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COTTONWOOD HEIGHTS — A developer who wants to build a resort-style project in the mouth of Big Cottonwood Canyon isn't taking no for an answer.
Terry Diehl planned to file a petition Thursday to disconnect from Cottonwood Heights, requesting that the 47-acre Tavaci development become part of unincorporated Salt Lake County, said Bruce Baird, Diehl's development and land-use counsel.
The petition to disconnect follows Tuesday's decision by the Cottonwood Heights City Council not to create a new zone that would have allowed Diehl to move forward with plans for a resort-style community, with the possibility for hotels, condominiums, restaurants and shops.
Baird declined to comment on the disconnect, other than to say it would be filed with the city before 5 p.m.
The City Council has the option of accepting or denying the petition, with the latter option likely meaning the issue would be headed to court.
"I don't think we have a choice but to (deny the disconnect)," Mayor Kelvyn Cullimore said. "I think it would be inconsistent to vote (the Community Resort Residential zone) down and then allow disconnection."
Following their unanimous vote against creation of a CRR zone, council members took turns expressing their desires to work with Diehl to develop the property in a way that fits the vision of Cottonwood Heights.
"We tried to send the message that we believe there are still alternatives to be discussed that we think have merit," said Cullimore, a voting member of the City Council. "We're hoping that kind of an opportunity will be pursued by both parties."
The mayor said city officials expected Diehl to file a petition to disconnect from the city.
"This is a genuine attempt on the part of this property owner to make the most of their investment," Cullimore said. "I think they're very serious about it, and I think we need to take it very seriously."
If the City Council denies the petition to disconnect, as expected, the developer would then have the option to take the issue to 3rd District Court.
In order to get a judicial ruling allowing the disconnect, the developer would have to prove he's been disadvantaged by the city's actions and that justice and equity demand he be able to take his property into another jurisdiction.
If a judge allows Diehl to take his property into unincorporated Salt Lake County, the developer would work with the County Council on how to develop the property.
"The worst of all worlds for us is to have (the property) go to a different jurisdiction and have that jurisdiction make a decision that is detrimental to us," Cullimore said. "Then we end up with all the negative impacts and none of the benefits."
In 2007, developers won a three-year legal battle that allowed them to disconnect 4,000 acres from Bluffdale and annex into Herriman. That losing legal battle went all the way to the Utah Supreme Court and ended up costing Bluffdale — and its taxpayers — more than $500,000.
Cullimore said the city has no choice but to find funds to cover the costs of what could become a several-years-long legal fight.
"This could become sufficiently protracted that it will cost us hundreds of thousands of dollars over a couple of years if goes that route," the mayor said. "Something is going to have to give in order to increase our legal fund. That's the reality of it."
Tavaci originally was approved in 2004 by the Salt Lake County Council to allow for 43 lots for large, luxury homes. The property became part of Cottonwood Heights when the city incorporated in 2005.
Deih's plans for the property changed as a result of the economic downtown. His new vision for a mixed-use, resort-style development met immediate resistance from residents.
The Cottonwood Heights Planning Commission recommended approval of the CRR zone in August 2009, though the zone was never officially voted on by the City Council until Tuesday.
On Monday, the Deseret News and KSL-TV reported that Diehl hasn't paid taxes on the Tavaci development since 2008 and owes more than $940,000 on the property, according to Salt Lake County property-tax records.
Email:jpage@ksl.com
