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Show PAGE 4 Sm I TUESDAY. JUNE 24, BUSINESS EDITOR Local Industry News & notes Government global companies get state tax incentives to open in The Governor's Office of Economic Development offered eBay $27.3 million in post performance tax incentives in hopes of attracting the online auctioneer to open a new data center in Utah. The Economic Development Tax Increment Financing incentive is payable over a 10 year period as a state tax revenue credit. The San Jose, Calif company has not yet decided if it will build the $334 million center in Utah. State officials say the center, if it decides in favor of Utah, could hire up to 50 people earning an average $49,242 annually and more than $ 109 million in new state tax revenue over a period. A $3.32 million post performance tax incentive was also offered to Cementation USA Inc., an underground mine contracting and engineering company, which plans to open its U.S. headquarters in Salt Lake County. The state incentive, which is based on a tax credit of a portion of state tax . revenue, is also payable over 10 years. Cementation plans to invest more than $5.5 million in the build-ou- t of its corporate headquarters and to buy mining e equipment locally. The company plans to hire 422 workers over the next 10 years at an average salary of $65,656 annually. More than $16.5 million in new state tax revenue is expected to be generated over the next 10 years. Two Utah -- full-tim- Grace Leong V V A V Dow Jones Nasdaq S&P500 Gold y Silver Final Final Final 11,842.36 -- 0.33 2,385.74 -- 20.35 1,318.00 0.07 Per ounce $881.00 -- 526.50 Per ounce $17.19 -- $0.25 344-291- 0 EXCHANGING 2008 gieongheraldextra.com THE DOLLAR Yen Euro Pound Canadian dollar Monday Friday 107.90 $1.5480 $1.9611 1.0164 107.18 $1.5625 $1.9771 1.0196 Huntsman sues Apollo for fraud SLC firm sues private equity group for to pay that much for the company and that by backing away, Hexion might be angling for a cheaper price. THE ASSOCIATED PRESS The company said it's posciting the company's financial sible that Apollo and Hexion deterioratioa Huntsman alTHE WOODLANDS, Texas leges Apollo falsely represented were just trying to defeat a its cornmitment to the deal in Huntsman Corp. is suing merger of Huntsman and Basell to protect Hexion's market order to get the company to Apollo Management and its " share. two partners for fraud after the terminate a previous buyout "I manuthink actions Dutch their to with backed agreement private equity group facturer Basel! AF. out of a deal to buy the chemidestroy the stock value and cals company for $6.5 billion. Huntsman plans to contest reputation of the company by Huntsthe allegations made about its Salt Lake questioning our financial viabilman seeks a Texas jury trial for financial performance. ity was all very evident," Peter To win Huntsman, Apollo bid Huntsman, the company's CEO, damages exceeding $3 billion, $2 higher than said in an interview Monday, $27.25 a share plus additional punitive damBasell Hexion issued a statement then raised it to $28. ages., But in court papers, HuntsLast Wednesday, Apollo's Monday saying it's unfortuman said it believes Apollo nate that Huntsman Corp. Hexion unit said it no longer never intended to allow Hexion filed a "baseless" lawsuit in believes it can buy Huntsman, backing out of deal City-base- d Texas courts when both parties agreed to conduct litigation in Delaware. Hexion insists it backed out because of Huntsman's ." Chairman Jon Huntsman Sr., who started the company in 1982, and his son bought additional shares during the months the merger was unfolding. "That tells you something about our confidence that this deal would be done," Peter Huntsman said. "We'll be in the same position as our shareholders." Shares were trading at $ 12.7 1 on Monday, down from about $21 before Hexion's announcement June 18. People On the Move Utah County Realtors make changes to board The Utah County Board of Realtors made several changes to its board of directors. Kelly Ercanbrack, the association's President Elect has stepped down. He is replaced by former First Vice President Matt Barton of Affiliated Realty Group. Replacing Barton is former Treasurer Eric Bingham of Vision Real Estate, while Director Kimberlie Kerswell of Affiliated Realty Group is now appointed treasurer. Chris Nichols of Prudential Utah was appointed a director of the Utah County Realtors' Board. ' In addition, the thirteen members of UCAR's board include President Kenny Parcell of REMAX Results; Amber Burke, Century 21 at the Rockies; Steve Cuillard of Affiliated Realty Group; Mardica Horton of Vision Real Estate; Katy Jackson of Affiliated Realty Group; Sharee Killpack of Territory Land Real Estate; Aaron Mclntire of Realty Advantage; David Simpson of Landmark Real Estate; and Stephanie Vincent of Prudential Utah. Zions Bank names new manager Schafer Jackson was named executive banking relationship manager of the Orem branch of Zions Bank at 1220 S. 800 