On March 16, Mustang Development LLC, the developer of Golden Eagle, has filed another lawsuit against the Town of Hideout, raising the stakes in three year legal battle between the two entities.
The subject of this new lawsuit is a reimbursement agreement Mustang and the Town agreed to in 2020 which Mustang contends was entered to in order to settle differences over the Town’s obligation to reimburse Mustang for public infrastructure it installed, such as a water system, a sewer system, roadways and a storm drain system according to the Master Development Agreement (MDA).
The public infrastructure isn’t related to the dispute over infrastructure in Golden Eagle – for which a court hearing is scheduled for March 23 to hear Mustang’s motion for a temporary restraining order on the Town’s refusal to issue building permits in Golden Eagle.
Mustang claims in the new complaint that the Reimbursement Agreement contemplated a reimbursement of $8.9 million dollars, per an Impact Fee Study prepared by a licensed engineer. According to the agreement the Town was suppose to pass an impact fee ordinance and collect fees on behalf of Mustang.
Mustang says the Town indeed passed the Impact Fee ordinance but failed to collect the fees and reimburse Mustang. Mustang also claims the Town failed to establish a separate account for the impact fee to avoid commingling of funds. The Town also failed to provide Mustang with financial statements per the agreement – Mustang says in its complaint.
Mustang demands $300,000 in impact fees due to it based on the number of building permits the Town already issued – according to documents it obtained through a GRAMA request (equivalent to a FOIA request)
Even though this lawsuit does not concern Golden Eagle directly, it is an escalation of the feud between Mustang and the Town and increases the pressure and costs on the Town.
The Hideout Comment 