Prepared by: The Governor’s Rural Partnership Board The Office of Rural Development Utah Governor’s Office of Economic Development business.utah.gov/rural Contents

Letter from Steve Styler, GRPB Co-Chair 3

Governor’s Rural Partnership Board 2019 Membership 4

Current State of Jobs in Rural Utah 7

Impact of Jobs in Rural Utah 9

Governor’s Rural Partnership Board Strategic Plan 10

Rural Economic Development 10

Rural Planning 11

Rural Leadership 12

Statement of the Governor’s Rural Partnership Board’s Top 2020 Legislative Priorities 13

Appendices 14

Appendix A: 2019 Rural Economic Development Updates from Members of the Governor’s Rural Partnership Board 15

Tourism: Joan Hammer 15

Oil, Gas, and Mining: Robert Miller 16

Associations of Government: Russ Cowley 16

Utah League of Cities and Towns: Mayor Emily Niehaus 16

Rural Utilities: Jeff Peterson 17

At-Large: Jason Yerka 17

At-Large: Shannon Ellsworth 17

At-Large: Michael McCandless 17

At-Large: Brian Raymond 18

Utah Association of Counties: Commissioner Kent Wilson 18

Agriculture: Tim Munns 18

Department of Workforce Services: Zac Whitwell 19

At-Large: Steve Styler 19

Contents 2019 Governor’s Rural Partnership Board Annual Report 1 Southern Utah University: Stephen Lisonbee 19

Division of Indian Affairs: Shirlee Silversmith 20

At-Large: Michael McKee 20

Utah State University Extension Services: Dr. Brian Higginbotham 20

Appendix B: GRPB Work Plan FY2019 to FY2020 21

Goal 21

Focus 21

Challenge 21

Opportunity 21

Objectives for Realignment 21

Work Plan 22

Appendix C: Rural Grant & Tax Credit Programs 24

Appendix D: Recipient List 25

Contents 2019 Governor’s Rural Partnership Board Annual Report 2 Letter from Steve Styler, GRPB Co-Chair

Letter from Steve Styler, Co-Chair 2019 Governor’s Rural Partnership Board Annual Report 3 Governor’s Rural Partnership Board 2019 Membership

Co-Chair, Governors Designee Co-Chair, At-Large Lt. Governor Spencer Cox Executive Committee Member Steve Styler Email: [email protected] ​

SUU, President Designee V.P. USU Extension Services Executive Committee Member Executive Committee Member Stephen Lisonbee Brian Higginbotham Email: [email protected] Email: [email protected] ​ ​

Department of Workforce Services At-Large, Community & Business Development Zac Whitwell Executive Committee Member Email: [email protected] Michael McCandless ​ Email: [email protected] ​

Governor’s Rural Partnership Board 2019 Membership 2019 Governor’s Rural Partnership Board Annual Report 4 Utah Association of Counties Six County Association of Governments Commissioner Kent Wilson Russ Cowley Email: [email protected] Email: [email protected] ​ ​

At- Large At- Large Jason Yerka Brian Raymond Email: [email protected] ​ Email: [email protected] ​

Rural Utilities Jeff Peterson At- Large Rural Member Email: [email protected] Michael McKee ​ Email: [email protected] ​

Governor’s Rural Partnership Board 2019 Membership 2019 Governor’s Rural Partnership Board Annual Report 5 Utah League of Cities & Towns At-Large, Small Business Mayor Emily Niehaus Shannon Ellsworth Email: [email protected] Email: [email protected] ​ ​

Utah Division of Indian Affairs Oil, Gas & Mining Shirlee Silversmith Robert Miller Email: [email protected] Email: [email protected] ​ ​

Agriculture Representative Tourism Tim T. Munns Joan Hammer Email: [email protected] Email: [email protected] ​ ​

GOED Staff for GRPB Linda Clark Gillmor Director, Office of Rural Development Email:[email protected] ​

Joshua Wiggins Program Support Specialist Email: [email protected] ​

Governor’s Rural Partnership Board 2019 Membership 2019 Governor’s Rural Partnership Board Annual Report 6 Current State of Jobs in Rural Utah Prepared by Zac Whitwell, Department of Workforce Services and GRPB Member

Mr. Zac Whitwell prepared the following report for the September 4 Governor’s Rural Partnership Board meeting outlining the current state of Utah’s rural economy.

