Shurtleff threatens to disband FLDS base Hildale

Hildale, USA - As the state's control of a polygamous sect's property trust approaches its fifth year, Utah's attorney general says he may now seek to disband the city of Hildale.

Utah Attorney General Mark Shurtleff made the threat in a Jan. 26 letter to attorneys representing members of the Fundamentalist Church of Jesus Christ of Latter Day Saints. The FLDS are a majority of residents in Hildale and Colorado City, Ariz., a community straddling the state line.

Shurtleff urged the FLDS to accept a proposal made by the fiduciary overseeing the United Effort Plan Trust to end a dispute over its management within 30 days.

The trust spat aside, "I believe that serious issues must also be addressed with the local governments, and we are prepared to seek a disincorporation of the city of Hildale with the Legislature if necessary," Shurtleff wrote. "Your clients' assistance in addressing those issues is earnestly sought."

The trust holds most property in the towns. It was taken over in 2005 after Shurtleff alleged FLDS trustees mismanaged and failed to protect assets from lawsuits.

Since then, the trust has accumulated millions in debt and numerous property tax liens and several lawsuits, including FLDS objections to the court action.

The Utah Supreme Court will hear a petition filed by the FLDS on Feb. 17.

City officials and most FLDS residents have resisted dealing with Bruce R. Wisan, the trust's fiduciary. Wisan wants to subdivide

the trust's communal holdings, an ongoing sticking point in settlement negotiations that began in the summer.

The FLDS object to the plan because the trust's holdings were donated as religious consecrations.

"Peeling off property for people who do not want to be part of the trust anymore -- we can deal with that, but we can't deal with the monetary cost and religious cost of subdividing the entire community," said Rod Parker, an FLDS attorney who added that the letter was inconsistent with recent settlement discussions.

Third District Judge Denise Lindberg, who oversees the case, made a similar call in a 2007 court hearing. She urged the states to take "systematic action" to wrest control from uncooperative city officials following their refusal to approve subdivision plans. Lindberg recently sealed filings related to proposals for settling the dispute.

Under current law, city dissolution requires a petition by 25 percent of voters and majority approval. Another option, de-annexation, requires county agreement to pick up services.