KANE CREEK DEVELOPMENT

Latest Information

SB 258

SB 258 – “Preliminary Municipalities” 

A new Utah law, effective May 1, and seemingly tailored (yet again) for the Kane Springs Development,  allows developers who own unincorporated land to create a “preliminary municipality” on vacant land, appointing a mayor and town council to pass all land use laws with the same powers as the elected government of an ordinary town.  

Though the ramifications of this bill spread far outside Moab, this would allow the developers of the proposed, controversial luxury resort at Kane Creek, who were just denied a sewage treatment plant permit, to completely bypass county law, while also forcing the county and Moab City governments to pay for things like road expansion. 

 

The law, sponsored by State Senator Curtis Bramble, allows up to three “preliminary municipalities” per year to bypass County land use controls by incorporating and passing their own laws governing development, so long as they meet a few simple criteria—which are mostly there to ensure that the developers actually build a municipality there.  

The law was introduced March 19th, less than two weeks for the end of Utah’s legislative session. It was subject to less than four minutes of Senate hearings with no witnesses and one question, and less than ten minutes of House hearings with no witnesses and one questioner. It received no media coverage.  

In the hearings and in subsequent talks with Utah residents, both State Sen. Bramble and House Rep. Dunning, the bill’s sponsors, have emphasized that the bill is “about affordable housing.” However, SB 258 requires only that developers “intend,” at the initial application phase, to make 10% of the units onsite affordable housing. The concept appears nowhere else in the bill and is thus completely nonbinding.  

Though the law exempts Utah’s larger counties for unexplained reasons, it applies to the more real counties in the state. It is most likely to affect two counties that have tangled with the state or developers on where and how developers can build—Summit County (Park City) and Grand County (Moab).  

A similar bill in 2023, HB 359, which appeared to be tailored to assist an unpopular development in Summit County, was repealed in a special session. Moab citizen group Kane Creek Development Watch calls upon the Utah Legislature, especially those legislators who appear to have voted for this bill without paying attention to its contents, to repeal SB 258 as a fundamental contradiction to the idea of democratic government—allowing 3 or fewer landowners to write their own laws, overriding those passed by the democratically elected County government.   

SB 258’s sponsor, State Sen. Bramble, is a Provo Republican who has twice previously sponsored legislation that overturned a law or government action in Moab or Grand County. The last time, in 2023, was to help the Kane Creek developers control their sewer plant oversight board. It dissolved the County’s board and allowed the developers to create their own. Bramble admitted to the Moab newspaper that the law was targeted at Grand County. 

https://www.moabtimes.com/articles/kane-creek-improvement-district-helmed-by-developers-not-county/ 

What is this law? 

Facts: 

  • New Utah law, SB 258, went in effect May 1st, 2024 
  • Allows a developer to create a “preliminary municipality” on his private property so long as he intends to develop it to at least 100 residents within 6 years 
  • A “preliminary municipality” has all the powers of a city or town, including all land use, zoning, and utility authority, except taxation and eminent domain 
  • This allows developers to completely bypass County laws and build what they want 
  • The City Council and Mayor and (called the Board and Board Chair in most of the new law) are appointed by the landowners (except one member of 4 Council may be appointed by the County) 
  • Only three proposed preliminary municipalities may apply per year 
  • Complete requirements for approval to make this new town: 
    1. No minimum population (can be zero) 
    2. 3 or fewer landowners and all agree (Kane Creek proposed development has 3) 
    3. Contiguous land area (unless some federal land is needed to connect common interest ares) 
    4. Within 1 county 
    5. At least 50% of land area undeveloped 
    6. At least 0.25 miles from an existing city or town 
    7. Cannot be in 1st or 2nd class counties: Salt Lake, Utah, Davis, Weber, or Washington 
    8. The proposed municipality cannot contain parts of another proposed municipality or annexation area 
    9. Developers must “INTEND” 
      1. When fully developed, residents (undefined re: vacation homes) will be at least 100 
      2. Average population density of at least 7 people per square mile 
      3. 10% of total housing is affordable (note: affordable housing appears ONLY as an “intent” in the initial application. The affordable housing “requirement” is not binding as it appears nowhere else in this law).  
    10. A state assessment of the development plan must conclude that, once developed, it is likely to generate enough tax revenue to cover its municipal expenses 
  • The public and other government agencies have an opportunity to review and comment on the proposal, but the review process has no ability to change anything. The sole requirements are the ones above. 
  • As soon as the population of the preliminary municipality reaches 100 people, that it must transition to an ordinary town and hold elections. It must do this within six years, or it is dissolved, and the control, duties, and infrastructure revert to the county. 
  • Early in the process, developers are required to post a bond, a cash deposit, or a letter of credit showing that they can pay for the completion of the infrastructure in their plan. They are gradually refunded this money as they build infrastructure. If they fail to complete within the time period, the remainder of the money stays with the municipality. However, the municipality would be run by the board and board chair that the developers appointed. The legislation does not specify how a letter of credit might ensure that money to complete infrastructure strays available in the event of bankruptcy or dissolution of the development company.

