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1 Comment [ View ]Officials use marketing, incentives to lure businesses
By KATIE M. ELLISMarketing has turned this dying railroad town into a nationally recognized hub for outdoor recreation, attracting related businesses that boost the local economy.
"Ogden has gotten worldwide publicity we couldn't have afforded," said David Harmer, Ogden director of community and economic development. "The more publicity we get, the more it sells people to come here."
After the 2002 Olympics, Mayor Matthew Godfrey realized the city's natural resources could be used for more than one-time Olympic venues and has since sought to draw commerce to the area by branding the city as an outdoor recreation mecca, Harmer said.
From industry-specific recruitment to friendly government or good infrastructure, cities throughout Northern Utah are putting their best face forward as they try to convince businesses their city is the best place to set up shop.
Harmer said Ogden tells businesses their employees will enjoy a low cost of living, access to recreation opportunities, and training at Weber State University and Ogden-Weber Applied Technology College.
Other cities have different aspects that they stress to tempt companies looking to expand or relocate.
Marriott-Slaterville City Administrator Bill Morris said his city lures businesses with the promise of no municipal property or franchise taxes.
Ben Hart, economic development specialist for Layton, said Layton sells itself on having strong demographics, Hill Air Force Base, higher education institutions and the hospital.
Syracuse Community and Economic Development Director G.J. LaBonty said his city's strength is also its demographics, with double-digit growth since 2000 and a median income range of $60,000 to $70,000.
Riverdale City Administrator Larry Hansen told the city council at a recent meeting that the city tells interested businesses Riverdale has the highest sales per outlet in the state. "It pays to do business in Riverdale," he said.
Washington Terrace City Manager Mark Christensen said there is no competing with the city's neighboring retail centers.
"It makes marketing the city a challenge," he said, but he tries to sell businesses on quality of life, noting Washington Terrace's goal is to be the best-managed municipality in the state.
Christensen said they target more service-oriented businesses, such as a specialty grocery store looking at a location adjacent to Washington Boulevard.
Tony Reynolds, Roy's community and economic development director, said retail businesses make decisions based primarily on demographics, and it is his job to keep their interest by getting the project approved and developed as quickly as possible.
"We want to make the project work. We are anxious to have new business in town while still trying to make sure zoning protects residents. We don't want to compromise the integrity of the community," he said.
Reynolds said the city has spent hundreds of hours on Home Depot by helping the developer acquire and assemble parcels, getting annexation and rezoning accomplished, and obtaining permits from Utah Department of Transportation.
"We know which commercial real estate brokers and developers represent retailers, and we court them through relationships. (Helping them meet the city's requirements) is the kind of courting we do," Reynolds said. "What makes all the difference in the world is the climate and whether it is business-development friendly.
"Retailers don't really want to know what the city has to offer by way of financial incentives. They already know if a site meets their demographic requirements for traffic and rooftops. They want to talk about how to get their facility constructed."
Brad Galvez, project manger with the Boyer Company, said retailers typically pick a location based on population and median income within a 1-, 3- and 5-mile radius.
He said a city's low fee or tax structure or willingness to work with the business is nice, but will probably not influence a decision to locate there.
According to Galvez, if demographics are equal for more than one location, a big box retailer will choose the city offering the best incentives and smaller stores will chose a location next to a big box.
Officials from Washington Terrace, Riverdale and Roy said they offer incentives -- either as property tax reimbursements or fee waivers -- for businesses in redevelopment areas.
Reynolds said industrial uses are more interested in incentives, and the city is helping America First Credit Union come to Roy by reimbursing the cost of a fiber optics communications system to connect the credit union's two campuses.
Harmer said Ogden works with the state to create a package of city and state incentives for businesses wanting to grow or locate in the city. He points to both U.S. Foodservice and the expansion of Fresenius Medical Care as a result of incentive packages.
"Incentives play a huge role in recruiting," Hart agreed. "Many companies want to know what cities will offer before they'll even consider them," but he says Layton relies on its strong demographics and infrastructure over incentives. The city loses projects to other cities' tax breaks occasionally, Hart said, but has success selling Layton on its "good solid economic environment."
"We are aggressively trying to recruit firms," Hart said. Officials from Layton, Roy, Marriott-Slaterville, Syracuse and Ogden all say they work with real estate brokers or developers and attend conferences to get leads on businesses that are looking to relocate or expand. Reynolds said he contacts about 20 real estate brokers and three dozen developers every 60 days.
Layton, Syracuse and Ogden also have a contract with the Economic Development Corporation of Utah to get additional leads. Jeff Edwards, president and CEO of EDC Utah, said the organization helps businesses find the best possible site, but cities paying membership dues receive a higher level of service, because the organization has a "detailed knowledge of their assets and contacts."
Of all the city officials questioned, only Riverdale's said they do not actively try to solicit business. City Development Administrator Randy Daily said businesses come to Riverdale because of the 40,000 commuters on Riverdale Road each day. "You can't accuse us of being greedy. We just have a road and demographics," Daily said.
Daily says once the big boxes come, developments are filled by smaller uses wanting to be near a larger anchor development like those in the J.C. Penney project.
Edwards says there is hope for cities without strong demographics, though, and encourages them to brand themselves the way Ogden has and to get buy-in on that brand from residents and elected officials.
"Do some thinking about what you really want -- decide on a target market rather than saying, 'We'll take everything,' " Edwards said. "You don't have to spend a lot of money. Small cities can be very effective with a good quality Web site with current information instead of spending a lot on advertising campaigns."
It's a theory some cities are banking on as budgets depend on more sales and property tax revenue.
"Demographics and geographic issues prevent us from grandiose plans. We have to live in reality," Christensen said, "There's something for everyone. It's about finding the right business for the right community. Every city has a niche."
Add Your Comment
That's is correct:every city has a niche.Its about willingness and thinking out of the box.It is not about roads and locations.It is about different approach.I wish leaders in my community would think ouit of the box,or think to begin with..
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