News and Press Releases

During the master plan process for Pocatello Regional Airport, I’ve had the opportunity to brainstorm with many people about development and the results have been spectacular. It is difficult to contain my excitement and enthusiasm about what lies ahead for the airport and the communities we support. Before looking at the future, I think it’s important that you know where we are now. Many of you will be surprised.

For example, the airport property consists of 3,400 acres. There are more than 60 leases for airport property, including the Pocatello Motocross Park and the Jet Stop Truck Stop. The airport generates $39 million in annual economic input to the region and supports 477 jobs.

And you may be surprised to know that Petersen Inc. recently built a 69,000-square-foot manufacturing facility on airport land, preserving the jobs of 45 local employees, and designed it with an eye on future expansion and investment.

The airport is a tremendous asset. The property is annexed into the Pocatello city limits and has city water and sewer systems. The airport’s most valuable assets are developable land and multi-modal transportation access. There are more than 1,600 acres of potentially developable land at the airport. A 700-acre industrial site has been established and 450 acres are ready to be developed.

The Pocatello Regional Airport Business Park has four zones: warehouse/distribution, light industry/ manufacturing, professional office/ business and commercial retail.

There are 600 acres available for aviation activity. Many aviation businesses would find our airport very attractive. The 9,060-foot-long primary runway is suitable for all but the largest of aircraft. The airport’s location away from the local communities makes it suitable for 24/7 operations and flight traffic. These qualities make our airport look very attractive to the aviation industry. The best target businesses for aviation development are aircraft maintenance, repair and overhaul (MRO) services, and aircraft manufacturing. Both would require large facilities and aircraft parking aprons. Both would conduct flight testing, increasing air traffic.

The other asset is access. There are three modes: air, interstate and rail. Yes, the airport has a rail spur connected to the UPRR line. This means a manufacturing plant could bring large components from overseas inland from the port via rail, could truck product out to many locations in North America via direct access to I-86, and could use air service for the shipment of critical items.

What the airport is lacking is infrastructure, and to that end the city established an Urban Renewal Area and Revenue Allocation District. The district allows for Tax Increment Financing to help pay for infrastructure improvements that will help new businesses locating at the airport. Planned improvements include a 1 million gallon water tank and water, sewer, storm water and franchise utility upgrades, and road, curb and gutter improvements. There is also a $365,000 project to extend and rehabilitate the rail spur and build an intermodal trans-load station. This facility will transfer goods and materials between rail cars and trucks, providing rail access to any tenant on the airport regardless of proximity to the spur. A trans-load station is an important element that will make the airport even more attractive to prospective clients.

The abundance of land at the airport allows for co-locating support vendors or value-added businesses. One entity could manufacture a product, then deliver it next door, where another firm uses it to create product B. An aircraft manufacturer could build their MRO facility right next door to increase efficiency. They could also maintain a logistics warehouse and immediately ship critical aircraft parts worldwide. Worldwide you question? Why not? If a business is interested in locating such an operation here, I’m sure we could obtain the international status necessary to succeed.

The airport’s mission is to be a significant economic engine and vital source for transportation services. The potential is there. The possibilities are endless. The airport is performing at only a tiny fraction of its capacity and we’re already generating $39 million a year. The exciting part is that this is just the beginning for Pocatello Regional Airport, but don’t take my word for it. Attend Airport Appreciation Day on Saturday and find out for yourself what great things our airport has to offer!

David Allen is manager of Pocatello Regional Airport. He can be reached at (208) 234-6154.

Hoku updated investors Thursday with their fourth quarter conference call.

During the call CEO Scott Paul said according to company projections production should begin at the Pocatello plant at some point in the next year.

Paul believes that this will lead to an increase in jobs for the Gate City.

Scott Paul, CEO, "We already have 120 people on staff, which is about the right number that we need for starting up and for initial operations. I expect we'll be ramping up to double that head count over the next 12 months."

Hoku was founded in 2001 and is based out of Honolulu, Hawaii.

Donation worth $20 million to $25 million

POCATELLO — ON Semiconductor has made a multimillion-dollar donation to Idaho State University in the form of specialized research equipment.

ISU announced that the semiconductor etching system will be used in the Idaho Joint Research Center, which will be located in the former Ballard Medical building, 1999 Alvin Ricken Road.

