Utah Business & Economic Profile

COMPREHENSIVE DOCUMENT HIGHLIGHTING UTAH INDUSTRIES & BUSINESS 14

Table of Contents

EDCUTAH STAFF ...... Section 1

GEOGRAPHY ...... Section 2

DEMOGRAPHICS ...... Section 3

EDUCATION ...... Section 4

WORKFORCE ...... Section 5

LANGUAGE SKILLS ...... Section 6

UTILITIES ...... Section 7

DISTRIBUTION & TRANSPORTATION ...... Section 8

REAL ESTATE ...... Section 9

TAXES ...... Section 10

BUSINESS INCENTIVES ...... Section 11

BUSINESS FINANCING OPTIONS ...... Section 12

ECONOMIC CLUSTERS ...... Section 13

QUALITY OF LIFE ...... Section 14

RECENT ECONOMIC ACTIVITY ...... Section 15

RANKINGS & HEADLINES ...... Section 16

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14

edcUTAH Staff

Economic Development Corporation of Utah (edcUTAH) 201 South Main Street, Suite 2150 Salt Lake City, Utah 84111 Phone (801) 328-8824 Fax (801) 531-1460 www.EDCUtah.org

JEFF EDWARDS President & CEO [email protected]

Linda Townsend Finance & Operations Manager [email protected]

Kendall VanHorssen Administrative Assistant [email protected]

Dennis Nordfelt Community Relations

TODD BRIGHTWELL Chief Operating Officer [email protected]

Kimberly White Business Development Coordinator & Administrative Assistant [email protected]

Stephanie Frohman Director, Special Projects [email protected]

Beth Colosimo Sr. Business Development Manager [email protected]

Brad Baird Loaned Executive / Sr. Business Development Manager [email protected]

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 1.1

Jorge Sanchez Business Development Manager [email protected]

Donna Kessler Business Development Manager [email protected]

Erin Laney Business Development Manager [email protected]

R. Lee Chaplin Research Analyst [email protected]

Sherrie Martell Investor Relations [email protected]

Taylor Brightwell Business Development Analyst [email protected]

Russell Fotheringham Utah County Economic Development Manager [email protected]

KIMBERLY FROST Director, Marketing & Communications [email protected]

Marcie Young Cancio Senior Marketing Manager [email protected]

1. 2 01/31/14 KEY CONTACTS Geography

STATE OF UTAH MAP WITH COUNTY SEATS

Source: EDCUtah

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 2.1 TOPOGRAPHY, NATURAL FEATURES & CLIMATE

Geographic Areas Utah is located in the Rocky Mountain Region of the U.S. and is a land of snow-covered peaks, natural rock formations, and beautifully colored canyons. Utah’s geography can be classified into three major land areas: the Rocky Mountains, the Basin and Ridge Region, and the Colorado Plateau.

The Rocky Mountains Utah has two ranges that extend through the northeast corner of the state: the Uinta Range and the Wasatch Range. The Uinta Range extends from Colorado east almost all of the way to Salt Lake City in the north central portion of Utah. The Wasatch Range extends from Mount Nebo in north central Utah northward into Idaho.

The Basin and Ridge Region The Basin and Ridge Region of Utah spreads over the western portion of the state and is covered by small mountains and basins except on the east and west edges where the mountains are higher. The Great Salt Lake is located in the northeastern corner of this region with the Salt Lake Desert to the west and southwest of the lake.

The Colorado Plateau The Colorado Plateau covers most of the southern and eastern portions of Utah and is characterized by broad high country cut by deep canyons and valleys. Famous areas such as Bryce Canyon, Cedar Breaks Canyon, and Zion Canyon are found in the Colorado Plateau area, as well as the Colorado River, which passes through Utah’s southeastern corner.

Size and Elevation Utah covers 84,904 square miles, making it the 13th largest of the 50 states. The highest point is Kings Peak at 13,528 feet above sea level, and the lowest point is Beaverdam Wash at 2,000 feet above sea level. Being one of the three highest states in the union, the mean elevation of the state is 6,100 feet above sea level. The elevations of most cities along the Wasatch Front average between 4,200 and 4,500 feet.

The Wasatch Front The population of the state is geographically concentrated along the Wasatch Front. The Wasatch Front is generally considered to consist of Weber, Davis, Salt Lake and Utah counties, all of which are situated along the western slope of the range of mountains called the Wasatch Mountains. These counties contain approximately 75.5% of the population of the state.

Climate The highest temperature recorded in Utah is 117 degrees, Fahrenheit, recorded on July 5, 1985 in St. George. The lowest recorded temperature in Utah is -69 degrees, Fahrenheit, recorded on February 1, 1985 in Peter’s Sink.

Salt Lake City Monthly Climate Averages Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Annual Avg Max Temp (F) 37.3 43.4 52.5 61.5 72.1 83.0 92.6 90.3 79.5 65.8 49.9 38.7 63.9 Avg Min Temp (F) 20.4 24.7 31.7 38.2 46.3 54.6 62.8 61.5 51.4 40.2 29.8 22.2 40.3 Avg Total Precipitation (in) 1.34 1.30 1.77 2.07 1.75 0.92 0.71 0.79 1.06 1.33 1.36 1.34 15.72 Avg Total Snowfall (in) 13.8 10.3 9.3 5.5 0.7 0.0 0.0 0.0 0.1 1.5 6.7 12.9 60.8 Source: The Weather Channel

2.2 01/31/14 GEOGRAPHY WASATCH FRONT MAP

Source: EDCUtah

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 2.3 SALT LAKE COUNTY

Source: EDCUtah

2.4 01/31/14 GEOGRAPHY Demographics

OVERVIEW

Utah’s population is characterized by its young median age, high level of education and large family size. The people of this state exceed national averages by a large margin with a population median age almost eight years younger and households that are roughly 20% larger. The benefits Utah brings to businesses are substantial, providing an abundance of highly educated, young individuals who are motivated to work and eager to succeed.

The charts in this section quantify where the state stands compared to the nation and provide some insight of Utah’s unique markets in comparison to one another. For purposes of clarity, each demographic section has been broken into categories that revolve around the following key topics:

. Population and Households . Age . Education . Income . Ethnicity

Located above each of these sections are highlights and key points from that page. These provide a short summary for each section. For additional information about specific county demographics, please visit the following link: http://www.edcutah.org/countyProfiles.php

MSA Changes in Utah1 It is important to note changes to the definitions of Utah’s metropolitan statistical areas (MSA’s) and the addition of two micropolitan statistical areas.

The former Salt Lake-Ogden MSA has separated into two MSA’s: 1) the Salt Lake City MSA (comprised of Salt Lake, Summit and Tooele Counties), and 2) the Ogden-Clearfield MSA (comprised of Davis, Morgan and Weber Counties.) Logan and St. George have been added as official MSA’s in the state of Utah. The Logan MSA, located in northern Utah, is comprised of Cache County and Franklin County (located in Idaho). The St. George MSA, located in southern Utah, represents Washington County.

Utah has five micropolitan statistical areas: Brigham City, located in Box Elder County; Heber City, located in Wasatch County; Price, located in Carbon County; Vernal, located in Uintah County; and Cedar City, located in Iron County. Micropolitan statistical areas are classified as small urban centers with a population of 10,000 to 50,000.

1 Source: U.S. Bureau of Labor Statistics

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 3.1 POPULATION AND HOUSEHOLDS

75.5% of Utah’s population resides along the Wasatch Front, a four county geographic area surrounding Salt Lake City. The Wasatch Front is comprised of Weber, Davis, Salt Lake and Utah Counties. Utah has the largest median household size of any state in the United States, with most areas having at least three people per residence.

Geographic Location Total 2013 Population Population Density / Sq. Mile Total 2013 Expected Households United States 314,419,291 88.6 118,845,620 Utah 2,870,558 34.9 1,006,530 Utah MSA’s & Major Cities Total 2013 Estimated Population Population Density / Sq. Mile Total 2013 Expected Households Logan, UT-ID MSA 129,656 70.9 42,692 Logan City 49,856 714.3 17,309 Ogden-Clearfield MSA 564,647 380.5 191,091 Ogden City 85,090 2,466.5 33,324 Provo-Orem MSA 554,857 102.8 156,740 Provo City 118,148 2,895.7 34,327 Salt Lake MSA 1,167,611 122.2 421,722 Salt Lake City 193,355 3,260.1 82,823 St. George MSA 145,217 59.9 59,038 St. George City 76,642 309.8 32,520 Other Utah Counties & Cities Total 2013 Estimated Population Population Density / Sq. Mile Total 2013 Expected Households Box Elder County 50,605 8.8 17,676 Brigham City 18,123 244.7 6,484 Davis County 317,142 1,061.5 100,118 Layton City 69,676 1,720.3 23,121 Iron County 47,317 14.4 20,207 Cedar City 29,570 52.8 11,452 Morgan County 9,901 16.3 3,072 Morgan City 3,855 47.3 1,203 Summit County 38,864 20.8 28,269 Park City 8,084 304.4 9,994 Tooele County 60,434 8.7 19,911 Tooele City 32,808 468.4 10,958 Wasatch County 25,304 21.5 10,955 Heber City 12,220 822.8 3,821 Central-East Counties* 90,864 6.8 38,614 Central-West Counties* 30,754 2.3 9,692 Northeast Counties* 56,502 6.0 18,480 Southeast Counties* 31,546 1.5 11,039 *Central-East Counties = Carbon, Emery, Grand, Sanpete and Sevier Counties; Central-West Counties = Beaver, Juab and Millard Counties; Northeast Counties = Daggett, Duchesne, Rich and Uintah Counties; Southeast Counties = Garfield, Kane, Piute, San Juan and Wayne Counties. Source: Resource360, Tactician Corporation.

32 01/31/14 DEMOGRAPHICS STATE OF UTAH – COUNTY POPULATION GROWTH RATE

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 3.3 WASATCH FRONT POPULATION DENSITY

The population of the state is geographically concentrated along the Wasatch Front. The Wasatch Front is generally considered to consist of Weber, Davis, Salt Lake and Utah counties, all of which are situated along the western slope of the Wasatch Mountain range. These counties contain 75.5% of the population of the state.

Source: Decision Data Resources, EDCUtah

34 01/31/14 DEMOGRAPHICS SALT LAKE COUNTY POPULATION DENSITY

Source: Decision Data Resources, EDCUtah

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 3.5 AGE

Utah has the youngest median age of any state in the country. Most of Utah has a median age of less than 30. The cities with the youngest median age are located in Utah County; the cities with the oldest median age are located in Summit County.

Geographic Location Median Age Age 0 – 19 Age 20 – 44 Age 45 – 64 Age 65+ United States 37.5 26.5% 33.3% 26.5% 13.7% Utah 29.7 34.4% 36.2 19.9% 9.6% Utah MSA’s & Major Cities Median Age Age 0 – 19 Age 20 – 44 Age 45 – 64 Age 65+ Logan, UT-ID MSA 26.1 36.1% 38.6% 16.8% 8.6% Logan City 24.2 31.8% 49.5% 12.1% 6.6% Ogden-Clearfield MSA 30.4 35.1% 34.7% 20.8% 9.5% Ogden City 30.1 31.5% 38.1% 20.5% 9.8% Provo-Orem MSA 24.8 39.4% 38.9% 14.7% 6.8% Provo City 23.4 32.6% 50.4% 10.8% 6.1% Salt Lake MSA 31.6 31.8% 37.5% 21.6% 9.1% Salt Lake City 31.7 25.5% 44.1% 20.4% 9.8% St. George MSA 33.0 33.0% 29.9% 19.4% 17.7% St. George City 32.9 31.4% 31.2% 18.0% 19.4% Other Utah Counties & Cities Median Age Age 0 – 19 Age 20 – 44 Age 45 – 64 Age 65+ Box Elder County 31.1 36.2% 30.9% 21.4% 11.6% Brigham City 31.4 34.2% 31.7% 20.9% 13.1% Davis County 29.7 36.9% 34.4% 20.1% 8.6% Layton City 29.8 35.9% 35.1% 21.5% 7.4% Iron County 27.2 35.0% 36.1% 18.4% 10.5% Cedar City 25.1 34.4% 40.0% 16.2% 9.4% Morgan County 32.0 38.2% 27.5% 23.5% 10.7% Morgan City 31.0 37.6% 29.5% 21.3% 11.7% Summit County 37.3 29.6% 31.6% 30.0% 8.7% Park City 37.7 23.0% 37.1% 30.1% 9.9% Tooele County 30.1 38.1% 33.8% 19.9% 8.0% Tooele City 29.8 37.4% 34.9% 18.9% 8.7% Wasatch County 31.7 36.1% 32.6% 22.1% 9.1% Heber City 29.0 38.8% 35.2% 18.7% 7.4% Central-East Counties* 32.6 32.7% 31.1% 22.8% 13.5% Central-West Counties* 31.9 37.7% 28.5% 21.6% 12.1% Northeast Counties* 30.1 35.7% 33.3% 20.6% 10.6% Southeast Counties* 35.8 32.3% 27.3% 25.0% 15.4% *Central-East Counties = Carbon, Emery, Grand, Sanpete and Sevier Counties; Central-West Counties = Beaver, Juab and Millard Counties; Northeast Counties = Daggett, Duchesne, Rich and Uintah Counties; Southeast Counties = Garfield, Kane, Piute, San Juan and Wayne Counties. Source: Resource360, Tactician Corporation.

36 01/31/14 DEMOGRAPHICS EDUCATION

Utah has one of the most educated populations in the nation. As a state, over 90% of its citizens have at least a high school degree, and over 55% have attended some college, with over 28% having earned a Bachelor’s degree. Summit and Utah Counties have the most educated populations in the state.

Geographic Location High School Graduate College Experience Associate’s Degree Bachelor’s Degree Graduate Degree United States 84.9% 20.6% 7.5% 17.6% 10.3% Utah 90.5% 27.1% 9.2% 19.9% 9.5% Utah MSA’s & Cities High School Graduate College Experience Associate’s Degree Bachelor’s Degree Graduate Degree Logan, UT-ID MSA 92.4% 25.9% 7.9% 21.7% 11.5% Logan City 90.1% 24.6% 7.4% 22.8% 15.2% Ogden-Clearfield MSA 92.4% 27.9% 9.8% 20.1% 8.6% Ogden City 82.1% 24.0% 8.7% 13.0% 29.4% Provo-Orem MSA 93.1% 28.6% 11.0% 24.2% 10.7% Provo City 91.6% 23.9% 10.1% 28.2% 13.9% Salt Lake MSA 89.2% 25.8% 8.6% 19.9% 10.3% Salt Lake City 86.1% 20.3% 6.8% 22.6% 18.1% St. George MSA 90.6% 29.5% 8.7% 16.0% 7.9% St. George City 89.7% 29.8% 8.1% 16.3% 8.6% Other Utah Counties & High School Graduate College Experience Associate’s Degree Bachelor’s Degree Graduate Degree Cities Box Elder County 91.4% 27.9% 7.8% 16.2% 6.4% Brigham City 89.5% 26.7% 8.0% 17.1% 6.5% Davis County 95.0% 28.6% 9.9% 23.7% 10.1% Layton City 93.4% 28.5% 9.6% 22.0% 9.1% Iron County 90.9% 28.1% 7.6% 20.7% 7.4% Cedar City 92.3% 28.3% 7.8% 23.2% 8.5% Morgan County 96.9% 29.4% 10.6% 18.0% 8.9% Morgan City 98.3% 30.0% 13.4% 16.0% 7.3% Summit County 93.7% 16.9% 7.6% 31.6% 19.0% Park City 93.0% 6.6% 9.7% 32.3% 31.2% Tooele County 91.7% 31.1% 11.1% 14.1% 4.4% Tooele City 92.1% 32.7% 10.8% 12.9% 3.1% Wasatch County 90.9% 28.5% 8.8% 19.9% 11.1% Heber City 88.0% 28.8% 8.1% 16.3% 11.1% Central-East Counties* 87.7% 28.0% 10.4% 11.6% 5.5% Central-West Counties* 88.9% 28.7% 8.6% 10.7% 4.4% Northeast Counties* 85.0% 26.4% 6.2% 10.4% 5.1% Southeast Counties* 86.6% 26.1% 9.1% 13.7% 6.0% *Central-East Counties = Carbon, Emery, Grand, Sanpete and Sevier Counties; Central-West Counties = Beaver, Juab and Millard Counties; Northeast Counties = Daggett, Duchesne, Rich and Uintah Counties; Southeast Counties = Garfield, Kane, Piute, San Juan and Wayne Counties. Source: Resource360, Tactician Corporation.

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 3.7 INCOME

The median household income in Utah is slightly higher than the national average. Due to the state’s large household size, per capita income is slightly lower than the national average.