In 2017, during his State of the State address, Governor Herbert introduced the 25k Rural Jobs Initiative with the goal to create 25,000 new jobs in rural Utah within the ensuing 4 years. What we are defining as “rural Utah” is any county that isn’t Davis, Weber, Utah, and Salt Lake. These four counties are our definition of “metro Utah”. Based on this definition there are 25 rural counties. Since the 25k rural jobs initiative was implemented, we have achieved 79% of our total goal. Given that Washington County is the largest county economy within the 25-county rural designation one would expect that they would also add the most new jobs. However, it is important to note that since the start of the 25k rural jobs initiative 24 of 25 counties have shown a positive job growth.

When comparing current employment numbers to the pre-recession high, then the majority of Utah counties have not only recovered, but exceed, that pre-recession high.

Three out of the top five counties on this chart are considered rural Utah: Wasatch, Washington, and Grand.

Current State of Utah’s Rural Economy 2019 Governor’s Rural Partnership Board Annual Report 7 Not all counties have yet recovered in terms of employment numbers returning back to their pre-recession peak. These are the 7 counties whose employment count are still below the pre-recession peak.

However, this picture doesn’t necessarily mean that they aren’t currently experiencing any growth, but that the growth experienced still hasn’t brought them back to their pre-recession peak. For example, six of the seven counties here have had positive job growth over the most recent 12-months data, March 2018 to March 2019.

Current State of Utah’s Rural Economy 2019 Governor’s Rural Partnership Board Annual Report 8 Impact of Jobs in Rural Utah Prepared by the Office of Rural Development, Utah Governor’s Office of Economic Development

Impact of Jobs Graphic 2019 Governor’s Rural Partnership Board Annual Report 9 Governor’s Rural Partnership Board Strategic Plan

As provided in Utah Code 63C-10-103, the Governor’s Rural Partnership Board is to serve as an advisory board to: (i) the governor on rural economic and planning issues; and (ii) the Governor’s Office of Economic Development on rural economic development issues; and prepare an annual strategic plan that: (i) identifies rural economic development, planning, and leadership training challenges, opportunities, priorities, and objectives; and (ii) includes a work plan for accomplishing the[se] objectives.

The 2019 GRPB Strategic Plan provides priorities and recommendations for the following:

1. Rural Economic Development, 2. Rural Planning, and 3. Rural Leadership.

Rural Economic Development Utah has made a significant investment in the development of broadband infrastructure around the state, including rural Utah, which opens up opportunities for online sales, as well as online employment. In order to leverage this new form of connectivity Utah State University’s (USU) Cooperative Extension is leading out on a 3 year pilot program for remote workforce development called the Rural Online Initiative (ROI). Since October 2018, the ROI has trained 653 rural citizens in 19 rural counties. Of those taking the training to find employment, 38 now have jobs (21 responding to post class surveys stated that they are still looking for work) using the available broadband infrastructure and skills they have obtained through the ROI program. ROI has also issued 50 scholarships for graduates to continue online skills training. Remote jobs have the potential to not only create new rural jobs, but also allow under-employed individuals to increase their earning potential and seasonal workers in agriculture, tourism or outdoor recreation industries to augment their employment with remote work. As the trend toward remote work options grows, USU Extension is in the process of developing a training program for business executives and managers to learn how to lead and work better with remote employees. For this reason, GRPB will ​ continue monitoring numbers of individuals trained and employed, and may make a recommendation in the future for the legislature to continue funding this program.

A number of county or regional business summits are held around the state each year to educate and develop the local business sector, including the iconic Southern Utah University’s (SUU) “Utah Rural Summit”. The 2019 Utah Rural Summit theme is “Innovation Through Entrepreneurialism and Partnership”, and its agenda demonstrates SUU’s commitment to rural economic development through partnerships with the Cedar City Chamber, SUU’s Business Department, the Governor’s Office of Economic Development and others. The Summit will include a “pitch fest” competition for the best business idea, and speakers covering city/county planning, youth leadership and innovation. SUU business students will be attending the Rural Summit as they prepare to be the next generation of rural business owners and innovators in southwest Utah. GRPB is pleased that SUU is making the private ​ sector a focus of the Utah Rural Summit.

