2 cities bid adieu to steel

VINEYARD — A $44.5 million bid for the 1,700-acre Geneva Steel property may put the city back on solid financial footings.

Mayor Randy Farnworth noted at Thursday's town council meeting that the city has been struggling since Geneva filed bankruptcy seven years ago, taking with it the bulk of the city's tax base.

"Vineyard is going to need a place where they're going to have an income," Farnworth said.

Farnworth said the bid reportedly comes from "one of the top industrial site developers in the western United States."

At the end of June a bankruptcy trustee identified the developers as Utah Lake Development but would not identify the national developer that is the parent company.

"They are the top bidder. It's in the hands of the court now. They have 30 days for another company to come in and out-bid them," Farnworth said. "In 30 days, it's pretty much a done deal if nobody comes in and beats that bid."

The company reportedly is experienced in cleaning up and redeveloping land affected by industrial pollution.

Farnworth said there has been no indication of what the developer has in mind for the property, but expects it will be commercial or industrial oriented rather than residential because of nitrogen and gas plants that are also located near the site.

It's likely the town council will have to do some rezoning of the land, which is now designated for industrial use.

The new owner must study the land to determine if it's safe for development. It could take a while before any construction would start.

Last week, furnaces, smokestacks and other parts of Geneva's mill were razed.

Geneva was built by the federal government during World War II. It closed in November 2001, and employed about 1,400 people the time. It had been plagued by financial problems and multiple bankruptcy reorganizations.

Money from the sale of the property could benefit some of Geneva's unsecured creditors. Last month, a bankruptcy judge ordered $114 million be distributed to secured creditors, about 84 percent of what they are owed.

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E-mail: lhancock@desnews.com