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Developer Of Ketchum's Quail Creek Sued $4.7 Million

The developers of Quail Creek, a subdivision approved by the county in 2006 that was set to put up 87 free-market homes and 39 community-housing units south of Ketchum, is being sued by its Delaware-based funders to the tune of $4,700,000. CRE Ventures is suing both Clear Creek LLC and two of its partners, Bob Kantor and George Kirk, for supposedly defaulting on loans made to the development company and to the two partners personally. The lawsuit accuses Clear Creek of seeking a lien on property in the subdivision, but that the current value of the property is far less than what the loan is valued at, and that Clear Creek should make up the difference.

The project has been in hot water since before the lawsuit, as a county affordable housing ordinance that Clear Creek has argued is too inflexible has left the developer in what they describe as an "impossible dilemna." While the market continued to fumble in 2010, Clear Creek sought a change in its plan that would allow it to donate land to the local community housing trust instead of being forced to build affordable housing itself, but they were denied, meaning there won't be any affordable housing at the subdivision "anytime soon" according to Clear Creek. The finish of the development itself is pretty much up in the air, too.

· Housing developers sued for $4.7M [Idaho Mountain Express]