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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.
The Legislature also gave quick approval to a bill that would allow the city to extend tax breaks for things like roads and sewer lines to the development.
Curtis declared a conflict of interest on SB294 and voted against the measure, which passed 41-27. It now goes to the governor.
Curtis said that he has gone to extraordinary lengths to avoid taking 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.
Before Curtis learned that Anderson landed the deal, however, he and other lawmakers met with city officials who wanted the state to buy the airport from the city. The legislators were not willing to take the plunge.
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 sell the old one.
"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 in committee and on the floor. It was brought up in House Republican Caucus on Tuesday with just one day left in the 45-day session.
Democrats questioned the loans, which they said would benefit Anderson Development.
"We've got to be really paying attention to who's in public service for private profit," said state Democratic Party Chairman Wayne Holland. "There are just too many ethical challenges that seem to be getting in the way of Republican leadership, particularly the speaker."
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 would give the Governor's 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," he said.
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, list Anderson Development as a client.
Curtis said Tuesday he would not vote on the loan proposal - "I'll be gone [from the floor,]" he said.
Earlier 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 leaders when the topic came up, said Senate President John Valentine, R-Orem.
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.