East. Jackson provides personalized service for executive banking clients. Jackson, who was most recently a loan officer and underwriter at Zions' West Valley office, has nearly two years of banking experience. He holds a finance degree in business management from Binghamton University in Binghamton, New York. National Briefing Bigger tax ready for costly fuel write-of- f WASHINGTON The Internal Revenue Service, citing the drain that high gas prices are having on people's finances, said Monday it is raising the automobile mileage rate that businesses and others can claim. The tax agency said the optional standard rate to calculate deductible operating costs for business vehicles will rise from 50.5 cents a mile to 58.5 cents for the final six months of 2008. That rate also applies to businesses and others who are entitled to depreciation allowances that operate automobiles for charitable, medical or moving purposes. Hearing on oil, gas rules brings hundreds A week of hearings on proposed changes to DENVER Colorado's oil and gas regulations got off to a lively start Monday with opponents warning of economic damage if the rules are adopted and supporters predicting environmental and health peril if they are not. At least 400 people attended a session devoted to public comments on the rules, designed to implement new laws requiring the state to pay more attention to energy development's impacts on health, wildlife and environment. The changes are being considered amid a natural gas boom that has set record drilling rates. STOCKS OF LOCAL INTEREST Yesterday's performance of selected publicly traded companies SYM COMPANY LAST CHANGE AA ALCOA INC ABSY ABS01UTESKY ABX BARRICK GOLD AEP AMER ELECTRIC AIG AMER AMD ADV MICRO AMGN AMGEN BAC BK BAM BR00KFIELD BU BALLCP BMY BRISTOL MYERS C CITIGROINC CMCSK COMCAST COST COSTCO WHOLESALE CVX CHEVRON Of 0.37 37.71 COMPANY MU MICRON MYGN MYRIAD GENETICS LAST CHANGE TECHNOLOGY 0.0330 0.0000 CP 41.02 0.59 NATR NATURE S SUNSHINE 720 41J7 0.03 NOVL NOVELLINC 6.07 30.30 1.80 NUS NU SKIN ENT INC 0.44 NWN NORTHWEST 0.72 OMTR OMNITURE, POW INC DEVICES 6.55 - 45.89 AMERICA CP ASSET 96 5125 SQIBB A SPCL CORP 47.92 15.59 - 2.10 0.00 0.11 - 0.07. 47.40 0.11 21.41 0.75 39.90 0.40 3.85 0.05 INC 122 PCG PG&E - 0.37 Q QWEST - 047 RZ RASERTECHINC 829 0.07 0.13 SC0XQ SCO GRP INC (THE) 0.12 0.02 25.88 33 NAT GAS 0.22 7.01 INC INTLGRO CI SYM 19.70 CP COMM INTL INC 18.55 - 0.75 SHLD SEARS HLDGS CORP 73.65 1.10 18.95 - 0.57 Sll SMITH INTL INC 81.65 2.52 68.44 0.29 SKYW SKYWESTINC 13.18 0.70 99.06 2 SNT0 SENTOCORP 0.05 0.00 5.00 DAL DELTA AIR LINES NEW 0.68 STR QUESTARCP 69.77 1.85 DIS WALT 32J9 045 SY SYBASE INC 31.91 0.34 DNEX DIONEXCP 70.35 0.13 T AT&T 3438 0.05 ERIC LM ERICSSON 1134 0.35 TGT TARGET CP 48.74 124 ETR ENTERGY 122.84 1.86 TRV THE TRAVELERS CO 44.84 0.79 FC FRANMJN 8.84 0.06 UDR UDRINC 22.91 GE GEN ELECTRIC CO 27.40 0.02 UNH UNITEDHEALTH HRB HR 21.36 0.62 USB US BANCORP HSIC HENRY SCHEIN INC IBM INTL BUSINESS MACH INK INTEL JBLU JETBLUE AIRWAYS JCP ADR CP COVEY CO BLOCK INC 51.45 CP CP - 44 - INC GR0 0.82 26.39 - 0.73 28.90 - 0.77 0.08 USEG USENERGYCORP 123.46 0.72 USNA USANA 22.36 0.01 UTMD UTAH MEDICAL 3.69 026 VZ VERIZON 35.91 053 0.47 WB WACHOV1ACP 16.92 0.51 HEALTH SCIEN PROD COMMUN 3.10 0.04 26.37 28.59 1.97 - 0.41 PENNEYICCO 37.35 JWN NORDSTROM 33.14 - 0.64 WEN WENDYS 29.44 - 0.61 LEE LEE 4.60 - 0.09 WFC WELLS FARGO & CO 2426 - IUV SOUTHWEST 13.89 022 WMT WAL MART STORES 56.64 0.38 MCK MCKESSON 57.19 0.10 WW SCHIFF NUTRfT INTL 5.99 0.05 34.54 1.41 X UNITED STATES STEEL 191.02 8.23 .1525 0.13 XEL XCELENERGY1NC 20.50 0.05 0.24 ZION ZIONS BANCORP 31.09 1.00 INC ENTERPRISES AIRLINES CORP MER MLCOCMNSTX- MERPJ MERRILL LYNCH MMSI MERIT MEDICAL MSFT MICROSOFT CP - SYS x 15.67 27.97 - 026 INTL INC 0.24 Mortgage crisis spooks high-en- d developments Paul Foy THE ASSOCIATED PRESS PARK CITY With the developer forced into bankruptcy, Hugh Smith worries about the $1 million he and a partner sunk into bare lots at Promontory, a sprawling residence club in a town saturated with second homes for wealthy Boomers. As Promontory began showing signs of distress a few months ago, Francis Najaf i, chief Pivexecutive of Phoenix-baseotal Group, gathered members e together in an opulent clubhouse and said he was in default and pulling out. "He was telling everybody he was sorry for our troubles and blaming events beyond his control the nation's real estate," said Smith, who believes Promontory will bounce back in a year or two under new ownership. He still hopes to develop two lots with multimillion-dolla- r vacation homes for sale. "The project is not in trouble other than Francis Najaf i decided to pull money out of it," said Smith, holding his anger in check. "We can't wait until the court decides who's going to be in charge." Promontory joins several other Western vacation spots facing financial uncertainty or worse, including Nevada's Lake Las Vegas golf resort, Idaho's Tamarack Resort and Montana's venerable Yellowstone Club. And sales are off at