Median HH $25,000 - $35,000 - $50,000 - $75,000 - Geographic Location $0 - $24,999 $100,000+ Income $34,999 $49,999 $74,999 $99,999 United States $51,804 22.7% 10.5% 15.5% 17.9% 11.9% 21.6% Utah $56,610 17.9% 9.9% 16.4% 21.1% 13.8% 20.7% Median HH $25,000 - $35,000 - $50,000 - $75,000 - Utah MSA’s & Cities $0 – $24,999 $100,000+ Income $34,999 $49,999 $74,999 $99,999 Logan, UT-ID MSA $46,443 22.3% 12.9% 18.9% 20.1% 11.9% 13.9% Logan City $36,051 32.6% 15.9% 19.5% 14.7% 7.3% 10.1% Ogden-Clearfield MSA $61,481 15.2% 8.6% 16.0% 22.3% 15.1% 22.9% Ogden City $41,327 28.9% 12.4% 18.6% 20.1% 9.3% 10.5% Provo-Orem MSA $57,369 17.3% 9.7% 16.4% 21.5% 14.1% 20.8% Provo City $38,338 31.1% 14.2% 16.5% 17.3% 8.5% 12.2% Salt Lake MSA $58,748 17.6% 9.4% 15.6% 20.3% 13.8% 23.2% Salt Lake City $43,748 27.7% 11.9% 17.2% 17.6% 8.9% 16.6% St. George MSA $49,730 19.8% 11.5% 19.1% 23.3% 11.9% 14.6% St. George City $48,322 20.7% 12.0% 19.3% 21.9% 11.8% 14.5% Other Utah Counties & Median HH $25,000 - $35,000 - $50,000 - $75,000 - $0 – $24,999 $100,000+ Cities Income $34,999 $49,999 $74,999 $99,999 Box Elder County $55,579 15.4% 11.4% 17.6% 24.2% 16.2% 15.2% Brigham City $52,052 15.5% 14.6% 17.2% 24.8% 15.7% 12.2% Davis County $67,511 12.2% 7.6% 14.7% 22.4% 16.1% 27.0% Layton City $62,071 13.8% 9.3% 15.7% 22.8% 15.5% 22.8% Iron County $41,515 25.8% 13.9% 21.8% 20.4% 8.9% 9.5% Cedar City $39,988 27.5% 13.8% 23.2% 17.6% 7.8% 10.2% Morgan County $71,271 8.3% 6.0% 19.1% 19.6% 18.6% 28.3% Morgan City $64,469 8.9% 8.2% 23.1% 18.7% 21.3% 19.9% Summit County $79,001 13.7% 7.7% 11.1% 15.3% 13.2% 39.0% Park City $59,277 14.7% 15.5% 14.7% 11.7% 11.4% 32.1% Tooele County $61,617 14.3% 7.9% 15.6% 25.0% 17.7% 19.5% Tooele City $56,841 17.3% 8.1% 16.6% 26.3% 15.7% 15.9% Wasatch County $65,896 13.1% 7.9% 14.8% 22.8% 16.3% 25.2% Heber City $58,325 12.6%% 9.2% 19.2% 25.1% 18.5% 15.3% Central-East Counties* $43,265 25.6%% 13.0% 19.2% 20.6% 10.5% 11.0% Central-West Counties* $46,272 23.9% 11.9% 18.6% 19.0% 12.9% 13.6% Northeast Counties* $57,080 19.2% 9.1% 14.5% 23.5% 13.7% 19.9% Southeast Counties* $42,749 26.4% 13.3% %19. 18.% 10.9% 11.2% *Central-East Counties = Carbon, Emery, Grand, Sanpete and Sevier Counties; Central-West Counties = Beaver, Juab and Millard Counties; Northeast Counties = Daggett, Duchesne, Rich and Uintah Counties; Southeast Counties = Garfield, Kane, Piute, San Juan and Wayne Counties. Source: Resource360, Tactician Corporation.

38 01/31/14 DEMOGRAPHICS AVERAGE COUNTY WAGES

Listed below are the average wages for each county. The GOED Board has the discretion to set the percent above the average wage requirement based on the merits of each individual project (rural projects must be at least 100% of the county average, urban projects must be at least 125% above the county average).

Rural Counties Average Wage Urban Counties 125% Average Wage Beaver $31,776 Davis $48,851 Box Elder $32,882 Salt Lake $57,393 Cache $30,147 Utah $45,854

Carbon $38,176 Weber $44,815

Daggett $33,176 Statewide Average Wage Duchesne $45,525 Utah $38,826 Emery $43,664 Garfield $25,567 Grand $28,714 Iron $28,360 Juab $31,310 Kane $28,812 Millard $36,738 Morgan $34,995

Piute $23,875

Rich $23,944 San Juan $32,498 Sanpete $26,236 Sevier $30,561 Summit $36,044

Tooele $42,518

Uintah $46,715 Wasatch $32,111 Washington $30,076 Wayne $25,628

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 3.9 ETHNICITY

Utah has a higher percentage of Caucasians than the nation as a whole, but has an equal percentage of Hispanics compared to the national percentage. The state’s most ethnically diverse areas are in metro Salt Lake City and Ogden City.

African- American- Some Other Two or More Geographic Location Caucasian Asian Hispanic American Indian Race Races United States 72.4% 12.6% 1.0% 4.8% 6.4% 2.9% 17.1% Utah 86.1% 1.1% 1.2% 2.0% 6.9% 2.7% 13.5% African- American- Some Other Two or More Utah MSA’s & Cities Caucasian Asian Hispanic American Indian Race Races Logan, UT-ID MSA 89.6% 0.6% 0.6% 1.7% 5.7% 1.9% 9.8% Logan City 84.2% 1.0% 1.0% 3.2% 8.4% 2.3% 13.8% Ogden-Clearfield MSA 88.1% 1.3% 0.6% 1.5% 5.6% 2.8% 12.3% Ogden City 75.3% 2.2% 1.4% 1.2% 16.1% 3.8% 30.8% Provo-Orem MSA 89.5% 0.5% 0.6% 1.3% 5.3% 2.7% 11.1% Provo City 84.8% 0.7% 0.8% 2.5% 7.8% 3.4% 15.8% Salt Lake MSA 82.0% 1.5% 0.9% 3.1% 9.4% 3.1% 17.3% Salt Lake City 75.1% 2.7% 1.3% 4.4% 12.7% 3.7% 23.2% St. George MSA 89.7% 0.6% 1.4% 0.7% 5.4% 2.3% 10.2% St. George City 87.2% 0.7% 1.6% 0.8% 7.1% 2.6% 13.3% Other Utah Counties & African- American- Some Other Two or More Caucasian Asian Hispanic Cities American Indian Race Races Box Elder County 91.8% 0.3% 0.8% 0.9% 4.0% 2.2% 8.6% Brigham City 89.4% 0.4% 1.5% 0.6% 5.0% 3.0% 11.1% Davis County 90.0% 1.2% 0.5% 1.8% 3.8% 2.7% 8.8% Layton City 86.9% 1.8% 0.6% 2.2% 5.4% 3.3% 12.1% Iron County 90.6% 0.5% 2.2% 0.8% 3.6% 2.3% 8.4% Cedar City 89.4% 0.7% 2.7% 0.9% 3.6% 2.6% 8.7% Morgan County 97.5% 0.2% 0.2% 0.4% 0.8% 1.0% 2.7% Morgan City 97.6% 0.2% 0.1% 0.2% 1.0% 0.9% 2.9% Summit County 90.5% 0.4% 0.3% 1.2% 5.8% 1.7% 12.1% Park City 81.0% 0.6% 0.3% 2.1% 13.7% 2.3% 25.3% Tooele County 90.7% 0.7% 1.0% 0.6% 4.2% 2.8% 12.0% Tooele City 89.7% 0.8% 1.0% 0.6% 4.8% 3.0% 13.4% Wasatch County 90.4% 0.3% 0.5% 0.8% 6.5% 1.4% 13.6% Heber City 89.1% 0.4% 0.7% 1.0% 7.1% 1.6% 16.4% Central-East Counties* 92.2% 0.5% 1.4% 0.5% 3.7% 1.8% 8.6% Central-West Counties* 90.8% 0.2% 1.0% 0.6% 6.0% 1.5% 9.6% Northeast Counties* 88.1% 0.3% 6.2% 0.4% 2.5% 2.4% 7.2% Southeast Counties* 71.6% 0.2% 24.7% 0.6% 1.3% 1.7% 5.5% *Central-East Counties = Carbon, Emery, Grand, Sanpete and Sevier Counties; Central-West Counties = Beaver, Juab and Millard Counties; Northeast Counties = Daggett, Duchesne, Rich and Uintah Counties; Southeast Counties = Garfield, Kane, Piute, San Juan and Wayne Counties. Source: Decision Data Resources

310 01/31/14 DEMOGRAPHICS Education

COLLEGES AND UNIVERSITIES

Utah is home to nine public colleges and universities, and a number of private institutions including Brigham Young University, Westminster College, Neumont University and LDS Business College. Among Utah’s graduates, it is reported 1 that roughly 60% stay in state. Of this 60%, 27% are natives and 17% are non-natives to the state of Utah.F F The state is proud to be second in the nation in per capita higher education funding.

Percent21B of Utah Population with Higher Education Degrees Geographic Location High School Graduates Associate’s Degrees Bachelor’s Degrees Graduate Degrees Logan MSA 92.4% 7.9% 21.7% 11.5% Ogden/Clearfield MSA 92.4% 9.8% 20.1% 8.6% Salt Lake City MSA 89.2% 8.6% 19.9% 10.3% Provo/Orem MSA 93.1% 11.0% 24.2% 10.7% St. George MSA 90.6% 8.7% 16.0% 7.9% Central Utah* 86.8% 8.8% 11.4% 5.3% Wasatch Front* 90.8% 9.4% 20.9% 10.0% State of Utah 90.5% 9.2% 19.9% 9.5% *Central Utah is comprised of Beaver, Carbon, Daggett, Duchesne, Emery, Garfield, Grand, Juab, Kane, Millard, Piute, San Juan, Sanpete, Sevier, Uintah and Wayne Counties; Wasatch Front is comprised of Weber, Davis, Salt Lake and Utah Counties Source: Tactician Corporation

Utah’s2B Public & Private Colleges / Universities Full-Time Enrollment College / University Geographic Location Full-Time Enrollment Brigham Young University (private) Provo 30,243 Dixie State College St. George 8,863 LDS Business College (private) Salt Lake City 1,864 Salt Lake Community College Salt Lake City 30,112 Snow College Ephraim 4,599 Southern Utah University Cedar City 8,297 University of Utah Salt Lake City 32,398 Utah State University Logan 28,786 Utah Valley University Orem 31,556 Weber State University Ogden 26,680 Westminster College (private) Salt Lake City 3,108 Total Utah 206,506 Source: Utah System of Higher Education (2013 data)

1 H Source: Angelou Economics (August 2009)

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 4.1 Utah’s23B Public Colleges / Universities Degrees Awarded (2012-2013 data) Associate’s Total Degrees College / University Bachelor’s Degrees Master’s Degrees Doctorate Degrees Degrees Awarded* Brigham Young University (private) 0 7,177 1,163 92 8,600 Dixie State College 1,131 483 0 0 2,051 LDS Business College (private) 469 0 0 0 695 Salt Lake Community College 3,550 0 0 0 4,190 Snow College 807 0 0 0 1,088 Southern Utah University 352 925 314 0 1,606 University of Utah 0 4,919 1,809 339 7,825 Utah State University 973 3,371 990 94 5,515 Utah Valley University 1,831 2,612 24 0 4,559 Weber State University 1,997 2,157 292 0 4,505 Westminster College (private) 0 595 402 0 1,083 Total* 11,110 22,239 4,994 525 41,717 *Total degrees awarded may include awards/certificates and professional degrees not listed separately in this table. Source: Utah System of Higher Education (2013 Book of Data)

4.2 01/31/14 EDUCATION Map of Utah Colleges / Universities

Source: EDCUtah

Major Colleges and Universities in Utah

Brigham Young University (BYU) Established in 1875, Brigham Young University provides an education in an atmosphere consistent with the ideals and principles of its sponsor, The Church of Jesus Christ of Latter-day Saints (LDS). BYU is recognized for its extensive language programs, performing arts ensembles, sports programs, and devotion to combining solid scholarship with the principles of the LDS church. BYU is home to renowned graduate programs in Business and Law. http://www.byu.eduH H

College of Eastern Utah (CEU) The College of Eastern Utah is a two-year junior college. It offers more than 400 courses in 60 different areas of study. Students at CEU may obtain an Associate of Science, Associate of Applied Science, Associate of Arts, or a certificate of completion in many different areas. CEU also offers great transfer programs to four-year colleges and universities. http://www.ceu.eduH H

Dixie State College (DSC) In 2000, due to substantial growth at Dixie State College, the Utah Legislature granted the college a Baccalaureate degree status and DSC went from a two-year to a four-year college. http://www.dixie.eduH H

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 4.3 Neumont University Beginning with its first freshman class in 2004, Neumont University aims to educate the most sought-after software developers in the world. This new private university offers Bachelor of Science degrees in Computer Science, Master of Science degrees in Computer Science, and MBA’s in Enterprise Informatics. In partnership with IBM and Microsoft, its program places emphasis on students gaining fluency in WebSphere, .NET and Open Source development environments. http://www.neumont.eduH H

Salt1 Lake Community College (SLCC) Salt Lake Community College is an accredited, student-focused urban multi-campus college. SLCC serves more than 60,000 students through credit and non-credit courses and workshops, making it the largest higher education institution in Utah. To accommodate student needs, SLCC has three full-service campuses, eight teaching centers located throughout the Salt Lake Valley, and an eCampus for distance learning. http://www.slcc.eduH H

Snow College Originally founded in 1888 as an academy for the Church of Jesus Christ of Latter-day Saints, this two-year college became a state institution in 1932. This residential campus, located in Ephraim, and its south campus, located in Richfield, offer primarily academic transfer programs and some applied technology programs. Snow College maintains the smallest freshman and sophomore class sizes in the state. http://www.snow.eduH H

Southern Utah University (SUU) Southern Utah University is working to add at least five new master’s programs by 2011. Its student body is comprised of students from 29 Utah counties, 45 U.S. states and 28 foreign countries. http://www.suu.eduH H

University of Southern Nevada (USN) The University of Southern Nevada has constructed a new 117,000-square-foot building in South Jordan to serve as a satellite campus for Utah residents. This private, non-profit university offers two program degrees: doctor of pharmacy and master of business administration. http://www.usn.eduH H

University of Utah (U of U) The University of Utah is classified by the Carnegie Foundation as one of 50 Comprehensive Research I Universities from among 3,700 U.S. institutions. Founded in 1850, it is the oldest state university west of the Missouri River. The U of U is a leader in biotechnology research. Its accomplishments include the first successful artificial heart transplant, the discovery of the first gene linked to breast cancer, and a strong partnership with the Huntsman Cancer Institute. http://www.utah.eduH H

Utah Valley University (UVU)

Utah16B Valley University, formerly Utah Valley State College, offers short-term training programs, training for high-tech careers, transfer degrees and bachelor's degrees. Starting in 1941 as a vocational learning center for locals looking to gain better technical skills, UVU has since grown to become a four-year accredited university. http://www.uvsc.edu17BH H

Utah State University (USU) Established in 1888 as the Agricultural College of Utah, Utah State University has developed into a world-class institution of higher learning. USU continues to live up to its original ideal of educating rural citizens with distance-learning centers throughout the state. It also conducts groundbreaking research at its Logan campus. Through its partnership with NASA,

USU is among world leaders in the number of experiments launched into space. http://www.usu.eduH H

Weber State University (WSU) Weber State University is a multi-campus university with extensions located in Utah and Davis counties. WSU offers the largest, most comprehensive undergraduate programs in the state. This university offers an array of distance learning, independent study, and evening classes to meet the needs of its diverse student body. http://www.weber.eduH

4.4 01/31/14 EDUCATION Westminster College (WC) Westminster College, founded in 1875, is a fully independent, privately funded, nondenominational, comprehensive liberal arts college. This institution for higher learning offers select graduate programs. Although small in comparison to the surrounding colleges and universities, WC has experienced tremendous growth leading to several campus expansions over the last couple of years. http://www.westminstercollege.eduH H

Other Colleges / Universities in the State of Utah . Columbia College in Salt Lake City – 4-year private institution . ITT Technical Institute in Murray – 4-year private institution . Steven’s Henager College (Wasatch Front) – 4-year private institution . University of Phoenix (Wasatch Front) – 4-year private institution . Utah Career College – (South Jordan) – 4-year private institution . Webster University (Murray) – 4-year private institution . Western Governor’s University (Online) – 4-year private institution

UTAH COLLEGE OF APPLIED TECHNOLOGY

The Utah College of Applied Technology (UCAT) is Utah’s system of technical colleges. Created by Utah Legislature in 2001 as one of Utah’s public institutions of higher education, UCAT consists of eight regional applied technology college campuses. UCAT provides opportunities for high quality, statewide, open-entry, open-exit, competency-based education. The technical colleges serve both high school and adult students throughout the state of Utah.

Custom Fit A dynamic partnership between UCAT, college campuses, select sister institutions, and local business communities, Custom Fit provides customized employee training. The Utah State Legislature appropriates funds each year as an investment in Utah’s economy through Custom Fit. These funds and this unique program offer companies and their employees the opportunity to benefit from state-of-the-art training and development, customized to meet each company’s needs. For additional information, please visit the following link: http://www.ucat.eduH H

Utah College of Applied Technology Enrollment UCAT College Geographic Location Total Student Enrollment Custom Fit Trainees Bridgerland (BATC) Logan 5,990 4,084 Davis (DATC) Kaysville 6,292 1,079 Dixie (DXATC) St. George 7,093 933 Mountainland (MATC) Orem 3,797 1,844 Ogden-Weber (OWATC) Ogden 5,227 1,381 Southwest (SWATC) Cedar City 1,433 1,044 Tooele (TATC) Tooele 431 182 Uintah Basin (UBATC) Roosevelt 5,709 950 Total Utah 35,972 11,497 Source: UCAT Annual Report October 2013

H Includes eight UCAT campuses, USU-Eastern and Snow

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 4.5 Regional Map of Utah College of Applied Technology (UCAT)

Classification of Student Residency in Utah The Utah System of Higher Education (USHE) has established student residency requirements. A Utah resident is defined as one of the following: . An individual that has completed 60 credit hours at a regionally accredited Utah higher education institution; or . An individual that has lived in Utah for 36 consecutive months and has not completed the 60 credit hour requirement stated above; or . An individual who marries a Utah resident and establishes a domicile status in the state; or . An individual who is actively enrolled or participates in the Job Corps; or . Any active duty United States Armed Forces personnel stationed in Utah and his/her immediate family.

