Boyer: our money situation is just fine
November 13, 2009
An official with The Boyer Company, the developer teaming with City Hall on a major Quinn’s Junction project, said Thursday night the Salt Lake City firm is "well capitalized" when asked in an interview about its financial situation.
Patrick Moffat, The Boyer Company project manager for the deal with City Hall, said the firm has the financial wherewithal to proceed with the development as a partner with the municipal government.
"Financing’s really not an issue," Moffat said.
Moffat, though, declined to discuss details of The Boyer Company’s financial situation. The firm is privately held, meaning that it is not required to make its financial statement public. Publicly traded companies must release detailed information.
"I’m not going to get into our company’s finances," he said, adding, "We’re a big company, been around a long time."
The Park City Council on Thursday night voted unanimously in favor of a $5.5 million deal with The Boyer Company that makes City Hall a partner in approximately 200 acres of land. The two sides are considering a development with market-priced units and work force housing, but details will be decided later.
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Moffat told Mayor Dana Williams and the City Council The Boyer Company would provide City Hall financial information, but he did not indicate what sort of documentation the firm plans to submit. It was not clear whether the documentation will be made public.
In a statement announcing the deal, The Boyer Company said it has developed 6,500 home sites in the past 30 years. The firm dates to 1972. The statement says The Boyer Company in the last decade has secured and since retired more than $1 billion in construction and permanent financing.
In an interview before the Thursday meeting, City Councilman Jim Hier, regarded as the financial expert of the City Council, said he was not sure how closely Park City officials looked into The Boyer Company’s finances. He said, though, the agreement does not pose a financial danger to City Hall.
"I think for the city the risk is almost zero," Hier said.
Hier said, as an example, if financing becomes difficult for The Boyer Company, part of the land will be developed with the work force housing that City Hall desires but perhaps without the market-priced units that are also contemplated in a development.
He said City Hall does not plan to develop the market-priced units in the project, avoiding the financial risk that they create.
Williams, also speaking in an interview before the meeting, contended that there is little risk to City Hall in the agreement, pointing to The Boyer Company’s history in the state. He said the deal puts officials in an influential role in a major development, it could result in there being additional open space in the development and it provides Park City a chance to buy out The Boyer Company’s share in the land should the two sides not reach an agreement on the development.