other resorts in the region, according to the Rocky Mountain Resort Alliance. Overdevelopment is one of their major problems. Around Las Vegas, a quarter of all housing sales on the market are listed as short sales, going for less than the loan taken out on them. On the Strip, plans for 24,700 condominiums are on hold or have been canceled, according to research firm Applied Analysis. "Many of them were speculative projects to start," said Brian Gordon, principal of Applied Analysis, which tracks the market closely. At the more exclusive resorts, the market had seemed recession proof, with buyers generally paying cash. They had nothing to do with the failing U.S. subprime loans that are causing half-buil- t, d timber-and-ston- Photos Rocking chairs overlook the private golf course 16, near Park City. and homes at the by DOUGLAS C. PIZACAssociated Press Glenwild development June market turmoil But the turmoil is making banks less forgiving for resort developers who took out huge construction loans. Swiss investment bank Credit Suisse says Najaf i defaulted on a $275 million loan in December and told a oan officer he has no money to pay for anything at Promontory. Najafi and other Pivotal executives refused repeated requests for interviews. The bank said it wouldn't comment beyond court papers. Credit Suisse also is trying to call in a loan at Tamarack Resort, about 100 miles north of Boise. In Nevada, at Lake Las a golf corrimunity 17 Vegas miles from the Strip that defaulted on $540 million in loans a group of lenders led by Credit Suisse forced the development into new ownership at the start of the year. "We're not out of the woods," said Frederick Chin, chief executive of Las Vegas-baseAtalon Group LLC, which is trying to salvage lenders' investments at Lake Las Vegas, where homes cost up to $10 millioa "There are a lot of financial problems here, a lot of legal problems we're sorting through, and our journey is at the beginning." The bank says Yellowstone Club is current on its loan, but that club faces other troubles. . d IS Existing and new homes under construction line one of the t, private golf courses at Promontory, a sprawling residence club near Park City. half-buil- A divorce of the owner and filmmaker, now 83, is still unhis wife has turned into a nasty finished. Some vacation-hom- e battle for control of the Yellowbuyers seem to be becoming stone Club. In another dispute, skittish. Accustomed to dea group of charter members led pressed Southeast and West coast markets, they are looking by cycling legend Greg LeM-on- d are fighting for their shares for bargains, but equally d of equity. owners are refusing to The Yellowstone Club recut their prices. ceived a $375 million Credit "This is really upsetting to Suisse loan in 2005, but memthe buyers, so they're just not bers say little of the money was buying," said Dennis Hanlon, spent on the resort a $ 100 president of the Rocky Mounmillion Warren Miller Lodge, tain Resort Alliance. "Both parnamed after the celebrated ski ties are upset." well-heele- Federal Reserve likely to hold interest rates steady Jeannine Aversa THE ASSOCIATED PRESS WASHINGTON Straddling risky economic crosscurrents, the Federal Reserve is expected to stand still this week on interest rates. Fed Chairman Ben Bernanke and his colleagues, who open a two-da- y meeting Tuesday, are in a fricky spot: they are faced economic with growth along with inflation stuck-in-a-r- threats from rising prices for energy, food and other commodities. Fed officials have made clear that because of concern about inflation, they're not inclined to cut rates further. At the same time, they have recognized that pushing rates up too soon could undermine an economy buffeted by housing, credit and financial woes. "These are very challenging waters to have to navigate," said economist Richard Yama-ron- e at Argus Research. Against that backdrop, the Fed is almost certain to hold its key interest rate steady at 2 percent when it wraps up its session on Wednesday. If that's the case, the prime lend ing rate for millions of consumers and businesses would stay at 5 percent. The prime rate applies to certain credit cards, home equity lines of credit and other loans. Wall Street investors and a few economists believe inflation problems might force the Fed to start boosting rates in August or later this year. However, many others think that's a situation the Fed would like to avoid especially given that the housing market is still flailing and foreclosures are at record highs. Mortgage rates are already rising spurred higher by investors' concerns about inflation. And, those higher rates spell yet more headaches for the problem-plaguehousing market. "It's an extremely hard place for the Fed," said Susan r, a professor of real estate and finance at the University of Pennsylvania's Wharton School of Business. So what's the Fed to do? "Tread lightly on rates and carry a big rhetorical stick," said Ken Mayland, president of ClearView " Economics. d Wa-chte- 1 i |