Wednesday, January 9, 2013

Hailey to appeal Old Cutters decision


By TONY EVANS
Express Staff Writer

The city of Hailey will appeal last month’s decision in federal bankruptcy court that bars the city from seeking $2.5 million in unpaid annexation fees from Old Cutters Inc.

The court also invalidated the city’s requirement that Old Cutters include 20 affordable housing units in the partly built 108-unit subdivision in east Hailey.

“We reviewed the decision and evaluated it and believe there are sufficient reasons to appeal it,” Hailey City Attorney Ned Williamson said.

A decision issued by the federal bankruptcy court in Boise on Dec. 31 addresses several claims and counterclaims by the city, Old Cutters and Mountain West Bank over payments of fees, loans and the legality of liens on the property.

In granting Old Cutter’s motions for summary judgment, federal Judge Jim Pappas called Hailey’s annexation fee of $3.8 million, contained in a 2006 annexation agreement, “unquestionably in excess of” the amount required to compensate the city for actual costs resulting from the annexation.

Bankruptcies are all handled in federal court, though this case raised questions of state law regarding the annexation fee and community housing requirement.

“Typically, this is something that would have been decided by a state court,” Williamson said "These are state issues, not federal issues."

In his decision, Pappas stated that “some of the issues raised by the parties pose questions of first impression under the Idaho statutes,” meaning that the identical questions had not been presented to an Idaho court. 

Williamson said that even though the appeal would be filed in federal court, federal rules allow the city to seek resolution on issues of state law from the Idaho Supreme Court during the appeals process.

“This is an option that we will be looking at,” he said.


Tony Evans: tevans@mtexpress.com

 




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 mtexpress.com 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 © 2014 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.