Battle Continues Over Arrow Point Marina Critics Say Proposed Marina Opening Would Create Problems

The Stewart family once dreamed of running a destination resort at Arrow Point on the eastern shore of Lake Coeur d’Alene.

Now the family that owns Arrow Point Development Co. just wants the OK for the 82-slip marina built in the shelter of the scenic peninsula.

The family has sold all of the 100 condominium units at the point, including 41 that went to Trendwest Resorts for time shares.

The persistent Stewarts - dubbed the “Teflon warriors” by one local attorney - aren’t pulling out yet.

They fully expect to get permission to continue operating the marina.

“We’re working with Trendwest and the condo owners to provide a service,” said Roger Stewart, the president of Arrow Point Development. “We don’t have a lot left out there.”

But some critics are questioning the legality of the marina.

Deputy Attorney General Nick Krema revoked the marina’s permit last December after agreeing with neighbors that an entry on the marina’s north side funneled boat traffic too close to shore and posed a safety hazard.

In April, Idaho Department of Lands Director Stanley Hamilton affirmed Krema’s decision, ordering the developer to come up with a new entry to satisfy safety concerns.

Arrow Point Development filed a new application with the state last month.

The company wants to move the marina opening 75 feet farther from shore to avoid congestion, while keeping it on the north side.

Late last week, attorney Scott Reed requested that the Idaho Department of Lands hold another hearing on the new marina opening. Reed represents Patrick Stroud, who owns a vacant lot and dock next to the marina and wants the opening moved to the east side of the marina.

In a letter to Idaho Lake Protection Act administrator Will Pitman, Reed said the new opening would still be a safety hazard; the developer still hasn’t responded to three letters from the Panhandle Health District to install a sewage pump-out station; and the developer may not even own the land needed to meet marina permit requirements.

Even some condo owners aren’t backing the family.

“There are safety concerns that I have and it’s not totally clear to me that they have riparian rights for the 80 feet they claim is theirs,” said Dulcy Owen, a Veradale woman who paid $285,000 for a condo unit in 1995.

But the new proposed entry also won praise from several previous critics.

The Kootenai County Parks and Waterways Department, as well as the county sheriff’s department, had opposed the marina entry. In letters on file with the state, both now call the new entry proposal the best option.

Vince Bovino, a marina neighbor who once called the opening a “killing zone” and swayed Krema’s decision, has also pledged not to challenge the revised entry.

Reed argues that the Stewarts’ plans may run afoul of Idaho’s Lake Protection Act.

As part of the marina permit process, the Stewarts got permission from Tom Robb, owner of the Arrow Point Bar and Grill, to use Robb’s riparian rights. Riparian rights give upland property owners access to the water to build things such as boat docks and marinas.

But the Lake Protection Act says a marina applicant can’t borrow or otherwise claim riparian rights for land they don’t possess, Reed said. “You’ve got to own it.”

Roger Stewart said the company owns enough land to have claim to a marina. Along with a few other undeveloped parcels, the family owns 80 feet of waterfront along the marina with a small real estate office that will become the marina office.

That parcel - known as Lot 5 - is encumbered by multiple liens and mortgages, according to an April letter from a lawyer for Arrow Point condominium owners, filed with the Idaho Department of Lands.

The encumbrances approach $6million, according to Margaret Arpin, the lawyer representing the condo owners association. The Owens Financial Group holds the majority of the encumbrances.

In a separate case, the Stewarts are in the midst of involuntary bankruptcy proceedings on 30 acres previously eyed for a golf course and lodge.

The family still needs to subdivide Lot 5, Roger Stewart said. That way they can operate a marina office on one corner and meet a pledge to deed the rest over to the owners of the condos as a common area.

A county planner said last week there is no official subdivision request.

Dulcy Owen said that until the Lot 5 dispute is resolved, it would be premature for the state to grant the developers a marina permit. “Not without going through the proper amendment to make that lot something they can claim exclusive title to,” she said.

If the state denies the permit request, the Stewarts could face orders to remove the marina from the lake. But first, they would have the chance to appeal the decision to the Idaho Department of Lands. Then they could go to district court.

The family, however, is confident they will get the permit.

The marina has already received two permit approvals, once for a different location on the other side of the point, and the other for the current location, Roger Stewart said.

“Our marina has been approved twice. We see no reason it won’t be approved again.”