the enterprise - utah's business journal

Volume 41, Number 11

UTAH’S BUSINESS JOURNAL$1.44Oct. 10-16, 2011www.slenterprise.com

THIS WEEK

• Calendar •See page 10.

Legal MattersSee page 11.

Oil, Gas &Energy

In this edition.

• Industry Briefs •Begin on page 6.

W

a s a t c h F r o n tFocusFocus

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U T A H

Legal Matters

Legal Matters

Legal Matters

Legal Matters

Legal Matters

Legal Matters

Design Matters

Executive Lifestyle

Legal Matters

Staffing Matters

HR Matters

Real Estate Matters

Executive Lifestyle

Legal Matters

Brooks Arcadebuilding soldto Celtic Bank

Utah group inks joint venture with major U.S.meeting planning firm

AlphaGraphics, the seller, will remain in the building; Celtic is expect-ed to take the third floor next year.By Barbara RattleThe Enterprise The historic Brooks Arcade Building at 268 S. State St. in downtown Salt Lake City has been sold by its anchor tenant, AlphaGraphics, to Salt Lake City-based Celtic Bank. AlphaGraphics, which acquired the 68,000 square foot structure in 2000 when it moved its headquarters to Salt Lake City from Tucson, will consolidate its operations on the second floor of the building, allowing Celtic Bank to occupy to the top, third

level, probably sometime next year. Celtic Bank’s current head-quarters building at 340 E. 400 S. is under contract to be sold to Salt Lake City, which is building a major new public safety complex nearby. Reese Howell, CEO of Celtic Bank, said the top floor of the Brooks Arcade building, measur-ing about 24,000 square feet, will be substantially larger than the company’s current location on 400 South, which measures about 12,000 square feet.

By Barbara RattleThe Enterprise ThirdRock Travel Group, private equity and management firm co-founded by Utah travel industry veteran Randy Hunt, has formed a joint-venture with New York-based McVeigh Associates, the 10th largest meeting planning firm in North America, to create McVeigh Performance Group, which will have operations in Long Island and Salt Lake City. The newly created firm will focus on incentive program management and fulfillment, including group and individual incentive travel, merchandise awards, stored value cards, recognition programs, tracking and ROI measurement, strategic planning and state-of-the-art event management technology.

Hunt will act as president of McVeigh Performance Group, while Frank McVeigh will serve as CEO. Hunt is a 30-year veteran of the so-called MICE (meetings, incentives, conferences and

exhibitions) industry. Hunt is a former owner of Utah-based Morris Travel and co-founder of Morris Air, which was sold to Southwest Airlines in the 1990s. It has not yet been decided whether Hunt will retain his current position as vice president of sales

and service at Columbus Groups + Incentives, Bountiful. In June, Hunt co-founded ThirdRock Travel Group with Richard Nord, who owns travel companies in California in addition to some boutique hotel holdings and an Internet commerce site that

Hunt

National retail chain buybuy BABY will open an approxi-mately 33,000 square foot store in the Salt Lake market in the first quarter of 2012, according to media relations spokesper-son Rachael Risinger of parent company Bed, Bath & Beyond. The store will be located in Sandy near the South Towne Center, which fits the demographic characteristics the firm is looking for, said Risinger. The building is located next to an Old Navy store, and formerly housed Linens and Things. buybuy BABY was founded in 1996 and acquired by Bed Bath & Beyond in 2007. The chain operates more than 50 stores in 24 states nationwide; stores range in size from 28,000 to 60,000 square feet. buybuy BABY’s shopping environment offers custom-ers an extensive selection of infant and toddler merchandise in categories including furniture, car seats, strollers, feeding, bedding, bath, health and safety essentials, toys, learning and development products, clothing and a unique selection of sea-sonal and holiday products.

— Brad Fullmer

Fulfillment firm Molding Box tomove to 50,000 sq. foot facilityBy Brad FullmerThe Enterprise Molding Box, a nearly six-year-old company specializing in helping firms with fulfillment, shipping, printing and CD/DVD duplication, among other services, signed a lease recently to move in December from its 10,000 square foot operations in Draper to a 50,000 square foot facility at 2625 S. 600 W. in Salt Lake City. “We’ve had a really good year and needed a bigger space so this will be a great facility for us,” said founder/CEO Jordan Guernsey, whose firm will spend approximately $300,000 in ten-ant improvement finishes on the building.

Molding Box has made great strides in diversifying its busi-ness and expanding its marketing presence in the past year and has seen revenues more than double, Guernsey said, from just under $3 million in 2010 to what he estimates will be between $7 million and $8 million in 2011. He expects revenues to continue climbing next year, with goals in the $12 million to $15 million range. “We’re a lot more diversified and we make it easy for people to work with us,” said Guernsey. “Our clients’ experience is driving everything. People hear that and want the same experience. For us,

see McVEIGH page 2

see MOLDING page 4

see BROOKS page 5

sells hotel rooms. “We sent out about 300 [joint- venture announcement] e-mails over the weekend to suppliers like vice presidents of sales for cruise lines, Four Seasons Hotels, big global suppliers of travel, and I’ve probably gotten no less than 150 e-mails back in one day saying ‘fantastic, congratulations, great deal, someone needed to do this,” Hunt said on Oct. 5. “McVeigh has such a great reputation in the large conferences and meetings and Rich [Nord] and I have such a great reputation on the incentive side of things. Everyone looks at it as kind of a marriage made in heaven. For executive officers with cruise lines and major global hotel companies and tour operators, it’s probably a frustrating time for them right now because this industry is so highly fragmented, but at the other end there are some huge, huge companies like American Express and Carlson. In between, their sales force has to spend a ton of time calling on all the fragmented smaller guys just to keep their pipeline full. We’re a major player in their eyes at this point. As far as buying power, as far as deals that they’ll have to offer, we’ll have the very best of those for our clients.” Operations of McVeigh Performance Group will be handled in New York, with sales, marketing and client relations based in Utah. Hunt said the eight-member Utah staff is currently looking for Salt Lake City office space, either in the Cottonwood area, downtown or near the airport. “The fun thing is we’re really not going to have to knock on doors for about two years because between McVeigh and what we’re bringing and what Rich is bringing, we’ve got several big, big companies out there that basically said, ‘when you put this thing together just

give us a call and you’ve got our business.’ It’s not even going to be a bidding situation. It’s just relationships that we’ve had over the years. We’ve got low-hanging fruit out there that’s going to take us probably 18 months to bring in and it’s not even knocking on a cold door. Plus we’re going to do more M&A. We’re going to actually go out and enroll some of these other incentive companies into McVeigh; I would say within about 18 months. We’re in nondisclosure with about six of the 12 companies right now that are trying to do the same thing, so there’s a lot of interest that way too.” Hunt said McVeigh has 80 full-time employees in Long Island, and that, since its formation, the firm has managed more than 12,000 meetings on six continents. “They book about 120,000 hotel room nights a year; in our industry that’s huge,” he said. According to Hunt, the new joint-venture has two main objectives — bringing younger people into the travel industry and bringing travelers to Utah. “This industry is dominated by the baby boomer generation, I’m part of that,” he said. “A lot of young people perceive this industry as one where there’s not a lot of money to be made. But there are some real aggressive compensation opportunities out there for younger people. Another objective is to bring big conferences and meetings and incentives into Utah. We want to show off our state. We’re going to have a huge influence on driving business to Utah.”

2 The Enterprise Oct. 10-16, 2011

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McVEIGHfrom page 1 Tilly’s, a specialty retailer in

the action sports industry that sells clothing, shoes and accessories, will open its first store in Utah in late October or early November at the Station Park development in Farmington. A $350,000 tenant improve-ment is under way at 180 N. Station Parkway #1100, an approximately 10,000 square foot space. “We’ve set out on a nation-wide expansion and I know the Utah market was at the top of our mind,” said Monica Fernandes,

marketing manager for Tilly’s. “We’re opening stores in the right places with the right demograph-ics and wanting to continue to expand.” Fernandes said the company focuses on areas with a young demographic makeup. “We look for areas that are rooted in action sports, fashion, general lifestyle look. Anything for the youth-focused market.” Tilly’s opened its first store in Southern California in 1982 and has grown to more than 120

stores in 11 states. The company is known for staying on the cutting edge of ever-evolving trends and has access to a large assortment of brands and merchandise from top manufacturers in the surf, skate, motocross and lifestyle apparel industries, including clothing/apparel brands such as Volcom, Hurley, Billabong, Zoo York, Nike and TapouT, along with gear like Beach Feet Boots, Reef Sandals, Skullcandy Headphones and Goldcoast Longboards.