Click here for Kane Creek Development Watch’s Annotated PDF of the Bill

Click here for more specifics on the Bill and transcripts of the Hearings: 

 

 

 

The Latest in….Developer Propaganda

Printed in the Moab times Independent April 30th, 2024

General partners set the record straight on Kane Creek

General partners set the record straight on Kane Creek

My View

April 30, 2024

By Trent Arnold, Tom Gottlieb and Craig Weston

As the general partners of Kane Creek Preservation and Development (KCPD), we would like to provide Grand County residents with another update to address recent discussions regarding our project.

For the last seven years, since we first purchased this property in Grand County, we have consistently acted professionally and relied in good faith on land use code, facts prepared by the county, and repeated assurances made to us by county officials. KCPD has completed all necessary filings and appropriate permits.

Our proposed development was submitted to Grand County in May 2021, and was deemed complete and compliant by Grand County in July 2021. Therefore, by local and state code, we are fully legally vested. Generally, a preliminary plat application takes three to six months to review and approve — for a complex project, that may extend to 12 months.

Our preliminary plat application has now been under review by Grand County for almost 36 months. This is an unprecedented and unreasonable amount of time that falls well outside norms in Grand County and in the state of Utah.

Based on recommendations from Grand County, and following standard procedures in the county, KCPD applied for sewer and water services from the County’s authorized wastewater district, the Grand Water & Sewer Service Agency (GWSSA). That application was subsequently declined by GWSSA and later by the county. The only remaining option was for KCPD to design, seek appropriate government approvals, internally fund, and build its own water and wastewater treatment systems. This is what we have done.

KCPD, continuing to act in good faith and following local and state code, petitioned to form a separate legal entity to provide wastewater services, Kane Springs Improvement District (KSID). KSID was properly registered and certified by all relevant Utah state agencies to provide these services to the project.

Again, against norms, Grand County commissioners personally filled all the seats on the KSID Board of Directors (BOD) and did not allow representation from the development team, anyone with relevant technical knowledge, or any landowner in the district. During that period, commissioners took absolutely no actions, and did not pursue a conditional use permit (CUP) to enable the project to continue to move forward. Only after the Grand County board was replaced with new KSID directors was KSID able to submit a CUP application to provide those services.

Any changes to zoning, use, updated plans, etc. made by the county after our project was fully vested cannot directly or indirectly undermine those vested rights. To do anything else is to ignore the law.  Adding new requirements, trying to create easements for non-existent trails, and the many other inappropriate attempts to delay or stop our development were clear examples of Grand County acting in bad faith.

To put it simply, Grand County changed the rules in the middle of the process.  Through their actions, the county has attempted to prevent KCPD from exercising our fully vested rights, and in so doing, has significantly impaired the economic value of our project.  This is where we are today.

Despite claims made by well-funded opposition groups, KCPD does not intend to seek a lawsuit against Grand County. We will, however, aggressively defend our vested private property rights as protected by law and established legal precedent. Actions have consequences. The public has a right to transparency and community-wide discussion as to various potential outcomes, including possible large financial liability to Grand County taxpayers due to questionable decisions by elected Grand County officials.