George Imel, the dean of the ISU College of Science and Engineering, said the replacement value of ON Semiconductor’s generous donation would be about $20 million to $25 million. The equipment will provide the university with expanded research opportunities and improve the educational experience for students, Imel said. “With the university’s recent purchase of the Ballard Building, we are now able to gladly accept and utilize research equipment that would otherwise be unaffordable,” Imel said. “It’s not useful for them anymore in a production mode, but for research in a laboratory it will be really invaluable.”

Todd Gansauge, an ISU nuclear engineer instructor, said three semi-trailer truck-loads of equipment were moved into the Joint Research Center Friday.

“There are still some bits and pieces we’ll still have to take possession of, but they have to be in a controlled environment,” Gansauge said.

Among the donated items, including semi-conductor presses, process stations, infrastructure, cabinets and sinks, Gansauge estimated that there were at least 100 items.

Mark Levine, director for marketing and communication at ISU, said the equipment will most likely be put to use this fall.

“It gives the students an opportunity to become familiar with the equipment,” Levine said. “Although, it is not state-of-the-art — from an academic perspective, to become familiar with and use this donated equipment will add to (student’s) educational experience.”

In a news release, John Spicer, Pocatello’s ON Semiconductor site manager, said ON was proud to be part of the ISU Research and Business park, and the “synergistic” relationship between ISU.

“We have enjoyed a long and excellent relationship with ISU in numerous ways, including working closely with the university’s engineering department, receiving technical training for our local employees and hiring ISU graduates for our growing Pocatello work force,” Spicer said.

Eric Burgett, an ISU assistant professor in the nuclear engineering department , said the equipment will benefit faculty and students by giving them the ability to examine neutrons, gamma rays, heat pressure and temperature variances in nuclear fuel.

“It has specific relevance for applications for (Idaho National Laboratory) and the Department of Energy in the areas of crystal growth and nanotechnology research as well as applications in advanced radiation detection,” Burgett said. “With this additional equipment, we will be able to grow various materials such as transparent semiconductors. The application of this ability will be felt in the areas of low-voltage lighting, solar cells and radiation detectors.”

Work progresses on new Allstate call center

CHUBBUCK — The future home of Allstate’s call center is in good hands as construction of the 7,555-square-foot facility is on schedule to be completed by Sept. 23.

Shauna McBride, regional spokeswoman for Allstate Insurance Company, asserts that one of the finest features of the energy efficient building is the break room.

Besides providing the luxury of instant access to television viewed on huge video screens for employees to watch during their break, an outdoor patio area was built into the blueprints.

“One of the reasons we chose this area to build our fourth call center, nationwide, is because of the beautiful scenery and what it represents,” McBride said. “The stable employment base, low cost of living and members of the community, we knew we would be partnering with, were other draws to the area.” Project managers with Mortenson Construction, the general contractor, broke ground on Jan. 24.

The concrete was poured on Feb. 12 and the structure began to take shape during the first part of April.

At this point in time, the roof is halfway complete and several different crews are gearing up to finish the interior once the building is fully enclosed.

“We have had to work around weather related issues,” said John Wagner, the project superintendent. “Today, we easily have 45 guys out here and we expect to double that amount in a month.”

Wagner, who works for Mortenson Construction based in Chicago near Allstate’s main campus, said the majority of the on site contractors they hired live in Southeast Idaho.

To help accelerate the process to enclose the structure, the exterior panels were built in Colorado.

“All of the empty space you see right now will be filled in with glass,” said Steve Eskildsen, the on site project manager. “The windows will allow a lot of sunlight in.”

In order to provide in-house training, the entire left side of the building has been dedicated to classroom space.

Steel beams in the middle of the facility will house the main distribution fibers which are an essential component to any call center’s infrastructure.

“The MDF is the heart and soul of the building,” Wagner said.

Safety is the No. 1 priority at the Allstate construction site, according to Wagner, who stated that there have been zero injuries to date.

Having a virtual mock up of the design plans on hand is one of the ways managers are able to stick to the strict timeline.

“By having all of the contractors on the same page, thanks to the 3-D technology, we have eliminated any clashes that can sometimes arise between the different companies,” Eskildsen said. “Also, if there is a problem we can pinpoint it quickly, get it approved by the designers and move on. The process is efficient and has proven to reduce the cost of construction.”

