Utah's Business Journal
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UTAH’S BUSINESS JOURNAL www.slenterprise.com April 22-28, 2013 Volume 42, Number 36 $1.50 Portland company Texas fund to convert THIS acquires Hostess 206 acres into Utah WEEK bakery in Salt Lake fly fishing ranch By John M. Rogers owned by the Corporation of the The Enterprise President of The Church of Jesus Homebuilder buys A Dallas-based investment Christ of Latter-day Saints. The 175 acres at fund has purchased a 206-acre church had formerly used the former tract of property along the upper land as part of its cattle ranching Provo River with the intent of operations. The purchase price Geneva Steel improving and reselling it at a was not disclosed. site in Vineyard profit. Sporting Ranch Capital Ellis said the land has See page 3. founder and general partner Jay been overgrazed and needs some Ellis says his company will turn rehabilitative attention. the property, which runs along “No project like this has ever • Industry Briefs • both sides of the river south of been done in the Upper Provo Kamas and near the small town River basin,” said Ellis. “We plan Begin on page 6. of Woodland, into the “finest fly to invest $1 million to improve fishing ranch in Utah.” and enhance the property, creating • Calendar • Sporting Ranch purchased 10,000 feet of spring creek along See page 14. the tract from Property Reserve its north side.” Inc., which manages real estate Franz Bakery hopes to have the Salt Lake plant open and producing see FISHING page 2 REAL ESTATE bread by May 13. Sugar House streetcar work SECTION By John M. Rogers million. See pages 16-17. The Enterprise Franz officials hope to have more than halfway complete At least some of the 570 jobs the Salt Lake plant, located at 734 lost last fall in Utah when Hostess E. 400 S., open and producing Brands Inc. went of business are bread by May 13. At least 65 coming back. people will be hired immediately Franz Bakery of Portland, to man the bakery, and that Ore., has acquired the Wonder number will include some former bakery in Salt Lake City along Wonder employees idled since the with other Hostess properties shutdown last fall, according to in Seattle; Billings, Mont.; and company sources. The interview Anchorage. The U.S. Bankruptcy process has begun for bakery Court in New York has approved personnel to staff the reopened the sale of the Wonder properties facility. in the four western cities for $30.9 see HOSTESS page 2 Swire gains new territory in Coke's expanded franchise model Sugar House streetcar construction areas. Graphic courtesy Utah Transit Authority. Draper-based Swire Coca- Denver and Colorado Springs will Cola USA is one of five U.S. increase our population served By Brice Wallace trip,” he said. Its slow speeds soft drink bottlers that have been from 6.2 million to 10.7 million The Enterprise and frequent stops — seven are included in an agreement by the consumers.” Construction on the Sugar planned, about three-tens of a mile Coca-Cola Co. to strengthen its The deals reached with the House streetcar and greenway apart — should benefit businesses business model by granting new, bottlers are subject to the parties project is more than halfway com- along the line, which will run in expanded franchise territories. In working out definitive deals by plete and should provide a boost an old freight corridor from the the proposal, Swire will receive the end of 2013, with closings to businesses near the line, accord- Central Pointe TRAX station at manufacturing and distribution expected in 2014. Financial ing to the executive director of the 2100 South to McClelland Street rights for the metro Denver area terms were not disclosed. The Salt Lake City Redevelopment (1045 East) along 2230 South. and the Colorado Springs market. announcement of the new model Agency. “In other cities that have put Four other major Coca-Cola represents a reversal of a decision Speaking to the Utah chapter these in, because it stops frequent- bottlers throughout the nation will in 2010 at which time Coca-Cola of NAIOP last week, D.J. Baxter ly and it stops right at the curb also receive expanded territories bought up territories and ran them also said the two-mile Sugar instead of the middle of the street, in the deal. as corporate operations. House line will be the first leg of it’s been phenomenally successful “Since 1978, we have worked However, Coke chief what ultimately could become a at putting more feet on the street, hand-in-hand with The Coca-Cola executive Muhtar Kent said at citywide streetcar network. and as a result they are very bene- Co. serving our local customers the time that he still believed in While the Utah Transit ficial to retail businesses,” Baxter and supporting the communities