In the continuing saga of an agreement for the city of Hailey to provide sewer services to developer Harry Rinker's proposed 72-unit Peregrine Ranch, City Council members approved an amendment decreasing the amount of money the city originally asked for.
City Attorney Ned Williamson explained that Rinker was requesting the amendment because the density of his project, located in Blaine County just north of the city, has been reduced from 380 houses to 72.
The original agreement from 2005 included $4 million in property and cash. Council members Don Keirn, Martha Burke and Rick Davis unanimously voted to approve an amendment that would give the city an 81-acre parcel of land located in south Woodside, as well as lands for a well site, a pump house facility, and a firehouse.
However, if the last three sites are unacceptable for the intended uses, ownership of the land would revert to Rinker. The locations of these sites has not been disclosed, but City Engineer Tom Hellen said that he assumed they would be on the 160-acre Peregrine Ranch property.
"We've just scratched the surface of the water issue," Hellen said, explaining that a possible transfer of water rights to the city is not a part of the deal at this point. "I don't even want to venture a guess right now if the sites (for the well and pump facility) would be appropriate."
Hailey Fire Chief Mike Chapman was not there because of the Castle Rock Fire and could not be reached for comment regarding a potential firehouse north of the city.
This amendment is the latest move in a process that has had public opposition since it began over two years ago.
The council first negotiated a deal with the developer in February 2005, in which Rinker paid $1.35 million to Judy Castle for her 81-acre parcel of land in south Woodside. Castle was in the midst of a $2 million lawsuit against the city for denying her application for develop parts of her property on grounds that it was designated as open space. The property exchange was included in the $4 million deal to extend wastewater services to Rinker's subdivision.
The agreement prompted 15 city and county residents to bring a lawsuit against the city, in hopes of nullifying the deal on grounds that it violated Idaho's open meeting law. In March 2005, the plaintiffs' attorney, Fritz Haemmerle, said the city violated the law by wrapping the sewer services agreement into land acquisition negotiations with Rinker during an executive session in February of that year.
Although the city noticed the executive session to discuss pending litigation and land acquisition, two topics that can be legally discussed outside the public eye, the plaintiffs thought the deliberations on the sewer services should have been done in a public forum. However, over a year later a 5th District Court Judge ruled that because it couldn't be proven that the agreement would be detrimental to the plaintiffs, there was no need to make a ruling on the open meeting law.
At Monday's meeting, residents once again expressed dismay that this decision was not made as part of a public hearing.
"The public was shut out from this complete process," Hailey resident Peter Lobb said, visibly shocked and angry after the council rendered its decision. "It was swept under the rug and I'm not happy that there wasn't a public hearing.
City attorney Williamson countered, saying that the paperwork from the agreements is public record and available for public viewing. Lobb appeared ready to offer a rebuttal, but Mayor Susan McBryant reminded him that this was not a public hearing.
Council members clearly disagreed with Lobb's sentiments that the city was not getting a fair deal.
"The Castle property is a valuable piece of land and will only become more so in the future," Councilman Keirn said, explaining that its proximity to the light industrial zone in Woodside gives it an immediate and obvious use.
Harry Rinker
