The state Community Impact Board has denied a request by Springdale, Washington County, for a $1 million low-interest loan to construct a golf course near Zion National Park.

Springdale, which wants the 18-hole golf course to boost a sagging economy, had already secured a $500,000 grant and a $1 million loan for the project, with private developers to pick up the $1.3 million balance.But the developers, led by former Congressman Dan Marriott, were unable to raise the $1.3 million. Springdale then approached the Community Impact Board about an additional $1 million loan to complete the financing package.

Marriott has plans to build a hotel resort around the golf course fairways. Despite Thursday's setback, Marriott says the project is not dead.