Each accredited college and university in the state of Utah has an application for residency available to students. Each application is reviewed and final status for student residency is determined by the college or university the student is or plans to attend. For additional information, please visit the following link: http://www.utahsbr.edu/policy/r512.pdfH H

4.6 01/31/14 EDUCATION PRIVATE CATHOLIC EDUCATION

Utah's alternative to public education includes 18 Catholic schools and several private schools that are fully accredited and nationally renowned. Utah Catholic Schools exceed the state standards and prepare more than 5,500 young people for higher education and 21st century careers. There is a diverse enrollment of students: 25% non-Catholic, 30% minority and 38% low-income. More than 98% graduate from high school and 97% matriculate to college. All faiths are welcome, and every school incorporates ethics, justice and social responsibility into progressive curricula.

Utah Catholic Schools Enrollment School Enrollment Catholic Students Non-Catholic Students Juan Diego Catholic High School 841 68% 32% Judge Memorial Catholic High School 757 65% 35% Saint Joseph Catholic High School 171 73% 27% Blessed Sacrament PK-8 262 77% 23% J.E. Cosgriff Memorial PK2-8 398 75% 25% Kearns-St. Ann PK-8 252 82% 18% The Madeleine Choir School PK-8 288 66% 34% Our Lady of Lourdes K-8 222 64% 37% Saint Andrew PK-8 235 79% 21% Saint Francis Xavier P3-8 213 84% 16% Saint John the Baptist P3-5 613 79% 21% Saint John the Baptist 6-8 387 76% 24% Saint Joseph Elementary PK3-8 369 70% 30% Saint Marguerite’s PK3-8 156 53% 47% Saint Olaf School PK-8 146 64% 36% Saint Vincent de Paul PK-8 272 77% 23% Total 5,582 72% 28% Source: Catholic Diocese of Salt Lake City

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 4.7

4.8 01/31/14 EDUCATION 2 CENTERS OF EXCELLENCEF

The Governor’s Office of Economic Development (GOED) developed the Centers of Excellence Program (COE) to expedite the commercialization of new technologies with strategic value for Utah. This state-sponsored program funds the use of innovative research conducted at Utah’s local universities by Utah businesses and helps increase job growth within the state. Presently, eight major colleges and universities in Utah operate COE’s. The COE Program has funded 111 centers, created 126 spin-off companies (55 of which are operating in the state of Utah) and created over 2,000 new jobs in Utah with an average wage of $65,000. Over the first 20 years, this program generated 186 patents, resulting in 226 license agreements. In the past, program funding went primarily to university professors for additional lab work. Beginning with the 2008-09 year, the COE program provides grants to Licensees. This includes start-ups and existing companies that will market new technology developed at a Utah college or university. For additional information please visit the following link: http://goed.utah.gov/programs/coe/H H

HIGH SCHOOL

Roughly 90% of Utah residents have attained at least a high school degree, ranking Utah 6th in the nation. Approximately 20% of Utah’s total population is in grades K-12 and an estimated 12,260 new students are expected to enter the state’s public education system this year, a 2.2% increase from 2010.3 Approximately 96.0% of Utah students attend public schools.4 Utah has 994 public schools with 563,273 students enrolled in grades K-12 and 221 private and charter schools in the state with over 50,000 students enrolled. The public schools provide a 20:1 student-to-teacher ratio and the private schools offer a 14:1 student-to-teacher ratio.

Utah high school students perform well on national standardized tests, often out-performing the nation. The College Board recently released 2009 SAT, ACT and AP test exam data. Overall, Utah scored higher than the national averages on each test. Utah public school students have the 3rd highest ranking for a passing score of 3 or higher in the nation and receiving college credit on AP exams. Utah students outperformed the nation and the surrounding western states with a 1674 composite SAT score compared to 1509 for the nation.5 Utah students also outperformed the nation with a 21.8 composite ACT score compared to the national average of 21.6

2 Source: Centers of Excellence Program 3 Source: 2010 Economic Report to the Governor 4 Source: Utahans for Public Schools 5 Source: The College Board, 2010 data 6 Source: ACT, news., 2010 data

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 4.9 Workforce

OVERVIEW

Utah typically grows more rapidly than the nation after recessions, and this pattern is taking hold in the current recovery. In addition to employment in Utah growing 3.9% in 2013, Utah’s unemployment rate improved, falling to 4.8%, compared to the U.S. rate of 7.5%. Utah ranks 3rd in population growth rates in the nation with a growth rate of 1.6% from 2012 to 2013.

OUTLOOK

Economic growth in Utah is expected to accelerate during 2014. Employment is forecast to increase 3.1% for the year as a whole, with larger increases as the year progresses. Due to strong natural increase, births less deaths, and in-migration, Utah will continue to experience a higher population growth rate than most U.S. states in 2014.

Utah's Forecast Labor Force % Change 2014

TOTAL LABOR FORCE 3.1%

Edu & Health Svc 2.9%

Government 1.1%

Mining & Nat. Resources 2.4%

Financial Activity 2.2%

Leisure & Hospitality 2.9%

Information 6.5%

Trade, Trans, Util 3.5%

Other Services 2.0%

Prof & Bus Svc 4.1%

Manufacturing 2.6%

Construction 7.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

Source: Economic Report to the Governor 2014

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 5.1 Union Affiliation

Utah’s labor force union affiliation is low. The state is 6th lowest in the nation with 3.9% of the total employed being union members in 2012.1 Utah is a right-to-work state, allowing the right of persons to work, whether in private employment or for the state, counties, cities, school districts, or political subdivisions. This right may not be denied or abridged on account of membership or non–membership in a labor union, labor organization, or other type of similar association.2

Western States Union Members Comparison

20.0% 16.4% 16.0% 14.6%

12.0% 11.3%

7.6% 8.0% 6.2% 4.7% 5.0% 3.9% 4.0%

0.0% UTAH ID NM CO AZ United States NV CA

Source: Bureau of Labor Statistics

Employment & Unemployment Approximately 44% of Utah’s total labor pool resides in the Salt Lake City Metropolitan Statistical Area (MSA), Ogden- Clearfield and Provo-Orem MSA’s. Utah’s unemployment rate is currently 6.5% compared to the national unemployment rate of 9.8%.3 The Provo-Orem MSA remains as one of the lowest overall unemployment rates of any MSA in the country.

Utah Labor Force, Employment & Unemployment Data Labor Force % Change from 2010- Geographic Location Employed Unemployed Unemployment Rate (October 2013) 2011 Utah 1,408,453 3.5% 1,343,590 64,863 4.6%

Logan MSA 60, 6.4% 66,695 2,644 3.8%

Ogden/Clearfield MSA 260,138 1.4% 246,232 13,906 5.3%

Provo/Orem MSA 230,911 2.8% 219,743 11,168 4.8%

Salt Lake City MSA 607,583 2.5% 577,493 30,090 5.0%

St. George MSA 60,729 6.4% 57,633 3,096 5.1%

Source: Utah Department of Workforce Services (October 2013 data)

1 Source: Bureau of Labor Statistics 2 Source: Utah Code, Title 34, Chapter 34 3 Source: Economic Report to the Governor 2011

5.2 01/31/14 WORKFORCE

WAGE COMPARISON

Wages in Utah continue to be lower than the national average. Currently wages are 91% of the national average. Jobs located along the Wasatch Front tend to pay higher wages than the state average.

Occupational Averages Ogden- Provo-Orem Salt Lake St. George Title / Position (SOC Code) U.S. Utah Logan MSA Clearfield MSA City MSA MSA MSA All Occupations (00-0000) $45,790 $41,840 $35,150 $39,600 $40,190 $44,730 $35,320

Management Occupations (11-0000) $108,570 $93,830 $82,600 $83,950 $92,950 $100,360 $77,210 Business & Financial Occupations (13- $69,550 $61,930 $54,710 $61,740 $59,740 $63,410 $49,330 0000) Computer & Mathematical Occupations $80,180 $70,000 $52,420 $72,810 $68,750 $70,960 $58,660 (15-0000) Architecture & Engineering $79,000 $71,900 $63,280 $74,320 $68,470 $73,020 $64,770 Occupations (17-0000) Life, Physical & Social Science $68,360 $55,030 $51,520 $58,640 $56,740 $58,550 $47,720 Occupations (19-0000) Community & Social Services $44,240 $38,240 $38,920 $36,510 $33,730 $42,440 $37,980 Occupations (21-0000) Legal Occupations (23-0000) $98,570 $87,740 $54,470 $71,180 $83,490 $94,350 $87,950 Education, Training & Library $51,210 $41,240 $43,680 $35,050 $43,360 $44,370 $34,580 Occupations (25-0000) Arts, Entertainment & Media $54,490 $44,510 $43,550 $41,270 $40,570 $47,390 $34,980 Occupations (27-0000) Health Care & Technical Occupations $73,540 $71,780 $58,060 $73,340 $66,260 $74,940 $70,250 (29-0000) Healthcare Support Occupations (31- $27,780 $25,620 $23,170 $24,900 $25,130 $26,260 $27,150 000) Protective Service Occupations (33- $43,050 $37,230 $33,820 $36,170 $35,150 $38,210 $35,850 0000) Food Preparation & Serving $21,380 $20,750 $19,530 $19,110 $19,910 $21,750 $20,930 Occupations (35-0000) Cleaning & Maintenance Occupations $25,670 $23,290 $21,730 $23,020 $24,130 $23,400 $22,440 (37-0000) Personal Care and Service $24,550 $24,600 $21,370 $23,280 $24,000 $25,990 $25,220 Occupations (39-0000) Sales & Related Occupations (41- $37,990 $36,650 $28,610 $31,030 $33,710 $41,560 $29,680 0000) Office/Administrative Support $34,410 $31,460 $27,800 $31,280 $29,890 $32,580 $29,300 Occupations (43-0000) Farming, Fishing, and Forestry $24,230 $27,240 $33,090 $20,660 $23,080 $30,290 N/A Occupations (45-0000) Construction & Extraction Occupations $44,960 $39,880 $34,920 $39,160 $37,500 $40,950 $35,660 (47-0000) Installation & Repair Occupations (49- $43,870 $44,380 $36,600 $45,520 $41,760 $45,050 $40,230 0000) Production Occupations (51-0000) $34,500 $34,200 $30,710 $34,760 $33,130 $34,210 $31,020 Transportation & Material Moving $33,590 $34,550 $28,000 $31,420 $28,390 $36,580 $30,730 Occupations (53-0000) Source: Bureau of Labor Statistics (May 2013 data)

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 5.3

UTAH’S MAJOR COMPANIES

Of the five largest employers in Utah, three are from the public sector and are not listed. (Hill Air Force Base, State Of Utah, and the University of Utah). Utah’s educational institutions are some of the largest employers in the state. The University of Utah, Brigham Young University, Utah State University, Alpine School District, Granite School District, Davis School District and Jordan School District.

Top 20 Private Companies by Total Full-time Employees Rank Company Name County Total FTE Brief Description Operates Job Corps Centers, correctional and medical facilities, 1 Management & Training Corp. Davis 9,215 and international and domestic workforce development contracts serving disadvantaged population. One of the largest family-owned refrigerated trucking and 2 C.R. England Inc. Salt Lake 7,741 transportation companies in the United States One of the largest home security and automation companies in 3 Vivint, Inc. Utah 6,250 North America Variety of local businesses including auto dealerships, Utah Jazz, 4 Larry H. Miller Group Salt Lake 5,969 EnergySolutions Arena, The Salt Lake Bees, Miller Motorsports Park, Megaplex Theatres and Fanzz retail stores. Retailers’ cooperative servicing grocery and convenience stores in 5 Associated Food Stores Inc. Salt Lake 4,801 Utah, Idaho, Oregon, Nevada, Colorado, Wyoming, Arizona and Montana. Portfolio of businesses including Little America Hotel chain, Sun 6 Sinclair Oil Corp. Salt Lake 4,000 Valley and Snow Basin ski resorts, gas stations and convenience stores throughout the West. Major manufacturer of commercial explosives and blasting 7 Dyno Nobel Salt Lake 3,000 solutions with offices in Utah and Australia. Geneva Rock, Sunroc Corp., Sunroc Building Materials, Beehive 8 Clyde Companies Utah 2,500 Insurance, W.W. Clyde and Co., Clements Concrete and Gorge Rock. World-renowned ski resort ranked as one of the top for customer 9 Deer Valley Resort Summit 2,500 service, food and beverage. One of the fastest growing auto groups in the country associated 10 Ken Garff Automotive Group Salt Lake 2,450 with 34 new car franchises, 3 used car stores, and 5 collision repair centers in Utah, Texas, Indiana, Iowa, and California. 11 Lifetime Products Davis 2,070 Manufacturer of sporting goods and outdoor furniture. A leading retailer of outdoor sporting goods operating in 14 states 12 Sportsman’s Warehouse Salt Lake 2,000 across the U.S. Operating company which includes the following: Desert News, 13 Desert Management Corporation Salt Lake 1,900 Desert Book, Bonneville International, Beneficial Life, Temple Square Hospitality, Desert Digital Media, KSL Broadcasting. The world’s largest manufacturer and marketer of human fitness 14 ICON Health & Fitness Inc. Cache 1,717 equipment. An underground mine contracting and engineering company 15 Cementation Salt Lake 1,670 providing services for clients throughout North and South America. Manufacturer of electric signs with many notable projects including 16 Young Electric Sign Compay Salt Lake 1,550 the Wynn Las Vegas resort sign. With more than 8,000 well-known clients, O.C. Tanner is the world 17 O.C. Tanner Salt Lake 1,500 leader at helping companies grow by appreciating people who do great work. Staffing firm that provides temporary and permanent placement of 18 CHG Healthcare Services Salt Lake 1,370 physicians, nurses and allied health professionals to health care organizations in all 50 states. Produces and distributes the health supplement Tahitian Noni 19 Tahitian Noni International Utah 1,105 Juice with manufacturing factories in Tahiti, Japan, China, Germany, and the U.S. 20 Ultradent Products Inc. Salt Lake 1,100 Manufactures dental equipment and products. Source: Utah Business Book of Lists (2013 data)

5.4 01/31/14 WORKFORCE Top 20 Public Companies by 2011 Revenue Rank Company Name County 2011 Revenue Brief Description

1 Huntsman Corp. Salt Lake $11,221,000 Specialty Chemicals 2 Autoliv ASP, Inc. Weber $8,232,400 Auto Parts 3 ATK Aerospace Systems Salt Lake $4,842,264 Aerospace/Defense Products and Services 4 SkyWest Inc. Washington $3,654,923 Regional Airlines 5 Zions Bancorporation Salt Lake $2,686,765 Regional Pacific Banks 6 Boart Longyear Company Salt Lake $2,020,322 Industrial Metals & Minerals 7 EnergySolutions Inc. Salt Lake $1,815,514 Waste Management 8 Nu Skin Enterprises Utah $1,743,991 Personal Products 9 Questar Salt Lake $1,194,400 Independent Oil & Gas 10 Overstock.com Salt Lake $1,054,277 Catalog & Mail Order Houses 11 Headwaters Inc. Salt Lake $591,954 General Building Materials 12 USANA Health Sciences Salt Lake $581,939 Drug Related Products 13 Myriad Genetics Salt Lake $402,084 Research Services 14 Ancestory.com Utah $399,661 Internet Information Providers 15 Nature’s Sunshine Products Utah $367,813 Drug Related Products 16 Merit Medical Systems Salt Lake $359,449 Medical Instruments & Supplies 17 Extra Space Storage Salt Lake $329,830 REIT - Industrial 18 Skullcandy, Inc. Summit $232,469 Industrial Electrical Equipment 19 Schiff Nutrition International Salt Lake $213,648 Nutritional Vitamins, Supplements and Food 20 Fusion-io, Inc. Salt Lake $197,204 Data Storage Devices Source: Utah Business Book of Lists (2013 data)

WORKFORCE DEMOGRAPHIC HIGHLIGHTS

With a median age of 29, Utah has the youngest median age in the country. Most counties in Utah have a median age under 30. Utah County tends to have the youngest median age in the state and Summit County tends to have the oldest. Utah is also home to some of the most educated people in the country. Roughly 90% of people age 25 or older have a high school degree with an estimated 65% having college experience and 29% having obtained a Bachelor’s degree or higher.

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 5.5

Utah Language Skills

OVERVIEW

Utah’s workforce has a rare and unique skill set that no other state in the country can boast – Utah has an unmatched number of bilingual residents of all ages. Among the full-time student population Utah has the 9th largest per capita that speak a foreign language, which is just over 18% speaking a variety of languages.1 This continues to the workforce, 33% of working Utahans speak a foreign language.2 In 2011 Gallup conducted a survey that sampled the entire US on foreign language capabilities. The Gallup survey concluded that 25% of the total US workforce speaks a foreign language fluently, 8% less than the average in Utah.3

UTAH LANGUAGE SKILLS STRENGTHS

Just the Facts . Collectively, Utah residents speak 90% of the world’s written languages.4 . 60% of all public school students study a world language. . The National Security Agency (NSA) selected Utah for its language analyst offices. The NSA commented that Utah’s famous facility with languages was a big factor in its site selection process.

Unique University Student Bodies5 . 77% of Brigham Young University’s (BYU) 30,000 students speak a second language and 47% have lived outside the U.S. for at least one year. . BYU offers studies in 80+ world language courses and there are over 170 languages spoken by BYU students, according to a 2004 campus survey. . The University of Utah (U of U) offers studies in 17 different world language courses and there are over 180 languages spoken by students at the U of U. . 31% of the current BYU student body is enrolled in a language course and 85% of seniors reported the ability to speak a second language. . More than 4% of BYU’s student body are foreign exchange students studying in Utah, representing over 115 different countries.

