The largest planned residential development in Blaine County's history came to a halt one year ago when Tennessee developer J. Kevin Adams suspended operations on Sweetwater, a 421-unit project in the Woodside subdivision of Hailey.
Now the developer says he is facing bank foreclosure on portions of the property, and needs relief from the city to maintain control of the property and move forward with the development.
In a letter dated Sept. 29, Sweetwater CEO J. Kevin Adams asked the city to amend his planned unit development agreement, which sets forth requirements for how the project is completed.
"We could have thrown in the towel," Adams wrote. "But instead we have worked tirelessly to create a plan for the successful re-launching of this project."
Adams once had great hopes for Sweetwater, a $200 million development on 20 acres straddling Countryside Boulevard. Final plans call for commercial and retail space, a shared hall with a big-screen movie room, outdoor pool and a grassy park. Additionally, Sweetwater had plans for a concierge service that organizes mountain guides and fly-fishing excursions.
Adams said last year that he had spent $48 million on the project.
"We are committed to seeing this project through, but right now we have to wait," he said at that time.
Today the project consists of 45 completed units and 22 partially completed units, as well as a swimming pool, park and meeting hall. Due to expenses still owed to the city of Hailey, none of the units have received final plat approval, a prerequisite before the units can be sold.
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On Oct. 26, the City Council will consider amending the PUD agreement with Adams, who is seeking relief from affordable housing requirements, bonding and parks fees, payment for a traffic signal on Highway 75 at Countryside Boulevard and other costs associated with the development.
The developer is seeking large-block plat approval for the entire development and final plat approval for the 45 completed units on the property. He is also seeking a 10-year extension on four future phasing agreements contained in the Sweetwater master plan, and permission to fill portions of the property to remove it from the floodplain.
"We remain committed to completion of this project, but need the city to promptly approve our requests," Adams wrote in September.
The developer is also challenging the city's deed-restricted affordable housing requirements, which cost the developer $4 million for in-lieu fees and about 40 planned deed-restricted units within the development. Included in the $4 million cost is $1.7 million worth of property on River Street that Adams deeded to the city a few years ago in exchange for part of his affordable housing requirement.
Adams' attorney, Jim Laski, said in an interview that the developer is facing foreclosure and would like to sell some of the completed units to generate income and move forward with the next phases of the development.
"It would be nice to have the final plat recorded for the townhomes so they could actually be sold," Laski said.
The City Council will consider Adams' proposal on Monday, Oct. 26, at 5:30 p.m. in Hailey City Hall
Tony Evans: tevans@mtexpress.com
Nobody home: These Sweetwater townhouses in the Woodside subdivision of Hailey may soon be foreclosed upon. On Oct. 26, Hailey officials will consider amending an agreement with the developer that could jumpstart the development. Express photo by Mark Oliver
