BAP Blog Utah Business Climate Strengthens to Dismay of California Group
Utah Business Climate Strengthens to Dismay of California Group
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August 27, 2010, by Kathy Opolski

California's business leaders are starting to sit up and take notice that Utah is luring away many of their growing companies especially tech oriented companies.  A consortium of business groups, under the Californians Against Higher Taxes banner, is out to convince their government leaders that the state's business climate needs to be improved, noted by the Salt Lake Tribune. 

"Businesses are fleeing our state for Utah, and they are taking thousands of jobs with them," said Scott Macdonald, a spokesman for the California group that includes the California Chamber of Commerce, the National Federation of Independent Business/California and the California Taxpayers Association.

The group notes that in recent months:

  • San Jose-based Adobe systems announced it will build a $100 million campus in Orem and hire more than 1,000 new employees. Although, Adobe isn't moving its San Jose, Calif., headquarters to Utah. But Adobe, which makes programs such as Photoshop for image editing, Acrobat for sharing documents, and Flash for online multimedia, will dramatically ramp up operations of Omniture Inc., the Utah company Adobe recently bought for $1.8 billion.
  • Twitter, the San Francisco-based social networking company, said it intends to relocate its data center to Salt Lake City. Where will the new operations center be? According to "staynalive.com, it would be at the "South end of the Valley", "easy access from I-15″. He wasn't willing to reveal any more info when I asked, but that would probably put the center somewhere either around Riverton (where there is still lots of real estate), or perhaps Draper or even South Jordan or Sandy.
  • The Redwood City-based Electronic Arts Inc., a video-game producer, opened a 20,000 square-foot plant in Utah with 100 employees.
  • EBay announced plans for a $287 million building project in South Jordan to house its primary data center and a call center in Draper..
  • Oracle reported it planned to resume construction on a large data center in Salt Lake City that is expected to create 100 jobs.

And Walt Disney Co.'s video game unit, Disney Interactive

The California-based companies say they are looking to Utah for its ready supply of young, tech-savvy workers, and its lower business and living costs. Quality of living also is a factor, say executives, who have a name for Utah - Silicon Slopes - that invokes nine ski resorts within an hour's drive of Salt Lake City. Utah has hundreds of technology companies, mostly small ones in need of bigger partners.  The strong tax incentives offered by Utah just puts salt in their wound.

 

"Utah is at the cutting edge of economic growth and expansion. We're starting to come out of the recession," Utah's Governor Herbert boasted Thursday alongside Adobe executives at the Utah Capitol. "Utah is not just the place you want to be. It's the place you need to be."

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