Developer’s role at Met figures in land fight

Neighbors upset with a planned subdivision between Indian Trail and Five Mile roads have invoked the developer’s past role with Metropolitan Mortgage & Securities Co. to try to scuttle the proposal.

Thomas Masters, fired from his executive post at the bankrupt firm and later accused of fraud by the U.S. Securities & Exchange Commission, has been busy attempting to line up development projects. His effort to subdivide acreage into 42 housing lots in the fast-growing North Spokane area ran into stiff opposition led by Steve Mumm.

Mumm, who is married to city planning commission Chairwoman Candace Mumm, took aim at what he called sloppy and error-riddled paperwork submitted to the city in support of the project, which abuts the couple’s property. The matter was heard Thursday by Hearing Examiner Greg Smith in a basement briefing room in City Hall.

Steve Mumm picked apart the proposal for things such as missing signatures and dates, and raised larger concerns including dangerous traffic levels surrounding a potential paved cut-across between Indian Trail and Five Mile Prairie, and loss of wildlife habitat. Candace Mumm recused herself from the matter.

To publicize the neighborhood concerns, Mumm sent e-mail to media outlets highlighting Masters’ connections to Metropolitan.

The company recruited Masters from Phoenix to work on large commercial loan projects. He claims he butted heads with Metropolitan executives over their business practices and was fired.

In a sweeping fraud complaint filed in U.S. District Court in Seattle, the SEC accuses Masters of participating in one of the highly questionable real estate deals that eventually led to accounting irregularities and ensnared several executives.

Masters’ lawyers have previously said he acted as a whistleblower and cooperated with federal investigators until they refused to grant him immunity in exchange for his help.

Attempting to taint the subdivision plans using Masters’ Metropolitan problems in relation to this project was called “offensive and disparaging” by Margaret Arpin, an attorney for an engineering firm that’s working on the subdivision.

“Anyone can be named in a lawsuit,” she said.

Masters has not acknowledged any wrongdoing. The case is pending and Masters is attempting to have the SEC charges dismissed.

His critics at the hearing expressed worry about some 10 different limited liability companies that Masters has set up and whether he has the credibility and necessary financial clout to properly complete a sensitive subdivision.

Smith said he would consider the issues raised in Mumm’s appeal.

The subdivision is called The Estates at Rocky Ridge and would sit off of Lincoln Road.