Calling downtown Salt Lake City's planned science, art and cultural center "insufficiently undefined," the City Attorney's Office says the city has no obligation to give The Leonardo its voter-approved $10.2 million bond.
In a 46-page legal opinion released this morning, City Attorney Ed Rutan also argues "further factual inquiry is necessary" to confirm whether Leonardo has privately raised $10 million to trigger the bond's release.
"There was not and has not been a 'meeting of the minds' between the city and the [Leonardo] foundation to issue the bonds because they have not agreed on the scope of work to be funded by the bond proceeds," the opinion reads. "Without agreement on the work to be performed there can be no obligation to issue the bonds."
Located in the building of the old main city library at Library Square, the Leonardo is currently hosting the Body Worlds exhibit, an event organizers hope will parlay into bigger plans for the building.
Contacted in Hawaii for response Friday, Leonardo Executive Director Peter Giles said museum officials have not had the opportunity to "digest" the opinion.
"We're going through it line by line and I'm sure we will have a good response in the near future," Giles said while on a consulting trip for another museum. "We're working very positively with the city on a memorandum of understanding to address all these issues. We want to be very careful how we respond."
Mayor Ralph Becker has given the Leonardo foundation until the end of the year to hammer out an agreement. Museum executives envision a more-modest renovation for $11 million - less than half the original cost - to be funded primarily by the 2003 taxpayer-approved bond.
That scaled-back approach came amid a Leonardo shakeup in August when former director, Mary Tull, was replaced by Giles. The museum's lobbyist and spokesman also were ousted soon after Leonardo learned Sorenson Legacy Foundation withdrew a $5 million to $8 million pledge for naming rights.
Instead, Sorenson announced it will give $12 million for a new arts and education center at the University of Utah.
Becker has reserved the right to consider other uses for the old library building if the parties cannot craft a deal.
Despite Friday's setback, Giles insists a long-term agreement is "doable."
"We're trying to work in a spirit of collaboration to address the issues that divide us," he said.
Both Becker and the City Council requested advice from the city attorney on whether they must issue the bond based on an apparent $10 million match.
Rutan's lengthy opinion notes the city on two occasions in 2006 certified that Leonardo met its matching funds obligation. However, the museum since acknowledged it did not meet the requirement because of "the incorrect reporting of two guarantees."
Based on an independent review commissioned by the city, it appears Leonardo met the $10 million match as of April 30, the opinion states, but the city has not had the opportunity to confirm the "enforceability" of any outstanding pledges.
Because a considerable portion of the funds raised by Leonardo has been spent, the city should confirm the money has been spent for proper museum purposes, the opinion adds.
On a third question, the opinion says the capital is obligated to reimburse Leonardo for $262,079 in architect and other fees under a so-called interim agreement.
Over at least six years, The Leonardo has suffered a series of starts and stops - mostly with fund raising - in its bid to unveil a world-class science and cultural center at Library Square.