the so-called franchise model Authority (UTA) has built “a said. where we live and work,” said Jack — where Coke sells ingredients regional backbone” for long- Streetcar systems have been Pelo, president and CEO of Swire. haul trips, the streetcar will “help “The granting of new territories in see SWIRE page 2 extend a pedestrian’s walking see STREETCAR page 2 2 The Enterprise April 22-28, 2013 HOSTESS goods in the Utah market through and adjacent property owners its own distribution and route- FISHING STREETCAR could have café tables or other from page 1 sales system. from page 1 from page 1 features in the corridor. “We The popular Grandma would like those developments The Franz purchase does Emilie’s brand of bread, which Ellis expects improvement successful in Portland, Ore., and to spill right into the corridor and not include the other major Utah went away with the closing of the work to begin on the property as about a dozen other cities, he face the corridor,” he said. Hostess bakery, located in Ogden. Wonder bakeries last year, will be soon as the permitting process said. The $45 million project is However, the transaction does reintroduced in Utah by Franz, is completed — probably by “What we’ve seen in a num- getting a $26 million boost from include the Wonder warehouse the company has said. As it does early summer. Among the ber of other communities around federal funds. Private investment the country is streetcars are planned within a half-mile of the and distribution facility on west in other markets, Franz will offer improvements will be buck and rail fencing around the property. uniquely capable of stimulating streetcar terminus is estimated at North Temple in Salt Lake. Also discounted products to consumers When improvements are private investment. What other $405 million in the Sugar House included are a limited number of through outlet stores and will make complete and a “healing time” has communities have discovered is Business District. distribution assets such as trucks product donations in conjunction transpired, the property will then the permanency of tracks in the Salt Lake City once had and warehousing equipment. It with local charities. be offered for sale — probably street distinguish this pretty sig- 145 miles of streetcar lines, often has not been decided if the thrift Officials of the bankrupt beginning next year. nificantly from a bus route, in the undertaken by private developers. store on North Temple will reopen Hostess Brands are still in the Located just a few miles sense that providing a high-quali- And the Sugar House line could as a Franz outlet, but it is expected process of finding a buyer for the from the massive Victory Ranch ty form of transit for a very large be the first part of a citywide that there will be a thrift store at Ogden plant and some of the snack resort development and golf group of people and in a form streetcar network. The RDA envi- the 400 South site. cake brands that were produced course, the site was chosen that we all know is going to be sions the line extending along “We’re excited to move there. That plant was idled at the based on its fishery potential, there 50 years from now provides Sugarmont Drive (2225 South) forward with re-opening the same time as the Salt Lake bakery its proximity to a major airport a lot more certainty for private to Highland Drive, then north to bakery and start supplying Utah in November of last year when and other amenities important to investment, whereas a bus route the Sugar House Monument, then with fresh baked goods,” said Marc Hostess reacted to a crippling potential buyers. can change overnight. You just north on 1100 East. It then could Albers, president Franz Bakery. strike and inability to reach a new “We only look at places with take the sign down and move it to jog to 900 East 900 South, then “We’re also looking forward to the next block and suddenly your north to the University of Utah collective bargaining agreement live water,” Ellis said. “That’s investment is next to a former bus and west to the west side of the contributing to the local economy by shuttering operations. the main value creator that the stop instead of a current one.” city, he said. by providing jobs.” Hostess Brands had been consumer looks for — a private, Planning began in 2006 with “So this is really the begin- Although primarily a bread rumored to have been having pristine fishery on their ranch. A a study of transit alternatives ning of a network, we hope, and bakery, the Salt Lake facility will financial difficulties for some nearby airport is also imperative through Salt Lake City and South this first piece will open soon,” also produce a bun line, according time prior to the strike by one of in our formula, because if a guy Salt Lake.