Nonprofit eyed for recruiting

Although Gov. Jon Huntsman Jr.'s new plan for luring companies to Utah is now a job for the private sector, open to all bidders, he said only one company appears qualified — a company formerly headed by his chief economic adviser.

"I think there's only one group in town that really does it at the level we'd be looking at," Huntsman told the Deseret Morning News editorial board this week. "The reason I'm even interested in this is that we have a very excellent recruitment vehicle already in the state — the EDCU."

The Economic Development Corp. of Utah — a nonprofit partnership of private and public business interests — was run by Chris Roybal until he was tapped by Huntsman shortly after the November election to be the governor's chief economic adviser. Roybal has been making Huntsman's vision of economic development a reality, including overseeing the dismantling of the state's economic development department.

Huntsman, Roybal and EDCU officials are quick to point out the contract is going through the state's usual competitive bidding process. None, however, expresses much doubt about who the job will go to after an official request for proposals period ends June 1.

When the governor was asked in this week's meeting with the editorial board if there would be any potential for a conflict of interest because Roybal came from EDCU, the governor said there would not be. Because Roybal has no financial ties to the company, he said, there's no potential for a conflict.

"He had to break off that relationship completely. Moreover, he wouldn't be compensated for anything that they did," Huntsman said. "So I don't think there would be a conflict."

But questions remain about whether the move — a process that has yet to draw much attention — is the right one. Although the state might save money, privatizing recruitment might put the courting of companies outside the light of open government.

The effort to privatize the state's business recruitment has apparently gone forward without much input from legislative leadership. Neither Senate President John Valentine, R-Orem, nor House Speaker Greg Curtis, R-Sandy, said they had heard of it.

And Sen. Bill Hickman, R-St. George, who is chairman of the Workforce Services and Community and Economic Development Interim Committee, also said he had heard nothing about the deal. He noted, however, that silence from the governor is no breach of protocol because economic development affairs are to be administered directly by the governor's office. He said he expects a briefing from a member of Huntsman's staff within the next couple of months.

"The governor has full discretion in that area," Hickman said.