PROVO -- Companies owned by former U.S. Rep. Merrill Cook are suing the state in a dispute over an extraordinary increase in rent.
A Utah department wants $345,600 a year for use of land near Utah Lake, compared to the annual rate of $4,560, which has been paid for about 10 years.
Cook Associates Inc. and Cook Slurry Co., a mining-explosives business, have been renting land from the Utah School and Institutional Trust Lands Administration for 20 years. The companies have a 49-year lease.
Cook's attorney, Blake Atkin, said the agency violated the contract by raising the rent to reflect fair market value. The state believes the land now is worth thousands more because of residential growth.
"They could make a lot more money on this property if they didn't have it leased to Cook," Atkin said.
The new rent stems from a policy requiring the state to review leases every five years to ensure fair market value, said Tom Mitchell, an attorney for the Trust Lands Administration.
"We have no motivation other than as required by the (state) Constitution and the statutes and the rules in place that govern this lease," Mitchell said.
Cook, a Republican, served two terms in Congress.
This story appeared in The Daily Herald on page D6.
Posted in Business on Monday, December 4, 2006 11:00 pm
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