Religious Pursuits6 . With 15 training centers around the world, the Provo Missionary Training Center (MTC) is the LDS church’s largest for both instructors and missionaries. . Provo’s MTC offers 1,100 instructors to teach one of 48 world languages to more than 24,000 missionaries annually. . Return missionaries serve in over 165 different countries and return to Utah to make this state their primary residence.

1 Source: 2009 MLA “Enrollments in Languages Report”; and the “2009 Census Bureau FT Student Estimates” 2 Source: Exoro Survey 2011 3 Source: Gallup 2011 One in Four Americans Can Hold a Conversation in a Second Language 4 Source: Time Magazine 5 Source: Brigham Young University, 2010 data 6 Source: The Church of Jesus Christ of Latter-Day Saints

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 6.1

EDUCATION

Private Colleges / Universities Brigham Young University (BYU), located in Provo, Utah, creates a huge impact on Utah residents’ language skill set. BYU attributes its high number of bilingual students to the Church of Jesus Christ of Latter-day Saints missionary services. A reported 80% of male and 13% of female students have served missions and returned to Utah for a continued education and for primary residence. The most current data released by the Modern Language Association (MLA) stated that BYU has the highest student enrollment in Russian classes than any other American university. On average, BYU graduates 35 to 45 Russian majors each year, that’s three times the number of graduates at other universities. The MLA also stated that BYU has the most enrollments in Portuguese, Afrikaans, Icelandic, Welsh and Cebuano and the second most enrollments in Spanish. The BYU business school offers classes in 11 different languages, more languages than any other Center for International Business Education and Research school.

Private Colleges / Universities Lower Language Upper Undergrad Total Undergrad Graduate TOTAL Undergrad American Sign 1,658 218 1,876 3 1,879 Language Arabic 226 87 313 31 344 Aramaic 0 0 0 11 11 Bulgarian 0 14 14 0 14 Cantonese 8 0 8 0 8 Chinese 453 472 925 3 928 Danish 16 1 17 0 17 Farsi 4 7 11 0 11 Finnish 12 11 23 0 23 French 1,511 824 2,335 57 2,392 German 823 579 1,402 52 1,454 Greek (Ancient) 52 40 92 3 95 Greek (Modern) 36 0 36 0 36 Hawaiian 9 0 9 0 9 Hebrew (Modern) 112 44 156 3 159 Hindi 18 0 18 0 18 Icelandic 4 0 4 0 4 Italian 426 155 581 0 581 Japanese 612 386 998 2 1,000 Korean 63 115 178 0 178 Latin 217 67 284 4 288 Navajo 20 0 20 0 20 Norwegian 5 0 5 0 5 Persian 20 15 35 2 37 Polish 7 21 28 0 28 Portuguese 300 436 736 9 745 Romanian 16 0 16 0 16 Russian 220 534 754 7 761 Samoan 31 0 31 0 31 Scandinavian 0 37 37 0 37

6.2 01/31/14 UTAH LANGUAGE SKILLS

Spanish 3,722 4,369 8,091 153 8,244 Swahili 10 0 10 0 10 Tagalog 14 8 22 0 22 Tonga 33 0 33 0 33 Turkish 19 0 19 3 22 Ukrainian 0 12 12 0 12 Welsh 31 13 44 0 44 STATE TOTALS 10,724 8,465 19,189 343 19,532 Source: MLA “2009 Enrollments in Languages Other than English in the U.S. Institutions of Higher Education”

Utah Primary & Secondary Schools’ Core Curriculum Most schools across the state of Utah offer a number of world language courses in primary and secondary institutions. Beginning in the 2009-2010 school year, nine elementary schools along the Wasatch Front have been selected to implement a Mandarin Chinese language immersion program. In these courses 50% of the instruction time will be conducted in Mandarin and the other half in English. Each year schools will add another year of Mandarin instruction and build a fully articulated K-6 immersion program.7 Currently, 85 secondary schools offer Mandarin Chinese, the highest number of any state in the U.S. The state is working directly with China to bring teachers from China to Utah to teach the courses. Presently, Utah is host to 25 International Guest Teachers from China, the highest number of any state in the U.S. The University of Utah and Brigham Young University have started a Chinese teaching program and are educating future Chinese teachers that will stay in Utah and implement new Chinese language programs. To date, 12 secondary schools in Utah offer Arabic courses as a language study. This language has been deemed a critical world language to study. Utah is one of few states to offer this language in its high school language study programs.8 Additional world languages offered in Utah schools, in order of enrollment, include: Spanish, French, German, Japanese, Latin, Navajo, Italian, Ute, Russian and Hebrew.

7 Source: Utah State Office of Education, World/Foreign Languages 8 Source: Campus Notes, Salt Lake Tribune, Deseret News

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 6.3 Utilities

“Responsible development of Utah’s energy resources and the protection of Utah’s scenic wonders are not mutually exclusive ideas! Outdoor recreation, with its $5.8 billion annual economic impact, is fundamental to our culture, our health, our economy and our lifestyle."

-Governor Gary R. Herbert

UTAH’S CURRENT ENERGY PRODUCTION PORTFOLIO

Current Production Energy Production in Utah by Source September 2012 YTD (Thousand Megawatthours) Coal 22,365 Natural Gas 5,089 Hydroelectric 903 Other Renewable Sources 831 Wind 536 Geothermal 249 Other Energy Sources 84 Biomass 44 Crude Oil 33 Other Gases 22 Source: Energy Information Association

Production by Type of Resources Type of Energy Resource % of Total Energy Produced Coal 74.2% Petroleum 1.1% Natural Gas 16.9% Renewable Energy (including hydroelectric) 8.5% Source: Energy Information Association

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 7.1 RENEWABLE / ALTERNATIVE ENERGY

Utah Energy Policy The Utah Department of Energy has created three renewable energy portfolio goals: 1) increase energy efficiency by 20% by year 2015; 2) reduce greenhouse gas emissions to 2005 level by year 2020; 3) utilities must account for 20% of electric sales from renewable/non-carbon emitting energy source by year 2025. Presently in Utah, fossil fuels comprise 98.4% and renewable energy represents 1.6% of total production. In the Governor’s 10-point plan for economic development, renewable energy has been identified as a key component for Utah’s economic growth.

Increase in Types of Energy Production Production Increase 2011-2012 September YTD Wind 21.6% Other Renewable Sources 14.7% Biomass 3.6% Geothermal 3.4% Hydroelectric -10.9% Source: Energy Information Association

ELECTRIC POWER

Industry Overview According to the U.S. Energy Information Administration, Utah is ranked 12th in the US for the least expensive electricity across all sectors (residential, commercial, and industrial) at an average of 8.28¢/kWh. Power rates among Utah’s major cities compare favorably with cities across the nation. Utah has the 12th lowest average commercial electricity cost in the U.S. at 8.46¢ per kWh, compared to the nation at 10.34¢ per kWh and the 12th lowest industrial electricity cost in the U.S. at 5.99¢ per kWh, compared to the nation at 6.86¢ per kWh.1 Overall, Utah offers excellent power services at extremely affordable and competitive rates. Western States Average Electricity Cost Commercial (cents per kWh) 16 14.73

14

12 10.34 10 8.92 8.4 8.46 8.61 7.72 8 7.38

6

4

2

0 ID WA OR UT WY NV United States CA

Source: Energy Information Administration, October 2013 YTD

1 Source: U.S. Department of Energy/Energy Information Administration, 2013 Oct. data

7.2 01/31/14 UTILITIES Rocky Mountain Power / PacifiCorp Rocky Mountain Power (RMP), a subsidiary of Pacificorp, is Utah’s primary electric service provider, accounting for over 80% of electricity sales in the state of Utah. Its parent company, PacifiCorp, provides reliable, efficient energy to 1.6 million customers in six western states. RMP consistently ranks among the lowest-cost electricity producers in the United States. RMP’s basic rate schedules for commercial and industrial customers are shown below. Please contact EDCUtah for more detailed information concerning specific load profiles. Here are the breakouts of the three schedules for service:

Schedule 6 – General Service (Less than 1,000 kW) This schedule is for alternating current, single or three-phase electric service supplied at a company’s available voltage (less than 46,000 volts through a single point of delivery) for all service required on the company’s premises. This schedule is for non-residential customers whose loads have not registered 1,000 kW or more and who are not subject to service on Schedule 8. For additional information and current rates please click on the following link: http://www.rockymountainpower.net/content/dam/rocky_mountain_power/doc/About_Us/Rates_and_Regulation/Utah/Ap proved_Tariffs/Rate_Schedules/General_Service_Distribution_Voltage.pdf

Schedule 8 – Large General Service (1,000 kW and Greater) – Distribution Voltage This schedule is for alternating current, single or three-phase electric service supplied at a company’s available voltage (less than 46,000 volts through a single point of delivery) for all service required on the company’s premises. This schedule is for non-residential customers whose loads have registered 1,000 kW or more and who are not subject to service on Schedule 9. For additional information and current rates please click on the following link: http://www.rockymountainpower.net/content/dam/rocky_mountain_power/doc/About_Us/Rates_and_Regulation/Utah/Ap proved_Tariffs/Rate_Schedules/Large_General_Service_1_000_kW_and_Over_Distribution_Voltage.pdf

Schedule 9 – General Service – High Voltage Rates (Supplied at 46,000+ volts from a single point) This schedule is for alternating current, three-phase electric service supplied at company’s available voltage (46,000 volts or 69,000 volts or greater through a single point of delivery) for all service required on the company’s premises. This schedule is for non-residential customers. For additional information and current rates please click on the following link: http://www.rockymountainpower.net/content/dam/rocky_mountain_power/doc/About_Us/Rates_and_Regulation/Utah/Ap proved_Tariffs/Rate_Schedules/General_Service_High_Voltage.pdf

Cities with Municipal Power Companies Utah has several municipal power companies that offer competitive electricity rates. Utah Associated Municipal Power Systems (UAMPS) is a political subdivision of the State of Utah. UAMPS currently has 53 members consisting of municipal electric utilities and other local government units in Utah, Arizona, California, Idaho, Nevada, New Mexico, Oregon and Wyoming. UAMPS is a project-based organization operating to provide a variety of power supply, transmission and related services to its members.

 Beaver  Blanding  Bountiful  Brigham City  Eagle Mountain  Enterprise  Ephraim  Fairview  Fillmore  Heber City  Hildale  Holden Town  Hurricane  Hyrum  Kanosh  Kaysville  Layton  Lehi  Levan  Logan  Manti  Meadow Town  Monroe  Morgan  Mt. Pleasant  Murray  Nephi  Oak City  Paragonah  Parowan  Payson  Price  Provo  Salem  Santa Clara  Spanish Fork  Spring City  Springville  St. George  Washington City Source: Utah Associated Municipal Power Systems (UAMPS), Utah Municipal Power Agency (UMPA)

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 7.3 NATURAL GAS

Industry Overview Utah is among the lowest in natural gas costs in the country. Utah contains four of the Nation’s 100 largest oil fields and two of its 100 largest natural gas fields.2 The state has an abundant, low cost supply of natural gas, which aids the natural gas prices in the state, making it the 12th lowest industrial rate in the nation at $5.00 per thousand cu ft. Utah also has the 9th lowest commercial cost in the nation at $7.24 per thousand cubic feet, 13% lower than the national average. Close to half of the natural gas currently being used by Questar’s residential customers is provided at cost-of-service pricing versus market prices. The cost to develop and deliver the natural gas is considerably lower and more stable than the cost of gas purchased from third-party providers or Questar’s parent company.

Industrial Cost ($ per 1,000 cubic feet) 27.19 30 25 11.79 11.25 20 10.17 9.86 9.43 9.12 8.89 8.09 7.98 7.61 7.12 7.08 7.08 7.06 7.02 6.85 6.68 6.64 6.48 6.42 6.19 6.11 6.06 6.05 5.91 7.7 5.83 7.6 5.43 5.18

15 5.14 5.06 5.03 5.05 5.02 4.99 4.98 4.86 6.6 4.69 4.64 3.76 4.39 4.35 3.77 6.1 3.79 3.55 8

10 5 5 0 WV TX ND LA NE US IA AL GA WI KY UT MN KA ID SC VT IN TN OR NM VA IL CA SD CT WY OH AZ CO MI FL NC AR NV MS MT AK MO MA RI NY ME NJ WA PA OK MD DE NH HI

Source: Energy Information Administration, October 2013

Questar Corporation Questar Gas Company is Utah’s primary natural gas provider. Questar is in the unique position of owning a significant amount of natural gas reserves, which allows service rates to be consistently among the lowest in the nation. Large industrial users may purchase natural gas supplies from independent producers and transport the gas under a fee arrangement with the utility. Please contact EDCUtah for more detailed information concerning specific load profiles. Here are the breakouts of the three schedules for service:

FS Rate Schedule – Volumetric Rates This schedule is for company’s whose actual or estimated average daily usage is at least 40% of a peak winter day. Usage may not exceed 2,500 Dth (decatherms) in any one day during the winter season and minimal annual usage of 2,100 Dth is required. For additional information and current rates please click on the following link: http://www.questargas.com/Tariffs/uttariff.pdf

F-4 Rate Schedule – Volumetric Rates This schedule is for company’s whose actual or estimated average daily usage is at least 80% of a peak winter day. Usage may not exceed 10,000 Dth (decatherms) in any one day during the winter season. For additional information and current rates please click on the following link: http://www.questargas.com/Tariffs/uttariff.pdf

2 Source: U.S. Department of Energy/Energy Information Administration, 2012

7.4 01/31/14 UTILITIES UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY

Utah’s Department of Environmental Quality (DEQ) is focused to preserve and restore Utah’s natural resources. This department concentrates primarily on three key areas: air, land and water.

Air Quality

Air Permitting DEQ is responsible for issuing permits for any operation that emits contaminants into the air. Permits may limit the amount of a particular contaminant that is released, the amount of material processed, or the amount of darkness a smoke plume can emit. There are two types of permits DEQ may issue: 1) approval orders, 2) operating permits. For additional information please click on the following link: http://www.airquality.utah.gov/Permits/index.htm

Small Business Assistance Program The Small Business Assistance Program helps small businesses with permitting assistance, emission calculations, technical issues, regulatory interpretation and pollution prevention techniques. For additional information please click on the following link: http://www.airquality.utah.gov/Permits/Small_Business_Assistance_Program.htm#HAPs

Land

Division of Environmental Response & Remediation (DERR) This division is responsible for protecting public health and Utah’s environment through the cleanup of chemically contaminated sites, ensuring that underground storage tanks are used properly and providing chemical usage and emission data to the public and local response agencies. For additional information please click on the following link: http://www.environmentalresponse.utah.gov/

Division of Radiation Control (DRC) This division protects Utah citizens and the environment from sources of radiation that constitute a significant health hazard. For additional information please visit the following link: http://www.radiationcontrol.utah.gov/

Solid and Hazardous Waste (SWH) This division is accountable for proper management of solid and hazardous wastes. Permitting may be required and custom permits may be issued to a business for hazardous waste. For additional information please visit the following link: http://www.hazardouswaste.utah.gov/

Water

Division of Drinking Water (DDW) This division adopts and enforces rules related to public drinking water systems and assigns a rating to reflect the condition and performance of drinking water systems. For additional information please visit the following link: http://www.drinkingwater.utah.gov/

Division of Water Quality (DWQ) This division protects Utah’s surface and underground waters and provides permits to facilities that produce, treat, dispose of or otherwise discharge wastewater in the state. The Environmental Protection Agency has delegated authority to Utah to administer its own water quality regulatory programs. For additional information please visit the following link: http://www.waterquality.utah.gov/

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 7.5 TELECOMMUNICATIONS

URTA (Utah Rural Telecom Association) URTA is an association representing 14 independent telephone companies in rural Utah, servicing approximately 80% of the land area in the state. These service providers offer high-speed telecom services to approximately 95% of Utah’s rural population.

Source: Utah Rural Telecom Association

7.6 01/31/14 UTILITIES Distribution & Transportation

HIGHLIGHTS

Crossroads of the West . Central location for distribution to major western cities and states with a 1- to 2-day access to half the nation’s population. . Central point for distribution along the Canada to Mexico corridor.

Distribution Hub . Multiple modes of transportation and distribution that are easily accessible. . Salt Lake City International Airport, operating Delta’s 5th largest hub, is the 24th busiest airport in the nation.1 . Successful and expanding public transit system in metro areas.

HIGHWAYS AND GROUND FREIGHT2

With over 700 trucking companies in Utah and being part of the Mexico/Canada corridor, Utah is a great location for product distribution. Distance and Travel Time to Western Cities and States

Source: McNally Road Atlas, EDCUtah

1 Source: Salt Lake City International Airport 2 Source: Utah Trucking Association, Utah Department of Transportation

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 8.1 RAIL

Utah has 1,400 miles of railroad track throughout the state that converge in the Salt Lake-Ogden metropolitan area. Union Pacific is the primary rail service provider for the state. The main lines link Utah to major sea ports such as Los Angeles, Oakland, Portland, and Seattle, as well as many other key locations throughout the country.

Union Pacific Railroad System

Source: Union Pacific Railroad

AIR FREIGHT

Sixteen cargo carriers handle more than 550 million pounds of air cargo and airmail annually. Air cargo volumes within the state have grown at an average annual rate of 9%. This increase in airfreight growth pushed for the development of a new cargo area located at the north end of the terminals at the Salt Lake International Airport in 1998.3

3 Source: Salt Lake City International Airport

8.2 01/31/14 DISTRIBUTION & TRANSPORTATION AIR TRAVEL

Salt Lake City International Airport served 20 million passengers in 2012 which ranks it as the 26th busiest airport in North America and the 64th busiest in the world. In 2012, there were 328,130 operations (take-offs and landings) including commercial air traffic, general aviation and military activity.

