Seven neighbors are suing Crescent Vertical LLC, which is owned by Park City Planning Commission Chair Sarah Hall and her husband Gerry.
The group alleges the Halls have violated Park City’s land management code while renovating their property in Park Meadows.
Park City Municipal is also named as a defendant in the lawsuit.
Third District Court Judge Kent Holmberg dismissed the neighbors' claim that Park City improperly issued the Halls a building permit because the appeal was filed months after the allowed deadline.
The judge also rejected the basis of the complaint, which alleges the Halls made material changes to their home’s square footage and plans to build a hot tub after the building permit was issued. Holmberg said even if the permit was amended after the fact, the changes weren’t substantial enough to trigger an appeal.
The judge said the other part of the lawsuit, which alleges that city code is not being enforced, can proceed in court.
“There’s an allegation that soils have been disturbed, that a berm has been created, that trees have been planted that will create a boundary or a large visual obstruction, and that all of this has been done in a wetland area,” Holmberg said. “There is language in Park City code as cited that supports the allegation.”
Despite his action to continue the case, the judge ordered mediation for both parties over the next 60 days.
Attorney Robert Saunders, who is representing six of the neighbors, said his group is interested in reaching a settlement.
During Tuesday’s hearing, Saunders primarily focused on the trees the Halls planted in their yard.
The seventh neighbor, Bob Theobald, represented himself and alleged broader violations including an HOA cover up.
Mitchell Stephens, speaking for Park City government, said they’ve been working to reach a resolution.
“We have had extensive conversations, and frankly, I thought, had made some good progress,” Stephens said. “They didn’t pan out, so I’m not sure if there’d be any benefit to that or not.”
The judge said the discovery process can continue as the parties work towards a compromise.
