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The state Auditor has launched a review into Ogden's purchase and subsequent sale of the city's historic American Can buildings.
Auditors, in a letter Thursday, told officials they want to examine all documents associated with the transaction. In 2002, Ogden accepted $900,000 in state money to transform the American Can complex into a high-tech campus in collaboration with a charter high school.
This request follows the July 6 announcement from the state Attorney General's Office that its investigation turned up nothing illegal in how the grant was used.
The city's dream for a high-tech center failed to materialize, and the complex - its 4.8 acres are located at 20th Street and Grant Avenue - is now headed in a new direction. Its first occupant will be Finland-based Amer Sports Corp, which sells skis, watches and diving equipment.
Audit Director Dean Eborn confirmed Friday that his office is reviewing transactions, but said he could not comment further "until our audit work is finished and our report published."
Ogden Mayor Matthew Godfrey said he believes the review - launched after Ogden Rep. Neil Hansen notified the auditor's office of his concerns - amounts to nothing more than a mayoral opponent's attempt to discredit him and gain votes. Godfrey, a Republican, seeks a third term as mayor; Hansen, a Democrat, filed to try to unseat Godfrey in November.
"The attorney general said there's nothing inappropriate. This is clearly political machination," Godfrey said.
Not so, Hansen said.
"The issue came about because of constituents who called me and asked for accountability of tax dollars. "Hansen said Friday. "As I started to follow the trail, I began to ask questions about how the city got the money and what it was for."
In January, Colorado developer Jon Peddie acquired the American Can complex for an undisclosed amount from the nonprofit Ogden Community Foundation, started four years ago by Godfrey and two of his former administrators, Nate Pierce and Wayne Parker.
In late December, the property transferred from the Riverside Technology Foundation to the Ogden Community Foundation, according to North Ogden resident Dorothy Littrell, a government watchdog who researched the American Can transactions and contacted Hansen.
After attending a council work session where members of the Ogden Community Foundation gave a presentation, Hansen filed a government-records request for meeting minutes.
His request was denied.
"I was told it was a private foundation, not privy to public inspection," he said. What disturbs him, though, is the unaccounted flow of cash through the nonprofit, the several city officials and administrators who serve on its board, and the use of city resources to support its function.
Godfrey acknowledged that he serves on the board, but not as an officer.
Godfrey described the foundation as a public/private partnership that provides assistance to local public schools.
"We've given them hundreds of thousands of dollars in grants. We try to get them to focus on technology in the classrooms," Godfrey said.
At times the foundation has met in public rooms at City Hall, but Godfrey denies that it operates out of his office.
Minutes are kept by a board member elected as secretary, Godfrey said. Whether that individual is a city employee - which Hansen suspects - was unknown Friday. Godfrey, who said he sits on 22 boards, said he could not remember the secretary's name.
"If it's all on the up and up; why be so secretive?" Hansen said.
Godfrey labeled Hansen's assumption as "silly."
"Sure, it's a covert operation that grants money to schoolkids," the mayor quipped.