Salt Lake City International Airport is located about 15 minutes from the Salt Palace Convention Center and the center of downtown. It is a hub for Delta Air Lines which operates about 74% of the traffic. In total, seven airlines and their affiliates operate over 700 scheduled daily flights serving about 89 cities with non-stop flights. There is international service to Canada, Mexico and Paris, France.

A Terminal Redevelopment Program (TRP) is in beginning stages that will reconfigure the entire Airport campus. The long-term project will result in a new terminal building and accompanying facilities. The anticipated completion date for the entire project is 2022.4

Flight Time to Major U.S. Cities

4 Source: Salt Lake City International Airport

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 8.3 PUBLIC TRANSIT5

Utah Transit Authority (UTA) has invested millions in the construction of a public transportation system that spans much of the Wasatch Front.

TRAX 15-mile Salt Lake City to Sandy and 4-mile downtown to University of Utah TRAX light rail lines have been a huge success and transport, on average, over 55,000 travelers daily, greatly exceeding initial ridership projections. UTA is working on expanding the TRAX light rail system to include more east-west lines, including an extension from downtown Salt Lake City to the International Airport.

FrontRunner Construction was completed in winter 2012 on a 88-mile FrontRunner commuter rail line from Provo in Utah County north to the northern end of Weber County. The FrontRunner system has also exceeded ridership projections, transporting over 7,000 travelers daily. This provides commuter rail along the entire Wasatch Front, where roughly 80% of Utah’s population resides.

Bus System & Intermodal Hub UTA also operates 140 bus routes covering 1,400 square miles with a daily estimated count of 71,000 travelers. The new Union Pacific Intermodal Hub serves as a transportation nerve center in downtown Salt Lake City, complete with an Amtrak station, Greyhound bus depot, bus transfer station, light rail station, commuter rail station, taxi cab stands, amenities for bikers and ample parking space. Commuter and Light Rail System

Source: Utah Transit Authority, EDCUtah

5 Source: Utah Transit Authority

8.4 01/31/14 DISTRIBUTION & TRANSPORTATION

Real Estate

OFFICE SPACE

Every submarket saw some type of improvement in 2013 as 1,090,980 square feet (sf) of space was absorbed, representing the third highest level on record. This high level of absorption resulted in a 3.0 percentage point (pp) drop in the direct vacancy rate on a year-over-year basis. The Central East sub-market saw the highest activity level with 292,874 sf of positive absorption as the vacancy rate dipped by 4.4 pps. Old Mill Corporate Center IV, which was completed near the end of 2012, and the former Discover Card building accounted for nearly all of this absorption. Both the Central Business District (CBD) and Southeast sub-markets also recovered nicely with each sub-market absorbing around 200,000 sf. Average asking lease rates dipped slightly by 1.7% as much of the newer and nicer space was removed from the market. Despite a drop in average asking rents, concessions such as free rent and tenant improvements were reduced tipping the scales back to the landlord’s favor in the majority of the submarkets. Even with improvements in office market fundamentals, new construction remained constrained through 2013 with only 388,815 sf of new product coming online, well below the 10-year average of 650,000 sf. Several new projects are in planning stages but little new product is expected to come online in 2014.1

Salt Lake County, Lease Rates per Square Foot & Vacancy Rates by Class Downtown Suburban Downtown Suburb

Class A Class A Class B Class B Average Lease Rates $27.91 $25.32 $21.46 $19.52 Vacancy Rates 11.7% 6.8% 19.6% 10.7% Source: CBRE Salt Lake City Office Market MarketView 2013

2013 Office Overview2 . Market vacancy fell by 50 basis points during the last three months of 2013, ending the year at 13.1%. This decline in vacancy can be attributed to limited amounts of new supply entering the market and solid demand. On the submarket level, vacancy varies widely. For example in the mid-valley area, the submarkets of Central Valley and Central Valley East continue to experience elevated vacancy rates of 19.6% and 20.4%, respectively. On the opposite end of the spectrum, Sugarhouse vacancy sits at just 2.3%. This divergence in performance largely reflects occupier preferences. . The average asking lease rate for the Salt Lake office market increased slightly to $20.09 during the fourth quarter, up from $20.07 at the end of the previous quarter. On a year-over-year basis, the marketwide average asking lease rate rose 2.0%. However, similar to other market indicators, performance on the submarket level varied significantly; for example, high demand submarkets such as Sandy and Draper saw year-over-year increases of 3.9% and 4.9%, respectively. Looking ahead, a healthy local economy is expected to fuel demand for office space, supporting improving fundamentals and rental growth. . On a year-over-year basis, completed construction was down 64% from 2012 levels. However, square footage under construction at year-end 2013 compared to the same time one year ago is up substantially. At year-end 2012m there was 138,000 sq. ft. of office space under construction in the Salt Lake market, compared to 511,587 sq. ft. at year-end 2013. Currently, product under construction remains concentrated in the south end of the Salt Lake Valley (submarkets of Sandy and Draper) where 55 % of the market wide total is underway.

2014 Office Forecast3 . The outlook for 2014 is one of renewed confidence and steady growth.

1 Source: Commerce CRG, 2013 Year-End Market Review 2 Source: CBRE Salt Lake City Office Market MarketView 2013 3 Source: CBRE Salt Lake City Office Market MarketView 2013

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 9.1

. Improvement in office market fundamentals can be attributed to a strong local economy. Job growth during the coming year is expected to be near historical averages with county employment expanding by 3.0% during the next 12 months. Growth is also expected in office-using sectors, which bodes well for office demand during the coming year. . Looking ahead, the Salt Lake office market is expected to perform well in 2014. Steady demand coupled with limited amounts of new construction will allow for continuing improvement in office market fundamentals.

INDUSTRIAL SPACE

In 2013, the industrial market capitalized on the momentum from 2011 and 2012 and showed that it is no longer in recovery mode but entered an expansion period. Total market activity remained essentially on par with a record setting year from 2012, but the makeup of that activity changed significantly. On a square footage basis, leasing activity decreased by 25.6% while user-sale activity increased by 117.3%. Much of the increase in user-sale activity can be attributed to the acquisition of the Kraftmade building by Boeing, which consisted of 850,000 square feet (sf).4

Salt Lake City, Overall Industrial Activity by Year Industrial Activity 2013 2012 2011 2010 Average Asking Lease Rates $0.41 $0.34 $0.33 $0.36 Total Industrial Base 120,555,934 118,968,840 117,167,021 115,166,077* Vacancy Rate 4.97% 5.8% 6.2% 6.4% *Includes SF under construction Source: CBRE, Salt Lake City Industrial MarketView 2013

Salt Lake City, Overall Activity by Year Industrial Activity 2013 2012 2011 2010 User Sale 713,799 1,668,071 781,060 819,564 Lease 3,964,892 4,908,840 4,101,284 3,809,721 Total 4,678,691 6,576,911 4,882,344 4,629,285 Investor Sale 815,360 1,469,241 1,508,591 1,373,850 Source: CBRE, Salt Lake City Market Study Year End: 2012

2013 Industrial Overview5 . The achieved lease rate for the Salt Lake market increased by $0.04 during 2013 to $0.41 per sq. ft. triple net (NNN), experiencing the largest year-over-year gain in over six years and surpassing pre-recession average rates. In part, this increase can be attributed to a $0.05 increase in rates for spaces between 10,000 and 20,00 sq. ft., but it was also affected by rates in spaces over 100,000 sq. ft. which increased by $0.06. This jump in large-box rates, however, was primarily due to one outlying transaction in California Avenue and a similar increase is not expected for 2014. Rates for spaces between 50,000 and 100,000 sq. ft. were the exception to growth in 2013, edging down from $0.35 to $0.32 per sq. ft. NNN during the year. . Industrial transaction activity in Salt Lake was healthy, yet subdued during 2013 compared to prior years. The first two quarters of 2013 were the strongest, accounting for 68% of the total 4.0 million sq. ft. leased over the year. The decrease in activity during the third and fourth quarters occurred mostly in spaces larger than 50,000 sq. ft. and is expected to be transitory. The exception to this slowing was lease activity in spaces between 20,000 and 50,000 sq. ft. which was 59% higher than year-end 2012 levels. Investment sales were notably low during 2013 due to low levels of available product. As in prior years, the vast majority of all transacting activity during the year (85%) was in warehousing and distribution spaces. . Construction activity was healthy in 2013, with 1.5 million sq. ft. of industrial product completed. Most of this was speculative construction, but Salt Lake is seeing a growing amount of owner-user buildings being developed; of the 1.1 million sq. ft. under construction as of year-end 2013, roughly 54% are build-to-suit or owner-user developments,

4 Source: Commerce CRG, 2013 Year-End Market Review 5 Source: CBRE Salt Lake City Industrial Market MarketView 2013

9.2 01/31/14 REAL ESTATE

all of which should be completed during the coming year. Of particular note are the new 304,555 sq. ft. USPS facility and Quality Distribution’s new 268,000 sq. ft. facility, both of which are build-to-suits in the northwest quadrant.

2014 Industrial Forecast6 . Looking ahead through 2014, the market is expected to continue performing well, while experiencing increased activity and continued expansion. . Industrial land and construction activity during 2013 reveals an important trend that will positively impact Salt Lake in 2014. In a market that has traditionally been dominated by a handful of developers, a surge of developers new to Salt Lake has increased competitive activity and industrial land is being quickly absorbed. . Construction activity will not slow in 2014; roughly 1.5 million sq. ft. of product under construction is slated to be completed before year-end 2014, with estimates showing at least another 1.6 sq. ft. scheduled to break ground.

RETAIL SPACE

Much like the overall economy, the retail market in Salt Lake continues to recover. The past year has proven to be positive overall with decreased availability, lower vacancy rate, and highlighted by a large amount of newly completed construction.7

Salt Lake County, Leasing Activity by Location Submarket Rentable sF Available % Vacancy % Asking Rate (NNN) Northeast 4,586,442 5.1% 2.7% $16.75 Northwest 889,456 2.0% 1.8% $14.63 Central East 5,839,985 6.8% 4.9% $14.41 Central West 6,245,293 14.1% 12.7% $14.06 Southeast 9,520,170 7.5% 5.8% $13.44 Southwest 7,214,292 5.9% 3.7% $14.08 Total Market* 34,294,638 7.8% 6.0% $14.15 Source: CBRE Salt Lake City Industrial Market MarketView 2013

Salt Lake County, Leasing Activity by Type Total Available S.F. Type 2010 Lease Rates 2010 Absorption Total S.F. with Malls Vacancy Rates with Malls Regional Center $22.72 -20,808 6,739,067 678,118 10.06% Community Center $163.67 105,296 15,347,572 1,182,797 7.71% Neighborhood Center $15.64 -29,125 7,556,087 694,362 9.19% Anchorless Center $16.22 -61,512 4,472,429 741,063 16.57% Total by Type $17.63 102,249 37,606,471 3,633,475 9.66% Source: Commerce CRG, 2011 Year-End Market Review

2013 Retail Trends . Average asking lease rates are affected by supply and demand dynamics. In 2013 there was a limited amount of new supply, but demand was uneven (depending on quality of location). Consequently, trends in average asking lease rates varied by property type and even down to specific locations as retailers become more attuned with the importance of real estate choices. . Completed construction in 2013was significantly lower than 2012. It was important to note that this drop in construction is not the product of deteriorating market conditions, rather the fact that 2012 saw an extraordinary amount of new retail space completed including notable projects such as City Creek and Scheels. During the past

6 Source: CBRE Salt Lake City Industrial Market MarketView 2013 7 Source: CBRE Salt Lake City Retail Market MarketView 2013

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 9.3

year, the greatest amount of completed construction occurred at the center at the center at the intersection of Bangerter Highway and 10400 South. . Total transaction activity in the Salt Lake retail market reached 1.3 million sq. ft. in 2013. This represents a 5.5% year-over-year increase in market-wide activity. Sales activity remained strong, but did no achieve the same level as it did in 2012. Over half of the market’s 2013 sale activity occurred in the Northeast Quadrant, and included the most notable sale transaction of the year – the investment sale of Trolley Square. Leasing activity was concentrated in the Southeast Quadrant, where almost a third of market activity occurred.

2014 Retail Forecast . Demand for high-end retail real estate continues to be particularly strong. Developers are responding by redesigning site plans and creating more desirable pads with smaller footprints. . Active retailers are interested in high-quality Class A space while shying away from Class B and C space, particularly in strip/in-line locations. . Significant amounts of completed construction in the retail market are not expected until the last quarter of 2014 and early 2015.

9.4 01/31/14 REAL ESTATE

RESIDENTIAL SPACE

Salt Lake County Apartments The vacancy rate for apartments in Salt Lake County is currently 3.9 percent. One year ago the rate was 3.8 percent. Rental rates have increased by 4.4 percent over the past year. The combined average rental rate for all types of units is $850. The average rental rate for a two bedroom, two bath unit is $969. Apartment projects of 250 units or more have an average per square foot rent of $1.01 and a vacancy rate of 4.3 percent. Eastside apartment communities have slightly higher rental rates than westside communities. Currently, the average rent per square foot for an eastside property is $0.99 compared to $0.95 for a westside property. For those projects built since 2000, overall square foot rents are $1.00, while the monthly rental rate is $981. The average rental rate for a two bedroom, two bath unit in an apartment community built since 2000 is $1,023. In 2012, nearly 1,700 new apartment units received building permits. These new units increased the rental inventory in the county by only 1.4 percent. Currently new apartment construction does not pose a threat to the rental market.8

Salt Lake County, Apartment Rental Rates by Type Category Rent Square Footage $ / S.F. Vacancy Studio $586 419 $1.40 2.0% 1 Bedroom, 1 Bath $746 680 $1.10 3.2% 2 Bedroom, 1 Bath $792 914 $0.87 3.7% 2 Bedroom, 2 Bath $969 1,016 $0.95 5.1% 3 Bedroom $1,075 1,245 $0.86 4.1% Overall Average $850 875 $0.97 3.9% Source: Commerce CRG, 2013 Year-End Market Review

2014 Apartment Forecast Apartment market conditions for property owners will continue to be very favorable over the next year. Vacancy rates will remain below 5 percent; a slight uptick will likely occur with the completion and lease-up of several new apartment communities. Nevertheless there is little threat to overbuilding. The market has easily absorbed 5,300 units built in the last three years and the planned projects in 2014 will not destabilize the market. Rental rates will increase modestly, moving up three to four percent over the next year. 9

Utah Home There has been significant improvement in the Utah real estate market. Closing increased from 27,491 in 2012 to 31,361 in 2013, an increase of 14.1%.10

Average Closed Home Prices in Wasatch Front & Summit Counties 2013 YTD Geographic Location Median Home Price 2012–13 Price +/- Davis County $208,000 +9.4% Salt Lake County $225,000 +17.2% Utah County $205,000 +11.0% Weber County $150,000 +9.0% Summit County $535,000 +16.1% Utah $205,000 +14.5% U.S.11 $206,900 +13.0% Source: Utah Association of Realtors, Quarterly Activity by County Q3-2013

8 Source: Commerce CRG, 2013 Year-End Market Review 9 Source: Commerce CRG, 2013 Year-End Market Review 10 Source: Utah Association of Realtors, Quarterly Activity by County Q3-2013 11 Source: National Association of Realtors, 12/30/2013

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 9.5

Taxes

2014 STATE BUSINESS TAX CLIMATE INDEX

The Tax Foundation’s 2014 edition of the State Business Tax Climate Index enables business leaders, government policymakers, and taxpayers to gauge how their states’ tax systems compare. In 2013 Utah was ranked 10th in the national study and in the 2014 Utah had moved into the 9th spot. The result is a score that can be compared to other states’ scores.1

Source: The Tax Foundation

CORPORATE INCOME TAXES

5.0% – Used for the uniform school fund Domestic and foreign corporations are required to pay a 5.0% state income or franchise tax on income earned in Utah. Multi-state corporations pay taxes based on apportioned income calculated through a formula, which includes property, payroll, and sales or gross receipts factors. Subchapter S Corporations, LLC’s, LC’s, LP’s, and Partnerships are taxed at the individual taxpayer level. For more information, please visit the Utah State Tax Commission web site: http://tax.utah.gov/.2

1 Source: Tax Foundation 2 Source: Utah State Tax Commission

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SALES & USE TAXES

5.95% – 8.35% – Used by local cities, towns, counties and the State of Utah Sales tax is collected on all retail sales. Rates vary by location due to special assessments and special service district assessments. Raw materials and sales for resale may be exempt. Products purchased out of state for final consumption within the state are subject to the same sales and use tax rates in the jurisdiction where the product is consumed.

Average Combined Sales & Use Tax Rates for Utah Counties

Source: Utah State Tax Commission, 2013 rates

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PROPERTY TAXES

Approximately 1.1% statewide average – Used for school district and taxing authority Local governments, usually at the county level, often assess additional taxes. Commercial and business personal properties are assessed at 100% of fair market value. Residential properties are assessed at 55% of fair market value. Agricultural properties may be subject to greenbelt provisions. Tax rates vary from county to county and city-to-city due to taxes approved for special service districts.

Property Tax Rates for Select Locations in Utah Counties

*Property tax rates reflect county, city, school district, special districts and other levies for specified locations. Source: Utah State Tax Commission 2012

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INDIVIDUAL INCOME TAXES

5.0% flat tax rate – Used for the uniform school fund Individuals pay state income tax on income earned in or derived from Utah. Credits for taxes paid in another state are limited to the effective rate as if earned in Utah. There are no local governments that assess an income tax. Beginning in 2008, taxpayers pay individual income tax under a flat tax calculation at 5.0% with the ability to claim one or more new non-refundable credits.3

MOTOR FUEL TAXES

24.5 cents per gallon – Used for state highway and local road construction Fuel tax is collected on each gallon of fuel purchased. Off-highway fuel use may be exempt from tax. Aviation fuel tax is 9 cents per gallon. Aviation fuel used by federally-certificated air carriers is taxed at 4 cents per gallon.

