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7.1.2019 Display.Indd www.slenterprise.com July 1, 2019 Volume 48, Number 49 $1.50 OF NOTE Jobless rate stays steady in May at 2.9% Steady as she goes. Utah’s May unemployment stayed un- changed at 2.9 percent, according to num- bers released last week by the Utah Depart- ment of Workforce Services (DWS). That Reading this at work? means only approximately 45,500 Utahns were unemployed and actively seeking How long did it take to get work during the month. there? Using U.S. Census Meanwhile, the national unemploy- Bureau data, a study by ment rate was also unchanged at 3.6 per- UnitedStatesZipCodes.org cent, according to the U.S. Bureau of Labor shows that Utahns endure an Statistics. average commute time to work Over the past year, Utah’s nonfarm A data center, like this Facebook facility in Forest City, North Carolina, that will be replicated in Eagle of 22 minutes. People in the payroll employment has grown by an es- Mountain, is one example of a business that could to be attracted to mega sites — large, undeveloped timated 2.9 percent, adding 44,200 jobs to 84720 ZIP code in Cedar City areas that can handle capital spending of at least $1 billion and employment of 1,000 or more. the economy since May 2018. Utah’s cur- have the shortest average com- rent number of employed sits at 1,556,400. mute, at 13 minutes. The longest But there are still jobs to be found. is Eagle Mountain (84005), at “Job-seeker opportunities remain robust 34.6 minutes. EDCUtah pushing mega sites as we continue to experience strong job Industry News Briefs growth and markedly low unemployment,” said Mark Knold, senior economist at pages 6-7 to boost appeal for large fi ms DWS. “While the job growth rate did abate Business Calendar Katherine Morrell, EDCUtah com- a bit in May, it does not refl ect an underly- page 9 Brice Wallace munity strategist and manager of the Utah ing softening in economic demand.” The Enterprise Utah’s private-sector employment has Opinion Mega Sites program, listed several com- panies that Utah had sought but instead grown by 3.1 percent year-over-year with page 12 Utah economic development offi cials put their projects elsewhere. They include the addition of 39,200 positions. All 10 of are hoping that mega sites will have mega Toray Industries, with a 500-job, $1 bil- the private-sector industry groups mea- benefi ts for Utah. lion project that ended up in South Caro- sured in the establishment survey posted Speaking at a recent gathering of ULI lina; Mitsubishi, a 500-job, $325 million net job increases in May. Utah and NAIOP Utah, a representative of facility in Georgia; Volkswagen, a 2,000- The largest private-sector employment the Economic Development Corporation job, $1 billion project in Tennessee; Sev- increases were in education and health ser- of Utah (EDCUtah) said the organization’s erStal, a 650-job, $625 million project in vices (7,700 jobs); trade, transportation, program to certify and market large sites Mississippi; and Teijin, a 220-job, $600 and utilities (6,600 jobs); and profession- will bolster the state’s ability to compete million project in South Carolina. al and business services (6,300 jobs). The for large-scale projects that could mean fastest employment growth occurred in in- high capital investment and/or high em- formation (4.7 percent); manufacturing (4.7 ployment numbers for companies that se- percent); and education and health services lect the sites. see MEGA SITES page 14 (3.8 percent). Utahns still feeling good about economic prospects Despite an apparent waning of eco- over-year increases were due to Utahns’ creased 2.1 points to 107.0, a jump of 5.1 nomic confi dence across the U.S., Utahns strengthening confi dence in job availabil- points since June 2018. Job and income continue to believe that things are pretty ity. positivity are the leading causes of Utahns’ good. The Zions Bank Utah Consumer At- In June, 66 percent of Utahns believed rising expectations. Thirty-six percent of titude Index (CAI) increased a strong 2.4 that jobs are plentiful, the highest point Utahns believe their household income points to 115.6 in June. Year over year, the ever recorded since Zions Bank began will increase within the next six months, CAI has risen 3.8 points since June 2018. measuring Utahns’ economic sentiment in 6 percent more than last year. Additional- By comparison, the national Consumer January 2011. The current level of job op- ly, fewer Utahns are pessimistic about job Confi dence Index decreased 9.8 points to timism is 6 percent higher than in May and availability prospects, with only 12 percent 121.5 during June. 7 percent higher than in June 2018. Utahns’ believing that fewer jobs will be available The Utah Present Situation Index, a confi dence in current general business con- in the next six months, a drop of 4 percent sub-index of the CAI, rose 2.4 points to ditions is at the three-year average, with 59 from June 2018. 