Orem council makes economic development plans

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Access to the Internet means never having to leave one's home while shopping for the latest fashions or researching a new car.

Since two-thirds of the homes in Orem have computers, at least one City Council member is advocating the inclusion of Internet businesses into the city's economic development strategic plan. The trick will be creating a good environment for the traditional and the new alike.

"I really think that the retail base is superstrong, but I also see that there are some other emerging marketplaces that don't require a brick-and-mortar retail outlet," Councilman Mark Seastrand said.

The strategic plan, put together by City Manager Jim Reams and Brad Whittaker, executive director of the Commission for Economic Development in Orem, was presented to the council at a study session earlier this week. The goal is to attract and retain businesses that add good jobs, provide a needed service and contribute to the "Family City" feel.

The plan lists two main objectives: to create or redevelop 50,000 square feet of retail space and add 500 non-retail jobs annually, and retain existing desirable businesses that contribute to the nature of the community, although all businesses will be on the contact list and will benefit from the beautification of streets and other changes. The second will require some maintenance and incremental changes. The first, Reams said, "is quite ambitious" and not without its challenges.

The city has just more than 4,700 registered businesses that account for the $17 million in sales tax the city is projecting for the year, said Jeff Pedersen, administrative services director for the city. Thanks in a large part to the shopping corridors along State Street and University Parkway, Orem is one of the largest sales tax collectors in the state.

"Orem is very, very big actually, statewide," he said. "We're very large in terms of the commercial type thing."

Throughout the past several years the number of business licenses the city has given hasn't changed much, but the sales tax revenue coming into the city has. From 2000 to 2004, during a nationwide recession, revenues averaged just less than $14 million. In 2005 it jumped to $15.4 million. This year, the guess is $17 million.

To make it even more interesting, Orem doesn't use tax breaks or free land to entice businesses, Pedersen said. Combined with a lack of available space for more building, and the competition -- the city is already home to Wal-Mart, Target, Costco, University Mall and other major outlets -- the challenge of getting and keeping businesses grows. But they're taking it on anyway to keep their residents shopping inside the city limits.

"There's not much you have to leave Orem to go buy," said Mayor Jerry Washburn at the meeting.

This is where Seastrand sees his focus fitting in; Internet retailers provide all the services and the revenue of a storefront without requiring all the space. They still provide jobs, both directly and indirectly, and return money to the local economy.

"It's kind of like eBay," he said. "I would love to have companies like eBay as part of a tax base here in Orem."

He doesn't see a lot of major changes being necessary to start drawing the Internet shoppers to Orem companies, though. Getting online with the Utah Telecommunications Open Infrastructure Agency and providing high-speed Internet to homes and businesses alike is a good first step.

"When it comes down to it, the speed and the usability of Internet transmissions is pretty critical," he said.

The high-quality work force, low crime rate and good atmosphere should combine to bring business owners into the community, he said. The biggest step he sees needing to be made to be Internet-business friendly seems a little old school; the roads need to be fixed up, Seastrand said. As more products are delivered to houses instead of stores, more large trucks are going to be clogging up the system.

CEDO has also been active in encouraging businesses to Orem through its incubator program, which provides office space and resources to new businesses, and the revolving loan fund, Pedersen said.

This story appeared in The Daily Herald on page D5.

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