UTAH GOVERNMENT EXPENSES

Utah State Funds Expended in FY 2013-2014: http://le.utah.gov/interim/2014/pdf/00001069.pdf Utah’s total budget from all sources is $12.71 billion in FY 2013 and $12.89 billion in FY 2014 – up 1.8 percent in FY 2013 and another 1.2 percent in FY 2014. Rising revenue projections supported discretionary General and Education funds budgets of $5.13 billion in FY 2013 and $5.47 billion in FY 2014. Ongoing base budgets from the General and Education funds, net of one-time investments, increased by $241 million (4.8 percent) from FY 2013 to FY 2014.4 A $46 million surplus from FY 2012 combined with a 5.4 percent increase in ongoing revenue estimates and other available one- time money afforded legislators around $475 million in new ongoing and one-time discretionary sources. Public and higher education received the largest slice of new money – 55 percent.

State of Utah Expended in FY 2014

23% Public Education

32% Executive Offices & Criminal Justice

Business, Economic Development, & Labor

Natural Resources, Agriculture, & Environmental Quality Executive Appropriations

Infrastructure & General Government 22% 8% Higher Education

9% 1% 5%

3 Source: Utah State Tax Commission Income Tax Brackets & Rates 4 Source: Governor’s Office of Management and Budget, Division of Finance

10.4 01/31/14 TAXES

Business Incentives

STATE OF UTAH INCENTIVES

Businesses relocating to or expanding in Utah may be eligible for incentives from the state and/or local municipality. The following is a summary of these programs. The Governor’s Office of Economic Development Board (GOED) meets on the second Thursday of each month to review and approve applications for state incentives. Applications submitted by the third Thursday last Friday of the preceding month will be considered.1

EDTIF (Economic Development Tax Increment Financing) A post-performance, refundable tax credit for up to 30% of new state revenues (sales taxes, corporate taxes and withholding taxes paid to the state) over the life of the project (typically 5 to 10 years). It is available to companies seeking relocation and expansion of operations to the State of Utah. For additional information please visit the following link: http://goed.utah.gov/relocate/incentives/edtif/

Policy  Max credit of up to 30% over the life of the project  No more than 50% credit in any one year  The life of the incentive is typically 5 to 10 years  In urban communities, new jobs created must pay at least 125% above the county average wage and must be within a specific target industry  In rural communities, new jobs created must pay at least 100% of the county average wage  Retail distribution projects are not applicable for this incentive  Must meet minimum new job benchmarks

Requirements  Obtain commitment from local government to provide local incentives and establish an Economic Development Zone  Enter into an incentive agreement with GOED  Create new high-paying jobs in Utah (at least 50 jobs in urban communities paying at least 125% of county average wage and create new jobs in rural communities paying at least 100% of county average wage)  Generate new tax revenues  Significant capital investment  Significant purchases from Utah vendors/suppliers  Demonstrate company stability and profitability  Demonstrate competition with other locations outside of Utah

IAF (Industrial Assistance Fund) A post-performance grant for the creation of high-paying jobs in the state. For additional information please visit the following link: http://business.utah.gov/relocate/incentives/iaf/

Requirements  Obtain commitment from local government to provide local incentives  Enter into an incentive agreement with GOED  Create new high-paying jobs in Utah (paying at least 125% of county average wage and create new jobs in rural communities paying at least 100% of county average wage)

1 Source: Governor’s Office of Economic Development

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REDI (Renewable Energy Development Incentive) A post-performance, refundable tax credit for up to 100% of new state tax revenues (sales taxes, corporate taxes and withholding taxes paid to the state) over the life of the project (typically 5 to 10 years). For additional information please visit the following link: http://business.utah.gov/relocate/incentives/energy/

Requirements  Project consists of renewable energy generation or related manufacturing  Create new high-paying jobs in Utah (at least 50 jobs in urban communities paying at least 125% of county average wage and create new jobs in rural communities paying at least 100% of county average wage)  Obtain commitment from local government to provide local incentives  Demonstrate company stability sustainability  Demonstrate competition with other locations outside of Utah  Enter into an incentive agreement with GOED

Recycling Zones More than twenty Utah communities have been designated by the State of Utah as Recycling Market Development Zones. The zone legislation was established to incent businesses to use recycled materials in their manufacturing processes and create new products for sale. It also benefits businesses that collect, process and distribute recycled materials. For additional information please visit the following link: http://business.utah.gov/relocate/incentives/incentives- recycling_zones/

Possible Tax Credits Include:  5% Utah state income tax credit on the cost of machinery and equipment  20% Utah state income tax credit of up to $2,000 on eligible operating expenses  Technical assistance from state recycling economic development professionals  Various local incentives including zoning assistance, discounted business license fees, etc.

Research Tax Credits Companies doing qualified research in Utah may be eligible for a non-refundable income tax credit of up to 5% of qualified research activities and 6% of qualified investments in research machinery and equipment. For additional information please visit the following link: http://incometax.utah.gov/credits_research.php

Custom Fit Training This program provides specialized training for companies to train their employees. Custom Fit training is administered through the Utah College of Applied Technology centers and state colleges and universities. Training may be conducted at Salt Lake Community College campuses, Applied Technology Centers, or a business location. This incentive subsidizes $200,000.00 total for professional training and requires a company match. For additional information please visit the following link: http://www.ucat.edu/business/industry#customfit

Sales Tax Exemption for Manufacturing Equipment Manufacturers (SIC 2000-3999) may be eligible for exemption from sales tax on the purchase of new equipment for Utah plant start-ups. Replacement manufacturing equipment purchases may also be eligible for exemption. For additional information please visit the following link: http://tax.utah.gov/forms/current/tc-721.pdf

IRB (Industrial Revenue Bonds) / IDB’s (Industrial Development Bonds) Counties and municipalities issue IRB’s/IDB’s to promote industrial development and manufacturing facilities in the state of Utah. Funds must be used for manufacturing facilities. There is a $10 million cap per issue and a $240 million total annual state allocation cap.

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RFTP (Rural Fast Track Program) A post-performance grant available to small companies in rural Utah. The program provides an efficient way for existing small companies to receive incentives for creating jobs in the rural areas of the state and to further promote business and economic development. For additional information please visit the following link: http://business.utah.gov/relocate/incentives/rft/

Requirements  Project must locate in a Utah county with a population less than 30,000 and average household income less than $60,000  Existing business for at least two years  At least two full-time employees  Enter into an incentive agreement with GOED  Demonstrate how the project will promote business and economic development in rural Utah  Create and retain new high-paying jobs in rural Utah for at least 12 months

Enterprise Zone Tax Credits An enterprise zone comprises an area identified by local elected and economic development officials and designated by the state. Certain types of businesses locating or expanding in a designated zone may claim state income tax credits. For additional information please click on the following link: http://business.utah.gov/relocate/incentives/enterprise_zones/

Motion Picture Incentive Fund A post-performance rebate of production dollars spent in the State of Utah. An approved production is eligible for a rebate up to 25% on every dollar spent in the state. To qualify a production must spend a minimum of $1 million in the state. The incentive is offered as either up to 25% tax credit or a 20% cash rebate for qualifying productions. Productions under $1 million may be eligible for a 15% cash rebate. For additional information please visit the following link: http://film.utah.gov/mpif.htm

LOCAL INCENTIVES

Tax Increment Financing Cities and counties may award incentives to companies locating in Economic Development Areas (EDA), Urban Renewal Areas (URA) or Community Development Areas (CDA). The city or county determines EDA/URA/CDA areas on a local level. Incentive dollars are generated through the creation of new “property tax increment” that a development will generate. When a company constructs a new building, for example, its property tax increment is the result of the assessed value of the building multiplied by the property tax rate. In an EDA or URA, all public entities entitled to property tax agree to rebate their increment back to the new development for a specified period of time to incent the development to occur. In a CDA, public entities must opt-in on a property tax rebate if they see fit. Incentives are awarded as a percentage of the tax increment created by the development.

EDA / URA / CDA Designation  EDA’s are intended for development on land sites that will result in the value-added creation of jobs. There is no requirement for blight in an EDA and the property can be vacant or partially improved land.  URA’s are blighted areas that require local assistance to reasonably justify any type of economic renewal.  CDA’s are intended to undertake any economic or community development purpose of the city, including job growth or retail sales.

Revolving Loan Funds (RLF’s) Numerous RLF programs have been established in the state to promote economic development within Utah. RLF’s are a gap financing measure used primarily for development and expansion of small businesses. Communities in Utah offer RLF’s to provide access to a flexible source of capital to be used in combination with more conventional sources. Often

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RLF’s act as a bridge between the amount a borrower can obtain through private market funding and the amount needed to start or sustain a business. RLF’s issue loans at competitive market rates. Durations and loan amounts vary according to the use of funds. For additional information please visit the following link: http://www.governor.utah.gov/budget/Budget/Agency%20Summaries/FY2010/revolving%20loan%20funds.pdf Here are links to some of the state’s existing RLF programs:  Salt Lake City RLF: http://www.slcgov.com/ED/pdfs/smallbusloanapp.pdf  Davis County RLF: http://www.co.davis.ut.us/discoverdavis/incentives/revolving_loan_fund.cfm  Mountainland RLF: http://www.mountainland.org/index.php?option=com_content&view=article&id=383:revolving-loan- fund&catid=30:econdev&Itemid=74  Utah’s Five County Association of Governments: http://www.fcaog.state.ut.us/programs/community/business.php

WORKFORCE DEVELOPMENT INITIATIVES

DWS Small Business Bridge Program The Small Business Bridge Program (Bridge Program) provides a limited reimbursement opportunity to small businesses that incur training costs from the creation of new jobs. The Bridge Program strives to provide training reimbursement and create new revenue to the Utah Unemployment Compensation Fund (Fund) from the creation of new jobs. The Bridge Program is being funded entirely by penalty and interest payments collected from the Fund and will not require any new funding sources for its operational or administrative costs.

The Bridge Program is being implemented to help small businesses offset the cost of training for newly created jobs by providing direct reimbursement to businesses that are willing to hire additional permanent employees. As small businesses make up approximately 97 percent of the existing employing entities in Utah, it serves that effective public programs will provide assistance to ensure that small businesses continue to grow.

Contact: Ben Hart, Director of Employer Support Initiatives Utah Department of Workforce Services 140 East 300 South Salt Lake City, UT 84111 Phone: 801-526-9247 Fax: 801-526-9211 Email: [email protected]

DWS Project Restart Project Restart creates an opportunity for individuals with felony backgrounds to reclaim their potential while simultaneously benefiting one of our community’s most important resources, local businesses. The process of selecting the right individual starts with evaluating individuals that are currently being monitored by Adult Probation and Parole. After handpicking the right person, the UDOWD Taskforce creates a referral for that person to program Restart, which is managed by DWS.

The program is in essence, an internship. DWS pays the individual a stipend of $8.00 an hour, for a maximum of 40 hours weekly. The employer does not pay the intern, nor does the employer need to put the intern on their payroll in any way. After the internship has concluded, it is the intent of the program that the individual will have proven their worth and be hired on with full time employment at a wage no less than $8.00 hourly. As a further incentive, upon successful completion of the internship and upon hiring the intern on to full time work, the employer will receive a $500 incentive payment.

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Contact: Teresa Fulton, Employment Counselor Roy Employment Center 1951 West 5400 South Roy, UT 84067 Phone: 801-776-7228 Email: [email protected]

DWS Federal Bonding Program Bonding is a free service provided to employers who are willing to hire hard to place job applicants. Employers can hire without risking the loss of money or property.  Coverage includes theft, forgery, larceny or embezzlement.  Coverage is effective the day a new employee begins work. There are no documents for the employer to sign or paperwork to complete.  The bond has no deductible and reimburses the employer for any loss due to employee theft within the specified six-month period.  Bonds can be issued to any employer regardless of whether the company has or has not commercially purchased a Fidelity Bond. Additional information regarding the Federal Bonding Program can be accessed online at: http://www.bonds4jobs.com/.

DWS On-the-Job Training The On-the-Job Training (OJT) Program offers reimbursement to employers who provide customized job training for participants. Employers can be in the public, private or nonprofit sector.  Employers will be reimbursed for up to 50 percent of the participant wages during training.  An OJT contract must be negotiated prior to the hire.  OJT contracts will not exceed six months. This training program provides the employer with a “custom trained” employee at a reduced cost, and helps the trainee to increase specific job-related skills through work experience in an occupation. This increases the trainee’s potential for future work opportunities and earnings.  Obtain employees that are trained in the methods of your company, at a reduced cost.  DWS will screen applicants for you, using the criteria you provide, and refer potential employees to you for your final interview and selection.  The reimbursement will help to offset the expenses incurred during new employee training. For additional information and to sign a contract to participate, contact the nearest DWS Employment Center. Locations are available at www.jobs.utah.gov/regions/ec.html.

DWS Work Experience and Paid Internships Work Experience and Paid Internships are intended to assist participating employers with temporary work needs, while giving trainees hands-on experience in a career setting. The Department of Workforce Services (DWS) administers Work Experience and Paid Internships free of charge to employers. We will develop a training outline based on your needs and the needs of the trainee. As an employer, you will be responsible for helping the trainee upgrade his/her skills according to the agreed upon training outline.

Work Experience is intended to give trainees an opportunity to acquire the general skills, knowledge, and work habits necessary to obtain employment. Paid Internships are intended to give trainees hands-on experience to gain occupational skills in a career setting.  You will have the opportunity to train potential employees exactly to your specifications.  DWS will provide medical Workers Compensation coverage to trainees injured while participating at your worksite.  You are encouraged to evaluate the arrangement at the end of the training experience to determine whether a more permanent placement at your business place is appropriate. For additional information and to sign a contract to participate, contact the nearest DWS Employment Center. Locations are available at www.jobs.utah.gov/regions/ec.html.

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DWS Federal Work Opportunity Tax Credit (WOTC) WOTC is designed to help people in need of employment to gain on-the-job experience and move towards economic self- sufficiency. As an employer, WOTC can benefit you by reducing your federal tax liability when you hire from targeted groups of job seekers.

Annual tax credits can be as much as:  $2,400 for each new adult hire  $1,200 for each new summer youth hire  $4,800 for each new disabled veteran hire  $9,000 for each new long-term family assistance recipient hired over a two-year period For more information on forms, the certification process, and State WOTC Unit contact information, please visit the web site at http://jobs.utah.gov/employer/business/wotc.html.

OTHER AVAILABLE INCENTIVES

Additional Financing Options For additional information on financing options in Utah please visit the following link for our Business Financing Options: http://www.edcutah.org/incentivesAndFinancing.php

Foreign Trade Zone (FTZ) Reactivated In March 2009, the U.S. Department of Commerce approved Salt Lake City’s application to reactivate the state’s FTZ. After 13 years of inactivity, the newly reactivated FTZ allows Utah to offer businesses great advantages to compete on a global scale.

Freeport Law Goods used by retailers, wholesalers or manufacturers for processing and sale in Utah are exempt from ad valorem taxes.

Employee Recruiting / Screening / Training Assistance The Utah Department of Workforce Services (DWS) provides employment and support services to help improve the economic opportunities in the state. The DWS Electronic Job Board is a qualified worker’s database that allows employers to filter applicants for those that have specific abilities, trades, educational attainment and other such criteria. The Electronic Job Board is connected to the American Job Bank, which enables open positions to be posted and viewed nationwide. DWS will also set-up in-house recruitment efforts at the business location and provide office space at various locations for conducting interviews. For additional information please visit the following link: http://jobs.utah.gov/employer/dwsdefault.asp

Utah Business Resource List For additional information on business resources please visit the following link for our Business Resource List: http://www.edcutah.org/documents/UtahBusinessResourcesList_080609_000.pdf

Economic Development Corporation of Utah (EDCUtah) The Economic Development Corporation of Utah (EDCUtah) can provide relocation assistance through its diverse investor base. Please contact EDCUtah for more information: http://www.edcutah.org/contactUs.php

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Business Financing Options

BONDS / LEASES / LOANS / GRANTS

PAB (Private Activity Bonds) Small manufacturers looking to grow and expand their businesses are prime candidates for private activity bonds. Issued through cities and counties, these tax-free bonds provide an ideal, cost effective means for acquiring manufacturing- related real estate and equipment. The federal government allocates $28 billion per year to states on a per capita basis, with Utah receiving $273,270,000 in 2009. For additional information please visit the following link: http://housing.utah.gov/pab/index.html

Equipment Leasing For companies who lack the resources to purchase equipment, or would like to improve their balance sheets and ability to borrow, equipment leasing may be an attractive option. Working through companies like CIT, GE Capital and most traditional commercial banks, equipment leasing can be done for equipment ranging in price from tens of thousands of dollars to tens of millions of dollars.

SBA (Small Business Administration) SBA loans are the most common and most successful means for which a small business can acquire capital. Working through banks that participate in the SBA loan program, companies can acquire funding for real estate, equipment and operating capital under terms that make the loans extremely attractive. For additional information please visit the following link: http://www.sba.gov/localresources/district/ut/

SBA 7(a) Guaranty Loan Program The SBA 7(a) guaranty program has the largest single portfolio of any economic development tool. The BSA 7(a) is a lender-based program that provides guaranties of up to 85 percent with the primary purpose being to benefit small business by helping finance long-term loans. These funds can be used for most legitimate business needs but the business owner must meet prudent lending criteria when analyzing management, owner capitalization and ability to repay.

