BOUNTIFUL — A complaint against the South Davis Recreation District by Citizens for Tax Fairness cost the district an extra $450,000 in interest after several bidders backed out due to the controversy.

Jason Burningham, the district's financial adviser, told members of the administrative board the 50-plus-page complaint filed with the Attorney General's Office scared some of the seven prequalified bidders away.

Still, after a short discussion in the Bountiful City Hall, the board Wednesday approved the resolution to authorize the sale of $18.4 million in general obligation bonds.

The bonds, approved by voters last month, will pay for a new recreation center to serve residents of the cities of Bountiful, North Salt Lake, West Bountiful, Woods Cross and Centerville, as well as residents in unincorporated Davis County.

Under the plan, Bountiful's existing swimming pool and ice rink will be replaced with new facilities paid for over the next 20 years.

Although there has been no formal legal challenge to the formation of the district and the sale of general obligation bonds, Burningham said the complaint did cause syndicates and managers not to submit bids.

Ron Mortensen, co-founder of Citizens for Tax Fairness, said it was unfair to blame his group for the added cost because they notified the district and the bond advisers they were filing a complaint.

"They've known about it for months. They were in such a big hurry to move ahead without waiting for the attorney general's response, they didn't want to wait. We never opposed the center, just the ostentatious building," Mortensen said.

Total interest costs for the bond issuance will be $10.66 million over the 20-year payback, Burningham said.

The winning bid at a rate of 4.48 percent was still below the average rate of 5.10 percent for AAA-rated general obligation bonds.

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