Payson again rejects plan to refinance UTOPIA

"We have a commitment, and we're not for one second questioning whether we're keeping that commitment, not for one second. In my mind, the risk is worth the potential."

Payson city attorney David Tuckett told the council that despite Payson not joining other cities in the refinancing effort, it is still living up to all obligations made to UTOPIA.

UTOPIA began in 2002 when a number of Utah cities decided to look into the possibility of building a major fiber-optic telecommunications infrastructure that would reach each business and household in member cities. After city council votes in each of the other 10 participating cities, Payson was the only city on the outside looking in.

The refinancing would have ended up costing Payson $12 million over a 33-year span. The concept behind the refinancing plan is to pay off a $121 million, 20-year bond with a new $189 million, 33-year bond. UTOPIA expected $11 million in new capital to be realized from the refinance.

In addition to Van Tassell, representatives from both Qwest and Comcast made brief comments in favor of the council's continued vote against refinancing.

"We're not afraid of competition," said Tyler Dallas of Qwest. "We're afraid of uneconomic competition."

Marriott said he still sees in UTOPIA "a tremendous opportunity to rescue a stranded investment here, and we'll be successful."

A one-time Brigham Young University football player, Marriott started work in telecommunications 15 years ago in Texas. He went on to create many national telecommunication companies and also has spent time in manufacturing and military technology.

A father of nine children, Marriott plans to relocate to Utah with his wife, who grew up in Farmington. He hopes to attract a strong customer base during his two-year contract.

"I believe that he is very capable," said Jim Reams, interim executive director and Orem city manager. Reams praised Marriott's experience, tenacity, creativity and entrepreneurial spirit.

Marriott recently completed a multimillion-dollar product design, prototype and testing in five months with a pipeline of $1.5 million in combined sales, according to a UTOPIA press release. The new executive director also has negotiated many telecommunications deals concerning global marketing and distribution rights.

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E-mail: rpalmer@desnews.com