S.L. given a low-risk option on UTOPIA

Councilmen Dave Buhler and Eric Jergensen are two of those three no votes, and some council members say Van Turner is the third. Turner, for the record, noted: "I need to be swayed a little bit more if I'm going to vote yes."

Turner said the Wexford deal is not an option for him.

"My take is that's too late to worry about it and too late to check into it at this stage," he said. "A city our size doesn't need a private individual to back our backstop."

Buhler and Jergensen say they will vote no on UTOPIA despite the Wexford proposal because the city will still be on the hook to spend some taxpayer monies if UTOPIA doesn't meet expectations.

The latest Wexford deal, according to documents obtained from Salt Lake City, would still require the city to pay the first $1.1 million of any UTOPIA losses, with Wexford picking up the rest of the city's financial commitment during UTOPIA's first 10 years. That financial commitment is a pledge of sales tax revenue of up to $4.1 million yearly for 17 years to pay for UTOPIA's construction costs. That money would only be spent if subscription rates on to the network were less than UTOPIA's estimates. If subscriptions rates met expectations, the city would keep its money and also turn profits that could reach millions annually.

Even Councilman Carlton Christensen, the only council member to say publicly that he will vote in favor of backing UTOPIA, says the Wexford deal would be his "last resort."

Christensen, Buhler and Love agree if the city were to accept an offer from a venture capital firm it should get the best deal possible. Instead of taking Wexford's deal, the city should put out a public request for bid; that way the city might find another firm with an even sweeter offer.

But with less than a week until a state-imposed deadline for Salt Lake City to vote on whether it will financially commit to UTOPIA, time for such a bid process is short.

Christensen, however, said the council could vote to financially back UTOPIA at its Tuesday meeting only on the condition that a private financial backer is involved. Then the city could conduct a two- or three-month bid process to find the best deal.

According to Wexford's Web site, the venture capital firm was formed in 1994 and has invested over $1.5 billion in private investments and has realized over $1.9 billion in proceeds. The company has been known to invest primarily in transportation, technology and natural resource industries.

Morris said he believes Wexford's offer flies in the face of UTOPIA opponents, such as the Utah Taxpayers Association, which said the project was too risky for even private investment.

Amron said his company has done its homework, adding Wexford feels UTOPIA could be the example to other U.S. metropolitan areas.