Action sports retailer to open first Utah store

The EnterpriseOct. 10-16, 2011 3

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Snowbird restaurant getting$1.58 million renovation The Aerie Restaurant at Snowbird Ski and Summer Resort in Little Cottonwood Canyon is undergoing a $1.58 million reno-vation, slated for completion in early December 2011. The demolition process of the 10,500 square foot restau-rant was begun Sept. 19 by Garff Construction of Salt Lake City. Garff estimated the construction cost at approximately $1 million. “It needed a refresh to keep in step with what our guests expect; this is a great opportunity for us,” said Bret Johnson, director of food and beverage at Snowbird. “We have a great hotel with amazing views. It’s not easy in this day and age to make this investment in our property; we’re doing something unique and exciting.” Recognized as Snowbird’s flagship restaurant, The Aerie is located on the 10th floor of The Cliff Lodge. In addition to increased capacity – the restaurant/bar area will be able to accommodate 280 people – a second private din-ing space for up to 90 people is being planned, one that faces the mountainside and will be used as a breakfast area during the winter ski season, said Johnson. The design of the restaurant, according to Louis Ulrich, prin-cipal of Luna Design Studio of Salt Lake City, is “comfortable modern.” “The idea is to keep an

ongoing feel of the original Cliff Lodge. It was important to have original continuity and we wanted to bring a certain comfort level for guests. I wanted to breathe a new energy into the restaurant,” Ulrich said. Design elements will include custom glass, wood paneling, cus-tom millwork, new lighting fix-tures and the use of fins in the ceil-ing as a component to warm up the space. A new clear, frosted white bar that sparkles was designed by 3Form and will accentuate the restaurant. The bar will feature a state-of-the-art beer tap sys-tem designed by Australian com-pany Lancer Beverage Systems and Japan-based Hoshizaki Ice Machines that Johnson said will be the first of its kind in the U.S. The 12-tap system will feature six locally crafted beers from Utah-based microbreweries. Snowbird also hired a new manager and chef for The Aerie, part of its overall plan to reinvent itself. Johnson said the menu is also being revamped, from a series of various menus down to one, so that guests can enjoy whatever they’d like at virtually any time of the day. “We’re trying to appeal to a wider market of people,” said Johnson. “We want the restaurant to not seem as big as it is, try and give it a more comfortable, cozy feel. Not many restaurants have the type of views we have here.”

The law fi rm of Shumway Van & Hansen is moving its headquarters from Alpine to downtown Salt Lake City. Founded in September 2008, the fi rm has leased roughly 4,900 square feet in the Judge Building, 8 E. Broadway, where it should be operational by the end of the year, said principal Doug Shumway. Operations in Alpine will be scaled back while an approximately 7,000 square foot Las Vegas operation will remain in place, he said. Five associates will work from the downtown location and more employees will be hired. “I anticipate employing another fi ve people within six months; we have a pretty desperate need to fi nd good talent,” Shumway said. Other partners in the fi rm are Michael Van and Kevin Hansen. All told, the practice now employs 33 people, Shumway said, noting the company’s practice, while leaning toward real property and transactional law, also includes

“just about everything” — injury cases, litigation, securities, construction matters, family law, bankruptcy and even a small criminal law aspect. The fi rm leased its Judge Building space with the assistance of Commerce Real Estate Solutions.

Law firm moving headquartersfrom Alpine to Salt Lake City

C o n n e c t i c u t - b a s e d Environmental Systems Products Holdings Inc. (ESP) will begin a $1.5 million upgrade of vehicle emissions testing equipment at approximately 200 testing cen-ters in Utah County beginning in January. The REDeploy program will provide several upgrades to Utah County’s existing vehicle emis-sions testing program, including real-time data retrieval, increased fraud protection, enhanced parts and labor agreements and cost and time savings for testing center owners and program administra-tors. ESP’s REDeploy program offers testing centers an upgrade of their existing emissions ana-lyzer at approximately one-third of the purchase price of a new analyzer. Currently, analyz-ers at vehicle emissions testing centers are only able to upload data to the Utah County Vehicle Inspection Database (VID) over-night, via a dial-up modem. The REDeploy program will replace these modems with a network

card, allowing analyzers to upload real-time data to the VID. By immediately linking the vehicle identification number (VIN) to the make and model of the auto-mobile, REDeploy nearly elimi-nates the possibility of improperly passing a vehicle by substituting another. All data is housed on two ESP servers in Wisconsin and Connecticut, in the event of a power outage at one location. Beginning in January, the parts and service agreement will be included in the cost of the $1,550 system upgrade. Under ESP’s REDeploy program, vehicle emis-sions testing center owners will no longer have to choose between an annual service contract and the cost of parts and labor, should their equipment require repairs. “By retrofitting our exist-ing analyzers instead of replac-ing them, ESP is saving us time and money,” said Seth Vermillion, owner of Utah Safety & Emissions Testing, with locations in Provo and American Fork. “We’ll have the benefit of new technology without the hassle of training tech-

nicians on new equipment, which could potentially cause delays for customers.” “In speaking with Utah County program administrators and the owners of local vehicle emissions testing centers, we’ve identified several challenges, such as a lag in data retrieval time, the cost of analyzer repairs and the need for increased fraud detec-tion,” said John Bradley, vice president of sales for ESP. “The REDeploy program removes these obstacles, providing a low-cost, low-impact and low-risk transfer of information from testing sta-tions to program administrator.”

Utah County emissions testing to be upgraded

4 Oct. 10-16, 2011The Enterprise

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a lot of [our success] is relation-ships.” “Our relationship with them is very good,” said Brett Bell, a member with Yknot Holdings, a Salt Lake-based firm that sells hard-good products to various dis-tribution channels and has been a Molding Box client since it started operating its business in February 2010. “They keep us very informed on changes in the industry, changes in shipping rates; they track all our inventory and help with forecasting. They have a very hands-on relationship with us and we can communicate at the top with Jordan.” “It’s been amazing work-ing with them,” added Noah Rasheta, president of iStabilizer, a Kamas-based company that sells primarily portable tripods for smartphones and mobile camera devices through the Internet. “We started out very small, selling just a couple of items a day. What’s nice about Molding Box is there is no minimum or maximum of what we need to sell each day – it’s never been an issue with them. We had one day where we sold 1,500 tripods and they got everything packaged and shipped out in two days. There is no way I could have done that by myself. It’s a great resource for a small company like mine.” Guernsey started Molding Box in November 2005 short-ly after turning 21. A native of Pleasant Grove, Guernsey moved to the Salt Lake area at 18 and was working 60 hours a week doing

credit card processing before moving into product development. After a couple of years of working for other people, he decided to test his entrepreneurial spirit and started Molding Box, which he ran that first year out of his mother’s basement, pulling in $300,000 in revenues. “I just got sick of working for other people and figured I could just as easily do something on my own,” said Guernsey. He had developed a friend-ship dating back to 2003 with Matt Roberts, owner of printing/graphics company Systematic (founded in 1999), and by 2009 the pair decided to merge the two companies under the same umbrella, which boosted Molding Box’s services and client base considerably. “We were one of the pri-mary vendors for Molding Box and had established a friendship a few years before and just decided to form a strategic partnership and merge our forces together,” said Roberts. “It was a seamless transi-tion.” Guernsey said the company took a major revenue hit at the end of 2009 when the Federal Trade Commission started crack-ing down on the nutraceutical trade industry, which saw a influx of companies offering “free trial products.” “The FTC basically shut down everyone in that industry, but we’ve diversified out of that market and we’re not in as volatile

a space,” said Guernsey, adding that Molding Box lost roughly 80 percent of its revenue potential in the space of a week at the end of 2009. “It definitely hurt – I won’t lie. But we’ve gotten through it and have turned a new leaf, so that’s exciting.” Part of that overall company transformation has been an empha-sis on attending trade shows and exhibits related to the fulfillment industry, along with a major mar-keting push to get the Molding Box name out there. The company is a significant sponsor for the Real Salt Lake (RSL) soccer team, with various Molding Box signs in RSL’s stadi-um in Sandy. On Oct. 22, Molding Box will be the featured spon-sor when RSL hosts the Portland Timbers. “We were all season ticket holders and members of RSL’s Lion’s Club, which is 100 percent business owners, and decided to try and drum up more local business,” Roberts said of the RSL sponsor-ship. “We also attend conventions like AdTech and the Electronic Retailers Association, which offer huge networking opportunities.” “We’re trying to gain traction on local and national competitors – we’re taking over the world,” Guernsey said, rather tongue-in-cheek. “We’ll start to look at picking up competitors and doing strategic mergers where it makes sense. We’re just trying to get out to different places and broaden our base.” Molding Box currently employs 28 people, and may add up to 10 or 15 more, Guernsey said, once the firm moves to its leased facility in December and based on how business continues to grow in 2012. “Having more space will allow for more growth and more efficiency,” said Roberts. “Being confined to a small space, we’ve had to live on top of each other. It will help us expand our sales force and hopefully offer more services.” Some of the firm’s more notable local clients include Prosper, a personal coaching firm in Provo, the Larry H. Miller Companies, Media One of Utah, and Prudential.

MOLDINGfrom page 1

Jordan Guernsey is the founder/CEO of Molding Box. He started the company in November 2005 at the age of 21.

Control4, a Draper-based provider of IP-based home con-trol systems, has appointed Martin Plaehn as its president and CEO. Throughout his 30-year career, Plaehn has held numer-ous executive management and CEO positions. Before joining Control4, Plaehn was senior vice president of product and service development at RealNetworks. Prior to that, he served as CEO at Bungee Labs, an early lead-er in the cloud computing and

platform-as-a-service industry. He also served as CEO of Viewpoint Digital, a creator and licensor of premium 3D digital content for digital animators. Effective immediately, Will West will move into the role of chairman of the board and chief strategy officer. Control4 has approximately 2,000 dealers in North America and distribution in more than 70 countries.

