Utah Supreme Court gives life to referendum aimed at stopping Morgan Country private ski resort
This file photo from May 26, 2020, shows some of the Morgan County residents who have opposed the Wasatch Peaks Ranch ski development. A view of the ridgeline where the resort will be developed can be seen behind the five residents. Pictured from left: Shelley Paige, Cindy Carter, Dave Pike, Whitney Croft and Robert Bohman.
MORGAN — A small group of Morgan County residents who tried to prevent a massive ski resort development with an election referendum has scored a victory at the Utah Supreme Court, but their hopes to stop the project remain uncertain and they still face a $5 million civil suit from the developers.
The state’s high court, in an Aug. 12 ruling, overturned 2nd District Judge Noel Hyde’s April 6, 2020, decision that said he did not have jurisdiction over the residents’ effort to revive their petition application, which had been rejected by the Morgan County clerk.
Calling the Legislature’s referendum appeal laws “ambiguous,” the Supreme Court ruled Hyde did in fact have authority to consider the residents’ appeal. The justices ordered the matter sent back to Hyde for a decision on the referendum effort.
Wasatch Peaks Ranch, developer of the private resort on more than 11,000 acres southwest of the town of Peterson, intervened in the case, supporting the defendant, Morgan County. The developer also filed a separate civil suit against individual group members on May 14, 2020, accusing them of conspiring to interfere in the resort project, which has been underway for more than a year. The developer seeks $5 million in damages from the residents.
The Supreme Court said there was not sufficient urgency that would have required the residents to appeal directly to the high court, and that they properly filed their appeal in the local court.
“There is no evidence that construction of the ski resort was imminent or that a referendum would need to be immediately placed on the ballot to avoid the ski resort’s construction,” justices said. “It has been over 18 months since the referendum application was rejected, yet appellants’ alleged injury may still be redressed through a referendum.”
Troy Booher, a Salt Lake City attorney who represented the residents before the Supreme Court, said Tuesday the referendum appeal case “is certainly not moot” even though the construction project is well advanced. Wasatch Peaks Ranch, he said, “is potentially playing with fire, because if the referendum is put on the ballot, I believe that there is a statute that makes a challenged ordinance void until after the election.”
Utah law says a county clerk may temporarily stay an ordinance, preventing it from going into effect, if petition organizers meet a signature gathering threshold. However, the Morgan petition did not reach the signature gathering stage because County Clerk Stacy Netz Clark rejected the petition filing.
The Morgan County Council in 2019 created a resort special district and signed a development agreement with Wasatch Peaks to pave the way for the ambitious project, which includes ski runs, golf courses, housing and other resort amenities. The resort is intended for high-end members who will buy in to the exclusive community. Council members said the project would help the local economy and benefit the tax base.
The residents’ group, which includes Whitney Croft, Robert Bohman, Brandon Peterson, Shelley Paige and David Pike, filed a referendum petition on the final day for such an action in 2019. They argued the resort would harm the community and the environment and that the voters should decide the issue. But Clark rejected the petition, saying the proponents were five minutes late for the 5 p.m. deadline. In its intervention on behalf of the county, Wasatch Peaks further argued the petitioners failed to meet proof-of-residency and notarization requirements as well.
Mark Gaylord, an attorney representing Wasatch Peaks, said the Supreme Court ruling “puts the case back at square one.” The thrust of the referendum appeal — that the county clerk allegedly improperly rejected the appeal — will now be litigated before Hyde.
“There is a lot of uncertainty at this point,” Gaylord said. “There is always the possibility that it will be up to the voters to decide. But is it very clear that we intend to vigorously litigate this.”
Wasatch Peaks managing director Ed Schultz said the Supreme Court decision “is above my pay grade” and the developers are focused on the project and becoming part of the community.
He said roads and other infrastructure has been built, including an electricity substation by Rocky Mountain Power. “This is municipal-level infrastructure, so it takes a lot to get that going,” he said. Clearing of ski runs also is underway.
“We are trying to be as additive to the community as we can,” Schultz said. He said taxing entities will benefit from property tax revenue from the resort, and the resort population will not be omnipresent because much of the residential ownership will be second or vacation homes.
He said Wasatch Peaks has sponsored the county fair and local sports teams. “We are trying to be good corporate members of the community and we hope that is resonating with people other than the few who aren’t pleased with us,” he said.
Efforts to reach Morgan County Attorney Garrett Smith were not immediately successful.
In Wasatch Peaks’ separate civil suit against the residents, the court is considering the residents’ motion to dismiss the case.