A local firm is proposing a unique way of attracting companies to Utah with its concomitant jobs and capital.
U'n Utah (pronounced "You 'n' Utah") wants to apply a private, market-driven approach to the task that a variety of governmental entities — the Economic Development Corporation of Utah, county and city economic development departments and a wide array of others — have traditionally carried out.
The pitch U'n Utah has been making to state and local governments is simple: U'n Utah will approach Fortune 500 companies to expand into the state, and in exchange state and local governments will pay the firm $100 every year for every high-paying job it succeeds in bringing in, up to 10 years.
U'n Utah defines "high-paying" as earning more than $35,000 a year.
"We don't want a bunch more retail jobs," managing partner Stephen Jury said. "Who needs more Wal-Marts?"
Government reaction has so far been mixed. A U'n Utah brochure quotes Gov. Jon Huntsman Jr. as saying, "There is no more important work to be done in this state than what your partnership is planning."
But Huntsman spokeswoman Tammy Kikuchi said the quote was taken out of context.
"We have never endorsed this guy or his concept, and he is not part of our economic development plan," she said.
Sen. Al Mansell, R-Midvale, who is carrying an economic development bill requested by the governor, said U'n Utah had been around for a while and had been throwing around the same idea for about two years. He said it could work. Previous attempts for such proposals have not gone through, but "like all other ideas, they ripen or they rot."
"If it worked and it brought in high-paying jobs, it could be a good thing for Utah," Mansell said.
Economic Development Corporation executive director David Harmer isn't so keen on the idea. He cites its newness, EDCU's current efforts and other problems.
"It's a political hot potato," Jury conceded. "We're calling to account every economic development agency in the state. . . . It's never been tried anywhere else in the United States. That's both the opportunity and the risk. Will it work? We don't know — nobody's ever tried it. But if it does, it will revolutionize the industry."
The state's Privatization Policy Board sent a letter to Harmer last spring expressing tentative support for the plan.
"The board cannot find a reason why a privatized pilot program on economic development should not be tested," chairwoman Ramona Rudert wrote.
A former EDCU board chairman, PacificCorp vice president Bill Landels, maintains that something, anyway, has to be done. He called current corporate recruiting in Utah "amateur night" and "a debacle."
Salt Lake County officials responded with cautious optimism when Jury appeared before the County Council on Tuesday.
"It sounds like a no-risk proposition," County Mayor Peter Corroon said. "I'm not sure I want to be the guinea pig, but I don't see a whole lot of downside. Why not give it a try?"
The big incentive for government would be that it wouldn't pay anything unless U'n Utah achieved results — the very results so many government economic summits and meetings and conferences are devoted to.
Councilwoman Jenny Wilson pointed out that U'n Utah would benefit as well. If the firm reaches its goal of bringing in 50,000 new high-paying jobs by 2009, government could wind up forking out up to $50 million ($100 per job for 10 years).
"That's a pretty hefty remuneration," she said.
Jury responded by pointing to studies concluding that one $35,000-paying job brings more than $100 to government coffers, with jobs paying more bringing in commensurately more. Also, along with the jobs, U'n Utah aims to attract $6 billion in capital investment.
Jury contends everyone would win.
The unique contingency-pay nature of the scheme would stretch the traditional structure of government. Salt Lake County chief deputy district attorney Karl Hendrickson said the fit between U'n Utah and government would be "somewhat problematic" — such as the requirement of a general bid process before awarding any contract — but doable.
As for how to determine whether U'n Utah was the one to attract a particular job to Utah — an important question, seeing as its answer would determine whether the firm is paid or not — Jury said ambiguities would be eliminated by careful documentation being kept throughout the process.
Contributing: Wendy Leonard
E-mail: aedwards@desnews.com