From Deseret News archives:

Conflict sidelines Curtis on loan talks

Published: Wednesday, March 5, 2008 12:35 a.m. MST
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Several GOP caucus members said no to the "bridge loan" — adding that St. George and Washington County got enough state aid during floods in the early 2000s. Some principal and interest on those state flood loans were forgiven by the Legislature, and were not repaid.

"That is enough help," for that part of the state, said Rep. Roger Barrus, R-Centerville.

Others complained that the Legislature shouldn't be asked with a day and a half left in the session to make such a major financial commitment — the bridge loan to the city — on something they had never heard about before.

It appears, however, that GOP legislators are preparing to give St. George the loan, which will be repaid with interest in four or five years after Anderson Development takes control of the old airport and pays the city its money.

Meanwhile, Curtis said he knew that Anderson was one of the bidders but could not disclose that because "I did not know that (Anderson) would win the contract, and I was not at liberty to say what any of my clients may be bidding on" before bids are opened or otherwise made public.

Regardless of whether it was Anderson or some other client, or whether the state was going to be involved or not, Curtis said as a representing attorney, he cannot discuss such possible conflicts in public before bids are opened.

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In this case, it was up to Anderson and/or St. George officials to disclose who was bidding on the old airport, not Curtis himself, the speaker said. And that happened on Monday when city officials named the bid winner.

Anderson Development bid $44 million to take over the airport in three or four years, after the new airport northeast of town is built and operating. But even though the city is getting tens of millions of dollars from the federal government to build the new airport, it still needs millions of dollars more to make the deal work. And the city will only get a $1 million, non-refundable down payment from Anderson until the developer takes control of the site.

Curtis said he learned over the weekend that Anderson Development likely would get the bid. Tuesday morning, Sen. Bill Hickman, R-St. George, in a private joint leadership meeting between House and Senate GOP leaders, brought up the subject of the state making a bridge loan to St. George.

"When the topic came up, I excused myself from the room and went and read the newspaper in another room," Curtis said. "And I've asked other (leaders) not to mention or talk to me about this 'bridge loan' at all," Curtis added. Curtis also left the noon caucus meeting when the airport subject came up.

House Majority Leader Dave Clark, R-Santa Clara, who backs the state's bonding for the airport in his city, said that Curtis has "lived up to ethical standards" in previous discussions about the airport.

Whether the state makes the bridge loan or St. George gets that financing in the private sector, once Anderson pays its $44 million for the old airport, those loans will be paid back, House leaders said. The state runs no risk of losing any money, they added.

Curtis said the bridge loan has "nothing to do with Anderson getting the contract" from the city.

But it likely is needed for St. George to get the funds to complete the new airport, city officials and GOP leaders say.


E-mail: bbjr@desnews.com

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