Utah's Business Journal

UTAH’S BUSINESS JOURNAL www.slenterprise.com July 30-Aug. 5, 2012 Volume 41, Number 52 $1.50 Apartments to rise as State officials OK new THIS part of first transit business recruitment, WEEK project in West Jordan retention incentive By Brice Wallace tives for companies adding a few The Enterprise employees, but the incentive is State officials have approved capped at $50,000. The typical a new business recruitment and state-approved incentive is the EcoScraps secures retention incentive designed to Economic Development Tax help certain counties that have Increment Financing (EDTIF), but $1.5 million missed out because of existing it requires incentivized companies See page 2. incentive programs’ rules. to add at least 50 employees and At its July meeting, the have the new jobs pay at least 25 Governor’s Office of Economic percent above the average county Development (GOED) Board wage. approved the incentive, target- So-called “shoulder” coun- Three new ing counties defined as “rural” ties have had companies falling restaurants coming but with large population centers. through the cracks in those pro- Specifically mentioned during the grams, sometimes because their to Salt Lake meeting were Juab and Box Elder growth didn’t reach the 50-job or See page 3. counties. the pay thresholds of EDTIF. The Currently, rural counties new incentive should help coun- can use the state’s Rural Fast- ties that have companies wanting More than 250 Class A apartment units will be constructed adjacent to Track Program. It defines “rural to boost employment by, say, 35 Earnings Roundup the Jordan Valley TRAX stop in West Jordan. Begins on page 5. Utah” as counties with a popu- employees, GOED officials said. By Barbara Rattle add some three bedroom models lation of less than 30,000 and Until now, for those companies, The Enterprise but we’re a little constrained by average household income of less “there was absolutely nothing that Two apartment structures what’s been approved,” he said. than $60,000. Sixteen counties could be done for them. We just • Industry Briefs • should begin rising before the “You can only do so much when are rural under that definition, didn’t have the tools, based on our Begin on page 8. end of the year at the first TOD you’re trying to do a project that although Box Elder County is guidelines,” said GOED board (transit-oriented development) in wraps around existing garages.” not. That program provides incen- see INCENTIVES page 2 West Jordan. Construction should take A joint venture between 12 to 18 months. Rothman said Memphis sub shop to enter the Utah Transit Authority and Bangerter Station LLC is in final Bangerter Station LLC, which negotiations with an architect Utah, open six locations is owned by California-based and has not yet selected a Foursquare Properties, the general contractor. Rents will be project will rest of 36 acres at determined at a later date, but the approximately 3400 West and apartments will be “more upscale, 8600 South and eventually include Class A,” Rothman said. “Not 1,396 residential units, 83,200 at the top of the market but it’s square feet of office space and not going to be low to moderate 35,400 square feet of retail and income.” restaurant space. He estimated the total project Bill Rothman, a Foursquare will take five to six years to build Properties spokesperson, said the out. Future phases will be market first phase of Jordan Valley Station driven. will consist of a pair of apartment UTA was able to joint venture buildings, with a total of 252 units, the development with a private that will wrap around two parking entity thanks to legislative action garages that UTA is close to completing. Of the approximately that allows the agency to enter into 900 parking spaces available, five such agreements, this being Lenny's Sub Shop has about 150 locations. The downtown Salt Lake about half will be reserved for the first. City unit will be its westernmost. Foursquare Properties is residents of the apartments while By Barbara Rattle deal with the company, accord- no stranger to Utah. It owns the other half will be open for use The Enterprise ing to spokesperson Jordy Patano. the Jordan Landing shopping by UTA park-and-ride customers Memphis-based Lenny’s Build-out of the first Utah loca- complex in West Jordan, while a patronizing an adjacent light-rail Sub Shop, a sandwich franchise tion is under way; it will be the TRAX station. related entity is in the process of with approximately 150 locations chain’s westernmost unit. Rothman said the apartment redeveloping the former Granite in the U.S., will soon enter the Patano said in an e-mail structures will be four stories