Individuals looking to start a business or relocate for a new job may want to take a second look at Provo, according to Forbes.

Lower business costs and crime rates, record-low unemployment and an improvement in household income growth for the first time in several years are among the factors cited for Provo's dramatic jump to second place this year from 27th last year in Forbes' 2007 Best Place for Business and Career survey. Salt Lake City's ranking also improved to 77 this year from 89 in 2006.

Raleigh, N.C., which took first place in Forbes' list for keeping business costs at 13 percent below the national average and having a labor force where 38 percent have a college degree -- the 12th highest in the nation -- is one of many cities in the southeastern region that has consistently managed to produce robust economic expansion while keeping costs down, Forbes said. Other criteria considered includes: job and income growth, business and living costs, migration trends and quality-of-life issues such as crime rates and cultural opportunities.

Business costs in Provo are 7 percent below the national average this year, due to competitive corporate taxes, stable electricity rates and business license fees, said Wayne Parker, chief administrative officer with Provo city.

"Most of the power we buy is hydro power, which has remained relatively stable in prices, compared with coal and gas power. That's why our power rates are stable even as that in other Utah cities increased," he said.

In 2006, Provo's business costs were 6 percent below national average. That's helping to fuel continued in-migration to the state from California, which according to Forbes, has 20 of the nation's 25 most expensive places to locate a business due to high taxes, office space and workers' compensation costs. Salt Lake City's business costs are 3.5 percent below the national average, while Ogden's business costs are 8 percent below the national average, according to Forbes' list.

Robust job growth also helped Provo's ranking. In the past three years, employment in Provo jumped 4.8 percent, one of the fastest growth rates in the country. That's due in part to the 1,850 jobs created by Micron Technology and Intel Corp.'s joint venture, IM Flash, which began production at its $3 billion flash memory chip-making plant in Lehi in January, said Kurt Badenhausen, associate editor for Forbes' magazine and author of the list.

Steve Densley, president of the Provo-Orem Chamber of Commerce, said, "The fact that UVSC is now designated university status and we have 60,000 talented college kids that are for the most part multilingual means companies moving here have access to a great work force."

For the first time in several years, household incomes in Provo saw a significant increase, up 7 percent to $54,381 from $50,699 in 2006, according to data Forbes cited from Moody's Economy.com, a West Chester, Pa. research firm. Its business cost index weighs labor, energy, tax and office space costs.

"This is the first time we saw an improvement in income after several years of relatively flat income growth," Badenhausen said. Provo's five-year historical income growth was at 3.3 percent in 2007 compared with 1.9 percent in 2006, due in part to better-paying jobs moving into the area, a strong economy and tight job market.

"If you look at the state's tax revenues last year, sales taxes were up double digits, income taxes were up dramatically. All this indicates Utah's economy is pretty robust. A low unemployment rate also means more people are generating income for their households," Parker said.

Provo's crime rates also are below the national average, Forbes said. The number of crimes per 100,000 people dropped to 3,189 from 3,772 a year ago. That compares with the national average of 4,115 per 100,000.

Grace Leong can be reached at 344-2510 or gleong@heraldextra.com.

2007 Top Ten Places for Business and Careers

1. Raleigh, NC vs (2nd place in 2006)

2. Provo, Utah vs (#27 in 2006)

3. Boise, Idaho vs (#4 in 2006)

4. Des Moines, Iowa vs (#11 in 2006)

5. Knoxville, Tennessee vs (#5 in 2006)

6. Albuquerque, New Mexico vs (#1 in 2006)

7. Durham, North Carolina vs (#8 in 2006)

8. Fayetteville, Arkansas vs (#9 in 2006)

9. Nashville, Tennessee vs (#7 in 2006)

10. Indianapolis, Indiana vs (#10 in 2006)

This story appeared in The Daily Herald on page A1.