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Promontory CEO Argues County Is Illegally Holding Clubhouse Permit

The man at the head of the massive Promontory development says that for nearly two decades, his company has worked well as a partner with Summit County.

But now, says Francis Najafi, the county is illegally holding up the approval for a clubhouse permit in their project—based on an invalid claim about Promontory’s employee housing obligation.

Najafi made some impassioned remarks last week to the East Side Planning Commission—and while Najafi’s appeal on the Nicklaus Clubhouse expansion goes to the council on Wednesday.

Najafi said that the county cannot hold up an approval for the clubhouse expansion (on the grounds that Promontory hasn’t supplied a plan and a time schedule for its employee housing.)

He recalled that 20 years ago, they began a relationship with the county based on trust.

At the time, the previous owner of the property, George Johnson, had filed a massive lawsuit against the county for a 7,000-unit proposal. Najafi said he talked to Deputy County Attorney Dave Thomas about a different kind of development—with high-end residential homes. Promontory went on to an approval and the Johnson suit was settled.

“Here we are. Promontory 20 years later is the most impactful economic engine in all of Summit County. In terms of taxes, in terms of construction, in terms of employment. It has turned out to be everything that we have promised at the county. Everything that Dave Thomas and then the commission wanted to see instead of major litigation and challenges.”

Najafi said they’ve met all their commitments. But in recent years, there’s been a different attitude from the county.

“In the past few years, something very unusual happened. We saw the county becoming more and more critical of us to be perfectly candid. We never understood that. It never had happened for the prior 17 years we had a very collaborative, friendly relationship. We saw that staff started becoming tougher on some of the even minor approval process in our even subdivision stuff. Of course, that continued to then the issue of employment housing. At the beginning when we were going through our SPA agreement, employment housing was a secondary issue. It was not a critical issue at the time in 20 years. It was just an afterthought to be perfectly candid. It never was outlined in our SPA the timing or when and if for that matter. So we all collectively put it in there without absolutely a set timeline.”

He said the county’s position is incorrect.

“Technically incorrect, legally incorrect, and in our opinion the county cannot do that. That’s really the issue. So, we have two choices. We don’t want to go litigate with the county because we want a friendly relationship with you guys. We’ve had a friendly relationship for 20 years I don’t see why that cannot continue, but the fact that now the county, based on absolutely fundamentally flawed arguments saying that, ‘we’re not going to let you expand one of your clubhouses.’ The first phase is already done a second phase even the concept is approved. Now they’re withholding our permit.”

Promontory representatives say they have come forth with a plan, since a 2007 amendment called for the 35 employee units to go into the South Pointe property, near Brown’s Canyon Road.

Najafi said backing up his position is former United States Attorney David Jordan, who appeared with him at last week’s meeting.

“You asked why David is here, because quite candidly we feel that the county has no right to hold our clubhouse permit. That’s why he’s here. He’s not here to threaten anybody. We don’t want litigation, the message here is that we want a win-win situation with you.”

Najafi said they cherish a constructive relationship with the county.

“Promontory is the biggest contributor to local charities and arts and culture. The only project in all of Deer Valley that every year holds an annual fundraiser and we have a $750,000 impact annually that we raise from our members and two matching funds give it to arts and charities. No other project represents the kind of core values that represent this community.”

Meanwhile, South Pointe is being proposed as a medium-income residential project. A large-scale proposal with about 1,000 residential units was turned down by the East Side Commission last year.

Given that, Najafi said the revised South Pointe is looking at 330 units and 10,000 square feet of commercial.

A citizen at last week’s hearing said it’s confusing. Although developers say South Pointe and Promontory are sperate projects, the same business people are representing them. Najafi said that nevertheless, they are separate.

“They’re two different legal entities, two different ownership. Yes, I’m a managing partner of both. But entirely in order to address my friends with Promontory. Promontory has nothing to do with South Pointe today and South Pointe has nothing to do with Promontory except some cross-ownership.”

Known for getting all the facts right, as well as his distinctive sign-off, Rick covered Summit County meetings and issues for 35 years on KPCW. He now heads the Friday Film Review team.
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