Salt Lake City Councilman Eric Jergensen clears warrant
This is an archived article that was published on sltrib.com in 2009, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Bench warrants for his arrest -- issued over debts levied against his Woods Cross business -- have been taken care of, said Salt Lake City Councilman Eric Jergensen.

"The warrants were a mistake and should not have been sent out," said Jergensen, chief executive of Contour Composites.

"But we paid it off today, that issue has been resolved and," he joked, "I think I'm safe to go out of the house."

The 3rd District Court case involved $16,607 that the 20-employee manufacturing company owed the Labor Commission for unpaid workers compensation funds.

However, other creditors also seek recourse, some from expenses incurred before Jergensen joined the company 11 years ago, he said.

In 2008, Zions First National Bank won a $4 million judgment against the communications parts company, and last month the Davis County Council of Governments obtained a $58,632 lien for an outstanding business loan in Farmington's 2nd District Court.

Another company, Scimitar USA incurred the Davis County debt and then defaulted on the loan, Jergensen said, leaving Contour holding the bag.

"These loan obligations came to our world about six or seven years ago," Jergensen said. "We had the business decision of whether to declare bankruptcy or not. We decided to work through it."

The economic downturn further complicated that effort with financing harder to come by.

"It has been a stranglehold on our company," Jergensen added, "but we're operating, delivering parts, making payments, arranging financing ... and soon we'll be free from it."

The two-term councilman is up for re-election this year and already has a robust challenger -- community activist Lisa Allcott -- although the two-week filing period officially opens July 1.

Jergensen said he wonders about the timing of the negative publicity about his fiscal woes.

"I'm discouraged that if this is not a concern about our business, that we've started this campaign in the wrong way," Jergensen said. "It should be about issues, not personal attacks."

Her campaign had nothing to do with it, Allcott said.

"I think it's a private matter between him and his family," she said. "We're walking the neighborhoods, trying to figure out what the issues are -- that's my focus."

cmckitrick@sltrib.com

Politics » Jergensen's beleaguered company is battling back.
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