$25 million flood loan in the works for Dixie

A $25 million low-interest loan to help stabilize Washington County's deadly flood-swollen rivers should be on its way within the month, state leaders promised Wednesday.

The loan is part of a package of aid to the devastated region announced by Legislative leaders and Gov. Jon Huntsman Jr. that also includes access to the state's $6 million revolving loan fund to pay for damaged water, irrigation and sewer lines.

Washington County Commissioner Alan Gardner said he was relieved to hear help is on its way.

"This will be a big help to get us off and rolling. This means something's going to be available immediately to help with the expenses we've already got," said Gardner. "We were hoping for a zero-percent interest loan, but it sounds like we aren't going to get that. We are just thankful to get the money. We appreciate the help."

St. George spokesman Marc Mortensen said city officials weren't invited to the news conference and are anxious to learn details of the state's financial assistance plan.

"We sense the urgency and we want to respond," the governor said. "This is not about roads and bridges. We all know that it's about people and helping them to rebuild their lives."

So far, though, the state isn't offering any help for the residents who saw their homes swept away by the floods earlier this month.

"What we can and can't do for homeowners is still under discussion. We were not prepared to announce any relief today to private property," Senate President John Valentine, R-Orem, said. "Part of it is a legal question. Part of it is a question of what is good policy."

Lawmakers from the region are apparently still pushing for the state to step in. House Majority Whip Stephen Urquhart, R-St. George, described how his son's kindergarten teacher lost her home and everything she owned to the flood.

"We will figure out some way we can help out these individuals, but our job up here at the state is to help out with infrastructure and that's what we're going to do in the first place," Urquhart said. "There will be other parts of this plan that we're formulating."

Huntsman said a group may be formed to help raise money for flood victims through fund-raisers in Salt Lake City and other places throughout the state. He said he doesn't yet have an answer as to whether there's a way for taxpayers to help the homeowners and others who suffered losses in the flood.

Just where the money for the loan would come from — and what other budget priorities might be displaced — also hasn't been determined, Valentine said. The terms of the loan, other than that it would be low-interest, also have yet to be set.