SALT LAKE CITY — A controversial proposal to dredge Utah Lake and build islands on it is likely dead, now that the company behind it is dissolving.
Lake Restoration Solutions confirmed to FOX 13 News on Wednesday it no longer has the money to carry out the multi-billion dollar project.
"We are so grateful for the tremendous support for the Utah Lake Restoration Project from Utahns all over the state. Utah Lake continues to face significant challenges and is in dire need of restoration," CEO Jon Benson said in a statement to FOX 13 News. "Unfortunately, Lake Restoration Solutions no longer has the financial resources to continue its effort to restore and enhance Utah Lake. Our team will now cheer from the sidelines for Utah Lake and hope that others will continue the important work of implementing the best restoration solutions for Utah Lake."
The company filed permits to dredge the lake and build islands for housing, habitat and recreation with the sediment. Lake Restoration Solutions argued it was to help with the lake's recent environmental problems. Utah's Division of Forestry, Fire & State Lands rejected the permit, declaring the project did not pass constitutional muster (the lake bed itself is state sovereign lands) and would be "detrimental" to the citizens of Utah. The state countered it was already doing environmental rehabilitation work that was showing signs of success.
Lake Restoration Solutions sued the state over the permit's rejection. Earlier this week, the company abruptly dismissed that lawsuit. The company also filed notice it was dissolving in a separate lawsuit it filed against Brigham Young University ecology professor Dr. Ben Abbott, who has been a vocal critic of the project.
Dr. Abbott has counter-litigation running against the company. In an interview with FOX 13 News on Wednesday, he said he was exploring his options. But he also said people need to be vigilant about the next land development project for Utah Lake.
"I'm not interested in vindictiveness or blaming or finger pointing towards people. But I am really interested in taking a hard look at our processes. Why was the system so vulnerable to this kind of inappropriate pressure?" he said. "I think it's pretty clear there was a lot of money at stake... This would have been the largest giveaway of state lands in state history."
For its part, the Utah Division of Forestry, Fire & State Lands said it was disappointed the case ended so quickly without a final verdict. A judge recently dismissed part of the company's lawsuit against the state, but not all of it.
"The Division of Forestry, Fire and State Lands continues to work to enhance the viability of Utah Lake within the parameters of the Public Trust Doctrine, and we remain committed to protecting sovereign lands for public ownership and our future generations," division director Jamie Barnes said in a statement. "We are disappointed that Lake Restoration Solutions chose not to proceed in obtaining a final decision on this important issue."
The Utah State Legislature recently passed legislation creating more of a process surrounding any lake rehabilitation projects and creating a special authority to oversee the water body.
