March 4, 2008
Tiffany De Masters for the Spectrum

Buyer found for airport

ST. GEORGE - The city of St. George appears to have found a buyer for the current airport property, and the Legislature looks to be working on a bill that would allow for the state to provide a bridge loan for the new facility.

St. George City Manager Gary Esplin said Anderson Development Services Inc., a Salt Lake City company, was awarded the bid over four other developers. The winning bid is worth $43.96 million.

"They've been awarded the bid subject to coming up with the final terms of the agreement," Esplin said.

He said the terms of the contract must be completed no later than April 30.

Michael Hutchings, partner in Anderson Development, said the company had been looking at the St. George airport property for a year and half.

"We're very excited about it," he said. "We've spent a lot of time on this, working on the project having a quality development at that particular airport site."

He added St. George is also a growing and vibrant community, and the site of the current airport is an excellent location within the town.

The city of St. George wants to build a new airport in the southeast part of the valley. The new facility will have a runway large enough to allow for commercial jet service, which is forbidden at the current site on the Black Hill mesa because the runway isn't long enough.

While the city has received funding from the federal government, the sale of the current airport site is considered to be a crucial step toward funding the city's portion of the overall cost. The city sought bidders who could develop the large tract of land on which the current airport sits.

"Anderson Development is a large development company in Utah, so large land development is attractive to Anderson," Hutchings said.

Hutchings added that there is an opportunity to develop a high-quality mixed-use project on the current airport's 276 acres. The project could include housing, commercial and office space.

"I congratulate Anderson Development Services, Inc. on their successful proposal award," Mayor Dan McArthur said. "We are looking forward to working with them to ensure a successful purchase and development of the existing airport property."

Hutchings said Anderson Development won't officially buy the property until January 2012. The company won't cut a check until then. Because the new airport is expected to open in January 2011, the current airport will continue to operate until that time.

Esplin said because the city won't receive the money from Anderson Development until after St. George begins operating the new airport, local representatives presented a bill to the Utah House on Monday asking for the state's assistance in acting as a financing agent between the city and Anderson Development while the new airport is being built.

"We're looking for someone to help us, to step in and get us from point A, to point B to point C," Esplin said. "A lot of people are thinking we're asking the state for a handout. We're not. They're just acting as a financial agent."

House Majority Leader David Clark, R-Santa Clara, said the bill before the House provides a way for the state to assist the city. The legislation would act as a bridge loan that the state would facilitate.

"The new airport is a significant economic development," he said. "It's a loan the state would be paid back from."

The city will know by Wednesday, when the session is scheduled to end, if the bill was successful.

Marc Mortensen, assistant to the city manager, said to build the new airport the city has pulled funds from Federal Aviation Administration grants, city funds and the $43.96 million land sale to Anderson Development.

The cost of the new airport is expected to be $177 million with 1,300 acres.

Article on thespectrum.com