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DUTCH JOHN, Daggett County — On residential lots where Keith Salmon & Sons Construction is putting in a new sewer line, a vandal left an unfriendly message in bright red paint on a company sign.
"Go Home," it reads.
The message reflects the level of controversy brewing in Dutch John, the tiny community largely devoted to fly-fishing on the nearby Green River. Residents are in an uproar over two Daggett County real estate deals that critics say are a huge giveaway to developers and possibly a sweetheart deal between friends.
Dutch John has a full-time population of around 145 and about 250 during fly-fishing season. At last count, 106 residents signed petitions opposing two property deals made by Daggett County commissioners. Critics also contend commissioners violated the law by drafting agreements and making decisions behind closed doors.
We don't have any proof of corruptness, but it just sounds like too good of a deal.
–Realtor Tracy Burton
Although commissioners deny that allegation, they have called a special meeting Thursday night in Manila to reconsider some aspects of the deals.
About the deals
Keith Salmon's deal is the smaller of the two. He is purchasing four lots from the county at $4,000 each. The county also agreed to give Salmon a low-interest loan of $400,000 to build houses. "It's to furnish homes for people that could raise their families here," Salmon said as he stepped off his back-hoe to discuss the controversy.
Critics contend the county could sell the lots for much higher prices. "Just sell them to the public at a fair market value," said full-time resident Dave McDonald.
Part-time resident and Realtor Tracy Burton said the county sold three lots in the last few months for more than $30,000 each. "We don't have any proof of corruptness," Burton said. "But it just sounds like too good of a deal."
In an even bigger deal, the county is giving 16.5 acres to Provo-based Public Development Partners, essentially at no cost. The company also gets a $500,000 loan from the county to help develop homes and businesses. On top of that, the company is getting the right-of-first-refusal on 1,700 acres. That means the company has the right to match any other development proposal or purchase offer.
Daggett County and local residents participated in planning during the privatization process. Unfortunately, the planning and analysis has not culminated in the anticipated growth and development of the area. The County is in need of experienced help that will finish the master planning efforts and help prepare ordinances and regulations to govern the Dutch John area's development and ensure the desired growth of the area. Source: Dutch John Project.
Critics say that provision allows the company to freeze out competitors. "The developer takes all the profit off the property and none of the risk," McDonald said. "We're a bit hesitant to give away the future of our community under those terms."
About Dutch John
Daggett County commissioners say they're using the unusual deals to kick-start economic development in Dutch John after years of stagnation and frustration.
The U.S. government created Dutch John in the 1950s as a housing area for workers building the Flaming Gorge Dam. In the years since, it became a mecca for fly-fishing enthusiasts. In 1998, Congress approved legislation transferring ownership of most of Dutch John to Daggett County.
Today, commissioners say it's such an economic albatross they'd gladly give the community back to the federal government.
The town doesn't have enough businesses and homes to generate sufficient tax revenue for community upkeep. County officials say they've spent years trying to get Dutch John's economy off the ground but its remoteness and seasonal economy have discouraged developers.
"Our intent is to get the development going," said Commissioner Warren Blanchard. Salmon is "getting property that didn't have infrastructure, and giving us a guarantee (of) four houses."
Commissioner denies favoritism
Critics suspect favoritism because Keith Salmon and Commissioner Jerry Steglich publicly acknowledged they have known each other since grade school. "I don't know that there's anything wrong there," McDonald said. "But it just seems wrong."
Salmon and Steglich deny being close in their adult years. "I mean, have we ever been buddy-buddy? We've never even gone fishing together, so I don't know how anybody could say that," Salmon said. "If they're referring to the fact that he's in my pocket, or I'm in his, is totally wrong."
"I haven't been in contact with Keith for 40 years," Steglich said. "He was the only builder-developer that showed any interest in coming up here, I think because he owns a home here."
The critics hired attorneys who drafted a letter to Daggett County arguing the deals are illegal.
County commissioners say the generous deals with developers are legal under the rules of a Redevelopment Agency (RDA) they created. RDA's are commonly used by government entities to stimulate economic development by offering financial incentives to lure developers.
Daggett County has land to offer as incentives, but not much cash. "And these developers," Blanchard said, "we're hoping (they) will attract more business to follow what they are doing."
Email:hollenhorst@ksl.com
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