Martin Plaehn to lead Draper-based Control4

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“It’s kind of a culmination of a series of transactions that are in everyone’s best interests,” Howell said. “We end up with some additional space in what we believe is a good location and a nice building, and I think it works for AlphaGraphics and I think it works for the city,” Celtic Bank anticipates renaming the structure the Celtic Bank building. “We haven’t made any specifi c plans but did do due diligence with both the city as far as their sign ordinances go and the Utah Historical Society to make sure we can do some type of signage if and when we move in there, but it’s pretty certain we’d move in at some point,” Howell said. “We’re pretty patient.” Kevin Cushing, CEO of AlphaGraphics, said the time was

right to sell the building. “Our core business is being a franchisor, and in 2000 when the company moved to Salt Lake City there was an opportunity to help develop a blighted corner in Salt Lake as well as have the opportunity to own their headquarters,” Cushing said. “So we were in the development business for a period of time. We’ve accomplished our goal of bringing the building to a mature state, so it was a proper time for us to take our resources out of the building and use them to support our core business. We’ve always had more space than we needed to use so we’re keeping our headquarters here and the same number of folks, we’re just reorganizing it to have a more effi cient use of our space and to get our occupancy costs in line with the size of business that we are. “We saw the great opportunity for a candidate to own the building as someone that was much like we

were, which was someone that would own the building and also be an occupant of a signifi cant part of it. We’re delighted that Celtic was the group that was able to purchase the building and we, together, will continue to occupy the building for a long time to come.” Constructed in 1890, the Brooks Arcade building was fully renovated in 2001 into a multi-tenant offi ce building with ground fl oor retail space. The original exterior facade, consisting of chiseled stone, was fully restored, making it one of Salt Lake City’s most unique and historical buildings. In addition to AlphaGraphics, tenants include Charles Schwab, Konica/Minolta and America First Credit Union. Sale of the building was brokered by Kip Paul and Jeff Rossi of Commerce Real Estate Solutions, and Tab Cornelison of CB Richard Ellis.

BROOKS from page 1

The Dailey Method Salt Lake City is slated to open a 2,230 square foot studio at the end of November in the Highland Place Shopping Center at 6910 Highland Dr., one door down from flagship tenant Whole Foods Market in Cottonwood Heights. According to co-owners Daralyn Christensen and Lauren McKay, the pair has been work-ing on this venture for the past year. Christensen learned of The Dailey Method when she lived in the San Francisco Bay area before moving to Salt Lake four years ago. “I had a college friend who opened a Dailey Method studio, and watched her success,” she said. “When Lauren and I worked together at a previous company we discussed opening up a busi-ness and thought this was a good opportunity.” “I grew up dancing and was hoping to work in this field,” added McKay. “This is a per-fect idea for us to partner and work together. It’s a very mod-ern, upscale environment, which I think people will embrace.” The Dailey Method offers a combination of ballet barre work, core conditioning, stretching and orthopedic exercises in one-hour classes that are aimed to strength-en, tone and lengthen the entire body. Light weights are utilized to define the upper body, while mat and ballet barre work target the thighs, seat and abdominals. “It is designed to provide quick physical results while cre-ating balance in one’s body,” said Christensen. “We hear all the time from people that they have tried many different forms of exercise, and nothing has changed their body like The Dailey Method.”

Guests will be offered a variety of membership options, although there is no charge for someone who simply wants to drop in for a single class ses-sion ($20) or purchase discounted multiple class packages. New-client specials include one month of unlimited visits for $100 or a three-class package for $45. The facility will have a main studio with three ballet barres, a secondary overflow studio, a spa-like locker room/shower area, and a retail space for high-end health/wellness products. A stall bar – a series of rungs attached to a wall – will allow clients to hang, helping create space between ver-tebra and discs. Classroom sizes will average 15 to 20 people per session. The studio will be open seven days a week, with up to six sessions per day during week-days. The Dailey Method was founded in 2000 in the San Francisco Marina District by Jill Dailey McIntosh. There are cur-rently 27 Dailey Method studios in locations including California, Arizona, Illinois, Canada, and Paris, France. Carpenter Stringham of Salt Lake City is the architect on the tenant improvement project. A contractor was slated to be select-ed late last week.

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Bicycle parts e-tailer to expand in North SL BikeWagon, a Salt Lake City fi rm that sells bicycle parts and accessories online, is preparing to expand. Currently located in about 15,000 square feet at 2100 N. Redwood Road, the company has purchased a 25,300 square foot building at 680 W. 200 N., North Salt Lake, where it should be up and operating by early November, said George Majors, who owns the company in partnership with his son, Dale. “We’ve grown enough that we need to be in our own building,” Majors said. “It was time to get on our own piece of property.” The larger space will allow the company, founded in 2004, to stock more inventory and enjoy additional offi ce space, he said. The fi rm, which employs roughly 25 people, currently ships about 400 packages per day via the U.S. Postal Service and FedEx. “We sell all over the world; about 15 percent or so is

international,” Major said, noting sales are made utilizing the fi rm’s own website in addition to eBay and Amazon. The new location will feature a retail shop measuring between 3,000 and 4,000 square feet. This will be the fourth move

for BikeWagon since its formation. Majors attributed the fi rm’s success to “having a plan as to where we wanted to be in 10 years.” BikeWagon purchased its new location with the assistance of Anne Smart of Commerce Real Estate Solutions.

6 The Enterprise Oct. 10-16, 2011

• Industry Briefs • BANKING • Scott Nicholls has joined Capital Community Bank as the Orem office manager and mort-gage loan officer. He has been working in the financial and bank-ing industry for the last 11 years. Nicholls graduated with a B.S. in business management from Utah Valley University and will be graduating from University of Phoenix with his Masters of Accountancy this month. • Philadelphia-based MultiFunding, a firm that works with small-business owners in more than 27 states to understand small business lending options has rated Salt Lake City’s Celtic Bank as one of the nation’s Most Committed SBA Lenders. The top 25 banks made $2.9 billion of SBA 7A loans in 2010, with their collective deposit base of $5.6 bil-lion. Celtic Bank ranked fifth on the list. • HeritageWest Credit Union collected more than 9,000 pounds of paper waste for recycling at a recent “Shred-It” event in Tooele. Recycling one ton of paper saves 17 mature trees, 7,000 gallons of water, three cubic yards of landfi ll space, two barrels of oil, and 4,100 kilowatt hours of electricity. • Zions Bank has opened

a new resource center dedicated to the issues involved with home ownership. Called The Homeowner’s Café, the center is located at 7634 Union Park Ave. in Midvale. Homeowner’s Café will serve as an education center where clients and community members can receive homeownership guidance free of charge. • Ogden-based TAB Bank has hired Mark Myers as vice president of lease underwriting. He has more than 25 years experience in the commercial equipment fi nance/leasing and commercial banking industries. His previous experience includes working for JP Morgan Chase Bank, Key Equipment Finance, Banc One Leasing Corp. (formerly known as Chase Equipment Finance) and GTE Leasing Corp. COMPUTERS/SOFTWARE • Upturn Solutions, a Layton-based developer of com-puterized maintenance manage-ment systems and asset and work management software solutions, has launched Sprocket 3.5. The newly enhanced software solu-tion significantly reduces the time commitment maintenance managers and technicians need to perform daily work management

tasks by displaying more informa-tion on a consolidated dashboard — reducing mouse clicks and data searching time.

CONSTRUCTION • Bill Ball of Salt Lake City-based Delta Fire Systems Inc. has earned the Leadership in Energy and Environmental Design (LEED) Accredited Professional for Building Design and Construction credential. Ball was hired as a project man-ager in July 2010. Prior to joining Delta Fire, he served nine years in the U.S. Army as an infantry and Special Forces officer. • The Association of

Independent Architectural Photographers, based in North Salt Lake, celebrated its 10-year anniversary in September. The organization was founded by Utah architectural photographer Alan Blakely on Sept. 10, 2001. Blakely currently serves as the organization’s director. • Dallin Pedersen, project engineer at BHB Consulting Engineers in Salt Lake City, has won the Structural Engineers Association of Utah Fresh Face of Engineering Award 2011. This award spotlights Pedersen as an outstanding contributor to America’s youngest professional engineers. • ARW Engineers, a con-sulting structural engineering firm located in Ogden, has been ranked by Structural Engineer maga-zine as the 2011 Best Structural Engineering Firm to Work For in the United States. This annual recognition honors firms that are dedicated to providing their staff with exceptional work environ-ments.

FINANCE • Integrated Lending Technologies LLC, entered into a strategic partnership with CO-OP Member Center, a wholly-owned subsidiary of CO-OP Financial

Services, to enhance service to lender and dealer clients. ILT provides a complete Web-based system for managing indirect lending for vehicle and other equipment dealers and lenders known as Dealer Indirect Lending and Leasing System, or DILLS. CO-OP Member Center provides 24/7 loan underwriting services for automobile and real estate lenders. Through this partnership, CO-OP Member Center’s experi-enced lending professionals will have direct access to the DILLS system to underwrite indirect loans on behalf of ILT’s lender clients and respond to its dealers within minutes.

GOVERNMENT • The Internal Revenue Service has launched a new pro-gram that will enable many employers to resolve past worker classification issues and achieve certainty under the tax law at a low cost by voluntarily reclassifying their workers. This new program will allow employ-ers the opportunity to get into compliance by making a minimal payment covering past payroll tax obligations rather than waiting for an IRS audit. The new Voluntary Classification Settlement Program (VCSP) is designed to increase tax

Oct. 10-16, 2011 The Enterprise 7

supportwhat you







Human Resources



compliance and reduce burden for employers by providing greater certainty for employers, workers and the government. Under the program, eligible employers can obtain substantial relief from fed-eral payroll taxes they may have owed for the past, if they prospec-tively treat workers as employees. The VCSP is available to many businesses, tax-exempt organiza-tions and government entities that currently erroneously treat their workers or a class or group of workers as nonemployees or inde-pendent contractors, and now want to correctly treat these workers as employees. Full details, includ-ing FAQs, are available on the Employment Tax pages of IRS.gov. • The Utah district office of the SBA is accepting Small Business Week nominations through Nov. 10. Awards will go to Small Business Person of the Year, Small Business Exporter of the Year, SBA Young Entrepreneur of the Year, Jeffrey Butland Family-Owned Business of the Year, Entrepreneurial Success Award, Phoenix Awards (for disas-ter recovery) and Small Business Champions (financial services, home-based, minority, veteran, women). For information regard-ing eligibility and evaluation cri-teria please visit www.sba.gov/ut. All nominations must be post-marked or hand delivered to the Utah District Office no later than November 10 at 125 S. State St., Salt Lake City, UT 84138, atten-tion Georgia Yoshida.