That said, we hope all relevant outstanding matters tied to our development can be resolved without resorting to legal action.

KCPD continues to believe in the long-term value this project will provide to the community.  This includes significantly increasing future property tax revenue and building new workforce housing in Moab and onsite of not less than 10% of the total residential units built-out. For seven years we have invested significant time and tens of millions of dollars in capital into this project and will continue to do so until the project is completed.

In closing, we support ongoing dialogue with Grand County representatives and residents as our project brings more housing options and a larger tax base to Grand County.

 

What Kane Creek Development Watch has to say in response….

A Response to the Kane Creek Preservation and Development (KCPD) letter.  (All quotes are theirs)

By Kane Creek Development Watch

To put it simply, financial risk is a choice, and it is not the responsibility of the County or the taxpayers to bail them out.  If the developers had exercised good financial judgement, they would have factored in the known issues regarding the road cost and right-of-way(ROW); the expense of hooking up to the Moab sewer plant and the uncertainty of getting approved for their own; the conflicting zoning maps that will likely disallow their project as planned; the difficulty of trucking in higher quality fill or using onsite lower quality; the likely invalidly of their water rights; the extensive National Environmental Policy Act (NEPA) process that will be required to put retaining walls along the river and road.  Any one of these factors is enough to make a less risk adverse person run.

Despite their claims, KCPD has not completed all necessary fillings and appropriate permits.  Here is what they have left:  Conditional Use Permit approval; Preliminary Plat approval; Conditional Letter of Map Revision, FEMA approval to develop the raised floodplain; address the zoning discrepancies (they should have done their due diligence at the Recorder’s office BEFORE spending millions of dollars); secure valid water rights; obtain a ROW, approval, funding, and a NEPA process to upgrade and expand the road; obtain a ROW to service their wells and large portions of the development from the BLM (this is a BLM ROW avoidance area FYI); and get the entire development approved by the County- subdivision, road placement, architectural standards, viewshed protection and more.  They are really at the infancy of this project. If the County keeps granting them preliminary permits, it seems likely they will sue to get the last few permits with claims that the County was leading them to spend their money.

Other things to note on the timeline- the developers claim they were vested in 2021- Not true, they were vested in 2022 as they made major revisions to the proposal, which required a new application and reset the clock.  The developers claim their preliminary plat has been under review for 36 months, however they fail to mention that they themselves delayed it by, among other things, not submitting a CUP application (a prerequisite to a plat approval) until December 2023.  If they still think this unreasonable, they should have reconsidered starting a project that has regulatory hurdles from federal, state, and local governments; is on a floodplain near critical habitat; has widespread opposition; and began during a pandemic.

Let’s set the record straight about the sewage treatment plant and Kane Springs Improvement District (KSID).  The developers chose not to connect to the City of Moab due to the expense and “wishing to be in control of future development on this property.”  Building their own sewage treatment plant wasn’t their “only remaining option.” County Commissioners appointed themselves to the KSID Board of Directors (perfectly legal), and took no action because the developer’s attorney wrote a letter to them telling them they could not meet citing “defects” in public noticing.  The County agreed to delay meeting and meanwhile referred the “defects” letter to the Lieutenant Governor to ensure they were in legal compliance.  Shortly after, Utah passed legislation specifically targeting Grand County, which dissolved the existing Board and allowed the creation of a new KSID board comprised only of the developers.  Who positioned themselves to again, “control the future development” without Commission oversight.

The developers have essentially given a laundry list of reasons they would sue the County: “changes to zoning”- no one is suggesting a zone change just an enforcement of the legal zone; “changes to use”- there are none; “updated plans”- there are none; “easements for non-existent trails”- confirming public trails easements (trails used to access Behind the Rocks) across large new developments is commonplace; “attempts to delay or stop our development were clear examples of Grand County acting in bad faith…Grand County changed the rules in the middle of the process”- there is absolutely no evidence of this and they have not provided any evidence to support this claim.

As for the developer’s promise of building workforce housing, they are preserving their option of keeping affordable housing off their luxury development, and unless they sign a formal agreement, their promise isn’t binding.  The larger tax base they will provide comes with added expenses in road expansion and public services and a continuing decrease in the quality of life in Moab.