SBA 504 Loan Program Eligible borrowers include: user businesses, for-profit, and existing companies, all of which must have a sound business purpose. Ineligible borrowers include: real estate developers, financial institutions, not-for-profits, and gambling. Funds can be used for acquisition of land or building, rehabilitation, construction, leasehold improvements, acquisition of machinery and equipment with useful life greater than 10 years, certain professional fees (architectural, engineering, etc.), and construction contingency. Maximum SBA financing in a project for regular 504 loans is $1.5 million, $2.0 million for loans than meet a public policy goal, and $4.0 million for loans to small manufacturers.

Opportunity Finance Network The Opportunity Finance industry provides capital and financial services to bridge market gaps and help mainstream financial institutions and the public sector connect to low- and moderate-income communities and customers. The Opportunity Finance industry includes more than 1,200 mission-driven Community Development Financial Institutions (CDFI’s). This industry enables lending to small- and medium-sized business in unconventional markets often overlooked by many financial institutions. Loans typically range from $50,000 to $5 million.

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UMLF (Utah Microenterprise Loan Fund) The UMLF offers a wide array of lending options to individuals looking for small amounts of capital to open their own business. The traditional micro-loan, ranging from $1,000 to $25,000, is repaid over five years at an interest rate of prime plus five percent. Over the past 15 years, the UMLF has helped secure funding for more than 570 small businesses in Utah.

USDA Loan Guarantee This program encourages rural lenders to finance good, quality business opportunities that support diversified economies in rural Utah areas. Working with commercial banks, the USDA provides a default guarantee of up to 80% of the loan value to help remove some of the risk undertaken by a lender.

UTFC (Utah Technology Finance Corporation) Financing Solutions, LLC UTFC, a licensed Small Business Investment Company in Salt Lake City, invests in small companies throughout the region by providing subordinated debt to start-up and growing businesses. The UTFC assists a wide range of companies from manufacturing to services, but focuses primarily on information technology and provides up to $750,000 to entrepreneurial companies.

GRANTS / VENTURE CAPITAL

SBIR/STTR Assistance Program (SSAP) SSAP is the small business source for information and assistance for Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) program grants. SSAP can assist with the preparation of grant proposals. Grants are funded through the federal government and recipients may be awarded $100,000 to $1 million in funds.

Utah Angel Network The Utah Angel Network, one of the few organized angel investment groups in the country, is a collection of private investors backing Utah entrepreneurs. Investing $50,000 to $2 million as equity or convertible debt, the Utah Angel Network assists in securing next-stage financing from a venture capital firm, private sources, or an IPO.

Grow Utah Ventures Grow Utah Ventures is directly involved in assisting a number of early stage Utah businesses in obtaining financial resources and achieving their revenue goals. Through partners and private members, Grow Utah Ventures helps a wide range of businesses transition from start-up to the early stages of business growth. This company is an integral player in the Utah Angel Network.

WBI (Wayne Brown Institute) WBI offers entrepreneurial education and training programs to help promising, early-stage technology companies receive venture capital.

BUSINESS START-UP SERVICES

GOED (Governor’s Office of Economic Development) ITDO (International Trade & Diplomacy Office) ITDO assists companies in developing markets for their products and services in other countries.

Utah Procurement Technical Assistance (PTAC) PTAC centers help small businesses with all phases of Government contracting -federal, state, and local. Counselors provide one-on-one and group instruction that helps clients identify contracting opportunities, which can create growth of market share and revenues for them. PTAC is an important part of The Governor's Office of Economic Development, with eight offices throughout the state to assist you.

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Contact: Fred Lange, Director PTAC Main Office 60 East South Temple, 3rd Floor Salt Lake City, UT 84111 Phone: 801-538-8733 Email: [email protected]

Salt Lake Community College Miller Business Resource Center The Miller Business Resource Center is home to its Business Innovation Center, a business incubator for small and start- up companies seeking growth in Utah. The center offers 30,000-square-feet of space where entrepreneurs operate their business while receiving infrastructure and entrepreneurial resources to facilitate business growth and long-term success.

Novell’s Open Source Technology Center The Open Source Technology Center encourages and supports innovation in open source software technology. Novell allocates 27,000 square feet of prime office space at its Provo campus. Emerging, open source companies can move to the center and benefit from a fully equipped business infrastructure and extensive on-site resources.

Salt Lake Chamber Women’s Business Center (WBC) The WBC facilitates the entry of new women business owners into mainstream business and chamber activities. The WBC, a partnership between the Salt Lake Chamber and the Small Business Administration, offers counseling, training, networking and mentoring opportunities, business plan writing assistance, marketing and management assistance and government contracting assistance.

Utah Department of Commerce The Utah Department of Commerce is the licensing and registration agency for Utah’s professional and business community. This organization provides oversight for business registration, trademarks, Uniform Commercial Code filings, licensing, consumer protection, public utilities, real estate and mortgage lending.

Utah Department of Workforce Services (DWS) The Utah Department of Workforce Services (DWS) provides employment and support services to help improve the economic opportunities in the state. The DWS Electronic Job Board is a qualified worker’s database that allows employers to filter applicants for those that have specific abilities, trades, educational attainment and other such criteria. The Electronic Job Board is connected to the American Job Bank, which enables open positions to be posted and viewed nationwide. DWS will also set-up in-house recruitment efforts at the business location and provide office space at various locations for conducting interviews.

Utah Small Business Development Center (SBDC) With nine regional centers throughout the state, the SBDC is dedicated to helping small businesses achieve their goals of successful start-up, growth, innovation, increased productivity, management improvement and success. The SBDC offers services ranging from one-on-one consulting in management, financing and marketing to assistance with marketing research and access to capital.

Utah Supplier Development Council (USDC) The USDC assists and promotes small disadvantaged, Hub-Zone, Veteran and women-owned business enterprises to become suppliers to large businesses. USDC provides training opportunities and sponsors trade fairs.

Utah U.S. Export Assistance Center (USEAC) The USEAC assists Utah businesses with exporting, market research, trade events, counseling, and advocacy services.

Zions Bank Business Resource Center (BRC) The Zions BRC offers a broad range of services from basic business planning assistance to human resources, marketing

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 12.3 Utah’s Economic Clusters

UTAH’S ECONOMIC CLUSTER INITIATIVE

Utah’s Economic Cluster Initiative is designed around proven economic principles where collaboration among organizations offers sustainable advantages to local economies. Based on successful economic models, Utah is capitalizing on its core strengths and facilitating the development of clustered business environments where these key strengths will result in a thriving economy and an increased standard of living.

Utah’s Economic Clusters Economic clusters are groups of related businesses and organizations within industry sectors whose collective excellence and collaboration provide a sustainable competitive advantage. Strong economic clusters translate directly into tangible benefits for Utah’s businesses, citizens and educational institutions. Here are Utah’s key economic clusters:

 Life Sciences  Software Development & IT  Personalized / predictive medicine  Systems management & security o Genetics & biomarker development  Web services & software applications o Pharma research & clinical services  Wireless technologies o Neuroscience  Technical / business processing centers  Medical devices & product  Digital media & entertainment technology  Microbe biotechnology  High-performance computing applications  Environmental & agricultural technology o Simulation, imaging, modeling & & remediation algorithms  Cellular systems  GIS mapping & imaging

 Aerospace  Defense & Homeland Security  Composites & advanced materials  Smart sensors & chemical / biological  Propulsion systems detection  Communications & avionics  Autonomous systems

 Energy & Natural Resources  Financial Services  Energy independence  Industrial banks  Mining & mineral technology  Water management

 Outdoor Products & Recreation  Competitive Accelerators  Nanotechnology  Advanced manufacturing  Logistics & distribution centers  Networking infrastructure  Quality of life o Personal wellness & nutraceuticals o Family-related products

For additional information please visit the following link: http://goed.utah.gov/targeted-industries/economic-clusters/

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Quality of Life

COST OF LIVING

A major component to any city’s quality of life is its cost of living. Affordable living and stable employment are important aspects to everyone’s quality of life.

ACCRA cost of living data provides insight into the affordability of metro areas throughout the U.S. Housing relates directly to the cost of purchasing a new home, an existing home, or renting an apartment. The utility index score represents a broad assortment of goods ranging from food items to health products to sporting goods. The utility index reflects the costs associated with natural gas, electricity and phone service. Transportation is a function of public transit costs and gasoline prices. These figures are comparable to the national index score, set at 100. One may also compare indices from one city to another to better determine which city is more affordable in light of their respective index scores or view quarterly changes in an index score to monitor changes in the cost of living for a specific city or area.1 The table and graph below provide Utah and surrounding metro area data.

Cost of Living Data (Annual 2013) Composite Major Utah Cities Housing Grocery Items Utilities Transportation Health Care Misc. Goods Index Cedar City, UT 87.3 72.3 90.5 83.3 95.5 89.6 95.5 St. George, UT 91.6 86.7 89.3 85.0 96.8 91.1 96.3 Salt Lake City, UT 94.5 90.6 88.7 84.2 99.1 96.9 100.9 Source: ACCRA Cost of Living Index (Annual 2013 data)

Cost of Living Metro Area Comparison

San Fran, CA 161.6

Denver, CO 97.2

Las Vegas, NV 100.8

Boise, ID 93.5

Phoenix, AZ 96.0

Salt Lake City, UT 95.7

St. George, UT 91.5

Cedar City, UT 87.4

0.0 40.0 80.0 120.0 160.0

ACCRA Cost of Living Index (Annual 2013 data)

1 Source: ACCRA Cost of Living Index

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 14.1

SKIING AND SNOWBOARDING

Home to the “Greatest Snow on Earth,” Utah is known around the world for its pristine mountains and ideal skiing and snowboarding conditions. With 14 world-class resorts, 11 within a one-hour drive time from the Salt Lake City International Airport, there is something for everyone, regardless of skill level or budget.

Average Annual Miles from Major Resort Top Elevation # of Runs Adult All-Day Pass Snowfall Airport* Alta 500 10,550 116 $66 33 SLC Beaver Mountain 400 8,800 30 $40 112 SLC Brian Head 400 11,307 50 $45 195 LV Brighton 500 10,500 66+ $58 35 SLC Canyons 355 9,990 157 $89 32 SLC Deer Valley 300 9,570 99 $83 39 SLC Eagle Point 450 10,600 40 $48 220 SLC Park City 350 10,000 104 $84 37 SLC Powder Mountain 500 8,900 113 $58 55 SLC Snowbasin 400 9,300 104 $58 40 SLC Snowbird 500 11,000 92 $85 31 SLC Solitude 500 10,035 65 $72 33 SLC Sundance 320 8,250 41 $47 55 SLC Wolf Mountain 350 6,400 19 $26 - $32 50 SLC *SLC = Salt Lake City International Airport; LV = McCarran International Airport, Las Vegas, Nevada

HIKING, CAMPING AND MOUNTAIN BIKING

Often overshadowed by world-class skiing, Utah’s hiking, camping, and mountain biking amenities are unmatched. Being home to five national parks, seven national monuments, two national recreation areas, and six national forests, Utah has hundreds of thousands of acres of terrain for any and all outdoor activities.2

National Forests  Ashley National Forest  Dixie National Forest  Fishlake National Forest  Manti-La Sal National Forest  Uinta National Forest  Wasatch-Cache National Forest

National Monuments  Cedar Breaks National Monument  Dinosaur National Monument  Grand Staircase-Escalante National Monument  Hovenweep National Monument  Natural Bridges National Monument  Rainbow Bridge National Monument  Timpanogos Cave National Monument

National Parks Arches National Park – This national park holds the world’s largest concentration of natural stone arches. This is a wonderful destination for hiking, mountain biking, and river rafting.

Bryce National Park – This eastern slope of the Paunsaguant Plateau is home to many unique geologic formations. Many visit this national park to enjoy a wide array of recreational activities.

2 Source: Utah Travel & Adventure

14.2 01/31/14 QUALITY OF LIFE

Canyons National Park – This is Utah’s largest national park. It is known for its red rock structures. People visit this national park mostly for hiking, riding off-road vehicles, mountain biking, and river rafting.

Capitol Reef National Park – The sandstone formations and cliffs of this national park invite visitors to enjoy hiking and riding off-road vehicles.

Zion National Park – This is Utah’s oldest national park and most heavily used and visited national park. It is ideal for hiking, rock climbing, and river rafting.

National Recreation Areas  Flaming Gorge National Recreation Area  Glen Canyon / Lake Powell National Recreation Area

FISHING AND HUNTING

Fishing Utah is well known for excellent trout fishing in high mountain lakes and streams. Few people know the state offers a wide variety of other exciting fishing opportunities, including trophy lake trout that weigh in at over 40 pounds, ferocious tiger muskie, striped bass so plentiful they have removed the limit, and hard-fighting “wipers,” a unique hybrid fish that is a cross between white bass and striped bass. Utah also has quality waters for walleye, largemouth, smallmouth, white bass, perch, crappie, channel catfish, and several other species. With numerous reservoirs, lakes, rivers, streams, and ponds in both Northern and Southern parts of the state, Utah offers many great fishing opportunities. Fishing is open year- round on most waters.3

Hunting Species commonly hunted in Utah are mule deer, elk, antelope, pheasant, duck, geese, sage grouse, forest grouse, chucker partridge, mourning dove, and wild turkey. Hunting is allowed in most public areas of the state, except in national parks, monuments, and state parks. Applications for all special big game permits requiring a drawing are taken January 1st through the 31st. The application period to hunt bear, mountain lion, and bobcat is mid-October to mid-November. Licenses are available from all Utah Wildlife Resources offices, from most sporting goods stores in the state, and online. In Northern Utah, the Wasatch-Cache National Forest offers one of the most rewarding hunting areas in the state for deer, elk, and moose. There is a drawing every February for once-in-a-lifetime permits for buffalo, desert bighorn sheep, moose, and Rocky Mountain goats. The nation’s only free-roaming, hunt-able buffalo herd resides in the Henry Mountains in Southern Utah. Ducks may be hunted at the Utah Wildlife Resources Desert Lake Waterfowl Management Area and antelope are hunted north of Cisco.4

GOLF

With over 100 courses and 1,700 individual holes, Utah’s golf scene is unmatched in terms of its variety of locations and affordable prices. Utah’s distinct climate allows golfers to enjoy the sport year-round, whether it’s playing in the mountains of Park City during the heat of the summer or enjoying the mild condition of St. George in the dead of winter. Utah offers a good mix of public and private courses, making it possible to play the game in a variety of settings to match any skill level and budget. Utah courses are best known for three characteristics: scenery, condition and variety. The state boasts championship golf on courses designed by the pros. Traditionally recognized as a winter recreation retreat, summer sports in Utah are growing in popularity thanks to the golf courses and increased awareness of the state’s magnificent and diverse landscape. From beautiful mountains to panoramic red rock formations to meandering streams, Utah has it all as backdrops for challenging golf.5

3 Source: Utah Travel & Adventure 4 Source: Utah Travel & Adventure 5 Source: Utah Travel & Adventure

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 14.3

OTHER RECREATIONAL ENTERTAINMENT

The state of Utah is unique. It has more variety of landscapes, geology, and recreational opportunities than one would imagine. In addition to the activities listed above, Utah offers the possibility to participate in a wide range of other recreational activities. Most of Utah lies on a plateau higher than 4,000 feet above sea level. The geology of this region takes on an amazing variety of shapes and colors. Elevations rise and fall dramatically in the shape of mountains, buttes and plateaus, the highest reaching over 13,000 feet. Within this varied landscape, Utah offers something for everyone whether they are a rugged, solitude-seeking explorer or a family looking for a relaxing getaway. In Utah, there is an abundance of terrain to support nearly all recreational activities.6

SPORTS TEAMS7

Professional Sports Teams

 Ogden Raptors – Minor League Baseball, A Affiliate of the Los Angeles Dodgers  Orem Owlz – Minor League Baseball, A Affiliate of the Los Angeles Angels  Real Salt Lake – Professional Soccer, Major League Soccer  Salt Lake Bees – Minor League Baseball, AAA Affiliate of the Anaheim Angels  Utah Blaze – Arena Football, Arena Football League  Utah Grizzlies – Professional Hockey, East Coast Hockey League  Utah Flash – Professional Basketball, NBA Developmental League  Salt Lake Sparta – Professional Soccer, Women’s Premier Soccer League  Utah Starzz – Professional Soccer, Women’s Premier Soccer League  F.C St. George – Professional Soccer, Women’s Premier Soccer League  Utah Warriors – Professional Rugby, Rugby Super League

Collegiate Sports Teams The state of Utah has six NCAA Division One sports programs, each having successful teams in many different sports. Intense rivalries exist between many of the schools and they have never been more competitive.

 Brigham Young University Cougars (Provo, Utah)  University of Utah Utes (Salt Lake City, Utah)  Utah State University Aggies (Logan, Utah)  Weber State University Wildcats (Ogden, Utah)  Southern Utah University Thunderbirds (Cedar City, Utah)  Utah Valley University Wolverines (Orem, Utah)

DINING AND NIGHTLIFE

Utah is home to some of the finest restaurants and nightclubs in the Western U.S., with 13 award-winning microbreweries and restaurants ranging from fine French cuisine to open air mountain cafés. Park City, famous for its high-end skiing and Hollywood connections, is home to more world-class restaurants than anywhere else in the state. Salt Lake City’s restaurant fare rivals any surrounding metro area. For a listing of local favorites by cuisine please click on the following link: http://www.cityweekly.net/utah/flex-105-best-of.html

6 Source: Utah Travel & Adventure 7 Source: Utah Sports Commission

14.4 01/31/14 QUALITY OF LIFE

Here are some recent, noteworthy rankings for food and drink establishments in Utah:

 Ichiban Sushi  “Top 100 Best Sushi Restaurants” by Gourmet Magazine

 Market Street Grill & Oyster Bar  “Top 100 Independent Restaurants” by Restaurants & Institutions

 Mariposa  “Best Restaurant” and rated #1 by Mountain Living Magazine and Zagat

 Bambara  “Bodes well for Utah’s dining” by Food Arts Magazine

 The Red Door  “Trendy bar with cosmopolitan accent . . . where t-shirt and jeans meets suit and tie” by Fodor’s Review

 The Bayou  “More than 200 microbrews, Cajun food, live jazz and a high-energy atmosphere” by Fodor’s Review

 Wasatch Brewery  National recognition and awards from N.A. Brewers Assoc., Great American Beer Fest, World Beer Cup

 Castle Creek Winery  Utah’s first and largest winery; award recipient at New York and California competitions

RELIGION

All major world religions are represented in Utah as well as many non-denominational houses of worship. In the Salt Lake Valley, active congregations of over 30 different denominations meet weekly.