HOSPITALITY • The Homestead and Zermatt resorts in Midway have

entered into a partnership with Gemstone Hotels and Resorts to provide hotel management servic-es to both properties. Gemstone, based in Park City, specializes in managing complex resorts in unique destinations, as well as upscale luxury urban hotels. In addition, the Homestead and Zermatt Resorts will expand their offerings in the areas of arts, edu-cation, health, well-being, and rec-reation. To assist with this trans-formation, the resorts have part-nered with Soul Centers, a pre-mier content provider specializing in the delivery of inspirational, transformational and educational experiences.

HUMAN RESOURCES • Sixty percent of Americans say they would take up to a 25 percent pay cut if it meant they could work from home. That’s according to data released by Arise Virtual Solutions, which provides at-home customer service job opportunities for approximately 17,000 Americans nationwide. A survey of 350 Americans also found that nearly 80 percent would prefer to work at least part of the time from home. In order to work at home, 34 percent of respondents would take a 5 percent pay cut, 20 percent would take a 10 percent pay cut and just over 7 percent would accept a 25 percent pay cut.

INSURANCE • EMI Health, formerly Educators Mutual, a Salt Lake-based insurance company, has launched a new online Health Savings Account management tool for its members. The new

Web-based management solution is available from Tango Health Inc., a national provider of health care services. Through Tango Health’s technology, employees can manage and track health-related expenses, get reimbursed for health expenses and man-age employer contributions and employee deductions. It also sim-plifies administrative duties for employers and insurance brokers.

LAW • The law firm of Parr Brown Gee & Loveless has added Chase Manderino to the firm’s business and finance and corpo-rate tax groups. Manderino gradu-ated from the Marriott School of Management at Brigham Young University, with honors, earning both his master and bachelor of science in accounting with a tax emphasis in 2010. He also earned his juris doctor in 2010 from the J. Reuben Clark Law School at BYU, summa cum laude and Order of the Coif. • The Salt Lake City law firm of Jones Waldo has added two new associates and two new staff members. New associate Elizabeth M. Butler is a gradu-ate of the S.J. Quinney College of Law at the University of Utah and holds two bachelor’s degrees from Hamilton College in Clinton, N.Y. Prior to joining Jones Waldo, she completed a clerkship in the Environmental Division of the Utah Attorney General’s Office. Butler’s practice focus is envi-ronmental law and litigation. Joseph B. Hinckley joined Jones Waldo as an associate after earn-ing his juris doctor degree from the University of Kansas School

of Law, where he was symposium editor for the Kansas Law Review, and his bachelor’s from Brigham Young University. Business law and litigation are the focus of Hinckley’s practice. Scott Allen joins Jones Waldo as human resources director. Allen gradu-ated from the University of Utah and has 26 years of HR experi-ence, including as HR director for Zions Bank and Proficio Bank in Salt Lake City. Travis Nicholson has been named services manager for Jones Waldo. Nicholson was formerly with SelectHealth, work-ing in various departments includ-ing materials distribution, member services and large group sales. • C. Dan Black and Lena Cetvei have joined Durham Jones & Pinegar as associate attor-neys in the firm’s Salt Lake City office. Black joins the firm after spending three years in Latham & Watkins’ San Diego office, where he represented financial institu-tions, technology companies and energy developers in all aspects of financing transactions, mergers and acquisitions, joint ventures and general corporate matters. He earned his J.D. from Gonzaga University School of Law in 2008, magna cum laude. Cetvei graduat-ed from the S.J. Quinney College of Law at the University of Utah, magna cum laude, in April. She was a William H. Leary Scholar and a senior staff member of the Utah Law Review. She recently passed the Utah Bar and will be

sworn in on Oct. 31. • Jason Castor has been named business development director at Parsons Behle & Latimer. Castor will oversee the firm’s business development efforts, including business gen-eration, advertising, client rela-tions, communication and public relations. Previously, Castor was senior vice president of resource development for United Way of Salt Lake.

MANUFACTURING • Salt Lake City-based Packsize LLC, an internationally known provider of lean packaging systems, has launched a new web-site, www.packsize.com, that bet-ter reflects the company’s vision, industry standing, green practices, operations and technology. The site was developed to provide users with a better understanding of the impact on-demand packag-ing is making across several verti-cal markets, including fulfillment, furniture, manufacturing, printing, windows and doors, and for mis-sion critical packaging applica-tions such as with health care. • MonaVie, a South Jordan-based purveyor of nutrition prod-ucts, has named Arthur Sando vice president, corporate commu-nications. For the past four years, Sando has been CEO of his Los Angeles–based communications consultancy. Previously, he was senior vice president, communica-

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The Enterprise Oct. 10-16, 20118

Your company’s 401(k) plan probably isn’t worth as much as you think, or as much as it could be. That’s because of the 17 different fees – Trustees’ fees, Custodial fees, TPA fees, Investment Advisor fees – the list goes on and on – that take a bite out of savings, leaving you and your employees with the crumbs.

As your company’s 401(k) Plan Sponsor, you have specific fiduciary responsibilities. An XrayMy401k.com Advisor can examine your plan right down to the bone, showing how to optimize its value with a side-by-side appraisal and a cost and legal analysis. Then we’ll customize a 401(k) strategy specific to your needs and communicate those strategies to your employees.

Call us today or visit www.Xraymy401k.com. So you – and they – won’t be missing a thing.

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Todd Kim, President Investment Advisory Services offered on a fee basis through Global Financial Private Capital, LLC, an SEC Registered Investment Adviser.

Galileo Financial Group6995 So. Union Park Center, Suite 100Cottonwood Heights, UT 84047(801) 797-6232 Fax: (801) 561-1940www.galileofn.com

tions, for CBS Enterprises, creat-ing and executing publicity strat-egy and managing all day-to-day and long-range public and media relations activities for King World Productions, CBS Broadcast International and CBS Consumer Products, whose properties includ-ed “The Oprah Winfrey Show,” “Wheel of Fortune,” “Jeopardy!,” “Dr. Phil,” “Inside Edition,” “Everybody Loves Raymond” and the “CSI:” franchise. • Wasatch Brewing, the old-

est active brewery in Utah, is celebrating its 25th anniversary. The firm was established on Oct. 26, 1986 in Park City by Greg Schirf. Today, Wasatch Brewing boasts a broad spectrum of 14 cur-rent beers, distribution to 12 states and a vast array of gold, silver and bronze medals from the North American Brewers Association, Great American Beer Festival and the World Beer Cup. Wasatch will honor its birthday with a Beer Bash Oct. 15 from 11 a.m. to 6 p.m. at the City Park in Park City. Admission is free.

• Peter R. Huntsman, CEO of Salt Lake City-based Huntsman Corp., has been honored with the Distinguished Service Award from Brigham Young University’s David M. Kennedy Center for International Studies. Huntsman Corp. is a global manufacturer and marketer of differentiated chemi-cals for a variety of worldwide industries. With more than 15,000 employees and contractors, the corporation had revenues for the past 12 months of nearly $11 bil-lion. Huntsman also helps direct a number of domestic and interna-

tional humanitarian projects fund-ed by the Huntsman family and Huntsman companies. These proj-ects include a multimillion dollar 20-year project to rebuild housing in the country of Armenia follow-ing an earthquake that killed more than 20,000 people; relief proj-ects from the 2004 tsunami floods in India, Thailand and Indonesia; schools in Africa; and scores of initiatives in North America.

MEDIA/MARKETING • Love Communications, Salt Lake City, as added two new

full-time employees dedicated to digital solutions. Sarah Nielson was formerly a senior Web mar-keting associate at Salt Lake-based Axis41, where has helped create digital campaigns for local cli-ents Stein Eriksen Lodge and the Utah Jazz and nationally for the Ciena Corp. Devin Deaton for-merly worked as digital marketing manager at Salt Lake’s Neutron Interactive and HyperX Media. While at HyperX, Deaton was key to building the HyperX Local Advertising Network, a tool used by many local agencies. • Richter7, a Salt Lake City-based advertising and online marketing agency, hired Craig Aramaki as chief digital officer. Most recently, Aramaki was the chief digital officer at the Salt Lake office of McCann Worldgroup for two years where he set the overall digital vision and strat-egy for clients such as American Airlines, Mastercard, Microsoft, Verizon, Exxon Mobile, Purina and Verisign. • Saxton | Horne Advertising, a Sandy firm that is part of the Larry H. Miller Group, named David Blain as vice president of client services. Blain is best known as a founder of Blain Olsen White Gurr, Salt Lake City, which was acquired by Rare Method, Calgary, in 2007. Saxton | Horne Advertising, which opened its doors in 1995 under the name LHM Advertising, has experienced unprecedented growth, both in billings and staff, over the past three years. Billings have grown more than 300 percent since 2008, and the agency staff has grown from 23 to 62 full-time employees during the same period. • JDHgroup, an Ogden-based creative agency, is celebrating its 10th anniversary. Most of JDHgroup’s clients have been with the company for nearly the entire 10 years.

