ST. GEORGE — Mayor Dan McArthur announced Monday that the city has accepted a nearly $44 million bid from a Sandy development firm for the purchase of the existing 274-acre airport site.

"I congratulate Anderson Development Services Inc. on their successful proposal award," McArthur said. "We are looking forward to working with them to ensure a successful purchase and development of the existing airport property."

Five bids were received and evaluated before Anderson was selected, said city manager Marc Mortensen. Anderson agreed to put $1 million down and pay the balance at the end of 2010, he said, adding it is too early in the process to know what Anderson will do with the land in the long term.

"This is a pretty significant step for us. It moves us closer to securing our financial plan and on to where we can start construction" of the new airport, said Mortensen.

The existing St. George airport sits on top of a mesa downtown and can't be extended, making it impossible to fly larger aircraft into the landlocked location. Plans to build a $190 million replacement airport on more than 1,400 acres about seven miles southeast of town have been approved by the Federal Aviation Administration.

The federal government already has spent $17.2 million on the new airport site and promised to spend another $90 million. But St. George officials say they need the state's help during the transition period.

Sen. Bill Hickman, R-St. George, introduced SB298 last month in an effort to pave the way for the state to become the financing agent for the St. George airport purchase, Mortensen said. Rep. David Clark, R-Santa Clara, is sponsoring a House version of the bill.

"We are hopeful the state will come through with a bridge loan of some kind," he said. "The state would give us money in payments over the next three years. They wouldn't be buying anything. Anderson would pay the money back to the state."

A mutually acceptable contract must still be negotiated by April 30 between Anderson and St. George before the sale is final, Mortensen said.

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