What is true is that KCPD’s known political associates and Developer Craig Weston have donated tens of thousands of dollars to the Grand County Republican Party, making the largest single-party war chest ever reported in Grand County. We should be concerned because the makeup of the County Commission may decide key votes on many issues including whether to obtain and use millions of dollars of taxpayer money to widen Kane Creek Road to the 80-foot ROW required for full buildout of this development.  A lot of developers are taking aim at Grand County’s attempts to exercise local control, and they are watching to see what happens.

Get the facts at kanecreekwatch.org, and despite the developers claims, we are not “well-funded.”

 

We can still stop this development from ruining Kane Creek.

Voice Your Concerns

Write the developers and tell them why this is the wrong development for Moab: [email protected]

Developer Information

Kane Creek Preservation and Development, LLC; 10466 Iverson Lane; Highland, UT 84003

NATIONAL PARK LEVEL SCENERY SHOULD NOT HAVE AN EXCAVATOR

We must stop the destruction.

Timeline of events

Ancient and Historic:

For thousands of years: Ancient indigenous peoples (sometimes called the Anasazi or Ancestral Puebloans), now descended by the Hopi and Puebloan tribes, farm the floodplain now known as King's Bottom. They hunt with chipped stone arrows, build their homes and storage structures on the upper benches, carve art and messages into the cliffs, and bury and honor their dead in soft-dug pits and walled-in alcoves.

1930s:

The Civilian Conservation Corps blasts and hacks the first developed trail from the Moab valley into the downstream Colorado River canyon to King's Bottom.

1930s-60s

Using some of the dynamite also commonly used in the area for uranium mining, descendants of settlers blast out big caves in the lower cliffs along the floodplain. Later, these caverns and the floodplain host the "Egg Ranch," which is exactly what it sounds like. The Kane Creek Road is often locally still called the "Egg Ranch Road."

1950s-80s

Government archaeologist Lloyd Pierson records in several reports that numerous Ancestral Puebloan sites, including petroglyphs, pit houses, storage pits and granaries, and at least one grave are located on or immediately adjacent to the private property at Kings Bottom and the benches above (now the property proposed for development). Artifacts and human remains are removed and given to the local museum (as was the practice at the time, but is usually not considered ethical now).

1992

The Grand County (Moab area) Commission re-zones part of the land along the Kane Creek Road to C3 (now called Highway Commercial). According to a Commissioner's editorial and notes from the time, it is supposed to be a 10-acre campground. However, the person writing the ordinance's map description, it appears mistakenly, writes the zone change to cover around 100 acres mostly on the uphill side of the road. Grand County and the developers have not yet publicized any official government act that changed the floodplain zoning from Range and Grazing, which has a 5 acre minimum lot size and would not allow anything close to this development. It is also uncertain whether the allegedly mistaken map description is legally binding.

1985

This is approximately the last year that any publicly available satellite imagery shows that the property is being irrigated to any visible degree.

2017

Craig Weston, a resident of Highland, Utah (near Salt Lake City) buys the land at King's Bottom (the floodplain area along the river). After purchase, Weston operates a small campground that has 1.5 stars on TripAdvisor, the lowest rated campground in Moab on the site.

2020

Weston, now "Kane Springs LLC," submits a plan to Grand County for approval for a 100 unit "glamping" campground in the floodplain and the mouth of Pritchett Canyon.

2020

Weston gets a letter from FEMA, based on the developer's engineer's findings, saying that if they pile enough dirt onto the floodplain, it will no longer count as floodplain and structures can be built there.

2021

Weston secures the County grading permits necessary to start filling the floodplain with dirt. They need between 4 and 12 vertical feet (depending on exact location) to bring the land one foot above the official flood level.

2021

Weston adds two partners, resort developer Tom Gottlieb of San Francisco and Aspen, and Trent Arnold. Around this time the developers, now incorporated as "Kane Creek Preservation and Development," buy the approximately 100 acres of upper bench land adjoining the floodplain from Charles Nelson.

2021

Weston tells the Moab newspaper in late October that he plans to build a "research and innovation hub," "workforce housing," and a "sanctuary" for native plants. He says he envisions 30-50 housing units, but "mostly a center for research and development."

