Friday, December 23, 2011

Old Cutters developer sues Hailey

Suit filed in bankruptcy court

Express Staff Writer

Citing "extortionate" annexation fees and an unlawful affordable-housing requirement, Old Cutters subdivision developer John Campbell has filed a lawsuit against the city of Hailey. The suit seeks a declaration that Old Cutters does not owe any more in annexation fees and cannot be required to provide deed-restricted affordable housing.

Mountain West Bank, a lender to the subdivision, also filed a suit against the city claiming that the annexation and development agreement signed between Campbell and the city in 2006 is invalid.

Both lawsuits were filed in U.S. Bankruptcy Court in Boise, the Old Cutters suit on Nov. 28 and the Mountain West Bank suit on Dec. 1. Campbell filed suit on behalf of Old Cutters for Chapter 11 bankruptcy protection in August.


Prior to the bankruptcy filing, the city established a lien on "market rate" lots in the subdivision as security for the payment of about $2.5 million in annexation fees that Hailey officials say Campbell still owes the city. The Old Cutters suit seeks to have the lien declared void.

Campbell's lawsuit states that Old Cutters has already paid more than five times the actual cost of impacts that the development would have on the city. The suit notes that the city repealed its community housing ordinance in 2010 in response to court decisions invalidating similar ordinances in Sun Valley and McCall.

Campbell agreed to pay the city $3,787,500 in annexation fees in 2006. To date he has paid the city $1,317,00, the lawsuit states.

Hailey City Attorney Ned Williamson could not be reached for comment.

Old Cutters—on the northeast flank of the city—is partially developed.

Tony Evans:

About Comments

Comments with content that seeks to incite or inflame may be removed.

Comments that are in ALL CAPS may be removed.

Comments that are off-topic or that include profanity or personal attacks, libelous or other inappropriate material may be removed from the site. Entries that are unsigned or contain signatures by someone other than the actual author may be removed. We will take steps to block users who violate any of our posting standards, terms of use or any other policies governing this site. Use of this system denotes full acceptance of these conditions. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.

The comments below are from the readers of and in no way represent the views of Express Publishing, Inc.

You may flag individual comments. You may also report an inappropriate or offensive comment by clicking here.

Flagging Comments: Flagging a comment tells a site administrator that a comment is inappropriate. You can find the flag option by pointing the mouse over the comment and clicking the 'Flag' link.

Flagging a comment is only counted once per person, and you won't need to do it multiple times.

Proper Flagging Guidelines: Every site has a different commenting policy - be sure to review the policy for this site before flagging comments. In general these types of comments should be flagged:

  • Spam
  • Ones violating this site's commenting policy
  • Clearly unrelated
  • Personal attacks on others
Comments should not be flagged for:
  • Disagreeing with the content
  • Being in a dispute with the commenter

Popular Comment Threads

 Local Weather 
Search archives:

Copyright © 2024 Express Publishing Inc.   Terms of Use   Privacy Policy
All Rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Express Publishing Inc. is prohibited. 

The Idaho Mountain Express is distributed free to residents and guests throughout the Sun Valley, Idaho resort area community. Subscribers to the Idaho Mountain Express will read these stories and others in this week's issue.