OUTDOOR PRODUCTS/RECREATION • Continuing its tradition of providing free Tram and lift rides while helping Utah’s hungry, Snowbird Ski and Summer Resort will extend Customer Appreciation Days to four weekends. Beginning the weekend of Oct. 15-16, guests can receive a free Peruvian Express foot passenger ticket with the donation of a can of food, hygiene item or $3 donation to Wasatch Adaptive Sports. Due to Tram maintenance, guests will receive a Peruvian Express foot passenger ticket the first two weekends (Oct. 15, 16, 22, or 23). Guests will receive an Aerial Tram foot passenger ride the last two weekends (Oct. 29, 30 or Nov. 5, 6), weather permitting. The offer runs through Nov. 6 from 11 a.m. to 5 p.m. Donated goods

from previous page

continued on page 14


Here’s a question I often get: Where should I network to get the most leads? Wrong question. Networking is not about get-ting. It’s about meeting, engaging, establishing rapport, finding com-mon ground and giving. And networking works IF you make a strategic plan, target people and places, allocate the time, prepare before you go and do it consistently. There are five types of networking: 1. Attending and participating in events. 2. Being in charge of an event and bringing people together. 3. Being in charge of a group or association. 4. Speaking at a local or national event, and being the star of the show. 5. Volunteering in your com-munity. Here are a few specific examples of what you can do: • Attend cultural events or sporting events. They give you a chance to see old friends and meet new ones. • Lead a group at your local chamber of commerce. It’s much more powerful to lead than go to a business after hours to meet other salespeople and troll for leads. • Speak at a trade show. Don’t just exhibit and look for leads. Leaders attend workshops. By addressing attendees with a value message, they will all stop by your booth, compliment you on your speech and WANT to talk to you. • Speak for a Rotary group. You can be a member of Rotary and basically see the same 50 peo-ple every week, or you can give a 20-minute speech at each Rotary club (and all civic associations) in your region. If you speak at a civic organization once a week, and offer more information in exchange for a business card, it’s likely you’ll get 50 leads a week – of people who will be happy to take your call. • Volunteer for Habitat or Red Cross, attend charitable events, or even give out water at a local race. You’ll meet like-minded people, and you feel great for helping. How do you choose which events to attend? Three ways: 1. Go where you love to go. 2. Go where your customers go. 3. Go where your prospects might be. 4. Be ready when you get there, and arrive happy. Here are a few fundamental ground rules to follow that will ensure maximum enjoyment and maximum benefit: • Arrive early. Get there at

the start and meet as many people as possible. • Leave late. Maximize your time – especially if the room is full of decision-makers. • Don’t drink. You don’t need a beer. You need money. Beer and money don’t mix. • Have something of value to

say. Play yourself down. Try to find out what they do. If they ask what you do, have a BRIEF expla-nation, and a GREAT busi-ness card. Your 30-second commercial needs to start with a question. • Talk about positive things and people. OK, so I’ve networked and met someone I want

to get to know better ... • Where is the best place to meet? Starbucks or a coffee shop. Someplace casual. Someplace inexpensive. Someplace with WiFi. Someplace where you can sit and talk. • When is the best time to meet them? Early – for breakfast. You can avoid traffic and make a powerful connection. • What do I say and how do I get to know this person better? My good friend, Bob Littell, is the only person I have ever met who totally gets networking. He has named his concept of networking “netweaving” (www.netweaving.com). Bob is all about finding leads and opportunities for others. Bob is all about giving for the sake of giving, not giving with the intent to receive. Imagine meeting someone for morning coffee, and rather than asking “what he does” (which you could have found out on Google or his website), you hand him two leads of people in your network that might be good candidates for his business. WOW. That’s netweaving. And it works. BUT: It requires work on the part of the referring person. YOU! But Jeffrey, what about my 30-second personal commercial? What about my elevator speech? How do I make a sale? NOTE WELL: Do what I have told you above, and people will want to buy from you – no pitch needed.

Jeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction is Worthless Customer Loyalty is Priceless, The Little Red Book of Selling, The Little Red Book of Sales Answers, The Little Black Book of Connections, The Little Gold Book of YES! Attitude, The Little Green Book of Getting Your Way, The Little Platinum Book of Cha-Ching, The Little Teal Book of Trust, The Little Book of Leadership, and Social BOOM! His website, www.gitomer.com, will lead you to more informa-tion about training and seminars, or e-mail him personally at [email protected].

© 2011 All Rights Reserved.

What is networking really?

Jeffrey Gitomer

It’s well known that this down economy has strapped small businesses. The monthly optimism index from the National Federation of Independent Business (NFIB) illustrates the results of the econo-my’s effect by reporting a continuing low level of optimism among small business owners. The drop this past August to 88.1 was the lowest since July 2010 when the recovery last hit a soft patch and was the sixth consecutive decline — a record string of declines in the index. We also continue to read reports how credit is tight for small businesses. Couple the stagnated economic recovery with tightened credit markets and it is easy to see how difficult it can be for small-business owners to navigate these turbulent times. However, many small businesses have found a solution. They have obtained financing through lend-ers who provide asset based lend-ing and other alternative forms of financing. These lending pro-grams infuse immediate cash flow into small businesses, enabling them to make payroll, pay bills and continue operations. There are many forms of asset based lending through many sources. It is also important to keep in mind that generally speaking lending is fairly simple. It can best be viewed as a continuum with the components of price, liquidity, control and sources of repayment. There are tradeoffs with each of these components based on the type of asset based loan the bor-rower has with the lender. A traditional line of credit will generally give the borrower the lowest rate, but only a finite amount of liquidity (borrower can only use as much as the line of credit allows). The lender will primarily rely on the company and the owners for repayment and will control through financial state-ments and audits. An asset-based line will typi-cally be a low rate, but give liquid-ity based on the value of certain assets such as accounts receiv-able, inventory and equipment. The borrower submits a borrow-ing base certificate to the lender periodically to show the change in value of those assets. Most lenders impose financial covenants based on the company’s performance. Not only is the lender relying on the company and owners for repayment, but also the value of the collateral. A factoring line is gener-ally the highest-priced product but gives more flexibility than the

previous two. Financial covenants are almost never associated with factoring so a company can have a very poor balance sheet and still obtain financing. The lender now shifts its repayment focus to the

quality of the borrower’s customers and not so much on the company or the owners. The lender con-trols the collateral (invoic-es or purchase orders) by confirming the service has been completed or product delivered and then has the borrower’s customer pay the invoice directly to the lender. These are a few exam-

ples of alternative lending that have and will continue to play a vital role in helping small busi-nesses during this and any other economic storms that are encoun-tered. The company’s need and situation will determine which lending program is the best fit. For more information regarding these types of lending programs, one can contact their local commercial lender, the Commercial Finance Association http://www.cfa.com,)or the International Factoring Association (www.factoring.org).

Eric Myers is the director of mar-keting at TAB Bank, Ogden. He

has been selling and marketing financial products for the last 20 years. Myers can be reached [email protected]. TAB Bank provides custom working capital solutions — accounts receivable financing, lines of credit, equip-ment loans and asset-based loans — to transportation and non-trans-portation companies in all stages of business life cycles during any economic conditions.

Asset-based lending — a great financing solution for small business

Eric Myers







Human Resources




101,574 SQ. FT.RETAIL CENTER

REDWOOD VILLAGE7064 So. Redwood Rd, West Jordan, UT

• Strong retail corridor

• Net operating income: $582,420 (9/10-8/11)

• Current occupancy: 76%

To be Sold Subject to a Minimum Bid of

$3.75 Million

AUCTION

800.374.4881www.RedwoodVillageAuction.comJames M. MacDonnell, Licensed Utah Real Estate Broker

NOV

16

ON-SITE INSPECTIONS:Oct 18 & Nov 2, From 11AM-2PM

• Calendar • • Oct. 11, 3-5 p.m.: “Using Technology and Automation to Run Faster with Compliance,” a Utah Technology Council compliance clinic. Lane Hirning, a phar-macologist with MasterControl, will pres-ent. Hirning has extensive IT experience in the pharmaceutical industry. He started his career as a research scientist at NPS Pharmaceuticals Inc. After seven years, he moved into an IT function, serving over a span of 12 years as IT manager, IT director and senior director of research IT. Since joining MasterControl in 2006, Hirning has specialized in product development for the pharmaceutical industry, with empha-sis on regulatory and other requirements for clinical teams. The co-chairs for the forum will be Sherri Robbins, director of regulatory affairs for Nelson Laboratories Inc., and Ken Peterson, director of qual-ity solutions at MasterControl. Location is Nelson Labs, 6280 S. Redwood Road, Salt Lake City. Free for UTC members, nonmembers pay $30. Register at www.utahtech.org. • Oct. 11, 7-9 a.m.: October Breakfast Meeting of Association for Corporate Growth Utah. Guest speaker will be Spencer Eccles, executive direc-tor of the Governor’s Office of Economic Development. Location is the Little America Hotel, 500 S. Main St., Salt Lake City. Free for ACG members, nonmembers pay $30. Register at www.acg.org/utah or by calling Linda Blake at (801) 359-8613. • Oct. 12, 6-9 p.m.: Social Commerce Exchange. Participants will learn how to use social media to effectively grow their businesses. There will be interactive learn-ing sessions with leading experts and net-working opportunities with like-minded businesses. Location is the Miller Campus of Salt Lake Community College, 9750 S. 300 W., Sandy. Free. Register at http://socialcommerceexchange-6428.event-brite.com. • Oct. 12, 8:30 a.m.: Top of Utah Business Expo, presented by the Ogden/Weber Chamber of Commerce. The west-ern themed, all-day business symposium and expo will deliver concrete tips and strategies in an interactive, entertaining business format for those wanting to build their brand both professionally and per-sonally. Exclusive networking opportuni-ties will give attendees an opportunity to expand their prospects. Marketing and branding gurus, The Hired Guns, will host a one-hour breakfast seminar, “Ridin’ for the Brand” at 8:30 a.m., and free, fast and practical 15-minute seminars through the day from 10 a.m. to 4:30 p.m. For more information, visit http://www.ogdenwe-berchamber.com. • Oct. 13, 11:30 a.m.: The Building Owners and Managers Association (BOMA Utah) Monthly Luncheon. Representatives from the Utah Transit Authority will discuss UTA’s $2.8 billion dollar project to build 70-miles of rail in seven years. These projects include the recently completed Mid Jordan or Red Line and the West Valley or Green Line as well as yet to complete TRAX lines to Draper, the airport. Additionally FrontRunner com-muter rail to Provo. They will also address the Sugar House streetcar, next steps for long-range plans and UTA’s involvement

