Incentive fund changes are already paying off

Legislative changes made to a state business incentive fund earlier this year already have proven beneficial to the state, according to the executive in charge of state incentives.

Mark Renda, director of strategic business analysis for the state Department of Community and Economic Development, said Wednesday that adding flexibility to the Industrial Assistance Fund — traditionally aimed mainly at creating high-paying jobs and attracting businesses to the state — has helped the state secure three projects, and two more are in the pipeline.

His comments were made to the Workforce Services and Community and Economic Development Interim Committee.

Legislation passed during the 2004 general session allows the department to use up to 20 percent of the fund, amounting to about $5 million, for "economic opportunities" outside the original fund scope.

That allowed the department to provide:

• Up to $400,000 to help accommodate the twice-annual Outdoor Retailer trade show in Salt Lake City. The money will be used to help with costs associated with setting up a temporary pavilion until the Salt Palace can be expanded. The show organizers had threatened to move the show outside Utah because of space limitations at the Salt Palace but have since decided to remain for the next few years in Salt Lake as the facility is expanded.

• $300,000 for environmental impact studies for the West Desert High Energy Astrophysics Facility, which consists of three complementary projects that will conduct high-energy cosmic ray experiments in Millard County.

• Up to $1 million for a demonstration program to determine what incentives could be developed to help the film industry lure or keep movie and TV productions in Utah.

Renda noted that none of the funds fully solved the problems faced by the applicants. In the case of the Outdoor Retailer shows, there will be long-term needs regarding debt service faced by the Salt Lake Convention & Visitors Bureau. And the University of Utah and Delta City will need help from the Legislature to get a conference center/auditorium built for the astrophysics project and from the Department of Transportation to get needed road upgrades.

Two other projects may also get IAF money as a result of its increased flexibility, he said. The Utah State University Innovation Campus wants to develop a redundant telecommunications network for the Cache Valley, and the Battelle Memorial Institute and the state's three research universities want to find ways to mature technologies owned by the universities that have been funded through the state's Centers of Excellence program.

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