Econ board is stuck in middle
This is an archived article that was published on sltrib.com in 2007, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Faced with the threat Utah could lose 104 jobs, the Governor's Office of Economic Development (GOED) Board on Friday approved a $268,000 incentive so a manufacturer of folding cartons can build a new plant in the Clearfield area.

Just moments later, the board sent the Children's Miracle Network away empty handed despite threats the world's largest children's charity was prepared to move out of Utah if the state didn't give it $200,000 in assistance to help it secure a new headquarters building in Salt Lake City.

In an attempt to convince the board to rethink its rejection of the charity's request, Children's Miracle spokeswoman Deborah Gestner said GOED had nine days to help "or we're going to be getting the U-Hauls."

GOED acting chairman Mark Howell explained it was against the board's policy to approve state economic development incentive money for nonprofit organizations, such as the Children's Miracle Network.

Yet faced with the charity's threat that Utah would lose its 112 high-paying jobs, Howell convened a closed session of the board to discuss possibly changing in the board's policy.

A policy change didn't happen.

Still, the GOED board pledged that it would have its staff do what it could to help the charity secure the money it wanted from the state. "We'll be back to you within a couple of days," Howell said.

Gestner explained Salt Lake City had offered the charity a $1.5 million low-interest loan to help it refurbish a new headquarters building at 710 S. 200 West that it wants to buy. The loan offer expires in nine days and is contingent on the state also pledging some form of financial assistance to help with the project.

"We'd like some indication that the state appreciates our presence [in Utah]," Gestner said.

The Children's Miracle Network's chief operating officer, Scott Burt, said he was encouraged by the board's response. He conceded that the charity so far wasn't planning to move anywhere, and indicated the earliest date that a possible move might be discussed would be at the next meeting of its board of directors in July.

In asking for its $268,000 rebate of a portion of the taxes it pays to the state, Malnove Inc. of Utah also raised the possibility that it might take its facility employing 104 people out of state, possibly to Reno, Nev., Las Vegas or Stockton, Calif. If that happens the state could also lose 63 jobs the company indicated it plans to add over the next 10 years.

The company said its facility in the Freeport Center is almost obsolete and to remain competitive it is planning on closing that location and relocating to a new facility with state-of-the-art equipment.

Malnove indicated it would like to remain in the state and requested the rebate to help it offset a portion of the costs of relocating, expanding and upgrading in Utah.

The GOED Board meeting was held at the IM Flash Technologies facility in Lehi.

Last year, Utah offered its largest economic incentive ever - $14,639,000 - to high-tech giants Micron Technology Inc. and Intel Corp., which plan under a joint venture to add 1,850 new jobs in Lehi at their IM Flash facility within two years.

Stan Lockhart, government affairs manager at IM Flash, said Friday the company is "planning on doing everything we told you we would do a year ago and we're ahead of schedule." He said the Lehi plant now employs 1,300 Utahns and is on the way to reaching its goal of employing a total 1,850 workers.

steve@sltrib.com

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