In June, Allstate will start taking applications for floor management positions.

Successful candidates will begin work the following month.

A total of 40-60 call center representatives will initially be hired during the month of October.

Eventually, the call center will employ around 500 representatives.

The grand opening is tentatively scheduled for mid-October.

“Our philosophy at Allstate is to go beyond being a business partner,” Mc-Bride said. “We are also partners with the community and we work with nonprofit groups to become integrated as such.”

The Allstate call center will be open 24 hours a day, seven days a week.

Economic growth, small business development linked

President Barack Obama is hailing small business development as one of the key factors in spurring new economic growth.

Locally, Regional Director of the Small Business Development Center John Hart stands by the ideology and offers free advice for those who are just getting started or for those who are looking to expand their business operations.

Since 1996, data collected in Idaho indicates that over 8,000 jobs have been created and at least $500,000 has been infused into the economy
thanks to the expertise provided by SBDC consultants, according to Hart.

“A number of people are being forced to look at small business ownership as a viable option considering the downturn of jobs in many sectors,” Hart said. “(Entrepreneurship) is still staunchly tied to the American psyche. A lot of people want to run their own business and reap the rewards of success that come with hard work.”

Hart indicates that the latest trend in small business development is online marketing.

“We can also organize people’s finances,” Hart said. “Sometimes, it’s just a matter of helping them understand their books better.”

Hart and his colleague can be of service to potential clients in Southeastern Idaho who have anywhere from 50-100 employees.

“I happen to be a business owner who was hit hard by the recession,” Hart said. “Honestly, I think I might have been able to weather the storm if I had found (a SBDC). I know what it’s like to be so caught up on the inside that you fail to see the bigger picture on the outside.”

In a proclamation to kick off National Small Business Week that runs May 15-21, the president states in a news release: “Our country started as an idea, and it took hard-working, dedicated and visionary patriots to make it a reality. A successful business starts much the same way — ideas realized by entrepreneurs who dream of a better world and work until they see it through. From the family businesses on Main Street to the high-tech startups that keep America on the cutting edge, small businesses are the backbone of our economy and the cornerstones of
America’s promise.”

The president touts that countless new and saved jobs, nationwide, have stemmed from small businesses that took advantage of tax relief, access to capital and other tools in the Recovery Act and the Small Business Jobs Act that his administration propelled into motion.

“To support high-growth business, my administration has launched Startup America, an initiative that will strengthen access to capital and mentoring while reducing barriers to grow for small businesses,” the President said. “Entrepreneurship is essential to the strength and resilience of our economy and our way of life.”

Becky Pierce, owner of Speech Therapy Services in Pocatello, was approached recently by officials representing a virtual school who were seeking qualified therapists to assist them in testing out their new technology called Telepractice.

The system facilitates face-to-face interaction between therapists and their clients via the Internet.

“Our focus is to reach out to rural families who don’t have access to these types of services and who are currently going without,” Pierce said. “We are at the ground level right now, but we are hoping to go nationwide with the new service.”

Pierce claims that if it weren’t for Hart’s guidance, she would not have been able to recognize her company’s full potential for growth.

“I am just a therapist, I don’t know how to market myself. Until I took advantage of the program I had no idea how helpful they could be,” Pierce said. “(Hart) has been so helpful that I feel like I should be paying him.”

The SBDC office, 1651 Alvin Ricken Drive, will soon be relocated.

With the hope to further solidify the SBDC’s established partnership with Idaho State University’s College of Business, Hart welcomes the move to an on-campus location.

It was with that great excitement that I recently announced Idaho State University’s latest research endeavor — the purchase of the Ballard Building, with plans to construct a state-of-the art national research facility. This new facility will benefit not only our institution, but the entire state as well.

The purchase of the Ballard building, located in a research park adjacent to Idaho Accelerator Center and ON Semiconductor, provides a uniquely perfect opportunity, both for Idaho State University faculty, and researchers from other businesses and institutions.
 
The facility, with 200,000 square feet of space ready for research, can be purchased and maintained with no state-appropriated funds. Instead of relying on state money, it will be run as a business, with grants and outside organizations funding the facility through world-class research.