Governor’s Rural Partnership Board Strategic Plan 2019 Governor’s Rural Partnership Board Annual Report 10 While rural communities have many attributes that could attract new businesses and industries such as lower cost of land, a hard working labor force, available water and clean air sheds etc., they are often overlooked due to the additional cost of capital investment and infrastructure needed to relocate or expand in rural Utah. The GRPB recognizes an urgent statewide need to equalize population growth and job opportunities across the state. For this reason the GRPB recommends the creation of a new ​ post-performance “Rural Economic Development Tax Increment Finance” (REDTIF) incentive, an expansion of the existing High Cost Infrastructure Tax Credit (HCITC), or a policy modification of the existing EDTIF program which would include incentives and employment level requirements that are more accessible for the expansion of existing rural businesses or relocation of businesses to rural areas of the state. The GRPB further recommends that a Rural Advisory Committee made up of GRPB members, and rural GOED board members be created to participate in the review of rural tax incentive applications.

Tourism and outdoor recreation are a significant part of many rural economies, but success in these industries has also brought challenges such as lack of affordable housing, overcrowding of National Parks, and stress on existing infrastructure including roads, emergency response capacity, health care etc. Moab City’s Main Street is an example of a city which is actively working with UDOT to resolve congestion caused by both tourists and semi-trailers on Main Street but is unable to access TRT taxes to help resolve this. Numerous rural communities are unable to provide adequate affordable housing for the number of tourism employees during a portion of the year. This seasonal housing issue has a domino effect on other full time resident housing availability. The GRPB recommends that an additional ​ percentage of Transient Room Tax (TRT) funds be made available to counties of the 3rd to 6th class as well as flexibility in spending for needed infrastructure to address the demands created by robust tourism visitation.

Rural Planning The GRPB commends the rural counties for their excellent response to Governor Herbert’s challenge announced during the 2017 “Utah Rural Summit” held in Cedar City to develop a Strategic Economic Development Plan. Many of the counties used the strategic planning process to expand partnerships with cities and towns, K-12 and higher education, business and government. Challenges such as lack of affordable housing, workforce development and economic diversification were identified within the Plans, as were each county’s unique opportunities for growth. State departments eagerly responded to numerous requests for support from counties for specific elements identified in their Strategic Plans. The GRPB recognizes however that many of the opportunities identified in the rural Strategic Plans will not be realized without significant financial support. For this reason, the GRPB recommends that the ​ legislature create or expand an existing business expansion and retention grant program for rural communities to directly promote the growth of existing small business, economic diversification, job creation, and the development of strategic plans or implementation of economic development goals identified in current strategic economic development plans.

The GRPB further recommends that the Office of Rural Development in collaboration with other state, federal and private sector partners continues to create awareness of the many available

Governor’s Rural Partnership Board Strategic Plan 2019 Governor’s Rural Partnership Board Annual Report 11 business resources available to rural businesses, and support the continued development and implementation of rural Strategic Economic Development Plans.

Rural Leadership The GRPB commends the Department of Workforce Services and the rural counties who are participating in the Inter-Generational Poverty (IGP) program for the impact that has been made on the development of rural leadership as community members have gathered to find long-term solutions to poverty within their respective communities.

The GRPB commends the Utah Association of Counties for their ongoing training of newly elected officials, and their recent addition of an economic development track during their annual meetings.

GRPB also recognizes efforts being made by state universities and colleges to increase rural leadership capacity, such as USU’s leadership skills training modules and the development of SUU’s leadership academy which will support both programmatic and leadership skills enhancement. Utah Valley University has also developed a series of economic development classes that have been taken by a number of rural economic development professionals.

As the 17 member GRPB is made up of a diverse representation of industry, education, and rural community leadership, they are uniquely situated to be a convener of rural perspectives, an advocate for rural communities, as well as a training ground for future rural leadership. For this reason the GRPB ​ Executive Committee is committed to increasingly encourage input and engagement from all board members in relation to the industry or organization they represent on the GRPB.

As we prepare for the future of our children and grandchildren, we need to encourage younger members of our rural communities to run for office, serve on local and statewide boards and committees, and make volunteering in their local communities a priority. An example of youth leadership can be seen on the Delta City Council, as 3 of its 5 members are under 40. For this reason, the GRPB recommends that ​ the Governor and his staff consider qualified applications from candidates of all ages when making appointments to state boards and committees.

