Editors Note: This article was originally published in the Aug. 16, 2023 issue of the Chronicle Progress. Some information may be outdated.
American Spec Modular developer said financing depended upon partnership with city
Fillmore City officials voted last week to reject the latest development agreement submitted to them by the developer of a proposed manufacturing facility near the community’s airport.
City council members spent little time discussing the matter last Tuesday before unanimously agreeing to deny Valley Forge Impact Park Fillmore, LLC’s 156-acre project and their continued cooperation on it.
The city’s participation was considered crucial by developer Wayne Aston, who said it was important in order to secure financing. However, various versions of the development agreement submitted to the city over the last year left much to be desired, officials said.
For example, iterations of the proposal included plans for annexation of property not even owned by the development as well as provisions and plans involving various phases the city was unable to accept until more progress could be shown on earlier phases, such as infrastructure installation and building of the manufacturing facility originally proposed.
Screwy additions to the proposed development agreement also gave officials pause, including a provision in the latest document that the parties involved could not to speak to the press about the project or the agreement short of providing a “no comment.” A $25,000 penalty was included in the proposal for each violation.
The Chronicle Progress obtained the latest development agreement after filing an open records request to the city. Earlier this year the newspaper reported extensively on Aston’s checkered business history, which is littered with civil court cases, millions of dollars in judgments against him or entities under his control, multiple bankruptcies, and a long history of fraud allegations involving everything from securities schemes to failed real estate deals.
Aston previously said the city was to become a partner in his proposed development, adding a veneer of legitimacy to the project by participating in the creation of various tax financing districts, including one for public infrastructure and another for increment financing through a property tax vehicle.
But officials slowly soured on the whole development, concerned with Aston’s past ordeals and certain misrepresentations they felt the developer made— the city wrestled over the past few months with the shear scope of Aston’s ambitious vision, forcing the city to urge him to focus any agreement on the plan’s original concept, which was a manufacturing facility to produce modular building units.
The latest development agreement doesn’t even include that, only a creosote extraction facility, waste accumulation facility and the infrastructure necessary to bring utilities to the site. The plan called for extracting creosote from railroad ties and accumulating construction waste in the waste facility for later extrusion into other building products.
But even with a pared down proposal, city officials felt they couldn’t continue as is.
Councilman Kyle Monroe, who raised environmental concerns over the creosote facility during a previous meeting, said he spoke to Utah’s Department of Environmental Quality three times and none of its officials reported ever being contacted about the proposed facility.
“They’ve never had a conversation about creosote extrusion or extraction facilities from anybody. And that would be a permitted type of business through them first before it would ever get approved through a local city,” he said. “There is such extreme environmental impact that they would review that and grant that before they would allow it to be built.”
Monroe agreed with a comment from another city official saying that process itself could take years to complete.
Councilman Curt Hare said he was concerned about the developer’s focus on getting the city’s sign-off in order to secure financing. Aston had complained that the city’s foot-dragging had already cost the project considerable outside investment.
“One of the concerns I had is he sat here and talked about needing this agreement in order to secure financing,” Hare said. “As I thought on that more and more, the fact is it’s not our job to help developers get their financing. Our job is to watch out for the interests of the citizens.”
Hare added that most developers he’s seen in his short time on the council don’t come to the city until after their financing is in place and they’re looking to begin to develop their project.
Mayor Mike Holt said the city could not alter its policies just for one developer.
Hare said he found Aston’s development agreement “woefully inadequate” for the scope of work planned.
Fillmore City Attorney Elise Harris eventually went through the whole document and red-lined areas where the city had serious concerns. There was no response to those concerns from the developer by the time of last week’s council meeting, so the city took action.
City Treasurer Kevin Orton said Harris’ effort was so “detailed, it was insane.”
“I know she had grave concerns,” said attorney Greg Greathouse, who on Tuesday sat in for Harris, who was on maternity leave.
Holt asked for a motion after a bit more discussion. Monroe said he would make a motion to deny the project. Hare quickly seconded it.
Each council member voted to deny. The mayor said the city would send the developer, who did not attend the meeting, an email informing him the city was denying the development agreement outright.
Aston had not responded to the city’s action as of press time Monday, an official confirmed.
