Geneva's demise may come with a silver lining

PROVO — The loss of Geneva Steel could result in big economic and employment gains for Utah County. And it could happen soon.

An out-of-state business searching for 200 acres on which they would build a 1.5 million-square-foot high-tech manufacturing plant has inquired about the steel plant's property.

"They need to have heavy rail(road) infrastructure, they need to have water, they need to have pollution credits," said Russ Fotheringham, director of Utah Valley Economic Development Association. "All of those things, Geneva has in abundance."

If the company lands in Utah County, Fotheringham estimated it would create 9,000 new jobs. "At its peak, Geneva employed about 8,000," he said. It is expected that the company would attract other businesses, as well as other types of development, to the area.

Fotheringham admits it's too early to know if that particular high-tech firm will establish roots in Utah, and he acknowledges the state will face stiff competition.

"We don't know if we'll get this company. New York, we know, has offered them $400 million in incentives to relocate them," Fotheringham said. "(The company's) preference is to be in the West, where they can have a direct shot at the ports of Los Angeles and Long Beach. We have a good chance of being attractive to them.

"One of the challenges we have is incentives," Fotheringham continued. "Of the 50 states, we're ranked No. 49 in incentives. We're not in the habit of offering $400 million in incentives like they are in New York."

Still, Fotheringham is optimistic about the business and job-growth potential at the site.

"I think in time, you'll see that site develop into a lot more of an economic engine than ever existed as Geneva," he said.

Utah County Commissioner Gary Herbert, who oversees economic development in the county, also looks for the silver lining in the closure and part-by-part equipment sale of the steel plant, a longtime economic engine for Utah County.

"Geneva has been a good friend to the community for a long time. It's like the passing of a good friend. Having said that, there are times for new beginnings and new opportunities," he said. "It's like pruning a rose bush. By pruning it, maybe you get a bigger, and more beautiful, rose in the future."

A federal bankruptcy judge on Wednesday approved a $40 million sale of Geneva Steel's core assets to a Chinese company, underscoring Geneva's demise.