The GRPB further recommends that the GOED and the GRPB identify rural “next generation” leaders and highlight their accomplishments and service at GRPB meetings, the Utah Rural Summit, the GOED Rural Day on the Hill, and the ORD quarterly newsletter etc.

Additional Documentation:

For 2019 Rural Economic Development Updates from Members of the GRPB, see Appendix A. For 2019 GRPB Work Plan, see Appendix B. For List of Rural Grant & Tax Credit Programs, see Appendix C. For Report Recipient List, see Appendix D.

Governor’s Rural Partnership Board Strategic Plan 2019 Governor’s Rural Partnership Board Annual Report 12 Statement of the Governor’s Rural Partnership Board’s Top 2020 Legislative Priorities

1) The GRPB recommends the creation of a new post-performance “Rural Economic Development Tax Increment Finance” (REDTIF) incentive, an expansion of the existing High Cost Infrastructure Tax Credit (HCITC), or a policy modification of the existing EDTIF program to include tiered incentives and employment level requirements that are more accessible for the expansion of existing rural businesses or relocation of businesses to rural areas of the state. The GRPB further recommends that a Rural Advisory Committee made up of GRPB members, and rural GOED board members be created to participate in the review of rural tax incentive applications.

2) The GRPB recommends that the legislature create or expand an existing business expansion and retention grant program for rural communities to directly promote the growth of existing small business, economic diversification, job creation, and the development of strategic plans or implementation of economic development goals identified in current strategic plans.

3) The GRPB recommends that an additional percentage of Transient Room Tax (TRT) funds be made available to counties of the 3rd to 6th class as well as flexibility in spending for needed infrastructure to address the demands created by robust tourism visitation.

Statements of GRPB Priorities 2019 Governor’s Rural Partnership Board Annual Report 13 Appendices

Appendices 2019 Governor’s Rural Partnership Board Annual Report 14 Appendix A: 2019 Rural Economic Development Updates from Members of the Governor’s Rural Partnership Board Summarized by Joshua Wiggins, Office of Rural Development, Utah Governor’s Office of Economic Development

At the Governor’s Rural Partnership Board Meeting on February 22, 2019, the Board leadership requested input from all Board members for strategic proposals to advance toward potential legislation. Board members submitted proposals outlining current challenges, opportunities, and requests for state support from the industry or position they represent on the board. Below are summaries of the proposals submitted April 16, 2019.

Tourism: Joan Hammer ● Tourism, a vital aspect of the state’s economy, faces a broad array of challenges. ● Challenges ○ Tourism is not often recognized as economic development. ○ There are issues collecting and remitting all tourism-oriented taxes currently owed to the correct jurisdiction. ○ Both the public and private tourism sectors need funding. ○ Quality experiences for visitors can be difficult to craft due to underdeveloped infrastructure and lack of funding. ○ Employees lack adequate housing. ○ The employment for tourism is seasonal and low wage. ○ Tourism is almost completely dependent on federal lands. ● Requests ○ Organize a method to provide technical assistance to counties and communities with specific tourism projects without the expertise to complete them. ○ Enforce compliance for all taxes related to the tourism industry: TRT, TRCC, Resort Communities, statewide TRT, etc. Collect and remit all taxes currently owed to the correct jurisdiction (possibly included as part of tax reform). Increase the number of audits conducted by the State Tax Commission. ○ Identify the distinction between advertising and marketing, which varies by the tourism office. A formal definition provided by the Utah Attorney General’s Office would be helpful.

Appendices 2019 Governor’s Rural Partnership Board Annual Report 15 Oil, Gas, and Mining: Robert Miller ● The oil, gas, and mining industries, which are vital parts of rural Utah’s economy, face significant challenges. ● Challenges ○ Widely fluctuating prices detrimentally affect the oil, gas, and mining industries. ○ Political and environmental factors impose increasingly stringent restrictions on the industry, hampering new developments. ○ As the older generation is beginning to retire, the industry is finding that the younger generation is not ready to take over.

Associations of Government: Russ Cowley ● The Associations of Government need help communicating their value. ● Challenges ○ Biggest challenge is outreach; the Associations of Government (AOGs) need to better communicate their successes and challenges. ○ Rural Utah has increasingly aging populations because the younger generations are moving to urban areas. ○ The large percentage of government-owned land proves a challenge. ○ There is no state funding to ease intergenerational poverty and homelessness in rural areas. ● Opportunities ○ The AOGs are working on a comprehensive economic development strategy. ● Requests ○ Assistance in educating legislators and program administrators about the function and purpose of AOGs to improve funding.

