By MIki Mullor

The legal drama over Golden Eagle reached a new level today when Mustang Development LLC, the developer of Golden Eagle, sued the Town of Hideout over its refusal to issue certificates of occupancy (COs) in Golden Eagle.

Mustang claims it suffered damages of at least $10 million dollars as a result of lost sales caused by the Town’s actions, including harm to relationships with individuals that have purchased lots, lost past and future sales and harm to its reputation in the Summit and Wasatch County real estate communities.

Complete or not complete?

In its lawsuit, Mustang claims that “the refusal to issue CO’s is the Town’s “new battleground” in its ongoing campaign to use the power of government to deny legitimate property rights, all in retaliation for Mustang’s ongoing litigation with the Town and Mr. Rubin.”

We reported in May that John Blamer, who is the first private owner to complete construction of his home in Golden Eagle, sued the town for refusal to issue him a CO. On around August 4 the Town finally issued Blamer a CO and he will be moving into his new home this weekend.

Mustang says its not over: “however, despite the Court’s Order regarding the Second TRO, and issuing Mr. Blamer a CO, the Town has now taken the position that it will not issue COs to any property owner in Golden Eagle” – reads the complaint that was filed today.

According to the lawsuit, the dispute with the town is over the town’s insistance that its acceptance of the infrastructure in Golden Eagle is a condition to issuance of COs.

Mustang contends there is no such condition, and the only standard needed to be met is whether the infrastructure is “substantially complete”.

Mustang explains that under its Master Development Agreement (MDA) with Hideout, the term “substantially complete” means “a point in the progress of a construction project where the work has reached the point that it is sufficiently complete such that any remaining work will not interfere with the intended use or occupancy of the project. For work to be substantially complete it is not required that the work be 100% complete.”

Mustang said that “at this juncture, all infrastructure is substantially complete.”

Damage to reputation, relationships

“The refusal to take a clear position on whether the infrastructure is complete and whether COs will be denied on that basis has created a cloud of uncertainty over development rights in Golden Eagle”, says Mustang an lists examples such a potential buyer who refused to close a transaction because “because they have been told that the Town will not issue COs”, or that private lot owners elected not to apply for building permits because “it would make little sense to obtain a building permit and spend significant money constructing a home if the Town will not issue COs.”

“Other property owners are actively trying to sell their lots in Golden Eagle because of the uncertainty caused by the Town’s ongoing animosity, retaliation and attacks on development rights in Golden Eagle.” says Mustang in its demand for damages of no less than $10 million.

FULL DISCLOSURE: the author is a lot owner in Golden Eagle and in the past has communicated concerns over COs as a reason to not to apply for a building permit.

Reference: Mustang’s Complaint vs. Town of Hideout