A federal judge has tossed out a lawsuit filed by two Utah developers that accused Summit County officials of extortion against developers seeking higher-density zoning.
During a hearing Tuesday, U.S. District Judge Paul Cassell said he found no evidence that Summit County had violated state law with its "incentive zoning" policy.
"I don't know if we have illegal criminal activity before me," Cassell said, adding he must assume that a government acts in a legal and legitimate manner unless proven otherwise.
Anderson Development, along with Evergreen Development and eight property owners, had sued the county. Alain Balmanno, Anderson Development's lawyer, argued Tuesday that county officials were asking for large donations of cash and property in exchange for higher-density zoning on projects.
"It's a scheme for extortion," Balmanno said in court. The county has been known to ask for donations to the local school district and ask that open-space property be donated to the county. In one case, Balmanno said, a developer shelled out $300,000 in cash to the county to do with as it pleased in exchange for a zoning change.
"We're not going to pay this, we shouldn't have to pay this," Balmanno said. "They are committing extortion."
Cassell said that because a state court has not ruled if the county's actions violate state law, the case lacked evidence he could weigh to determine whether the county has committed racketeering or other criminal action. "You're putting the cart before the horse," the judge said.
Balmanno asked Cassell to stay his decision pending a ruling from the state court, which Cassell denied.
George Hunt, attorney for Summit County, said he was pleased with the judge's decision to throw out the lawsuit, saying Anderson's lawsuits are simply mean to "supplant" the political process.
Outside court, Bruce Baird, a second attorney for Anderson Development, said they plan to appeal Cassell's ruling, and depending on the state court's ruling, they may re-file their racketeering lawsuit in federal court.
The lawsuit is one of six that Anderson Development has helped to bring against Summit County in both federal and state court. In one of the federal lawsuits, several minority-rights groups and Anderson Development accuse Summit County of violating federal fair-housing standards by using zoning laws to block high-density affordable housing from being built. That lawsuit is pending.
Among the state lawsuits is a claim that the county has committed criminal acts in violation of state law. A ruling has yet to be reached in that case.
E-mail: gfattah@desnews.com