Utah League of Cities and Towns: Mayor Emily Niehaus ● At the root of issues facing rural Utah is a lack of housing. ● Challenges ○ The main challenges facing cities in rural Utah are a shortage of housing, limited housing, limited access to broadband, a lack of public transportation to urban centers, intergenerational poverty, a loss of human capital, and competition for funding with the Wasatch Front. ● Opportunities ○ Housing is the first step to economic development in rural cities. ● Requests ○ Rural cities need state government funding for housing and economic diversification efforts.

Appendices 2019 Governor’s Rural Partnership Board Annual Report 16 Rural Utilities: Jeff Peterson ● Challenges ○ Wildfires frequently threaten rural utilities. ○ Power markets are changing, and the public is uneducated as to how renewables work on a power grid, why regulated markets are better for the public, and what the increasing complexities of the power market are. ○ Transitioning to more renewable energy sources poses unique challenges, like an increased need in battery storage, increased stress on traditional resources, and accurate forecasting of demand. ● Requests ○ Increased coordination with state, area, and local fire prevention groups to prevent wildfires or mitigate their damage.

At-Large: Jason Yerka ● Small businesses need access to non-loan capital and online training programs. ● Challenges ○ Small, rural businesses need access to high-quality, online educational training programs. ○ Small businesses have trouble accessing non-loan capital, such as grants and equity investments. ● Requests ○ Assistance with both in-person and online consulting and training opportunities, as well as increased access to grant funding for small businesses. ○ The Utah SBDC has been working to create an online Entrepreneur Academy that will provide online training across all aspects of business. With ongoing support from the legislature, they can create an extensive network of online resources for small business owners.

At-Large: Shannon Ellsworth ● A two-pronged approach may prove effective in the Board’s strategy for invigorating the rural economy of Utah. ● Requests ○ The Governor’s Rural Partnership Board should focus on population centers and ignore county lines. ○ Rural incentives should be optimized to ensure the best use of state funds.

At-Large: Michael McCandless ● ‘De-risking’ mining and renewable fuel developments in rural Utah will accelerate economic development in rural Utah. ● Challenges

Appendices 2019 Governor’s Rural Partnership Board Annual Report 17 ○ The permitting process constantly changes, dampening business initiative. ○ Substantial pressures from federal policies on public land use increases risk to businesses. ● Requests ○ Develop high school programs in trades and technical skills. ○ Provide long-term assurances to businesses that regulations will not change overnight. ○ Create a revolving loan guarantee fund to lead to more investment in rural Utah.

At-Large: Brian Raymond ● Challenges ○ The size of the populations in rural Utah is too small in relation to the cost of infrastructure. ○ There are too few year-round, full-time jobs available. ○ There are too few adequate, affordable housing options. ○ There is too little funding to improve the economic development situation in rural Utah. ○ Services and products are not readily available for many in rural Utah. ● Requests ○ Create or move state professional jobs to rural counties. Continue to support rural online employment. ○ Match grants for additional economic development at county and city levels. ○ Legislate a revolving loan fund for new businesses and affordable housing.

Utah Association of Counties: Commissioner Kent Wilson ● Local leadership should be heavily involved in economic development. State government can contribute funding for local initiatives. ● Challenges ○ Emery County’s population has dropped, most likely due to policy (i.e. the ‘war on coal’). ○ Infrastructure changes are necessary to overcome current challenges. Changes take much more money than counties can generate alone. ● Opportunities ○ Bottom-up leadership will be key to economic development. ● Requests ○ Allow rural Utah to be part of the solution and to take responsibility for local economic development.

Agriculture: Tim Munns ● Agriculture faces significant challenges on multiple fronts: labor, government-owned land, water, trade, and legal issues. ● Challenges ○ Agricultural producers struggle to find an affordable and reliable workforce.

