Though a few details are yet to be finalized, it appears that Ketchum is poised to take ownership of a four-acre parcel located between the Bigwood Golf Course and the Ketchum Cemetery.
At a meeting on Monday evening, attorney Tom Praggastis, representing Bigwood Golf Course LLC, told the Ketchum City Council that the property owners will donate the lot to the city.
That comes on the heels of last month's agreement with the developers of the Residences at Thunder Spring, who transferred their long-term lease of the property to the city. The donation clears the way for construction and sale of the Residences condominium development.
By securing both the 97-year lease and the actual ownership of the land, Ketchum would have the sole interest to the property. That doesn't mean, however, that the city has complete control over what can be built on the location.
Throughout the summer, the parcel became the center of controversy as David Hutchinson, president of Valley Properties Inc. and developer of the Residences at Thunder Spring, had proposed construction of nine affordable housing units on the site, with the possibility of an additional 10 units coming in the future. But that plan met with bitter criticism from residents of the nearby Bigwood subdivision, who claim the property's plat note requires the land to remain open space in perpetuity.
The legal questions surrounding the land led the council to deny the affordable housing project in July, prompting Hutchinson to pursue an in-lieu-payment option.
In December, Hutchinson and the city came to an agreement, with the former paying $1.15 million as an in-lieu payment along with transferring the lease to the property in question.
As the issue surrounding the plat note has yet to be resolved, the city could be limited as to what it can do with the land. If it creates a plan to develop affordable housing on the property, the city would likely run into the same opposition that Hutchinson faced, and would be forced to pursue a declaratory judgement that would legally settle the dispute over any potential restrictions.
Councilman Larry Helzel said the city could use the land in a number of ways without engendering a legal battle. Options include recreational use, such as tennis courts, an expansion of the neighboring cemetery or snow storage. The last example could become a priority if Sun Valley Co. moves forward with its plans to develop its property at the base of River Run, which includes an area behind Reinheimer Ranch now used to dump most of the city's cleared snow.
Helzel estimated the value of the land to be between $2.5 million and $4 million, making it well worth the expense of pursuing a declaratory judgement if necessary.
"It's a great deal because it gives Ketchum control of a piece of land close to the city," Helzel said.
The housing requirement stems from housing commitments made as part of the original Thunder Spring planned-unit development, which has already been built, as well as the balance of the housing requirement not provided onsite at the Residences, which has been approved but not yet built.
Consisting of 24 fractional units at the northern end of Ketchum, the Residences is scheduled for completion in about two years. The high-end project would include four units of employee housing onsite and another 3,500 square feet to be built elsewhere. Hutchinson is also fulfilling an obligation to the city of 7,300 square feet from the original Thunder Spring development.
In an interview on Monday, Hutchinson said the city will not issue a certificate of occupancy to the developer for the Residences until the in-lieu payment has been transferred. He also said the payment would not be affected by the bankruptcy filing of Lehman Brothers, the beleaguered investment bank that owns an interest in the original Thunder Spring development.
