It was still doing relatively well compared to other states. People were still moving to Utah to take advantage of the economic opportunities," Tennert said.

"For that time period, Utah's unemployment rate was 3.1 percent. And nationally, the average was 5 percent," she said. "Utah's economic opportunities are still better (than many areas'), so we still expect to have net in-immigration" in coming years despite the current economic recession.

As Perlich said, "Our economy is diversifying toward industries of growth. It's not like Michigan, and we're losing industrial base. … Even if we're losing jobs, we're not as bad as Michigan. Where are the people in Michigan going to go? They're going to come to places like this."

But data show that the real power behind population growth here is the local birth rate.

In fact, "natural growth" — the difference between births and deaths here in a year — is astronomical in Utah, according to the new Census estimates.

For example, it estimated that the Provo-Orem metro area gained 21 people per 1,000 residents from natural growth last year. That was second highest in the nation behind only Laredo, Texas. It was three times higher than the national average for natural growth of 6.2 per 1,000 residents.

And the other Utah metro areas were not far behind. Logan was No. 3 in the nation for its rate of natural growth at 20.7 per 1,000 residents; Ogden-Clearfield was No. 7 at 15.6; St. George was No. 11 at 15.0; and the Salt Lake City metro area was No. 14 at 14.1.

Estimates show, for example, that 62 percent of the growth last year in Provo-Orem was from "natural increase" and just 37 percent from immigration.

At other extremes, in the Salt Lake metro area 76 percent of growth came from "natural increase" and 24 percent was from immigration. In St. George, just 49 percent came from natural increase and 51 percent was from immigration.

Perlich said much of the current baby boom is an echo from a previous boom that peaked in 1982. "If you figure out how old those kids (from the 1980s boom) are now, they are in peak child-bearing years. We're on a 12-year run of record births. And it's an echo of that previous boom."

Anderson said that growth in Provo-Orem shows "this is a great place to live. We actually have been ranked highly through the last several years for having a high quality of life and low cost of living," and it has low crime rates. "Our families are growing. They want to stay here and live close to each other. We have the jobs, fortunately, to make that possible."

She said that Provo-Orem "can create jobs because we have two great universities — Utah Valley University and Brigham Young University. We have a strong entrepreneurial spirit here." Perlich said those universities also attract more young people, who have children while still in school and further increase the population.

Tennert said state officials are happy with the growth they see, which generally matches predictions they have made. "We always say that the economy fuels population growth, and population growth fuels the economy. We do think that it's a very positive thing."

Of course, it brings challenges for the future.

"We need to be thinking about infrastructure investment," Tennert said. "We need to make sure we can have transportation that can accommodate the population, and schools and services."

Tennert adds that the state expects growth from both immigration and natural growth to continue for years.

"We think we will continue to experience population growth that outpaces the national average," she said.

E-MAIL: lee@desnews.com
© 2009 Deseret News Publishing Company | All rights reserved

Report says Utah's economy ready to charge

Report says Utah's economy ready to charge

The Salt Lake Tribune
Updated: 03/17/2009 07:42:34 PM MDT

Utah's economy may be in the doldrums now, but low taxes mean it's primed for prosperity.

At least that is the finding of a report co-written by Arthur Laffer, the supply-side economist best known for the "Laffer Curve."

Utah's low taxes and controlled spending give it the most competitive economic environment in the nation, according to the report by the American Legislative Exchange Council (ALEC). Other states that raised taxes to balance budgets are only hurting themselves.

"The economic growth really, really shows that limited government and low taxes are the way to prosper in this world," said Jonathan Williams, ALEC's director of tax and fiscal policy task force and co-author of the report.

The Laffer report gives Utah high marks for having a relatively flat tax, no estate tax, no state minimum wage and being a right-to-work state.

Robert Gehrke

Provo ranked best mid-sized city in U.S.

Provo ranked best mid-sized city in U.S.
Ace Stryker - Daily Herald

Provo has the best quality of life among 124 mid-sized metro areas in the United States, according to a new study.

Bizjournals, a national network of business publications, rated Provo ahead of every other mid-sized city of at least 50,000 people in the country. Boulder, Colo., and Madison, Wis., rounded out the top three, while El Paso, Texas, and Bakersfield and Visalia, Calif., came in at the bottom of the rankings.

Provo's healthy population growth, low unemployment rate and inventory of large homes -- more than a quarter in the area have at least nine rooms -- helped place it at the top of the list, according to the study. Other criteria looked at include median household income, percentage of residents with higher education degrees, and average commuting time to work.

The designation is not new to Provo. In the past few years, the city has received the following recognition:

Nation's top city for commercial growth performance by The Milken Institute in 2008

Metro area with highest volunteerism by The Corporation for National and Community Service in 2008

One of "10 Great Places to Live, Work and Play" by Kiplinger's Personal Finance in 2008

One of the "Best Cities for Married With Children" by Kiplinger's Personal Finance in 2007

One of "50 Smart Places to Live" by Kiplinger's Personal Finance in 2006

Eighth-safest mid-sized city by Farmers Insurance Group of Companies in 2005

• Ace Stryker can be reached at astryker@heraldextra.com.