in development surrounding UTA’s sta-tions. Lunch will be followed by an 11:57 a.m.-departing FrontRunner. Location is the UTA Central Station, 600 W. 250 S., Salt Lake City. Free for BOMA members, $45.00 for nonmembers. Register at www.BOMAUtah.org. • Oct. 14, 9-10 a.m.: “Game Changing Technology,” sponsored by Synergy FDM and the Manufacturing Extension Partnership. Preston Carter, director of NASA’s Game Changing Technology Division, will introduce the public to the Game Changing Development Program. Attendees will learn how NASA utilizes American ingenuity and innovation to overcome complex technological issues, both now and in the future. Location is the UCCU Events Center, 800 W. University Parkway, Orem. Free, but registration is required. Register by e-mailing [email protected] or by calling Kabe Little at (801) 557-6321. • Oct. 21, 8-10 a.m.: Financial Leaders Business Breakfast, sponsored by Robert Half and Protiviti. Senior finan-cial executives will host an interactive discussions about trends and best practices in financial reporting, both globally and in the U.S. Areas of focus will include key initiatives related to the convergence of U.S. GAAP and IFRS, a review of pro-posed changes to revenue recognition and lease reporting, and evaluation of potential impacts to business processes, systems and personnel. Location is the Garden Room at Thanksgiving Point, 3900 N. Garden Dr., Lehi. Free, but seating is limited. RSVP by Oct. 14 with Channing Galbraith at [email protected] or (801) 364-5500. • Oct. 26, 11 a.m.-2:30 p.m.: The Building Owners and Managers Association (BOMA Utah) Medical Office Building Symposium. Attendees will explore the dynamic trends that emerge when health care and real estate intersect. Speakers will discuss the key trends and drivers of health care as an industry — from uncertainty about health care reform, to how the state of Utah is working to curb health care costs, to constant pressure on physician’s and health care system’s bot-tom lines. Location is The Tower at Rice Eccles Stadium, 451 S. 1400 E., Salt Lake City. Cost is $35 for BOMA members and their guests, $60 for nonmembers and visi-tors. Register at www.BOMAUtah.org. • Oct. 27, 8:30 a.m.-4:30 p.m.: InsideOut Coaching Workshop, present-ed by InsideOut Development. Attendees will learn how to implement a simple and repeatable coaching process which can be applied in a variety of situations; coach others to recognize their true talents and apply them towards greater performance; assist others to maximize potential by cre-ating awareness, setting goals, and creating focused action; help others develop action plans to increase performance, establish accountability and increase productivity, navigate difficult conversations with more confidence and greater accountability; and communicate feedback in fast and effec-tive ways. Location is the Grand America Hotel, 555 S. Main St., Salt Lake City. Cost is $449. Register at www.insideoutdev.com.


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Design Matters

Executive Lifestyle

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Staffing Matters

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Executive Lifestyle

Legal Matters All-night brainstorming sessions; focus group studies; last-minute decisions to add, then remove, and then add again a period at the end of a word. A lot of time and effort go into your company’s advertisements, but while you are considering everything down to the kerning of the text, don’t forget to consider the legal regulations of your advertisement. This arti-cle provides an overview of three common legal problems related to advertising that businesses should take care to avoid failing to iden-tify and protect your intellectual property, infringing someone else’s intellectual property and using false or misleading advertisements. 1. Failing to identify and/or protect your intellectual property. Intellectual property refers to patents, trade-marks, copyrights and other intangible rights such as trade secrets and publicity rights. Intellectual property is at the core of advertising; businesses use advertisements to increase goodwill with consumers, bol-ster brand recognition and showcase their innovative products and services. Before publishing an advertisement, you should ensure that any intellectual property used or referenced in the advertisement is properly protected and marked.

a. Trademarks. Trademarks can be any word, name, symbol or device, or any combination thereof, used to distin-guish and identify the source of goods or services. Examples of trademarks include brand names, logos, slogans, trade dress and nontraditional marks like sounds, colors

and smells. Trademark rights are created through use of the mark in commerce. The trademark owner can register the trademark with the state or federal government (fed-eral registration being the most common), which confers certain rights to the trademark owner, such as additional remedies for infringement. Trademarks should be properly marked to let consum-

ers and competitors know that the owner is using the mark to distinguish and identify the source of the products or services. The ® symbol is reserved for use with federally registered trademarks. Unregistered trade-marks should use TM (or SM for “service mark” for marks used in connection with services). Before launching a new brand or logo, make sure no one else can claim prior rights to the mark by conducting a clearance search. Many companies have learned a tough lesson by investing considerable time

and money into a new brand only to aban-don the brand and start from scratch after losing a fight with someone who had prior rights to the same or similar mark. b. Patents. A patent protects certain types of innovations by granting the holder the right to exclude others from making, using or selling the innovation described in the patent, thereby giving the holder a legal monopoly on the innovation. Patents are granted for useful innovations that are novel and non-obvious. In some instances, inventors can lose their right to patent an innovation by disclosing it to the public prior to seeking patent protection. Prior to advertising a product or business method that may incorporate a patentable innova-tion, you should consult with a patent attorney to ensure the patentable material is properly protected. c. Copyrights. A copyright is a bundle of rights granted to the author of a creative work as soon as the work is fixed in a tan-gible medium. Creative works can include photographs, illustrations, videos, audio recordings, sheet music and software code. Unlike patents, copyrights are granted auto-matically. Registration of the copyrighted work is advisable, however, because pro-tecting the work from infringement is much easier if the work is registered. Companies

should register at least the key creative works used or referenced in an advertise-ment. d. Trade secrets. Trade secrets include any information or knowledge not publicly known or readily ascertainable that gives a company a competitive edge in the market. Trade secrets are typically protected with employment agreements, nondisclosure agreements and noncompete agreements. Companies should ensure that any person with access to trade secrets is bound by a written agreement to keep the trade secrets confidential. Companies must carefully bal-ance the desire to market their goods and services by showcasing their innovative processes or knowledge with the need to protect their trade secrets. e. Publicity rights. An individ-ual appearing in an advertisement may have rights to his or her image and like-ness. Companies should be sure to have a written agreement with any person featured in an advertisement, especially when it is a celebrity or other public figure, which explicitly grants the company the right to use the person’s image and likeness. Using celebrity impersonators may also violate the celebrity’s rights, as was the case when

David J. Pacheco

Keep in legal: three mistakes to avoid in your advertisements

see LEGAL next page

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a video store used a photograph of a Woody Allen look-a-like in an advertisement.

2. Infringing third-party intellec-tual property. At times your company may benefit from comparing your products or services with those of a competitor. While comparative advertising is a great way to show consumers the superiority of your product or service, it can also create legal problems. The most common claims arising from comparative advertising are claims of trademark and copyright infringement. Trademark infringement occurs when two marks are used in a way that is likely to confuse consumers as to the source of the goods or services on which the marks are used. Trademarks need not be identi-cal to infringe. You should be cautious when using another entity’s trademark and be sure that your advertisement cannot be interpreted in a way that suggests that you are in some way affiliated with the entity or its products and services. If you are not careful, the trademark owner may sue for infringement and potentially win an injunc-tion and/or damages. Using a third party’s copyrighted material in an advertisement is more prob-lematic, as unauthorized use of another’s copyright for commercial use is generally prohibited. It is usually best to get a license to use the work from the copyright owner. Damages for copyright infringement can be substantial — up to $150,000 per work infringed. Before you decide to use another entity’s intellectual property, you should consult with an experienced intellectual

property attorney to be sure you understand the risks involved. 3. False advertising. Federal law requires that advertisements be truthful and avoid misleading consumers. False advertising laws are enforced by the Federal Trade Commission (FTC) and by competi-tors and consumers. a. FTC enforcement. The FTC is the sole enforcer of the Truth-in-Advertising provisions of the Federal Trade Commission Act, which require that the advertiser have a reasonable basis for all its claims and that the advertisement be truthful, not deceptive, and fair. The FTC pays the closest attention to advertisements that make claims regard-ing consumers’ safety and health. The FTC can enforce the law by issuing injunctions, imposing fines and requiring corrective advertising. FTC enforcement actions can cost a company millions of dollars, as was the case when the makers of Airborne effervescent tablets settled a case brought by the FTC alleging false and misleading health claims in advertisements. A compa-ny should carefully evaluate the messages communicated to consumers and thorough-ly document any evidence on which it bases a claim, especially if the claim involves the

health and safety of the consumer. The FTC has provided specific guid-ance to certain industries and companies utilizing certain types of advertising. For example, the FTC has provided specific guidance for companies making claims regarding the environmental friendliness of their products or services. This guid-ance, commonly referred to as the “Green Guides,” helps to identify specific practices that the FTC believes are in violation of advertising laws. The FTC also has specific guidance for dietary supplement compa-nies, including guidance on the type and degree of substantiation required for health claims. b. Competitor and consumer enforce-ment. Consumers and competitors can sue a company for false advertising under Section 43 of the Lanham Act. Under the Act, any person that “misrepresents the nature, char-acteristics, qualities, or geographic origin of his or her or another person’s goods, services, or commercial activities [in com-mercial advertising or promotion]” is sub-ject to civil liability. Note that not only is a company required to truthfully advertise its products and services, but it must also avoid misrepresenting another entity’s goods and

services. Class action lawsuits by consum-ers who feel that an advertisement is false or misleading can cost millions of dollars and substantially harm a company’s brand and reputation. In conclusion, there are a number of legal considerations to take into account when advertising your products or ser-vices. While this is not a thorough list of all legal aspects of advertising, it should provide some initial guidance for adver-tisers. The bottom line is that advertisers should make sure all intellectual property referenced in an advertisement is protected, that the advertisement does not in some way infringe another person’s intellectual property, and that all claims made in the advertisement are truthful, not deceptive or misleading, and backed up with legitimate evidence. Taking these steps with the assis-tance of experienced legal counsel should help your company avoid the most common legal mistakes in advertising.

