Let's try that again

By BRIAN WALKER

Staff Writer

RATHDRUM — It's on to a do-over public hearing for a 152-acre Rathdrum annexation proposal that won an approval recommendation from the planning commission last week.

The commission will hold another public hearing, minus three members, on Aug. 14 at 6 p.m. At stake is the Henrickson Farms property proposed to be developed by John Magnuson and Tom Anderl of Bluegrass Development, LLC near the southeast corner of Meyer and Lancaster roads.

After considering a conflict of interest concern by Kaeleen Tobin of Post Falls, Rathdrum city attorney Pete Bredeson determined Commissioner Austyn Shuman should have recused himself from last week's hearing because he is a mortgage lender who could potentially benefit from the single-family project if it is ultimately approved by the City Council.

"The Land-Use Planning Act is very strict on conflict of interest — even more so than city council members on legislative topics," city administrator Leon Duce told The Press. "If you or a member of your family could receive an economic benefit from a project, then you've got a conflict of interest.

"If one of the homeowners would come to him for a mortgage loan, and he gets paid based off signing a deal for a client, that could be a conflict of interest."

Then, upon further review, since Planning Commissioners Mark Gorton and Jacob Munyer are employees of the Lakeland Joint School District and the developers plan to donate 7 to 10 acres for a future elementary school site, they will join Shuman in recusing themselves from the next hearing as well, Duce said.

That will just leave Commissioners Curtis Carr and Deborah Furey to conduct the hearing and make a recommendation on the annex proposal to the City Council.

"They will have a quorum and be able to vote," Duce said.

Carr was the lone commissioner to recommend the request be denied during last week's hearing in which some residents voiced concerns that the project would hurt Rathdrum's small-town feel.

Duce said the public hearing process will start from scratch with the August hearing, as if last week's hearing never happened.

Magnuson, an attorney himself, said he doesn't agree with the recuse decisions, but he and Anderl respect the city for holding another hearing, especially if the public perception is that there was a conflict of interest.

"The city is doing what it believes is necessary," Magnuson said. "No one wants to have the process tainted."

Magnuson said he believes the conflict of interest concerns are "much ado about nothing."

"I don't know any of these people," he said. "Obviously, if there was an existing relationship, then that would not be appropriate."

Magnuson said that if a planning commissioner owned a gas station, for example, he or she could potentially benefit from the additional residents the project would attract.

Tobin, 23, said she's concerned that Kootenai County's swift development will eventually leave little open space and lots of 5 acres or more.

"I don't think there's a lack of interest (in growth), but there are not enough people involved," said Tobin, who spoke at last week's hearing. "A lot of people don't know how to get involved or believe they have the time. With a newborn and husband who works 60 hours a week, I don't have time either, but you've just got to make the time."

Tobin said she was reading comments about the project on social media when she learned Shuman worked for a mortgage company. That’s when she raised the red flag. She said she realizes Shuman, as a volunteer board member, probably didn't think he had what she believes could have been a conflict of interest.

"It was probably a genuine mistake, but it's an issue," she said.

Shuman did not return a message seeking comment.

Tobin said the city's decision to hold another hearing gives her and others hope that their concerns can make a difference.

"Speaking at the meetings is intimidating," she said.

Magnuson said the developers are moving on to present the proposal again and the hiccup isn't a major concern in terms of timing.

Magnuson said he doesn't know how many homes would be in the development because the design won't start until after the annexation process. The location of the school within the project would also affect the number of lots.

"There will be more than 200; 600 is highly doubtful; and 400 is more likely," he said when asked to provide an estimated range.

Magnuson said it would take several years for the project to build out and it will feature mid-level homes.

"They won't be custom homes nor will they be starter homes," he said. "They'll be nice homes where families can live in the proximity of schools."

About 10 percent of the project will feature larger lots that are a third of an acre.

Magnuson and Anderl also developed The Landings subdivision on Prairie Avenue, among other local projects.

The Rathdrum City Council will hold a public hearing on the annexation proposal after it receives a recommendation from the planning commission.