First Explorers Catholic priests and explorers were the first Europeans in the state, preceded by generations of Native American tribes, and then by Mexicans and Spaniards. Some Native American tribes still reside within the state boundaries to this day.

Founding of the State – The Church of Jesus Christ of Latter-day Saints Beginning in 1847, large numbers of predominantly white settlers moved into the area that is now Utah. This group was composed of pioneers who were members of the Church of Jesus Christ of Latter-day Saints, also called Mormons. From about 1860, people of other religious affiliations began entering the area. The percentage of non-Mormons settling in Utah increased in the 20th century. After Mormons, Roman Catholics are the second largest religious group in Utah, followed by Methodists, Lutherans and Presbyterians. There is also a number of Greek Orthodox, Buddhist, Muslim and Jewish congregations in the state.

Continued Growth and Diversity Born out of the 2002 Winter Olympics, Utah’s Interfaith Week and Salt Lake’s Interfaith Roundtable are groups of faith leaders who come together to promote love, harmony and understanding among people of all faiths, traditions, cultures and belief systems. Similarly, Ogden’s Interfaith Works is an association of religious, social action and community organizations within the Greater Ogden area that meets regularly to share ideas and support social action within the community.

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 14.5

Recent Economic Activity

2012-2014 Q1 JOB EXPANSIONS

Announced Additions: Company Name Brief Description Location Enel Manufacturing Millard County Cobalt Health Professional Murray Varian Medical Systems Health Care Salt Lake City Otto Bock Manufacturing Salt Lake City U.S. Oil Sands Inc Manufacturing Uintah Basin Lin Manufacturing Manufacturing North Logan Beijer Electronics Manufacturing Salt Lake City American Cruise Lines, Inc. Arts, Entertainment & Recreation Sandy Frontier Communications Information & IT Provo City TelePerformance USA Professional Salt Lake City Atlas Insight, LLC Finance and Insurance Allstate Finance and Insurance Indus Valley Partners Information & IT Yosemite Meat Co. Inc. Manufacturing Veterans Medical Supply, Inc. Distribution Warehouse Salt Lake City School Improvement Network Educational Salt Lake City OOCL (USA) Transportation South Jordan Cardon Outreach Health Care United States Bakery Manufacturing Salt Lake City Rheem Distribution Warehouse West Valley City New York Mint, LLC Distribution Warehouse South Jordan Easton-Bell Sports Salt Lake City STO Inc Manufacturing Emery Refining Manufacturing Green River HireVue Information & IT South Jordan Master Control Information & IT Cottonwood Heights SyberJet Manufacturing Cedar City Blu Utilities Salt Lake City Solarwinds Information & IT Utah County GeoMetWatch Manufacturing North Logan FireEye Information & IT Draper Capital Access Network Inc. Finance and Insurance Salt Lake City doTERRA Manufacturing Pleasant Grove 1-800 Contacts Health Care Salt Lake County Petzl America Distribution Warehouse West Valley City Boeing Realty Corp. Manufacturing West Jordan GAF Manufacturing Iron County

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 15.1

Orbit Irrigation Products, Inc. Manufacturing North Salt Lake Instructure Educational Cottonwood Heights Workday Information & IT Salt Lake City Royal Bank of Scotland Information & IT Taylorsville Qualtrics Information & IT Provo U.S. Translation Company Information & IT Salt Lake City Klune Industries Manufacturing Spanish Fork Orange Soda, Inc Information & IT Utah County Enve Composites Manufacturing Ogden United States Cold Storage Distribution Warehouse Syracuse earthmine Information & IT Salt Lake City Vexxel Manufacturing Brigham City BioFire Diagnostics, Inc Health Care Salt Lake City Mindcrest Professional South Jordan Monson Snowboards Manufacturing Washington County Xi3 Corporation Information & IT Salt Lake City PB Systems, Inc. Information & IT Orem EMC Corporation Information & IT Draper Rockwest Composites Manufacturing West Jordan Discgenics Health Care Xactware Information & IT Utah County Peterbilt Manufacturing Salt Lake City Schiff Nutrition Manufacturing Salt Lake City FL Smidth Mining Midvale Futura Industries Manufacturing Family Dollar Distribution Warehouse St. George Workday Professional Salt Lake City Global Value Commerce Distribution Warehouse Salt Lake City HCA Health Care Draper Gorilla Brake & Components, INC. Manufacturing Salt Lake City Source: EDCUtah

RECENT ECONOMIC NEWS

 eBay Inc. is expanding its operations in Draper. The company, which employs about 1,400 Utahans, is building a facility in Draper that would replace an existing one there. The new operation is expected to employ an additional 2,200 people over the next 20 years. It is expected the new expansion will generate an additional $127.2 million in state tax revenue over 20 years.1  Qualtrics Labs Inc. is a Provo-based company that produces three Web-based products — its Research Suite, which helps companies and schools conduct their own custom-made surveys and data analysis; Site Intercept, which allows websites to get feedback from visitors; and 360, a tool to help human resource operations assess employee performance. It turned down an offer to be bought for $500 million and instead accepted $70 million funding from renowned Silicon Valley venture capitalists Sequoia Capital and Accel Partners, which funded the

1 Source: Salt Lake Tribune

15.2 01/31/14 RECENT ECONOMIC ACTIVITY

launches of Apple and Facebook. Qualtrics executives claim it is the biggest first-round infusion of capital in Utah’s history.2  Xactware Solutions Inc., the Utah County-based technology company that produces management software for building and remodeling professionals is building a 210,000-square-foot facility near Timpanogos Highway in the Traverse Mountain Business Park. Xactware develops computer and mobile software that helps in calculating building and repair costs. It is expected that 860 workers will be hired over the next two decades.  EMC Corp. opened a technical support center in Draper that is expected to eventually employ about 500 people with high-tech and customer service skills. The 25,000-square-foot center has been operating since December 2011, and EMC officials said they expect to have the 500 jobs filled by the end of 2015. To qualify for a $3.5 million state tax incentive, the jobs are to pay at least 125 percent of Salt Lake County’s average annual wage of $41,636 in 2011, or about $52,000.  Home Depot opened a national customer service and sales center in Ogden. The center already employed close to 300 people but another 180 people began training recently. Home Depot expects to have created a total of 691 jobs by 2015, with 181 of them paying at least 125 percent of the average Weber County wage.  BioFire Diagnostics Inc., a Utah company that develops and manufacturers instruments to identify pathogens, will receive a tax credit worth up to $24.4 million over the next 20 years conditioned upon it creating up to 657 jobs.3  Hexcel Corp. is contemplating investing as much as $650 million in its West Valley City operations over the next 10 years. If that investment is completed in its entirety, it could result in more than 600 new jobs, which would double the number of its Utah employees.4  L-3 Communications, which already employs some 4,000 Utahans at its Communications Systems West division in Salt Lake City, expects to invest $5.6 million to $6.1 million in an expansion program that will begin next year and result in the hiring of 500 employees over the next decade. The company's division in Utah provides network engineering, software integration, hardware manufacturing and test support services for the military/defense market.5  Xi3 emerged on to Utah’s technology scene in 2010 with an innovation award from the Consumer Electronics Show and a lot of attention at its booth at the 2011 CES show. Founder and CEO Jason Sullivan had been building the company for a decade prior. Xi3 is in the process of hiring 500 employees at wages at least 25 percent or higher above the average wage Salt Lake County, which in fiscal year 2012 is $43,468.6  Lifetime Products, Inc. which already has 1,700 employees in Clearfield will add an expected 482 jobs along with $46 million in capital investment. The company, which manufactures sports equipment, storage sheds, tables and other products, said it had been considering expansion in Ohio, Missouri or in Monterrey, Mexico, where it maintains warehouse facilities. State officials said the average wage of the new jobs is about $41,800 annually, including benefits. The company anticipates adding about 40 people a year over the next two decades.  Family Dollar expects to hire close to 450 employees within a few years. The new St. George distribution center is the 11th such facility in the nation which provides to over 7,100 stores nationwide.  Schiff Nutrition, a provider of supplements, plans to hire up to 100 more employees in Salt Lake City as it expands in coming years.7

For additional economic news in Utah please visit the following link: http://www.edcutah.org/news.php

For information regarding recent company expansions and relocations please visit the following link: http://www.edcutah.org/mediaCenter.php

2 Source: Salt Lake Tribune 3 Source: Salt Lake Tribune 4 Source: Salt Lake Tribune 5 Source: Salt Lake Tribune 6 Source: Salt Lake Tribune 7 Source: Salt Lake Tribune

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 15.3

Rankings & Comparisons

OVERVIEW Highest Ranked for Economic Outlook Rank State Brief highlights of key rankings and headlines featuring 1 UTAH Utah and its communities. 2 North Dakota

3 South Dakota Utah: “Most Dynamic Economy in the Nation” The Kauffman Foundation ranked Utah 8th in the nation 4 Wyoming for economic development, up from the previous 12th 5 Virginia position in 2010. The study compares all 50 states in 26 Source: ALEC-Laffer, Rich States Poor States (2013) different factors of economic development.

Utah’s Rankings in the 2012 State New Economy Index Utah #3 “Best State for Business” Forbes Magazine released its annual “Best States for Rank Utah Rankings by Type Business and Careers” ranking. The results ranked Utah st 1 Economic Dynamism #3 in the nation after being ranked 1st for the past three 1st E-Government consecutive years. Rankings are based on six primary 1st Online Population categories: business costs, economic climate, growth 1st Investor Patents prospects, labor, quality of life and regulatory 1st Manufacturing Value Added environment. 2nd Job Churning Best States for Business 3rd Digital Economy Rank State 4th Venture Capital 1 Virginia 4th Fast Growing Firms 2 North Dakota th 8 OVERALL13B UTAH RANKING 3 UTAH Source: The Kauffman Foundation, 2012 State New Economy Index (2012) 4 North Carolina

5 Colorado Source: Forbes Magazine, Best States for Business and Careers (2013) Salt Lake City #5 & Provo #2 “Best-Performing Cities” in America Milken Institute ranked Utah’s capital, Salt Lake City, as Utah 1st for “Top 10 Pro-Business States” th the 5 best-performing city in the nation and ranked Pollina Corporate once again ranked Utah 1st in the nd Provo, Utah as the 2 best. The report highlights job, nation as a top pro-business state. The ranking was based wage, and technology trends that shape current and on 32 key factors, including taxes, government, energy future prospects. costs and incentive programs.

Best-Performing Cities 2013 Top Pro-Business States Rank City Rank State 1 Austin, TX 1 UTAH 2 PROVO, UT 2 Nebraska 3 San Francisco, CA 3 North Dakota 4 San Jose, CA 4 Virginia 5 SALT LAKE CITY, UTAH 5 Wyoming Source: Milken Institute (2013) Source: Pollina Corporate, Top 10 Pro-Business States (2013)

Utah 1st for its “Economic Outlook” st Utah #1 in “Technology Concentration and ALEC-Laffer once again ranked Utah 1 in the nation for Dynamism Composite Index” its Economic Outlook. The report compares all 50 states Utah retained its throne as the top-ranked state in based on such factors as overall tax burden, workers’ technology concentration and dynamism. Risk capital compensation costs and tax policy changes. availability has improved in the state.

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 16.1

Top Technology Concentration States “A” letter grade for Utah in Money, Rank State Infrastructure, Information Management 1 UTAH The Pew Center gave Utah high marks in the categories of Money, Infrastructure and Information. The report 2 Washington assesses the quality of management in the 50 states. The 3 Colorado state scored high in all areas, including Long-Term 4 California Outlook, Capital Planning and Strategic Direction. 5 Maryland Source: Milken Institute (2013) Salt Lake City #1 in “Worker Productivity Index” Salt Lake City finished first in the United States with an Utah #3 Best Business Climate 8.3 percent growth rate for its gross metropolitan

Business2B Facilities ranked Utah #1 overall for its pro- product (GMP) since its economy peaked in the fourth business climate. The ranking was based on such quarter of 2008. GMP measures the total value of goods criterion as unemployment rates, changes in population, and services produced. education of the workforce and business tax climate. Most Competitive States Top Pro-Business Climate States Rank State Rank State 1 Salt Lake City, UTAH 1 Texas 2 Washington, DC-VA-MD-WV 2 Florida 3 Little Rock, AR 3 UTAH 4 Columbus, OH 4 Louisiana 5 Mission, TX Source: Brookings Institute (2011) 5 Virginia Source: Business Facilities Magazine, Rankings Report (2013)

Salt Lake City 1st in Public Transit SLC #3 & Provo #2 “Best Cities for Jobs” Utah’s capital ranked #1 by the Brookings Institute for Forbes ranked Salt Lake City, Utah 3rd in the nation for Labor Access Rate in U.S. metro areas. Performance is being one of the “Best Big Cities for Jobs” as well as based on the share of metropolitan population that the giving its smaller, southern neighboring city, Provo, 2nd typical job can reach in 90 minutes via public place in the midsize city category. Rankings are based transportation. on recent growth trends, mid-term growth, long-term growth and the region’s momentum. Utah 1st in Job Growth Best Big Cities for Jobs HIS Global Insight projects that the state will have the Rank City highest average annual job growth rate in the nation 1 San Francisco through 2017. 2 Nashville

3 SALT LAKE CITY ADDITIONAL ACCOLADES 4 Fort Worth

5 Houston Salt Lake City #3 “U.S. Regions to Source: Forbes (2013) Watch in 2014” Best Midsize Cities for Jobs Forbes (2014) Rank City 1 Boulder Utah #9 “State Business Tax Climate” 2 PROVO The Tax Foundation (2014) 3 Fayetteville 4 Corpus Christi Utah #2 “10 States That Will Boom Over the Next 5 Years” 5 Bakersfield Source: Forbes (2013) Forbes (2013)

16.2 01/31/14 RANKINGS & COMPARISONS

UTAH’S ECONOMIC LANDSCAPE: Utah #4 Best Electricity Rates U.S. Energy Information Administration (2011) The State of Utah has been recognized year after year as having one of the strongest economies in the country. Salt Lake City #1 “Cities Where You’re Most Despite the existing economic challenges in front of both Likely to Achieve the American Dream” the globally community and at home, the fundamentals The Equality of Opportunity Project (2014) of the Utah economy remain solid and provide the foundation for our economic expansion. Some of these Salt Lake City #5 “Best Cities for Technology” fundamentals include: Forbes (2011)  Utah’s world exports are expected to increase Utah #4 Best States to Live, Well-being Index 9.0% in 2014 from 2013. Gallup Healthways (2013)  The Zions Bank Small Business Index, which Salt Lake City, Utah #5 “America’s 20 Fastest measures conditions from a 100 point baseline Growing Cities” for small businesses around the State, was 112.7 Forbes (2013) as of March 2012 up from 111.5 in December 2011. Utah #1 “Highest Volunteering Rate” Corporation for National & Community Service (2012)  Utah is one of seven states with an AAA bond rating as of September 2012. Utah among best states after Great Recession: “Which States Are Winning the Recovery?”  As of December 2012 Utah’s unemployment Atlantic (2013) rate is 4.6%, well below the national average of 6.7%. University of Utah #2 in nation for number of startups (behind MIT) Association of University Technology Managers (2013)

Utah #1 “Best Emerging Data Center Hubs”

Business Facilities Magazine (2012)

Utah #3 “Overall Economic Health” US Census Bureau (2012)

Salt Lake City, Provo-Orem, Ogden-Clearfield, and Logan in Top 15 U.S. Economic Performers Milken Institute (2011)

Utah #5 “Most Competitive States” for Business Beacon Hill Institute (2013)

Utah #5 “America’s Top States for Business” CNBC (2013)

Utah #6 “Healthiest States” Health.com (2013)

Utah #9 “Best Business State” Chief Executive’s Magazine's (2012)

ECONOMIC DEVELOPMENT CORPORATION OF UTAH 01/31/14 16.3 ECONOMIC DEVELOPMENT CORPORATION OF UTAH (EDCUtah)

The Economic Development Corporation of Utah (EDCUtah) is a private, statewide, non-profit organization formed in 1987 to provide a unified and professionally managed economic development program promoting the state of Utah.

EDCUtah is an investor-based organization with more than 290 private sector businesses, organizations, chambers of commerce, municipalities and counties. Through these partnerships, EDCUtah facilitates an ongoing effort to develop and nurture a thriving business climate throughout Utah.

EDCUtah specializes in assisting companies considering Utah for a business relocation or expansion. The corporate recruitment team of EDCUtah coordinates all of the information key decision makers and economic development/site consultants need as they evaluate Utah as a site location.

FOR ADDITIONAL INFORMATION

Economic Development Corporation of Utah 201 South Main Street, Suite 2150 Salt Lake City, Utah 84111 Phone (801) 328-8824 Fax (801) 531-1460 www.EDCUtah.org

201 South Main Street, Suite 2150 Salt Lake City, Utah 84111 Phone 801-328-8824 Fax 801-531-1460

www.EDCUtah.org