128.5 in June, 1.7 points higher than in June percent feeling conditions are good. 2018. Both the month-to-month and year- The Utah Expectations Index in- see CAI page 15 2 • July 1-7, 2019 • The Enterprise - Utah's Business Journal Biskupski fires back at legislature's action by filing amended Port Authority suit Salt Lake City Mayor Jackie by my administration, namely Biskupski has amended a lawsuit land use and taxing authority,” she filed in March challenging the Biskupski said in a news release constitutionality of the planned announcing the revised suit. “The Utah Inland Port. The amended bill made a bad deal for Salt Lake suit is in response to action tak- City even worse, and I hope has en by the 2019 Utah Legislature shown that city representatives expanding the reach of the Utah need to finally stand united to Inland Port Authority. The filing fight this unprecedented attack on also asks the Third Judicial Dis- our residents.” trict Court to issue a temporary Other provisions of HB433 Petroteq Energy's CEO David Sealock explains the process by which oil is extracted from tar sands at the company's injunction shutting down any ac- cited and objected to in the law- Asphalt Ridge plant near Vernal. The virtual tour of the processing facility on a new video released by Petroteq. tivities of the Inland Port board suit include provisions that would until the lawsuit is decided. give the authority 100 percent of The lawsuit’s main com- the city’s property tax increment, Petroteq video explains oils sands process plaints remain over issues in- give the port a portion of the volved with land use and taxing city’s sales tax revenue and allow Ever wonder what it takes friendly process that the company the company’s efforts over the last the port authority to substitute its authority that Biskupski claims to get salable oil out of eastern has implemented to exploit its to- two years,” said Sealock. “We be- judgment for the city’s own land the port legislation steals from Utah’s tar sands? Petroteq Ener- tal gross contingent resource of lieve we have achieved commer- use appeals in the port authority’s the city. The changes to the orig- gy Inc. has the only operating oil in excess of 130 million barrels cial operations, both in terms of jurisdiction. HB433 also increas- inal 2018 law creating the port sands extraction facility in Utah of surface oil sands heavy oil in plant run time and quality of the es the period of time the port au- were made in HB433, which and now it has released a seven- place,” Petroteq said in a release crude oil produced. The current thority can take the property tax was passed in this year’s legisla- minute video that explains the to shareholders. maintenance program the compa- increment from 25 years to 40 tive session after talks about the process. The video details the transfor- ny is conducting is anticipated to years. “Follow the Molecule,” pro- mation of highly oil-saturated feed get us in a position to consistently port between Biskupski and Gov. The injunction sought by the duced by V6 Media of Vernal, pro- ore recovered from the mining op- produce the grade of crude oil our Gary Herbert broke down. The mayor asks the court to prevent vides a virtual tour of the Asphalt eration to heavy crude oil in the customers expect and better im- mayor said she broke off talks the port authority from spending Ridge oil processing plant. The sales tank through a combination plement production expansion in a with the governor once she real- or committing any of the city’s tour is narrated by Petroteq CEO of video and animated process di- timely and efficient manner.” ized the state would not return property tax increment or sales David Sealock and takes place agrams to provide an understand- Petroteq began planned land use and taxing authority for tax revenue pending the outcome while the plant is in operation. ing of the company’s proprietary equipment modifications to the the port lands to the city. of the case. The complaint also It can be viewed on the Petroteq processes. sand separation process in May. HB433 expanded the Inland asks the court to prevent the port website or on Vimeo at https:// Paul Thompson, facility op- The equipment alterations are ex- Post Authority’s reach beyond authority from engaging in any Vimeo.com/341690341.
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