Utah aims to erase hindrances to investing

Utah's senior adviser for economic development offered one reason Thursday why outside investors should consider investing in Utah.

"We're doing our best to get out of your way, quite frankly," said Chris Roybal, Gov. Jon Huntsman Jr.'s top economic adviser. "We're looking to have less government, less bureaucracy and create an environment for you as entrepreneurs and investors to thrive and grow in Utah."

Roybal's message may already be out, as roughly 25 private equity firms from around the country on Thursday converged on Salt Lake City for the Utah Capital Connection Conference.

Thomas R. Taylor, president of the MountainWest Capital Network, said a trove of money from private equity firms is chasing too few good deals.

For instance, Sorenson Capital, a $250 million private equity fund based in Salt Lake City, has invested in eight companies — six of which have a presence in Utah — since its launch in 2004.

And Utah, Taylor said, is attracting more attention from outside private equity funds that are realizing the state offers new opportunities.

"I think that the private equity funds realize that there are a lot of very bright people here, very talented people here and a lot of interesting technology that comes out of the Uni—

versity of Utah, (Brigham Young University) and Utah State (University)," Taylor said. "It is a good time to be a company in need of private equity. There are a lot of good deals in Utah."

Roybal backed up that sentiment, saying Utah offers businesses low operating costs, with the state ranking nationally near the bottom in utility rates, worker compensation rates and property tax rates.

Roybal recalled one company that considered closing its Utah division instead of a Northeast operation because of a $2 million tax incentive package offered by another state.

"I went back to the CEO and I said, 'Do you realize that over the next 10 years your company is going to save $4.5 million in operating costs by running that business in Utah versus running that business in the Northeast?' " Roybal said. "There's some very compelling reasons from an operation cost perspective to be here. We want to do everything we can to keep those rates low."

In addition to touting Utah's geographic location as a transportation hub and its expanded infrastructure, Roybal spoke highly of Utah's labor force, a common selling point dating back to former Gov. Mike Leavitt's administration.

"About 10 or 15 years ago the message to the business community nationally was, 'Come to Utah. We have cheap labor,' " Roybal said. "I think the message is significantly different now. Our message is that we continue to have the youngest labor pool in the United States, and because of our high concentration of academic institutions here, they tend to be a little bit smarter and a little bit more educated."

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