The Forest Lake City Council on an evening vote denied an amendment request from the developer of the Hidden Creek subdivision that would have allowed two early building permits to be released before required development milestones were completed.

Abby, a city staff member, told the council that when the city approved the third phase of Hidden Creek earlier this year it included a development agreement with Headwaters Land Group stipulating that building permits would not be released until key development milestones were met. She said those milestones — including base course for the roadway and installed utilities — have not been met for the two lots the developer asked to start early and that staff recommended denial of the amendment request. Abby also said the developer asked to table the request for two weeks.

A second city staff member cautioned the council that approving isolated early starts could “paint us into a corner,” describing how partial buildouts can leave the city with harder, less-financially-viable lots should a larger market downturn occur. The staff member referenced the 2008 downturn as an example of how quickly conditions can change and said the city should not allow the scope of construction to “creep” in a way that imperils completion of the overall subdivision.

Several council members said they have worked cooperatively with the developer on prior phases but said they agreed with staff’s recommendation to require compliance with the existing development agreement before allowing building permits. A motion to deny the amendment request carried.

The council’s action leaves the development agreement unchanged; staff and the developer may return to the council later if the developer seeks a different approach or can demonstrate the required milestones have been met.

Votes at the meeting were taken by voice; no roll-call tally with individual yes/no votes was recorded in the transcript.