Instead of concentrating construction of the initial phase of the network in a single city as previously planned, UTOPIA's proponents now maintain they will build smaller sections in each of the six member cities in Utah and Salt Lake counties.

"We still have some detailed engineering work that needs to be done before we can identify the exact locations for the first four or five footprints [for the network], but the first 3,000 or so homes will be in our Salt Lake and Utah county cities," UTOPIA Chief Executive Roger Black said.

Two years ago, 18 Utah municipalities organized UTOPIA to explore construction of a fiber-optic network that would serve all the homes and businesses within their cities. Of the original UTOPIA founding cities, 11 remain part of the planned network and have pledged tax revenue to support the project.

A significant portion of the $85 million in construction funding - about $21 million - will be used to pay for development of the network's backbone that will be shared by all of the cities involved. Much of that investment will be spent in the Lindon area where the network's operations center will be located.

UTOPIA's critics, including the Utah Taxpayers Association, expressed concern about the original plan that would have required taxpayers in 11 cities to commit millions in taxpayer revenue each year to build the initial phase of the network in a single city.

"We still have some concerns," said Mike Jerman of the Taxpayers Association. "Even if they are now planning on building the initial phase in six cities, that still leaves the taxpayers in the remaining cities outside of Salt Lake and Utah counties exposed."

Construction of the entire UTOPIA network is expected to take three years.

Once the first phase of the project is completed with construction well under way and continuing in West Valley City, Murray, Midvale, Lindon, Orem and Payson, development of the network will be expanded to include the member cities of Centerville, Layton, Brigham City, Tremonton and Perry, Black said.

UTOPIA's backers have indicated they will need about $340 million in financing to compete the entire network, which they contend will bring unprecedented economic development.

Black said relying on short-term construction funding during the initial construction phase has its advantages. It gives the cities the desired "off-ramps" that will allow them to step away from their pledges to back the entire $340 million in bonds if UTOPIA's projections about the success of the project are not validated during the initial development.

As the build-out of the network proceeds, however, a portion of the short-term construction funding will be converted to longer-term debt, he said.

steve@sltrib.com