David Pacheco is an attorney in the Stoel Rives Technology and Intellectual Property practice group helping clients register, main-tain and protect trademarks, copyrights and trade secrets. Pacheco has experience pro-tecting clients’ intellectual property through proceedings in federal court, the Trademark Trial and Appeal Board and through other enforcement and protection avenues includ-ing arbitration under the Uniform Domain Name Resolution Policy. He can be reached at [email protected] and (801) 578-6936.

This column is not to be considered legal advice or a legal opinion on specific facts or circumstances. The contents are intended for

informational purposes only. If you need legal advice or a legal opinion, please consult with

your attorney.

LEGALfrom previous page

Advertisers should make sure all intellectual property referenced in an advertisement is protected, that the

advertisement does not in some way infringe another person’s intellectual property, and that all claims made in the

advertisement are truthful, not deceptive or misleading, and backed up with legitimate evidence.

kued.orgThe University of UtahKUED

As part of its commitment to increasing access and participation in the arts, PBS presents the PBS Arts Fall Festival. The festival features artists and performances from nine different communities around the country, and celebrity hosts from each locale.

PBS

the Arts This FallCelebrates

Fri. nights beginning Oct. 14


The “dismal science” of eco-nomics typically focuses on “bad” news. We clearly face many sig-nificant challenges. However, there are also many favorable develop-ments taking place within the U.S. economy. This is my semi-annual update focusing only on the “good” news • Total U.S. retirement assets rose to $17.5 trillion in 2010, the most since the end of 2007. • The U.S. accounted for 34 percent of the funds spent globally on research and development during 2010. • The country’s net petroleum imports peaked at 60.3 percent in 2005 and dropped to 49.3 percent in 2010. Within a year, North Dakota is expected to supply more oil for domestic use than the 1.1 million barrels a day that Saudi Arabia now exports to the U.S. • Roughly 80 percent of com-panies that suspended or reduced their 401(k) matches during the past two or three years reinstated them in 2010 or 2011. • Conventional 30-year fixed-rate mortgages averaged 4.06 per-cent in recent weeks, the lowest level in 60 years. • Energy-efficient appliances, cars, buildings, and other technolo-gies that already exist could lower U.S. energy usage 30 percent by 2030. • Second quarter 2011 GDP was revised up to a 1.3 percent real (after inflation) annual rate, versus a 1 percent real annual rate in the prior estimate. Still weak, but bet-ter. • America produces more steel today than 30 years ago, despite the shuttered plants and slimmed-down work force. • Roughly 30 percent of trash was recycled or composted in the latest year, versus 16 percent in 1990. • When comparing economic size and population, the average U.S. worker is 10 to 12 times more productive than the average worker in China. Americans won 30 Nobel prizes in science and economics during the past five years. China? Just one.

• Even as U.S. economic out-put (GDP) has climbed by more than 210 percent since 1970, aggre-gate emission of six principal air pollutants has plunged by 60 per-cent. • Productivity of U.S. workers rose an average of 2.5 percent annu-ally during the past 10 years, some of the strongest gains in 40 years.

• Women now make up a record 46 percent of global MBA candi-dates. More than 70 per-cent of students surveyed name the U.S. as the top MBA study destination. • U.S. economic growth has now been positive for eight consecutive quar-ters. • Forty-two of the 50

states recorded net job gains during the most recent 12-month period. Every state had previously dealt with recession at some point during the past three years. • U.S. exports to China have risen roughly 24 percent per year since 2001, making China the fast-est growing market for U.S. goods. • A recent poll of more than 12,000 global business figures conducted by the World Economic Forum ranked the U.S. as the world’s most competitive economy. • Total U.S. workplace fatali-ties declined to their lowest point on record last year. • For every dollar of U.S. eco-nomic output generated today, we burn less than half as much oil as 30 years ago. • The number of people using public transportation recently hit a 52-year high. • The U.S. role of dominance in the global economy during the past decade was as clear-cut as at any time since the 1950s.

Jeff Thredgold is the only econ-omist in the world to have ever earned the CSP (Certified Speaking Professional) internation-al designation, the highest earned designation in professional speak-ing. He is the author of econAmer-ica, released by major publisher Wiley & Sons, and serves as eco-nomic consultant to Zions Bank.

Jeff Thredgold

Happy talk Rapport, like every other important principle of effective salesmanship, must be applied in our sales activities and not just an entry in our intel-lectual library. Two of my favorite authors on the subject of building rapport and, for that mat-ter, sales principles in general, are Dale Carnegie with his book How To Win Friends and Influence People and Frank Bettger’s book, How I Raised Myself From Failure to Success in Selling. Both of these men based their writings on solid, core prin-ciples of human relationships. There are no games, tricks or gimmicks in their approach to dealing with people. What they have taught us about human relationships has transcended time with simple yet profound truths. Dale Carnegie taught six basic prin-ciples for encouraging people to like you. At the end of a chapter in his book he sum-marized these rules: 1. Become genuinely interested in other people. 2. Smile. 3. Remember that a man’s name is to him the sweetest and most important sound in any lan-guage. 4. Be a good listener. Encourage others to talk about themselves. 5. Talk in terms of the other man’s interests. 6. Make the other person feel important— and do it sincerely. The key element in effectively using these six rules for building rapport is sincerity. If you are not sincere in your actions you will appear as manipu-lative, and manipulation in any form will destroy any effort you might make in building trust with a prospect. Years ago while attending an American Iron Ore Association meeting in Pittsburgh, I decided to apply these principles as I met with several of my contemporaries at the reception prior to the annual dinner. I had attended the event with one of my fellow employees and we decided that we would work ourselves around the ballroom, meet-ing as many people as we could prior to dinner. We would then get back together for dinner and compare notes about the people we had met. I fol-lowed implicitly every one of Carnegie’s six rules. The results were absolutely amazing. People actu-ally complemented me on my lively conversation, when in reality, all I did was listen to them talk about themselves. At the conclusion of the social hour my associate and I sat down to dinner and talk about the people whom we had met. His first comment was that he had no idea I had so many friends and acquaintances at the conference. He said that most of the people he met, once he had introduced him-self and our company, had mentioned me as some-one they knew and admired. For the most part, these were people that I had not known before, but when I met them I showed genuine interest in them, called them by name, encouraged them to talk about themselves and their interests, and with sincerity, tried to make them feel important. The relationship-building principles that I applied that evening in Pittsburgh have become the foundation for the success I have enjoyed for more than 35 years as a salesperson. In an effort to build rapport as quickly and effectively as possible, while maintaining a genu-ine attitude of sincerity, apply the following rules: • Dress appropriately for your audience, industry and the individual. • Discover at least one area in which to estab-lish some level of commonality. • Focus your whole attention on the other person and what is important to them. People feel comfortable with people who are

like themselves. The first impression we make with another person begins with our appearance. If we are dressed in a similar fashion to the other person, they feel comfortable with us because we appear to be like them, thus establishing the prin-ciple of commonality. Early in any communication with others, try to establish a common interest or relationship. This relationship can be anything that you might have in common — a person, a place, a hobby or sport, or one’s background or interests.

Remember the cardinal rule of sales, people buy from people they believe, like and trust. One of my clients shared this experience with me the other day. He learned a hard lesson that further exem-plifies this rule. My client had been made aware of a bidding opportunity for one of his products. He had never met the prospect previous to submit-

ting his bid, but had done his research in preparing a competitive offering. He had tried to follow up with the prospect during the bidding process but was unable to make contact. The day of the bid opening arrived and my client was identified as the low bidder among several of his competitors. He still had no contact with the decision-maker. Finally my client was able to reach the buyer in his attempt to schedule the shipment of his product as the recognized low bidder, only to be told that the buyer had selected one of the other bidders to supply the product, someone they had purchased from previously and at a much higher price. The question my client asked me was, how could he force the issue to receive the order since he was the recognized “low bidder”? The answer was simple, the lesson was diffi-cult and the experience was profound. People buy from people they believe, like and trust. My client had none of the above. The buyer made the pur-chase from a salesperson he knew and trusted and who represented a company and product he had confidence in using. The conclusion of this story will be determined over the next year by the effort my client exerts in building a relationship with the buyer instead of just offering the lowest price. Building rapport will not guarantee a sale, but it will go along way in preparing the foundation for a sale to materialize. In his book, How I Raised Myself From Failure to Success in Selling, Frank Bettger made the following five-point summary from the section on how to make people want to do business with you: • “If you would win a man to your cause, first convince him that you are his sincere friend ...” – Abraham Lincoln. • Encourage young men. Help a man to see how he can be a success in life. • Try to get a man to tell you what is his great-est ambition in life. Help him raise his sights. • If anyone has inspired you, or helped you in any way, don’t keep it a secret. Tell him about it. • Ask a man “How did you happen to get started in this business?” Then, be a good listener. Apply these principles, adapt the examples to your own experience, be genuine and sincere in your efforts to build rapport with your prospects, and you will realize greater success than you would have ever imagined.