Late 2021 or Early 2022

The developers place a sign along the road by the development which reads "Kane Creek Natural Vegetation Restoration Project: Native Species Nursery," with a contact email. No other signage explaining the development has ever been placed at the site.

Early 2022

In January and February, the developers create and submit a revised site plan with a vastly expanded project (both from a 100-unit "glampground" as well as the "30-50 homes" and an "innovation hub"). This proposal includes 582 "dwelling units," 72,000 square feet of commercial space, the same "glampground," several 3-story condos, and an "amenity center" with multiple pools, a restaurant, a climbing wall, and other attractions (it looks like a country club in the plans).

Early 2022

The developers' traffic study notes that the developers expect 90% of the dwellings to be "recreational homes" (which in traffic study language means "vacation homes"), that it is "resort-style," that only "a small portion of the commercial space and amenities is proposed to be open to the public," that it will feature "private luxury stores," and that "it is unlikely the commercial space will draw consumers from Moab City based on the price point of goods and services on-site."

2022

Local luxury realty firm Sotheby's circulates a brochure among agents touting the "Kane Creek...highly amenitized luxury community." The brochure refers to 2-bedroom duplexes "around $1,500,000," "5,000 square foot, custom single family home[s]," and asks "what percentage of [your clients] would *not* be interested in renting their second home?"

2022

Craig Weston's attorney registers a new corporation (LLC) called the "Utah Workforce Housing Alliance." Weston's brother Kael Weston, an activist in the Democratic Party, is the sole person named on the paperwork. 3 months later and less than a month before the election, the "Utah Workforce Housing Alliance" donates $6,000 to the Grand County Republican Party, which makes the corporation the local Party's largest donor. This donation, because of its timing, does not need to be publicly disclosed until after the election. Later, Kael Weston tells the Salt Lake Tribune that he knew nothing about the contribution. The local party spends money to support the campaigns (either through advertising or direct contributions) of 3 County Commission candidates and a County Attorney candidate. Two of the supported Commission candidates and the County Attorney candidate win the election. The previous County Attorney, who had expressed doubts about the project, is ousted.

Fall 2022

The Grand County Commission forms the required "Improvement District" to oversee the proposed development's privately owned sewer plant, appointing 3 County Commissioners to the board. Shortly after, the developers' attorney writes a letter to ask the Improvement District to delay meeting so the various alleged "deficiencies" in the the public noticing and other aspects of the District's formation can be addressed.

2022

Craig Weston and Trent Arnold, two of the 3 developers (Tom Gottlieb of Geolo Capital and Aspen is the third) evict approximately 16 (number depending on who you ask) lower-income and mostly older people who had been living on the upper part of the property, mostly in trailers.

Winter Early 2023

At the end of the Utah state legislative session, legislator Curtis Bramble inserts a rider into a House Bill 22 that he said targeted an Improvement District in Grand County. It automatically dissolves any District's board that was created within certain dates but did not meet within 100 days. It provides for the creation of a new District board, which may only consist of property owners in that District, or their agents. The Kane Creek developers quickly form a new sewer plant oversight board consisting only of themselves.

Spring 2023

The Grand County Republican Party receives another round of donations either directly from Weston or from LLCs registered to his home or business address. The donations total $4,000.

Summer 2023

49 Moab area residents file a protest against the state's permitting of the private sewer plant, but the state grants the permit.

Summer 2023

Grand County Planning informs the developers that the early stages of their building proposal will trigger a requirement that the access road (which is currently approximately 16 feet wide, has little or no shoulder, runs over federal and Nature Conservancy land, is along steep cliffs directly above the Colorado River, and is blocked by flash floods or rockfalls multiple times per year), must be expanded to a class that mandates 50 feet in width and a 66-foot right-of-way, with limitations on turn radius, slope, and blind corners/hills.

Fall 2023

The developers submit an application to Grand County for a Conditional Use Permit to build a sewer plant on the property. Public hearings and votes have not yet been scheduled.

