For the next two years, UTOPIA will try to pull itself out of debt and avoid calling upon cities' sales tax bonds. But if the interest and principal payments become overwhelming, it will begin cashing in on the IOU bonds for what could be as long as 33 years.

It's hard to know exactly how fast UTOPIA's customer base will grow, and the company cannot say exactly when it will break even. However, it hopes for two or three years based on the fact that in some cities, like Tremonton, most of the infrastructure is already in place and fiber simply needs to be hooked up to homes, said David Shaw, legal counsel for UTOPIA.

Laura Lewis, financial adviser to UTOPIA as well as numerous cities, including Orem, stressed to the council that this is a project she believes in and one that will benefit the cities that adopt it.

"As I've grappled with this ... I had to feel comfortable with the fact that even in the worst case going forward, you are better off tomorrow than you are today," she said.

She compared the situation to a house, which will sell better if it's finished, rather than half-completed. If in a few years UTOPIA is still struggling, the additional construction and infrastructure that had been completed would make it a more appealing purchase for another group. However, the group is hopeful it won't need to go that route.

Currently Orem's fiber build-out is about 45 percent to 50 percent done, with more than 3,000 customers, according to city documents.

"I feel like we must go forward on this path of opportunity," said council member Margaret Black. "We will be no worse off, and we have the opportunity to be better off."

---

E-mail: sisraelsen@desnews.com