By Myrna Trauntvein
Times-News Correspondent
Juab County Commissioners signed bond documents which
will enable Intermountain Farmers Association to use the
county's financial clout for a development project in Juab
County.
Spence Lloyd, vice president over finance for IFA, and
Stan Nielson, representing Zion's Bank Corporate Trust
Department, met with commissioners and with David Leavitt,
county attorney, to sign the documents during commission
meeting on Monday.
"Before we agree to sign the documents, I would like
to know that there is an assurance paragraph that holds the
county harmless," said Joseph Bernini, commissioner.
Wm. Boyd Howarth, commission chair, and Robert Steele,
commissioner, also agreed that the county should be
indemnified from any financial obligation as to payback of
the bond.
"It is our intent that the bond not encumber the
county and that the county should have no liability as a
result of the bonds," said Steele.
Howarth said he also wanted to make certain that the
county's ability to do bonding necessary for county projects
would not be diminished.
Nielson assured the commission that the county would
not be obligated, in any way, for repayment of the bond. He
suggested that the signed document would be delivered to the
bonding counsel and that the commission agree to allow
Leavitt to review the final documents.
If any language is added, which Leavitt does not
approve, the documents will be void.
"As long as Mr. Leavitt has no objections, the
documents will stand," said Nielson.
Leavitt said he had reviewed the draft the commission
was prepared to sign, and later in the meeting, did
sign.
"I will write a letter to include with the documents,"
said Leavitt.
In the letter, he will clarify that the county
taxpayers are in no way to be encumbered and that the county
will not have to pay back any of the bonding funds.
"The county's property will not be attached to the
bond but IFA property will be attached," said Leavitt. "The
issue is this, our bond counsel wrote this document."
Leavitt said, that county bonding capacity for its own
projects was not lessened by the fact that the county was
using its financial strength to lend credence to the IFA
project. The same sort of thing had been done for Central
Valley Medical Center to make the new hospital possible.
"Nephi City did the same thing for Safeway when I was
mayor," said Steele.
"It does diminish our ability to do more industrial
bonding," said Leavitt.
As far as the bonds were concerned, however, said
Leavitt, the county commission intent was clear&emdash;the
intent is that the county not be encumbered and that the
county has no liability for the bonds.
"We have this document as backup and, the bottom line
is, that we have a history of comment about the intent of
the county commission," said Leavitt.
Those comments have been made on county audio tapes of
the meetings, quoted in minutes kept by the county clerk,
and have been quoted in the press.
If it came to proving the county's intent in court, he
said, the county had the needed documentation.
|
