Board offers ideas for EDCU's pact

Utah's new business recruitment contract has yet to be approved — despite having only one bidder — but the Governor's Office of Economic Development Board has a few suggestions for the draft document.

Board members, during a meeting Friday, proposed some changes to be sure the state's interests are protected when the governor's office approves the contract with the Economic Development Corp. of Utah.

"There are things not included that should be included, I believe, in this contract," said the board's chairman, David Simmons.

Copies of an outsourcing contract draft were provided to board members before Friday's meeting, but Simmons asked them to keep it confidential.

The board adopted a resolution that "supports" the economic development office's efforts "to facilitate and complete an outsourcing contract" with EDCU. The resolution also said the board will "provide significant counsel and advice to GOED in furthering the success of this partnership." The vote was unanimous, although some board members abstained because of past or current relationships with EDCU.

Much of the discussion focused on performance criteria. Board member Mel S. Lavitt wants more specific information about how many jobs, and what kind, are expected to be brought into the state by EDCU. "It's not in the contract in terms of some overall concept of what the goals of this program are," Lavitt said.

Several board members want the contract to ensure that EDCU works on behalf of all areas of the state, with cities investing in EDCU receiving no favoritism. Board member Mark Howell suggested "some sort of analysis to just verify that everybody is getting benefit from the work."

Simmons said a new contract would eliminate confusion for potential newcomers to Utah by providing a sole point of contact and that the state would have the full services of EDCU, with 17 to 18 people devoted to the work that once was handled by five state staffers. Plus, the contract would be for about $500,000 — less than the $600,000 the state spent annually on business recruitment. EDCU's current internal recruitment budget is $1.4 million.

Lavitt suggested bonuses, calling for "minimum expectation, and then if you exceed it, then you can make a lot of money."

As for oversight, a committee meeting monthly will monitor recruitment activities, the state will have a full-time recruitment director, and lots of communication between EDCU and the state will be required, Simmons said. A board member also will serve on EDCU's Corporate Recruiting Advisory Committee.