In today’s economic climate, it is difficult for every business and institution to fund facilities solely for their own research. Researchers worldwide seek out national user facilities, such as the one that will soon be housed in the Ballard building, which allow scientists and engineers to share the cost of space and equipment.

The facility has already attracted interest from both federal laboratories and private industry. The Ballard Building has the appropriate environment and existing infrastructure for large scientific equipment, including heating and cooling controls, and clean rooms. With a state-of-the-art facility, and the equipment and talent ISU currently owns, some of the best and brightest researchers in materials science, homeland security and radio-pharmaceuticals will come to Southeast Idaho to do groundbreaking work in their fields.

To begin, Idaho State University’s College of Science and Engineering can fund the building with existing research dollars and other sources, using no state-appropriated money. Even without signed contracts from outside sources, the building can be maintained with funding from our current research endeavors. Scientists and engineers from across the nation, however, are ready to be a part of the new facility, bringing new money into our economy.

The researchers who come to the Ballard building will stay in Southeast Idaho’s hotels and apartments. They will dine here, take part in our recreation opportunities, and bring money into our economy. We anticipate that new businesses will come here, to stay, utilizing the facility on a regular, long-term basis.

Idaho State University already has $33 million in donated and grant-funded highly specialized equipment on-hand in temporary storage for use in the facility. With the purchase of the building, we have firm offers to acquire $9 million more in equipment. Without the Ballard building, we would not have been able to use this equipment to its potential, limiting our research opportunities.

The idea of a user facility such as this one is being spearheaded by a new faculty member from a prestigious university who has come to ISU, with great ambition, energy and drive. More will come as Idaho State University, with the help of this facility and the partnerships it will bring, continues on its path to becoming a world-renowned research institution.

The new facility is another step in ISU President Arthur Vailas’ plan to expand our research portfolio.

“The purchase of the Ballard Building represents an outstanding opportunity to build a world-class research facility which will attract the best faculty and students in the sciences and engineering disciplines and attract partnerships worldwide,” he said in a recent letter to the State Board of Education.

Idaho State University and the College of Science and Engineering already have talented faculty and students, a drive to succeed and a reputation for success in many fields of research. With this new opportunity, we are taking another step toward becoming a prominent research institution, and in the process, contributing to the economic success of Southeast Idaho.

Study: University pumps $312M into economy

POCATELLO—Idaho State University injects about $312 million annually into the local economy, the results of a new economic impact study conducted by two Master of Business Administration students.

The total factors in the $70 million in wages for ISU’s 162 graduate assistants and 1,945 full- and part-time employees, as well as supply purchases, student spending, visitor spending and capital expenditures. The formula also includes a multiplier of 1.69 because new income tends to pass through several hands.

Cory Howerton and Kevin McMurtrey spent the past eight months working on the study through Bengal Solutions. The program provides scholarships for MBA students who work at least 20 hours per week on projects intended to help local businesses succeed. The students’ efforts were overseen by Sam Peterson, the director of ISU’s MBA program.

The study, released Tuesday morning during a public reception at the Pond Student Union Building, also estimated spending and living expenses from the more than 14,000 ISU students at $135.7 million per year. Of that total, $17.4 million comes from out-of-state and foreign students.

“It’s a huge number that would not exist in Southeast Idaho if ISU did not exist,” Howerton said of the out-of-state student revenue. Illustrating the importance of growing attendance at ISU, the study estimates each full-time student spends $12,570 per year in the community,
beyond tuition.

The largest economic impact figure pertained to the 4,964 ISU alumni living throughout Idaho. Using wage estimates from the Idaho Department of Labor, they calculated the increased economic productivity of those alumni resulting from their college degrees at $873.8 million.

“That’s a huge number, and I guess this is a great day for ISU to recognize, and (people) all throughout the state to recognize what a great impact ISU has,” McMurtrey said.

The study also delved into the value of a college education, estimating the return on investment of having a bachelor’s degree at 14.65 percent.

Furthermore, the study confirms the value of ISU facilities enjoyed by the general public. Events held at Holt Arena and the Stephens Performing Arts Center were responsible for $5.1 million in revenue and consumer spending in Fiscal Year 2010, according to the study.

The last time ISU calculated its economic impact on the community was a dozen years ago, and university officials say they frequently receive inquiries about the economic impact of their operations from lawmakers, donors, state officials and the general public.

