Wednesday, February 18, 2009

District Court upholds Ketchum TDR ordinance

Developer to appeal to Idaho Supreme Court


By JON DUVAL
Express Staff Writer

The city of Ketchum can breathe a sigh of relief, at least for the time being.

Blaine County 5th District Court has denied a claim by KGF Development, owner of the Copper Ridge building at 271 Washington Ave., that the city's ordinance regarding transfer-of-development (TDR) rights is illegal.

The litigation was a result of plans to construct a new four-story, mixed-use building at 260 First Ave., called Gallery 260, which would sit directly to the west of Copper Ridge. If built, the top floor of Gallery 260 could block views of Bald Mountain from the high-end Copper Ridge condominiums. That floor was permitted by the city under its TDR ordinance.

The area is designated as a TDR receiving area, where a developer can use development rights purchased from other properties designated as sending sites. The process allows the purchaser to increase the density of a development beyond that permitted by city zoning regulations.

The city reworked its TDR ordinance last February, about a year after it originally approved it, to fix an alleged failure to follow due process.

However, the current litigation argues that the ordinance is still illegal because state law allows TDR sending sites only for purposes of environmental conservation or protection of historical buildings, and most of the sending sites designated under the Ketchum ordinance are neither.

While the District Court ruled against KGF Development on Jan. 28, the developer's attorney, Hailey-based Fritz Haemmerle, appealed the decision to the Idaho Supreme Court on Feb. 4.

"The appeal doesn't change our outlook," said Scott Roberts, a partner with Seattle-based Justen Co., the developer of the Gallery 260 building. "We're still confident that Ketchum has the right to make zoning laws. This decision makes our process more simple."

Roberts said his firm is still working on financing for the project, which would likely house an art gallery and other retail space on the ground floor, 22 market-rate condominiums and seven deed-restricted residential units. However, he said the project is not likely to be held up by the current economic situation.

"I think things will turn around in around six months," he said. "We would like to give the green light this summer."

Roberts said it would take between 14 and 16 months to construct the building.

"This decision means we won this round and can keep moving forward with our TDR ordinance on the books," Ketchum Mayor Randy Hall said.

Jon Duval: jduval@mtexpress.com




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