Appendices 2019 Governor’s Rural Partnership Board Annual Report 18 ○ Utah’s growth and economic success puts pressure on converting agricultural land into residential or commercial land due to the high percentage of government-owned land. ○ The limited nature of water creates friction between agricultural producers and large cities. ○ Large price fluctuations and global politics negatively affect farmers. ○ New legal issues threaten current farming practices and property rights, such as controlling what comes off of farms (such as water, pesticides, manure, or dust). ● Requests ○ Provide a statement on public lands to clarify the Board’s position.

Department of Workforce Services: Zac Whitwell ● Remote work could mitigate workforce trends seen along the Wasatch Front and in rural Utah. ● Challenges ○ The Wasatch Front has more jobs available than the current workforce can fill; rural Utah has the opposite challenge. ● Opportunities ○ Companies could identify and migrate positions that could be moved from the Wasatch Front to rural Utah. ● Requests ○ Rural Utah requires infrastructure support (i.e. fiber network access) for rural, remote work to be feasible.

At-Large: Steve Styler ● Because the State of Utah has seen success with the Economic Development Tax Increment Financing (EDTIF) along the Wasatch Front, a rural version of the program could invigorate other parts of Utah. ● Challenges ○ The number of rural programs can be challenging for constituents; a more concentrated approach may be more effective. ● Requests ○ Create a rural version of the EDTIF; drop the $10 million requirement to $500,000 in third, fourth, fifth, and sixth class counties. This version would not alter the current EDTIF incentive.

Southern Utah University: Stephen Lisonbee ● In order to help the economy in rural areas of the state, Southern Utah University is focusing on getting students graduated faster, with less debt, and into careers. ● Opportunities ○ Higher education institutions should be viewed as partners, not as competitors, with industry. One of the ways this can happen is through the GRPB. The board is comprised

Appendices 2019 Governor’s Rural Partnership Board Annual Report 19 of members from a variety of fields and backgrounds, and collectively the board has the resources to effectively aid each industry or area.

Division of Indian Affairs: Shirlee Silversmith ● Tribes within Utah often face the most extreme problems of rural Utah. ● Challenges ○ Tribes are located in remote, rural areas of the state where the internet is not available. Unemployment is high because jobs aren’t available. Infrastructure problems, such as needing road repairs, causes transportation issues. Access to clean and safe drinking water is a concern for many of the tribes. ● Opportunities ○ Job training programs, skill building, education, and scholarships are key to moving tribe members out of poverty. ● Requests ○ County governments and reservations need to collaborate to solve the issues facing Native American tribes.

At-Large: Michael McKee ● Two upcoming opportunities could be key for Emery County’s future economic development. ● Opportunities ○ A research facility for medical isotope research received a $1 million appropriation from the State. The facility is expected to create thousands of jobs. Additionally, the construction of railroads in the county is in the funding and planning stage; this new line would allow moving oil and gas from Utah to the Gulf Coast.

Utah State University Extension Services: Dr. Brian Higginbotham ● Economic development initiatives need to take the trend of automation into account to preserve future growth. ● Challenges ○ Automation in rural Utah is becoming concerning. Driving cars for a living, for example, could disappear within ten years due to displacement from automated cars and trucks. ● Opportunities ○ Higher education institutions could retool the individual to allow employees to still be the experts in their industry.

Appendices 2019 Governor’s Rural Partnership Board Annual Report 20 Appendix B: GRPB Work Plan FY2019 to FY2020

Goal Determine which rural programs can best create stronger rural economies.

Focus GRPB will review GOED’s existing rural programs and make recommendations for optimization or replacement.

Challenge The Office of Rural Development (ORD) under the Governor’s Office of Economic Development (GOED) administers ten rural programs for rural businesses, communities, and workforce. Each program has different eligibility requirements, and they vary in effectiveness to encourage capital investment, create jobs and recruit companies to rural Utah. The number and complexity of these programs is confusing to potential applicants even though ORD has created a Rural Program Guide, video tutorials and information documents for each program. The GOED’s Economic Development Increment Financing (EDTIF) tax credit has experienced enormous success along the urban Wasatch Front, but is not an accessible tool for most companies wanting to expand or locate in rural Utah.

Opportunity GOED initiated a review process of all rural grants and tax credit programs in 2018. Economic development directors from each county, along with rural legislators, GOED leadership, rural GOED Board members and all GRPB members were invited to participate in the review process.

