OGDEN -- A recent trade mission to Mexico by Mayor Matthew Godfrey has apparently sparked interest among several companies that want to do business in Ogden.
Godfrey said his visit March 7-13 to the Mexico City area enabled him to contact businesses that may open food distribution warehouses at Business Depot Ogden and supply high-end goods for a proposed factory outlet operation on the east side of Washington Boulevard.
"It was a good way to figure out how to penetrate the iron curtain, so to speak, as to who the players are to make it happen," said Godfrey.
Miguel Rovira, the state's regional director for the Americas for the Governor's Office of Economic Development, helped arrange Godfrey's visit to Mexico. Rovira praised the trade mission.
"It's extremely creative. The mayor understands his community and constituents," he said Thursday. "This presents a unique opportunity to bring new jobs into the state and into Ogden."
The trip cost about $3,000 and was funded from the city's Community and Economic Development Department's budget.
Godfrey, who speaks fluent Spanish, said he met with officials from two Mexican companies, which he declined to identify because negotiations are continuing, interested in establishing grocery distribution warehouses in BDO.
Efforts will be undertaken to determine how much warehouse space the companies may need and whether existing buildings would suffice or new facilities would have to be built at BDO to accommodate them, said Godfrey.
Rail access
It's also possible one of the companies may need rail access to ship products from Mexico, Godfrey said. Members of the city's administration will be in discussion with the two Mexican companies. It hasn't been determined when the warehouse operations may come to fruition, Godfrey said.
Godfrey said that during the trip he met representatives from several other Mexican companies willing to provide consignment high-end clothing, jewelry, leather goods and home furnishings to existing or new businesses in Ogden willing to establish factory outlets.
Outlet stores
Outlet stores could open on Historic 25th Street, within The Junction development downtown or in three vacant buildings at 2314, 2318 and 2326 Washington Blvd. that have been rehabilitated by the city.
The city is leasing the Washington Boulevard buildings at no cost to the municipality. Stimulus funds totaling $310,000 are being used to complete improvements to the first floors of the buildings and to add parking to the rear of the structures.
The city plans to sublease the rehabilitated portions of the buildings to businesses for the outlet operation.
Godfrey, who traveled to China in January to meet with company officials there to supply the outlets, said it makes more sense to work with Mexican firms.
Products could be shipped more cheaply from Mexico and in smaller quantities than from China, he said.
Godfrey said it's unusual for a mayor of a city the size of Ogden to undertake trade missions in far-flung locations such as Mexico and China, but considers the trips worthwhile.
"Having the mayor come provides credibility," said Godfrey.
City Councilman Brandon Stephenson said he supports Godfrey's trips to China and Mexico.
"The idea of bringing business to Ogden is critical," he said. "The more business that is in a specific area, the more market share there is for everyone."
Steve Conlin, president of the Historic 25th Street Association, agrees. "To get any new retail business downtown brings more traffic downtown," he said. "Traffic benefits a multitude of businesses, such as restaurants and other service-oriented establishments."
Urban renewal
Downtown could also benefit from efforts to establish a four-block urban renewal area between 20th and 24th streets from Washington Boulevard to Adams Avenue, said Richard McConkie, the city's director of community and economic development.
Tax increment funds could be used to build a parking garage behind the four buildings on Washington Boulevard where the outlet operations may be located if the urban renewal designation is made, McConkie said.
Tax increment financing is the extra property tax revenue generated by new development in a blighted area.
Public hearing
The city council will have a public hearing April 13 to determine whether the area should be declared blighted. An area that substantially impairs the growth of a municipality, slows the development of housing or is deemed an economic liability can be designated as blighted under state law.
The aim of establishing an urban renewal area is to stimulate development and attract businesses downtown, said McConkie, who added that the city has no plans to use eminent domain to claim property.
Related link: This article is a topic of discussion at Weber County Forum.
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