A $2 million lawsuit filed against the city of Hailey in August was settled on Monday, clearing title to property on River Street for development of a rental-housing project for seniors.
The lawsuit, filed by Sweetwater developer J. Kevin Adams over the city's affordable housing ordinance, had created a cloud over the title to property at 731 N. River St. ARCH Community Housing Trust's plan to build a three-story, 22-unit senior-housing apartment building on the property had been in limbo since the suit was filed.
"We recognize the generous contributions of both Sweetwater and the city and sincerely appreciate the efforts of both parties in making this much-needed senior-housing facility a reality," stated ARCH Executive Director Michelle Griffith in a news release.
The property, valued a few years ago at $1.8 million, was deeded to the city by Adams in lieu of building on-site affordable housing units at the Sweetwater housing development in Woodside.
Sweetwater is a partly built, 421-unit, $200 million housing development on 20 acres of land straddling Countryside Boulevard. Only 49 townhouse units have been completed since Adams bought the property for development in 2005.
Adams' lawsuit challenged the constitutionality of the city's affordable-housing ordinance, which the city repealed in October. The city still has the authority to require that affordable housing units be built, but only as part of a planned-unit development or annexation development.
Under the settlement agreement, the city agreed to abandon all of Sweetwater's affordable-housing requirements in exchange for clear title to the River Street property. The housing requirements would have brought the city 40 deed-restricted units for sale under the Blaine County Housing Authority to low-income buyers.
The city also agreed to forego about $2.3 million in in-lieu fees that would have been paid to the city upon final build-out of Sweetwater.
The city will also repay Sweetwater $65,000 for a portion of the cost it paid for a traffic light on Highway 75, and release the developer from phasing requirements, allowing for a more gradual build-out of the development.
The city of Hailey agreed last summer to lease the River Street property to ARCH for 99 years at a cost of $1 per year, a show of city support that Griffith said made financing possible from the Idaho Housing and Finance Association.
Tony Evans: tevans@mtexpress.com
Courtesy graphic
ARCH Community Housing Trust has developed these preliminary drawings of the senior-housing units planned for a city-owned parcel on River Street in Hailey.
