Salt Lake City attorneys say the city isn't obligated to issue $10.2 million in voter-approved bonds for The Leonardo, perhaps dealing the knock-out blow for the cash-strapped art, culture and science center.
A 46-page legal opinion made public Friday says Salt Lake City and The Leonardo never agreed on the scope of building improvements for the former city library at 209 E. 500 South, absolving the city of financial obligation.
The document, prepared by City Attorney Ed Rutan, provides the City Council a way out of a partnership that began as a shared vision for a state-of-the-art, hands-on museum that since has been clouded by financial realities.
Unless Leonardo officials can come up with a plan that city leaders agree is viable, it's unlikely the bonds will be issued, said City Council Chairwoman Jill Remington Love.
Whether withholding the funds will doom The Leonardo remains to be seen.
"I'm sure they need that $10 million to move ahead," Love said. "That might be a difficult hurdle for them to get over. But these are the tax dollars of people who live in Salt Lake City, and it's our job to make sure we're not issuing those bonds if this isn't a project that can succeed."
Mayor Ralph Becker and the Salt Lake City Council requested the legal opinion in August after The Leonardo presented scaled-back renovation plans for the city-owned building.
Becker and council members at the time expressed concern that the revised plans for The Leonardo strayed too far from what voters were promised when the general-obligation bond passed in 2003.
Rising construction costs were primarily responsible for doubling the project's price tag, forcing Leonardo officials to seek additional funds or revise plans for the museum.
The Leonardo's most recent proposal, presented to the City Council on Aug. 12, outlined renovation of the old library that could be completed with the $10.2 million, with matching funds required by the bond covering programming costs.
The legal opinion also states that more information is needed to determine whether The Leonardo has met those fundraising requirements.
Peter Giles, executive director of The Leonardo, said it's unclear how Rutan's conclusions will affect the museum's plans.
"We want to take the time it requires to digest it," said Giles, who received a copy of the document Sept. 26. "We're just not there yet. We're going through it line by line."
Becker has committed to "work in good faith" with Leonardo officials to come up with a financially viable plan.
The Leonardo currently is hosting the the third installment of the popular human-body exhibit "Body Worlds."
About $475,000 in seismic studies and renovations have been made to the building in preparation for the exhibit. The city is obligated to reimburse The Leonardo for those expenses, according to the document.
E-mail: jpage@desnews.com