From Deseret News archives:

Cities asked to boost money for UTOPIA

Published: Tuesday, April 1, 2008 12:18 a.m. MDT
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Christensen, who is a member of the UTOPIA board, said more than $50 million in expected outside funding has been delayed, but the refinancing would allow construction to move ahead in her city, where 34 percent of the build-out is complete but no homes or businesses are hooked up to the network.

Brigham City is considering adding $25,000 to its initial pledge of $333,000, Christensen said, but she believed the money would be included in the refinancing.

Centerville's Lutz is confident the refinanced bonds decrease the chance the consortium would ever have to call on its member cities to use the pledged tax dollars to repay the bonds.

No tax dollars have been used to build the network.

This is the first time UTOPIA has asked for an increase in pledge amounts, Lutz said.

UTOPIA officials initially expected to be profitable by 2006. Last fall they adjusted their projection and predicted the network would break even this year.

UTOPIA officials recently made a presentation to Centerville officials during a work meeting and said they plan to revise the consortium's marketing plan, Centerville Mayor Ron Russell said.

Russell said his council is concerned about the request for more money and must figure out if it's worth it for UTOPIA to default on its bonds or if it's better to pledge more money so that the consortium might turn things around.

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Russell, who doesn't vote with the City Council, said he doesn't envy the council for the decision it has to make.

Lutz said the council may not vote on the issue tonight. UTOPIA would like to have an answer by May 1, he said.

Centerville's public hearing is set for 8 p.m. during the council's regular meeting at City Hall, 230 N. Main.


E-mail: jdougherty@desnews.com, twalch@desnews.com

Recent comments

Centerville city posted the public notice so deep in the city website...

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