Mustang Development LLC, the developer of Golden Eagle, files a second motion for a temporary restraining order against the Town of Hideout.
The dispute is over the refusal of the Town to issue building permits (and one certificate of occupancy) to private landowners who bought lots from Mustang. In July 2022, Mustang filed its first lawsuit, asking the court to enjoin the Town from denying building permits under a blanket policy. Mustang accused the Town of retaliating against it and its lot owners over an unrelated dispute between them.
Following an evidentiary hearing, Judge Jennifer Mabey issued an order on February 15, largely rejecting Mustang’s arguments. However, the order also warns the Town to not add new denial reasons to building permit application beyond what the Town represented to the court.
Mustang now files a second motion for a temporary restraining order, telling Judge Mabey that the Town has added new denial reasons to building permit applications.
Mustang counts four different denial reasons:
Storm drain plan
“The vested Town Code applicable to the development does not require a storm drain plan to be submitted to and approved by the Town for infrastructure that is not to be “turned over and owned and maintained by the Town.” That is the case here” – Mustang writes in its motion
Water pipes pressure test
“The only issue specifically identified by the Town was that the water tank and pump were not complete, thus implicating possible fire flow. In January 2023, the State performed its inspection and has issued operating permits for both the water tank and the pump station. The State did not require any repeated pressure testing of the water lines, and the Town’s current claim that such testing is required is just another pretextual fabrication” – says Mustang.
Mustang distinguishes between “fire flow”, which requires an automatically filled water tank, and “pressure test”, which they claim is a new requirement.
“Fire flow measures the quantity of water flowing over a given period of time at the hydrants, in gallons per minute. Pressure testing is a procedure performed at the time that water lines are installed, in which air or water is added to a closed water system to bring it to an internal pressure much greater than its normal operating pressure. The test is designed to check for leaks or weaknesses in the lines, and should not be repeated because conducting the test itself creates wear and potential damage to the lines.” – explains Mustang in its motion.
Indeed, according to a public letter the Town published, the Town acknowledged the water system is complete:
“As of February 1, 2023, the pump station has been completed and power has been connected to the station. The pump station and the water system were approved by the Division of Drinking Water on January 31, 2023. Now that the water system is complete, we are proceeding with pressure tests of all lines affecting lots requesting permits.”
1-foot road shoulders
The Town is requiring Mustang to install a 1-foot gravel shoulders along the interior roads in Golden Eagle to comply with Fire Code. Mustang argues that the 24 feet wide roads in Golden Eagle already meets the minimum 20 feet width required by the Fire Code:
“In fact, is beyond dispute that the Fire Code within the Town only requires 20-foot road width. Accordingly, although Mustang plans to install shoulders on the side of the roads in the normal course of construction, that additional width is not necessary to comply with the Fire Code”, says Mustang.
Access road pavement
The disagreement here is over a portion of the access road that is not paved. The Town says that portion must be paved. Mustang says the road is sufficiently paved with road based: “Other developers have been issued building permits with only dirt roads in place. The disparate treatment of Mustang smacks of retaliation and is arbitrary and capricious as a matter of law.”
Hearing scheduled
A hearing in the matter is currently scheduled for March 23, 2:00 pm at Court room 1, Wasatch County Courthouse. However, court schedules frequently change.
The Hideout Comment 