Standard Examiner Article - Powder Mountain Owners Say Feasibility Study Backs Town Concept

By MARSHALL THOMPSON
Standard-Examiner staff mthompson@standard.net

OGDEN - Powder Mountain owners released the results of their privately commissioned feasibility study Friday showing the ski resort could become a viable municipality if the developers provided cash upfront.
If Western America Holding, LLC, coughs up $750,000 for its proposed town government, there would be no need to levy an additional municipal property tax or telecommunication tax on the residents, the study said.
"Assuming creation of a fund from prepayment of development fees, there is adequate funding to allow the newly incorporated town to operate through the end of Fiscal Year 2012," the report read. "If resort development does not begin in 2009 as planned, there will be adequate time for the Town Council to dissolve the town or identify alternative revenue sources or expenditure saving to allow the town to continue."
To avoid meeting development requirements set up by the Ogden Valley Planning Commission last year, Powder Mountain owners delivered a petition to incorporate to the Weber County clerk on Jan. 18. As a town, the owners can more easily create the zoning they want.
The move came as a surprise to Eden residents whose homes lie within the boundaries of the proposed resort-town. Under a 2007 Utah law, House Bill 466, any group that owns a majority of land and property value in an area with more than 100 people can draw boundaries and form a municipality. The law does not allow future residents to vote or decide if they want to be included in the developers' plans.
The county must review the incorporation petition to ensure that all the details are correct, but otherwise has no input in the new town. At first, county attorneys thought the county would be able to order a feasibility study to see if the new town was financially viable. But HB466 allows petitioners to skip that requirement if they own more than 50 percent of the property value.
The petitioners own 65 percent, according to Powder Mountain owners. Dave Wilson, Weber County's civil attorney, said if that number is correct, the county cannot require any feasibility study.
"Even though the law does not require a feasibility study, we have done one ourselves," said Lisa Davis James, a spokeswoman for the developers.
She added that the developers wanted to have the study to present to future residents at a Jan. 22 meeting, but did not get it in time. Many future residents expressed anger at being pulled into a town without even knowing if it makes sense financially.
According to the study's projections, the new town would need nearly $100,000 in startup fees and would have a $135,500 budget in the 2008 fiscal year. If the resort developers' massive expansion plans do not pan out, the city could continue on an annual budget of about $165,000 for the next five years. That would include sales tax and other revenue.
But after that, the $750,000 would be spent.
If the development continues as planned, however, it could reach completion in somewhere between 12 and 30 years. By then, the study projects, the town's budget would be $1.8 million.
But Ogden Valley residents are not convinced.
Steve Clarke, an Eden resident who is worried about the impact of the mega-resort, said he spent hours poring through the feasibility study.
"I have more questions than I have answers now," he said. "There are a lot of red flags for me in this feasibility study."
A big problem that Clarke sees is the study was based on the average budget of several similar towns in Utah, such as Springdale, Brian Head, Mantua and Paradise. He said for the study to be accurate, the analysts should have interviewed each department at Weber County to get an accurate estimate of the cost of services.
"When we were looking at incorporating Eden, the sheriff gave a number that even floored the feasibility analyst," Clarke said.
In an attempt to calm irate future residents, the developers are holding several small group meetings with homeowners to discuss the study. James said the Powder Mountain group would continue to reach out to future Powder Mountain town residents.