One thing that makes Utah great is our win-win attitude and sincere desire to find common ground on challenging issues. Because of this, Utahns solve problems few other states can. From taking a compassionate approach to immigration to forging an elegant solution balancing LGBTQ rights and religious freedom, we have continually demonstrated our ability to engage in civil discourse on divisive issues and emerge with policies that unify. Utah is unique and successful because we collaborate to find solutions. However, sometimes despite our efforts, differences are unable to be reconciled. The recruitment of Facebook to the state is a recent example. It is my hope that its failure is merely the exception to Utah’s reigning rule of partnership.
I was born and raised in Denver and spent most of my career in investment banking in New York City and San Francisco. My family and I first came here in 1976 to ski and, like so many other transplants, ended up adopting Utah as our home. I currently serve as chairman of the Governor’s Office of Economic Development (GOED) Board. This position has provided a great opportunity to champion Utah as a wonderful place to live, work and raise a family.
I have watched the state facilitate effective processes that bring companies and communities together to create win-win opportunities for economic prosperity. There are too many economic successes to name them all, but to mention a few: Box Elder County being selected in 2007 as the home of Procter and Gamble’s first new expansion plant in the United States in decades, aerospace manufacturer Syberjet expanding in Cedar City, and the well-known success story of Goldman Sachs in Salt Lake City. While these projects are in various corners of the state and represent different industries, there’s one thing they have in common: the companies have flourished in Utah because of strong collaboration among the state, local governments, companies and communities that host them.
As it has in the past with other large capital expenditure projects, GOED played a role in trying to attract Facebook to the state. We did so because we have seen firsthand the follow-on investment and job creation that can occur when an enterprise data center locates here. This approach paid significant dividends in past projects. For example, Oracle and eBay both solidified their relationships with the state through early data center investments. Those relationships later led to large-scale employment centers and economic development in surrounding communities. We hoped we could replicate that model with Facebook.
When it became apparent there was discord between the city and county over the local incentive deal terms, terms that were being negotiated independent of state involvement, we brought both parties to the table to attempt to find a win-win solution for the project. We believed we were making progress with Salt Lake County and West Jordan City, and were disappointed when Salt Lake County and West Jordan City could not find a way to narrow the gap between their respective viewpoints. Also, the back and forth that found its way into the press unnecessarily politicized the situation and complicated further negotiations with the company. This negativity impeded our efforts to seek a compromise and eroded the company’s confidence in the state and in our local governments. So instead of a win-win, we have ended up with a lose-lose all around. The Facebook negotiation was the first breakdown of this kind that I have witnessed, and I see it as a lost opportunity for the state and our local communities. It could also have a negative effect on future recruitments.
Now that the dust has settled, where do we go from here? Our process of collaborating to find constructive solutions has worked in the past. And with a few tweaks, GOED believes it will work in the future. We will help local communities define, refine, and execute on their economic development goals, and ensure there is more transparency with the public. We will work to ensure local governments and the state are better harmonized in our joint recruitment efforts. We will work with our legislative colleagues to ensure local incentives are more appropriately aligned with state incentives, which are always post-performance, and that incentives in all forms respect the Utah taxpayer. We will seek out opportunities and projects that provide a strategic benefit to the state, and hope we can empower our local communities to better partner and communicate so good projects end in good deals. That is the Utah way.
Bottom line: Utah is still No. 1 in my book, and with all of us working together it will remain so in the future.
Mel S. Lavitt is board chairman of the Utah Governor’s Office of Economic Development.