The Governor's Office has recommended the private, nonprofit Economic Development Corporation of Utah (EDCU) - the only bidder - be awarded a contract to handle the task of recruiting new businesses to Utah, said Douglas Richins, director of the Utah Division of Purchasing.

Huntsman's office is now finalizing the terms of the contract and determining how much EDCU should be paid. That probably will be about $500,000, said Chris Roybal, Huntsman's chief economic adviser. He said EDCU could be working under a state contract as early as Aug. 19.

EDCU officials did not return calls seeking comment.

The contract generated controversy because Roybal ran EDCU, which for years has tried to play a greater role in the state's recruiting efforts, until he was hired by Huntsman.

Under previous governors, state employees managed Utah's business recruitment efforts with EDCU's help. That changed in January when Huntsman took office and had Roybal and another staff member fire nearly all state employees involved in recruitment, contending the contractual arrangement would save money and increase efficiency.

EDCU took over recruiting for the state shortly after the firings on a "pro-bono" basis. Roybal said the company will not be paid for work done before the contract was awarded.

Roybal said he has no financial interest in EDCU and has not been involved in the bid process. Nonetheless, some business leaders have worried Roybal's ties to EDCU discouraged other companies from pursuing the state contract, figuring EDCU was certain to get it.

Members of the Governor's Office of Economic Development Board, including attorney Jerry Oldroyd and Joel Bradford, a Utah Valley State College official, have voiced concerns about the firings of the state employees and the way EDCU is getting the state contract.

"I was highly concerned that they were the only bidder," Bradford said. "They are probably the most qualified, but I would have liked to have seen some more competition for the contract."

Another concern is whether EDCU, which now draws funding from a number of Utah counties and cities eager to see the organization bring employers to their communities, will use the state money it receives to look after the interests of all Utah communities.

In addition, some question whether contracting with EDCU really will save the state money. Utah spent about $650,000 annually on recruitment when it was handled by state employees.

Roybal said the state tried hard to address all those concerns while EDCU's bid was being reviewed. "We have tried to be as open as we can about the process," he said. "And we believe this is good policy."

lesley@sltrib.com