The city of Hailey and Sweetwater developer J. Kevin Adams went back to square one Monday after a few weeks of heated debate over the legality of the city's affordable housing ordinance.
The City Council agreed to grant final plat approval for 49 completed townhouse units at Sweetwater as soon as the developer agrees to honor the terms of the original planned-unit development agreement the city placed on the development several years ago.
"This is consistent with what we did with Old Cutters subdivision," said Councilman Fritz Haemmerle. "We are not waiving fees, but we are bringing the developer out of default."
Before final plat approval is granted for the units on the corner of Woodside and Countryside boulevards, the developer must pay about $330,000 for a traffic light, parks fees and a security bond for landscaping.
Final plat approval is required before the units can be sold—perhaps as early as this summer, Sweetwater attorney Jim Laski said.
Until Monday, the city and the developer were facing a foreclosure sale on undeveloped portions of the development, which could have brought bank ownership and an uncertain future to the 21-acre site.
Cadence Bank in Memphis, Tenn., delayed the foreclosure until Dec. 30. During negotiations with the developer, the City Council sought to free the city of any potential litigation with regard to its affordable housing ordinance, which had resulted in an $8 million obligation from the developer for on-site, deed-restricted units, vacant land on River Street and cash in-lieu fees.
Under the renewed agreement, Adams could sue the city over its affordable housing ordinance to recoup some or all of the $8 million. He has threatened to challenge the ordinance based on a 2008 court decision that ruled that a similar affordable housing ordinance in McCall was unconstitutional and amounted to an illegal tax.
In other Hailey news:
· The council voted for final approval of a building ordinance change that allows for free-standing and roof-mounted wind-powered electrical-generation systems.
· The council voted for final approval of a nuisance "junk" ordinance that will prohibit the storing of unsightly and hazardous materials on private property.
Tony Evans: tevans@mtexpress.com
The city of Hailey and the owner of the Sweetwater development have brokered a new deal to keep the units out of foreclosure.
Photo by Mountain Express