In addition to this initial GOED review, the 2019 Legislature charged GOED with the task of reviewing all state incentives, and to work in collaboration with other state partners to develop a statewide Strategic Economic Plan. Senate Bill 172 specifically calls attention to the need for evaluation of rural incentives and rural economic development planning. The GRPB sees this as a unique opportunity to work with GOED and other stakeholders to determine the best tools for elevating rural businesses, communities and economies.

Objectives for Realignment GRPB will consider the following areas of need for rural Utah when creating priorities for realignment of rural support programs:

1. Business and Industry: a. access to business training and support b. access to capital for investment

Appendices 2019 Governor’s Rural Partnership Board Annual Report 21 c. access to capital for rural housing d. creation of new high paying rural full-time positions 2. Community Infrastructure: a. adequate roads, b. broadband, and c. utilities (gas, power, water and sewer) 3. Workforce: a. alignment of education to existing and new rural job opportunities b. support for remote work training and job opportunities

Work Plan 1. Extensive Review of GOED’s Rural Programs a. GRPB participation in the “Rural Legislative Retreat” in Richfield, October 11, 2018. Board members joined rural legislators and economic development professions in regional breakout sessions which reviewed existing GOED rural programs. Kem Gardner Policy Institute staff and Snow College professors acted as moderators. b. GRPB participation in GOED’s “Rural Advisory Committee” which is part of the response to SB172’s directive to create a strategic statewide economic development plan, review all current state incentives and make recommendations to the legislature. Results from the Committee become part of the statewide Strategic Plan which will be presented to the Economic Development and Workforce Services Interim Committee by October 1, 2019 i. GRPB co-chair acting as the co-chair of the Rural Advisory Committee. ii. GRPB participation in the development of potential “Rural EDTIF” language c. Preparation of the FY2019 - FY2020 GRPB Strategic Plan i. GRPB member preparation and presentations of “white papers” at the 2019 spring GRPB meeting addressing challenges and opportunities for the industry or organization they represent on the board. NOTE: GRPB executive committee strongly encourages GRPB members to involve private sector businesses in the preparation of their respective white papers. ii. Determine which GRPB priorities presented are ready for legislative action iii. Draft Strategic Plan based on GRPB priorities iv. Interview GRPB Executive Committee members v. Provide draft Strategic Plan to all GRPB members for their review and comment vi. Schedule a date to present at the Economic Development and Workforce Services Interim Committee meeting (before October 1, 2019) 2. Advocacy for realignment of rural support programs a. Development of GRPB Strategic Plan including priorities and recommendations for rural incentives.

Appendices 2019 Governor’s Rural Partnership Board Annual Report 22 b. Presentation of the GRPB Strategic Plan in an annual report to the Governor, Legislature, Economic Development & Workforce Services Interim Committee and the Governor’s Office of Economic Development by October 1, 2019 c. Include GRPB Strategic Plan priorities as an agenda item at winter GRPB meeting (during 2020 legislative session) d. Make the 2019 GRPB Strategic Plan available to rural constituents via: i. newsletters ii. newspaper articles iii. rural webinars

Appendices 2019 Governor’s Rural Partnership Board Annual Report 23 Appendix C: Rural Grant & Tax Credit Programs Programs which support growth in rural communities and businesses

The Office of Rural Development (ORD) at the Governor’s Office of Economic Development (GOED) administers the following 10 community and business development grants and tax credits. The GRPB board has a statutory responsibility to review applications for the ORD programs listed in bold, and make recommendations to the ORD for program awards.

1. Business Expansion and Retention (BEAR) 2. Enterprise Zone Tax Credit (EZ) 3. Enterprise Zone Nonprofit (EZNP) 4. Recycling Market Development Zone Tax Credit (RZ) 5. Rural Coworking and Innovation Center (RCIC) 6. Rural Economic Development Incentive (REDI) 7. Rural Fast Track (RFT) 8. Rural Rapid Manufacturing (RRM) 9. Targeted Business Tax Credit (TBTC) 10. Utah Rural Jobs Act

Note: A 2019 report on all rural programs, including those that the GRPB board reviews, can be found (November 2019) at https://business.utah.gov/business-resources/publications/ ​

Appendices 2019 Governor’s Rural Partnership Board Annual Report 24 Appendix D: Recipient List

This report, in accordance with Utah Code § 63C-10-103 (2019) and Utah Code § 68-3-14 (2019), is submitted to the following individuals:

