3 more cities back UTOPIA

MIDVALE — City councils in Midvale, Lindon and Tremonton passed resolutions last week pledging future tax revenues to support UTOPIA, the proposed wholesale fiber-optics network.

Five of the 18 member cities of the Utah Telecommunications Open Infrastructure Agency have now committed themselves to making the bond payments should the for-profit venture fail to produce revenues as its backers believe it will.

The regional digital network is expected to cost $540 million and provide high-speed video, voice and data technology to every home and business in those 18 Wasatch Front communities — seven of which are in Salt Lake County. Supporters, like Murray Mayor Dan Snarr, say UTOPIA will create "an environment for economic revitalization" in participating cities.

If one out of every three homes within the network's boundaries signs up for UTOPIA's services in the first seven years, the network will break even, according to UTOPIA officials. But some doubts have been raised — the city of Sandy pulled out of UTOPIA after initially joining — about whether UTOPIA will be profitable as it competes against existing broadband providers Qwest and Comcast.

Few doubts were expressed Tuesday, however. The Midvale and Lindon councils voted 4-1 each, and Tremonton's five-member council voted unanimously, to authorize a pledge of their sales tax revenues as a "backstop" to secure lower-interest bonds for UTOPIA.

"It gives us another economic development tool as we try to develop our two (EPA) Superfund sties. That's why we originally got into it," Midvale city administrator Lee King said. "And it also gives the people a choice and fosters competition."

Midvale's total commitment is $608,377, based on its proportionate share of what it will cost to build the network. But that money would be spent only in a worst-case scenario, if the venture fails.

Lindon's commitment is $310,000, and Tremonton's is $250,000.

West Valley City ($2.81 million) and Brigham City ($340,000) passed similar resolutions last week.

Paul Morris, UTOPIA's executive director, said member cities have not been given a specific deadline for passing resolutions, but most are expected to take votes in the next month or so.

"I'm just asking them to be diligent about it and let us know" if they will participate, Morris said, adding he is not taking any of the member cities' involvement for granted.