December 2023

The developers begin the process of filling the floodplain. They start by bulldozing the large native cottonwood trees in the first areas to be filled and used to store equipment (no "plant sanctuary" has appeared). They also begin digging up the benches above to collect the fill dirt needed to raise 65-75 acres of floodplain. The benches above have no known archaeological surveys, but numerous ancient indigenous sites have been documented in the immediate area, both on and just off the private property. The public doesn't know if the gravel pits are removing archaeological artifacts (it's legal on private land unless a grave is disturbed).

January 2024

Moab locals and visitors, few of whom were previously aware of the process, now wintess a major earthmoving operation. A County Commission meeting on the 16th, to review the progress of the development, attracts hundreds of attendees and dozens of speakers. The only person to speak in favor of the project is Tom Gottlieb, one of the developers, who delivers a prepared statement via Zoom touting his conservationist credentials and the benefits of the development.

Late January 2024 - Present

Citizens hold a community meeting at Star Hall, forming a watchdog group with the goal of stopping the development entirely, purchasing the site, rehabilitating the damaged land, and turning it into a public park. They begin an outreach and public education campaign and form teams to collect information about the history, scientific analysis, legal and policy issues, and cultural interest regarding the site and the development. We fundraise with the primary goal of funding a legal campaign and the supporting scientific and outreach work to stop the development and return it to the local community.

Coming up (as of March 2024)

  • The Conditional Use Permit hearings and vote to build a sewer plant
  • A public hearing and protest period on the developers' application to change their water rights
  • The process, and County Commission vote on the approval, of the "preliminary plat," site plan and subdivision plan
  • The County's formal response and/or plan of action regarding possible zoning errors that would preclude much of the development
  • The County's formal response and/or plan of action regarding the issue of "resource extraction" (AKA gravel mining) on the benches in a zone that doesn't allow that use
  • The developer's efforts to get enough gravel to fill the site, and the possibility of flooding before they are finished
  • The fallout from massively ripping down and reshaping close to 180 acres of ground in an area with a high density of indigenous American archaeological sites
  • Watching the developers try to get the funds, permits, rights-of-way and federal law clearance to get about 3 miles of narrow road more than tripled in size—handling onsite issues of: the immediately adjacent and underneath Colorado River; a dozen or more flash waterfall channels that empty directly onto the road; several ancient petroglyph panels; designated critical habitat for multiple endangered species; overhanging cliffs that drop road-blocking stones; two campgrounds and a popular Jeep trailhead that share the narrow bench between river and cliff; uncertain and tangled existing rights-of-way; a patchwork of land owned by the federal government, Nature Conservancy, and several private landowners; the need to move a large regional powerline; and a hostile local population.

Grand County Connects

Kane Creek Development Public Information Clearinghouse

Here you will find up to date and accurate public record information on the proposed project.

Key Concerns

Unified Community Opposition

Community opposition to this project is strong, as it threatens the scenic landscape, wildlife habitat, and cherished recreational areas that define our local identity and attract visitors to Moab.

National Park Quality Landscape

In any place less spectacular than Moab, the land around the proposed development would qualify for national park status. In addition to scenic beauty, it hosts numerous ancient indigenous sites and critical habitat for more than one endangered species and borders a Wilderness Study Area.

Building on Riparian Floodplain

In order to build this, the developers are piling between 4-12 vertical feet of sand and gravel on the Colorado River floodplain. This ground is where they plan to put hundreds of luxury homes, condos, country club, and private sewer infrastructure.

Errors + Omissions in Permitting

While we haven’t yet had the chance to prove this in court, our research has uncovered what we believe to be multiple skipped or inadequate steps in the various permitting processes. Local law and government appear unprepared for a development of this size in a place this much on the edge.

Interference with Local Government

The developers and their allies in state government have more than once interceded in local political or government affairs to change laws and fund candidates that would be more likely to allow this development.

Exclusive Luxury Resort

The developers pay a lot of lip service to affordable housing, but their own documents describe this as “an exclusive residential estate,” “resort style,” and “highly amenitized,” containing “private luxury stores,” $1.5 million duplex, 5,000 sq ft custom homes, and 90% vacation homes.

Location

Kane Creek Development Watch

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