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$42 million loan comes up in waning hours
This is an archived article that was published on sltrib.com in 2008, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Posted: 6:14 PM- A measure is flying through the Legislature that would extend $42 million in state loans to St. George City, enabling the city to start work on its new airport until it can sell its old airport to a development company that is a client of House Speaker Greg Curtis' law firm.

Curtis said he has gone to extraordinary lengths to avoid any part in discussions about what the state's involvement would be in the St. George Airport purchase since he learned over the weekend that the city was awarding Anderson Development the contract to redevelop the old airport, which sits on a scenic vista near St. George.

"If anyone talked to me, I've said I'm not willing to talk about it," he said Tuesday, and he has left meetings where the topic has been discussed.

The city came to the Legislature looking for the funds, which it needs to start work on its new airport, said St. George City Manager Gary Esplin. It needs to build the new airport before it can transfer ownership of the old airport.

"It's kind of a catch-22," said Esplin. "You can't sell the [property] until the new airport is built, which relies on the sale of the [current] airport property."

The solution, contained in SB298, sponsored by Sen. Bill Hickman, R-St. George, emerged 11 days ago and breezed through the Senate late last week without even receiving the customary fiscal impact analysis and less than five minutes of debate. It was brought up in House Republican Caucus today with just one day left in the 45-day session.

Democrats questioned the loans, which they said would ultimately benefit Anderson Development.

"It appears that Speaker Curtis has been as pure as Caesar's wife," said Utah Democratic Party Chairman Wayne Holland. "The public does not know what goes on behind those closed doors."

Curtis is partner in the firm of Hutchings Baird Curtis & Astill, whose clients include Anderson Development. Michael Hutchings, a partner in the firm, is also a co-owner of Anderson Development.

The bill gives the Governors Office of Economic Development the authority to issue $42.5 million in bonds that would allow the city to build its new airport, then repay the state when the new airport is complete and the old airport sold to Anderson.

"There's never enough cash, so we . . . try to use the state's Triple-A credit to accomplish the same thing," said Hickman, who said the deal was the same for any of the bidders. "I don't know what company they're going to award it to, nor do I care."

St. George announced this week that it would sell its old airport to Anderson Development for about $44 million. Anderson would pay the city and take over the property once the new airport is built, presumably in 2012.

Esplin said there were four serious bidders for the 240-acre property and all of them were offered the option of buying the land now at a discount, making incremental payments over several years, or putting up $1 million and asking the Legislature for a bridge loan.

Two Texas companies that bid lower than Anderson Development's $43.9 million also chose to go to the Legislature.

Curtis said he has known for months that Anderson was bidding on the property, but was bound by confidentiality agreements not to disclose the potential conflict. The speaker's conflict of interest forms, on file in the House, do reflect that his clients include Anderson Development.

Curtis said Tuesday he would not vote on the loan proposal - "I'll be gone [from the floor,]" he said.

Earlier on Tuesday, Curtis left a House caucus when the topic of discussion turned to the St. George loan deal. And he left a morning meeting with Senate leadership when the topic came up, said Senate President John Valentine, R-Orem.

The speaker said he had previously taken part in discussions about a suggestion that the city buy the airport outright, then sell it to Anderson, but lawmakers were unwilling to take that plunge.

Previously, his representation of Anderson Development has drawn scrutiny as laws were tweaked by the Legislature last session that would help Anderson's plans to develop the former Geneva Steel Mill property. Curtis has said he played no part in those changes.

Questions raised about ties to Speaker Curtis' firm
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