Tim Huffaker is the president of The Business Performance Group, a sales training and coaching firm headquartered in Salt Lake City. The company teaches core sales principles and skills, allowing clients to double their sales. Huffaker is the author of hundreds of sales articles and can be contacted at (801) 557-4571 or [email protected].

Tim Huffaker

Practical experience in building rapport

will benefit the Utah Food Bank while monetary donations will benefit Wasatch Adaptive Sports. Last year, a record-breaking 6,956 pounds – the equivalent of 5,500 meals – was donated to the Utah Food Bank as the result of the annual Customer Appreciation Days. In addition, $2,215 was raised for Wasatch Adaptive Sports. RESTAURANTS • Firehouse Subs opened its first location in Orem on Oct. 3 at 538 E. University Parkway. Firehouse Subs, founded in Jacksonville, Fla. by former firefighting brothers Chris Sorensen and Robin Sorensen, is a 447-unit fast-casual restaurant chain that offers oversized portions of premium hand-sliced meats and cheeses topped with fresh produce atop a toasted sub roll. • Oasis Cafe, Salt Lake City, is offering a three-course nightly dinner menu for $25 through Oct. 31. Changing nightly to take opportunity of the freshest farm harvest, the nightly dinner special includes a choice of soup or salad, a selection of two chef’s choices of entrees and dessert. Reservations are highly suggested.

RETAIL • Diamond Rental, a Salt Lake City-based independent rental company, now distributes the full line of Terex compact construction equipment in its Tool & Equipment locations, serving customers along Utah’s Wasatch Front and in surrounding states. The Terex compact equipment line is made up of more than 45 unique product models, including skid steer loaders, compact track

loaders, wheel loaders, compact excavators and loader backhoes.

SERVICES • Gold Cross has named Chris Nilsen as director of communications for the ambulance company. He will be responsible for overseeing the dispatch center, training employees and will assure company compliance with of all state, local and federal EMS regulations. Nilsen has worked for Gold Cross since 1996 and is a certified paramedic, emergency medical dispatcher, EMT and CPR instructor. He recently served as operations manager for the Eastern Division of Gold Cross in Vernal.

TRANSPORTATION • Beginning in January 2012, customers of St. George-based SkyWest Airlines will be able to fly by jet from Cedar City onboard the 50-passenger, Bombardier-manufactured Canadair Regional Jet 200. SkyWest Airlines will begin operating the two daily Delta Connection jet roundtrips on Jan. 4, 2012. The current flight schedule and service onboard the Embraer-manufactured EMB 120 Brasilia will continue through the end of 2011. The jet service will begin in January 2012. • Delta Air Lines is currently sponsoring the building of several Habitat for Humanity homes, including a major home renovation in Salt Lake City at 257 N. 800 W. Roughly 15 Delta employees are volunteering their time to work on the home every day over a six-week period. The 2,200 square foot Habitat home will be completed at the end of October. The home is being purchased by a single mother.


The young (and not-so-young) protesters who came to Occupy Wall Street — and have stayed despite mass arrests — deserve thanks from the “99 per-cent” of Americans they claim to represent. Without articulating a clear set of demands, they have nevertheless voiced the frustration felt by mil-lions of ordinary people who have lost homes, jobs, income and security in the post-crash economy and see little help coming from government offices or cor-porate suites. Soon, how-ever, someone will have to decide whether Occupy Wall Street even-tually concludes in mere sym-bolic success, which would be little more than glorified failure, or evolves into a powerful politi-cal current that can rival the tea party. If the pivotal moment of this

protest continues to be a video of a high-ranking police officer bru-tally “macing” innocent women, then it is unlikely to grow far from its anarcho-bohemian roots. There are simply too many Americans

who will never side with “hippies” against cops, no matter how wrong the cops may be. But if the sympathetic state-ments from labor leaders of the past few days turn into supportive action — and if teachers, bus driv-ers, firefighters, nurses and, yes, police officers show up to demand

change — then this could be the beginning of something very, very big. Don’t scoff too quickly: Last winter, hundreds of off-duty law enforcement officers from around Wisconsin repeatedly joined the statehouse sit-in against Gov. Scott Walker’s attack on labor,

even though their own unions were exempt from his proposed law — and even as their fellow officers were standing guard over the protesters. In those circumstances, the cops were just as capable of understanding the stakes behind the protest as any other work-ers, or the students who support-ed them. A policeman who had retired from the Madison Police Department after 20 years on the force explained to USA Today that “we all see this as union bust-ing and wage suppression. This is a long-term, downward spiral of wages for working families.” Such progressive insights probably don’t fit the anarchist stereotype of the cop, whose enmity is cherished as a token of the alienated lifestyle. But not all of those who have flocked to Zuccotti Park and the other protest sites that have sprung up around the country are committed

to political irrelevance as proof of authenticity. Many, perhaps even a majority, might be intrigued by an opportunity to provoke something more significant than a cloud of tear gas or a court summons. The protesters have seri-ous grievances, from mass youth unemployment to burdensome student loans that cannot begin to be paid off if there are no decent jobs. What would happen if they began to articulate the connections between their own problems and the assault on the living standards of public employees and union-ized workers? How would the angry middle class respond if the “kids” made common cause with those downwardly mobile working families — demanding debt relief for everyone, a special prosecutor for the financial crooks and higher taxes on those who have profited from the crisis? Why shouldn’t the students (and former students)

stand with teachers against cuts in education and for rebuilding public schools and colleges? Even those who understandably disdain partisan politics, with its endemic money corruption, could swiftly change the direction of the nation-al debate. It is encouraging that many young activists came down to Wall Street from Wisconsin, where they have conducted themselves with impeccable style and effective-ness. Four decades ago, the goons in Richard Nixon’s White House egged on construction workers in downtown Manhattan to beat up antiwar students, who had allowed themselves to be portrayed as ene-mies of working-class soldiers and cops. Repeating that same mistake now would be tragic for everyone — except the 1 percent.

Joe Conason is the editor in chief of NationalMemo.com.

Copyright 2001Creators.com.

How (and why) to co-opt those cops on Wall Street

Joe Conason

from page 8

Oct. 10-16, 2011 15The Enterprise

One of the problems in try-ing to select a leader for any large organization or institution is the tendency to start out looking for Superman, passing up many good people who fail to meet that stan-dard, and eventually end-ing up settling for a warm body. Some Republicans seem to be longing for another Ronald Reagan. Good luck on that one, unless you are prepared to wait for several gen-erations. Moreover, even Ronald Reagan himself did not always act like Ronald Reagan. The current outbreak of “got-cha” attacks on Texas Gov. Rick Perry show one of the other pit-falls for those who are trying to pick a national leader. The three big sound-bite issues used against him during the TV “debates” have involved Social Security, immi-gration and a vaccine against cer-vical cancer. Where these three issues have

been discussed at length, whether in a few media accounts or in Gov. Perry’s own more extended dis-cussions in an interview on Sean Hannity’s program, his position was far more reasonable than it

appeared to be in either his opponents’ sound bites or even in his own abbreviated accounts during the limited time available in the TV “debate” format. On Social Security, Gov. Perry was not only

right to call it a “Ponzi scheme,” but was also right to point out that this

did not mean welshing on the gov-ernment’s obligation to continue paying retirees what they had been promised. Even those of us who still disagree with particular decisions made by Gov. Perry can see some of those decisions as simply the errors of a decent man who real-ized that he was faced not with a theory but with a situation. For example, the ability to

save young people from cervi-cal cancer with a stroke of a pen was a temptation that any decent and humane individual would find hard to resist, even if Gov. Perry himself now admits to second thoughts about how it was done. Many of us can agree with Congresswoman Michele Bachmann’s contention that it should have been done differently. But it reflects no credit on her to have tried to scare people with claims about the dangers of vac-cination. Such scares have already cost the lives of children who have died on both sides of the Atlantic from diseases that vaccination would have prevented. The biggest mischaracteriza-tion of Gov. Perry’s position has been on immigration. The fact that he has more confidence in put-ting “boots on the ground” along the border, instead of relying on a fence that can be climbed over or tunneled under where there is no one around, is a logistical judgment, not a question of being against border control.

Texas Rangers have already been put along the border to guard the border where the federal gov-ernment has failed to guard it. Former Sen. Rick Santorum’s sound-bite attempts to paint Gov. Perry as soft on border control have apparently been politically successful, judging by polls. But his repeated interrupting of Perry’s presentation of his case during the recent debate is the kind of cheap political trick that contributes nothing to public understanding and much to public misunder-standing. Those of us who disagree with Gov. Perry’s decision to allow the children of illegal immigrants to attend the state colleges and universities, under the same terms as Texas citizens, need at least to understand what his options were. These were children who were here only because of their parents’ decisions and who had graduated from a Texas high school. Gov. Perry saw the issue as whether these children should now

be allowed to continue their edu-cation, and become self-support-ing taxpayers, or whether Texas would be better off with a higher risk of those young people becom-ing dependents or worse. I still see Gov. Perry’s decision as an error, but the kind of error that a decent and humane individual would be tempted to make. I have far more questions about those who would blow this error up into something that it is not. Error-free leaders don’t exist — and we don’t want to end up settling for a warm body. Ultimately, this is not about Gov. Perry. It is about a pro-cess that can destroy any poten-tial leader, even when the country needs a new leader with a char-acter that the “gotcha” attackers demonstrate they do not have.

Thomas Sowell is a senior fellow at the Hoover Institution, Stanford University, Stanford, CA 94305.

Copyright 2011Creators.com.

Superman versus warm body

Thomas Sowell

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