McMurtrey noted he and Howerton spent many hours “looking at each other dumbfounded” throughout the process due to how in-depth such studies
must be.

ISU’s director of communications and marketing, Mark Levine, proposed the study in August, and the students spent the first couple of months of work researching economic impact studies from other universities, including the University of Idaho, Boise State University, Stanford and Eastern Connecticut State University. Their research utilized ISU financial statements from Fiscal Year 2010.

Howerton said they found some of the economic impact studies they researched to be less than forthright about how their numbers were calculated, so they made an effort to be both conservative and transparent.

“You can follow all of the equations, all of the calculations that were done to reach these critical numbers,” Howerton said.

Their work was well received by Gynii Gilliam, executive director of Bannock Development Corp, who uses such information in her efforts to entice businesses to invest in the region.

“Well done on the methodology and the information you guys gathered,” Gilliam said.

By comparison with U of I and BSU, the authors of the report concluded ISU’s spending impact on the community is somewhat behind. Regarding the productivity of alumni, their results are on par with the other two universities.

April 20, 2011

Cities cooperate to speed Allstate call center work

Facing a tight deadline for the building of the Allstate Insurance inbound call center, the cities of Chubbuck and Pocatello recently made an agreement regarding permits and inspections to ensure a timely response.
  
The Pocatello City Council decided last Thursday to perform plumbing and electrical inspections at the site for a fee, while Chubbuck will continue to handle the administrative work for those permits. The agreement goes into effect on Friday and will remain effective regarding other future projects as well.
  
The agreement does not include a binding length of time and can be relatively easily modified, officials said.
  
Ray Griffin, a building official with the city of Chubbuck, said the proposed agreement was initiated by the Allstate building project, which has a nine month timeline for completing the 75,000-square-foot building and is expected to be finished in September.
 
“Chubbuck would (handle) permits and subcontract with Pocatello to do those inspections and collect the fees,” Griffin said.
  
Before a decision was made at last Thursday’s council meeting, Chubbuck Mayor Steve England said this is an area of commitment where the cities can be successful.
  
“We’re looking to make it a viable to partnership (between) Pocatello and Chubbuck,” England said. “In times like these, it’s a win-win for the city and an appreciated opportunity to work together.”
 
Griffin said the state inspectors have previously filled this roll with electrical and plumbing inspections, but with recent cutbacks, inspectors have taken on a larger service area, affecting the time it takes to conduct an inspection.
 
The agreement between the cities would allow contractor fees to be paid to the local entities rather than the state. Chubbuck will receive 25 percent for the administrative and permit fees and Pocatello will receive 75 percent for the plumbing and electrical inspections.
 
Lynn Transtrum, the Pocatello building official, said cities such as Nampa and Caldwell have made similar arrangements.  
 
Transtrum said Pocatello has qualified inspectors willing to subcontract with Chubbuck.
  
“We’d like to think of it as the best utilization of resources, which is manpower,” Transtrum said. “They have a need for electrical and plumbing inspections, we have the adequate, trained staff and time to do it.
  
“We feel like this is a positive step in the community to demonstrate that (we) can work together for our citizenry,” Transtrum said.

John Castello, the Allstate building project manager, said the outside exterior of the building should be completed soon. He said the foundation and structural steel are in place, and construction crews are working on the architectural precast of the exterior walls. The next steps include installing roofing and windows, then the interior mechanical and electrical systems.
  
While hiring dates for the estimated 500-600 jobs at the Allstate call center are still being determined, Dan Cravens, the Southeast Idaho regional economist for the Department of Labor, said the office will be assisting with Allstate’s hiring. He said potential job fairs could be expected in late spring or summer at the department’s office at 330 N. Fifth Ave.  
 
As for the building, Griffin said there is temporary power for workers and plumbing infrastructure, including fire hydrants and drain lines. “They are on schedule with the projected plans to be operational in September,” he said.  

April 18, 2011

Forging ahead
ISU advances in research university rankings
BY JOHN O’CONNELL
<?xml:namespace prefix = owc ns = "http://www.olivesoftware.com/schema/owc.xsd" /> 
joconnell@journalnet.com

POCATELLO — At his first general assembly meeting four years ago, Idaho State University President Arthur Vailas vowed he’d set ISU on course to become a pre-eminent research institution serving Idaho, the nation and the world.