Governor Gary Herbert Representative Lawanna Shurtliff (D) Representative Kelly B. Miles (R) Governor’s Office of Economic Development Representative Mike Schultz (R) Representative (R) Economic Development and Workforce Representative (R) Services Interim Committee Representative Brad R. Wilson (R) Senator Daniel McCay (R), Chair Representative Stewart E. Barlow (R) Representative (R), Chair Representative Timothy D. Hawkes (R) Senator Jacob L. Anderegg (R) Representative Raymond P. Ward (R) Senator Derek L. Kitchen (D) Representative Melissa G. Ballard (R) Senator Ann Millner (R) Representative Douglas V. Sagers (R) Senator Jerry W. Stevenson (R) Representative (D) Representative Patrice M. Arent (D) Representative (D) Representative James A. Dunnigan (R) Representative Jennifer Dailey-Provost (D) Representative Francis D. Gibson (R) Representative Joel K. Briscoe (D) Representative Stephen G. Handy (R) Representative (D) Representative (D) Representative (R) Representative A. (R) Representative Brian S. King (D) Representative (D) Representative Lee B. Perry (R) Representative Derrin R. Owens (R) Representative Mike Winder (R) Representative (R) Representative (D) Representative Marc K. Roberts (R) Representative Suzanne Harrison (D) Julie Humberstone, Policy Analyst Representative (R) Peter Asplund, Associate General Counsel Representative (D) Leila Reynolds, Administrative Assistant Representative Mark A. Wheatley (D) Representative Patrice M. Arent (D) Members of the Representative Carol Spackman Moss (D) Representative Eric K. Hutchings (R) Utah House of Representatives Representative James A. Dunnigan (R) Representative Joel Ferry (R) Representative (D) Representative (R) Representative Mark A. Strong (R) Representative Dan N. Johnson (R) Representative Kim F. Coleman (R) Representative (R) Representative Cheryl K. Acton (R) Representative A. Cory Maloy (R) Representative (D) Representative Kyle R. Andersen (R) Representative (R) Representative Steve Waldrip (R) Representative Marie H. Poulson (D) Representative Calvin R. Musselman (R) Representative Keven J. Stratton (R)

Appendices 2019 Governor’s Rural Partnership Board Annual Report 25 Representative Robert M. Spendlove (R) Senator Daniel Hemmert (R) Representative Susan Pulsipher (R) Senator Keith Grover (R) Representative Jeffrey D. Stenquist (R) Senator Curtis S. Bramble (R) Representative (R) Senator Scott D. Sandall (R) Representative (R) Senator Ann Millner (R) Representative Tim Quinn (R) Senator Allen M. Christensen (R) Representative Scott H. Chew (R) Senator David G. Buxton (R) Representative Kay J. Christofferson (R) Senator Jerry W. Stevenson (R) Representative Jon Hawkins (R) Senator J. Stuart Adams (R) Representative Derrin R. Owens (R) Senator Todd Weiler (R) Representative Val L. Peterson (R) Senator Ralph Okerlund (R) Representative Brad M. Daw (R) Senator Lyle W. Hillyard (R) Representative (R) Senator Ronald Winterton (R) Representative Travis M. Seegmiller (R) Senator David P. Hinkins (R) Representative Adam Robertson (R) Senator Evan J. Vickers (R) Representative Norman K. Thurston (R) Senator Don L. Ipson (R) Representative Francis D. Gibson (R) Representative Michael K. McKell (R) Representative Marc K. Roberts (R) Representative Merrill F. Nelson (R) Representative Christine F. Watkins (R) Representative Carl R. Albrecht (R) Representative Bradley G. Last (R) Representative Rex P. Shipp (R) Representative Phil Lyman (R) Representative V. Lowry Snow (R) Representative (R)

Utah Senate Senator Luz Escamilla (D) Senator Derek L. Kitchen (D) Senator Gene Davis (D) Senator Jani Iwamoto (D) Senator Karen Mayne (D) Senator Wayne A. Harper (R) Senator Deidre M. Henderson (R) Senator Kathleen Riebe (D) Senator Kirk A. Cullimore (R) Senator Lincoln Fillmore (R) Senator Daniel McCay (R) Senator Daniel W. Thatcher (R) Senator Jacob L. Anderegg (R)

Appendices 2019 Governor’s Rural Partnership Board Annual Report 26