Hayden Canyon development lawsuit dropped

An out-of-state investor voluntarily dropped a federal lawsuit Wednesday against the owners of Hayden Canyon, a controversial 618-acre development that could boost Hayden’s population by a third.

Hayden Canyon spokesman and Spokane architect Glen Lanker wouldn’t comment on the suit but said it was part of an effort to “restructure and recapitalize” the property and the project that originally was envisioned to include 1,800 homes.

Lanker, one of the owners of the property off Lancaster Road, said most of the problems have been resolved, and the sale to the new investor, ALF Hayden Canyon, is likely to occur soon.

ALF Hayden Canyon is associated with the American Land Fund, a private Philadelphia-based real estate acquisition fund.

Lanker said he likely will remain involved with the project after the sale and that the new investors plan to move forward with a “traditional neighborhood design” development, also known as “new urbanism,” which clusters a variety of styles of homes together to leave open space, encourages walking and has a clear community center.

The Hayden Planning and Zoning Commission in 2005 unanimously recommended denial of a change to the city’s comprehensive plan or including the property in the city limits for fear the development would have a negative effect on the city.

ALF Hayden Canyon filed the lawsuit Aug. 2 in U.S. District Court against Stonehill Investments, another of the current owners of the property, alleging that it wanted to “undermine” and “interfere” with the $15 million sale, scheduled to close Aug. 9. The investor sought $10 million in damages for the alleged breach of contract.

ALF Hayden Canyon alleged that Stonehill Investments, of Hayden, informed it and the other owners in July that it had “no intention of pursuing or executing or closing the Agreement for Sale and Purchase.”

Stonehill Investments, whose managing members are listed as Hayden residents Ron Hazard and Michael Harris, owns the property off Lancaster Road in partnership with Hayden TND and James and Lisa Kuntz of Veradale. Lanker said Hazard and Harris also are partners in Hayden TND.

According to court documents, Hayden TND, the Kuntzes and ALF Hayden Canyon planned to move forward with the sale even though Stonehill Investments no longer wanted to cooperate.

Many residents applauded the denial of the comprehensive plan change and annexation, saying Hayden Canyon would destroy their semirural lifestyle, increase traffic congestion on already clogged roads and burden school districts by potentially adding 2,100 students.