Furniture building in the Salt Utah market with a location at 35 that Corine Warren is leaving her and the rental units will range Lake City neighborhood of Sugar E. 300 S., Salt Lake City. position as an elementary school in size from about 700 to 1,200 House into retail and office space. Franchisees Lee and Corine teacher while Lee Warren is a square feet, primarily one and two Rothman said most of the ground- Warren plan to open five addi- military veteran who served in bedrooms. level retail spaces at the Granite tional restaurants in the next six the Marine Corps and worked as “We may make changes and site have been leased. years as part of their development see LENNY'S page 2 2 The Enterprise July 30-Aug. 5, 2012 LENNY'S party platters and boxed lunches, The initial franchise fee to recruitment and retention, said the is also offered. open a Lenny’s Sub Shop fran- INCENTIVES shoulder counties are where much from page 1 The average size of a Lenny’s chise in the United States is from page 1 of the state’s economic develop- a government defense contractor is 1,600 to 2,000 square feet. The $25,000. The average total initial ment is occurring. ideal site is located in shopping investment is $253,750, which member Jerry Oldroyd. “That’s where the growth is training soldiers in tactical war- “We’ve talked with economic fare before being deployed for centers or within close proxim- includes the initial franchise fee taking place,” he told the board. ity of office and industrial parks, of $25,000. A $5,000 discount is development officers throughout “When you think about the growth Iraq. the state, and this has been a major Lenny’s, founded in 1998, large universities or government offered to veterans and minori- that’s happened in all the projects buildings or medical centers. ties. issue because there’s no way to that we’ve done, it’s pushing on serves Philly cheesesteaks and fund these types of companies. … cheeses are sliced fresh to order Locations should have a daytime George Alvord is chair- the south in Juab County, it’s population and a residential popu- man, CEO and majority owner This [new incentive] is something pushing on the north in Box Elder and placed on fresh baked bread. that I think will be really ben- There is about a half pound of lation of at least 8,000 people in a of Lenny’s Franchisor LLC, the County … and there’s every rea- one-mile radius. Immediate traf- parent company of Lenny’s Sub eficial to those rural communities son to think that’s just going to meat and cheese on the regular size that have, by and large, been shut sub, and about a full pound on the fic counts should exceed 20,000 Shops. He is the former CEO continue in the next decade. So cars per day. Lenny’s prefers an of Dobbs International, a global out by the [current] incentive pro- any tool that his board can provide large size sub. The menu includes gram,” he said. hot and cold subs; tuna, chefs and end-cap that is facing the street market leader in airline catering. to help in that process is welcome. without obstructions; locations Prior to Lenny’s Franchisor LLC, The new incentive eliminates …” grilled chicken or grilled steak sal- the 50-job threshold and has flexi- ads; kid’s meals; beverages; and that provide the option of a drive- Alvord held executive positions Oldroyd said the existing through and/or patio seating are a with the Marriott Corp. and the bility regarding pay levels, but the incentives statutes are flexible chips and cookies. Average cost key change is that it will match is $6.35. Catering, in the form of plus. Servomation Corp. enough to allow GOED to create local incentives dollar for dollar. the new incentive through guide- Compost firm closes on $1.5 million financing “It is somewhat of a little bit lines and thus not require a legis- of a higher bar for the community lative bill. EcoScraps, a Utah County- tinue developing our line of prod- Founded two years ago, as it relates to below the 50 jobs, “We still have the ability to based provider of organic, chemi- ucts, and attract new talent to our EcoScraps is now manufacturing which is a control mechanism review these [applications] on a cal- and manure-free lawn and growing team,” said EcoScraps its products in Utah, Arizona and to help ensure that we have the one-by-one basis. … We thought garden products, received $1.5 CEO and co-founder Dan Blake. California. Currently, the company community very involved in the we would just give this as much million in series A venture financ- “Americans generate more than sells its organic compost through- process,” said Spencer Eccles, flexibility as possible and plan on ing.

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