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City attorney, planning staff brief commissioners on Planned Unit Development process and risks
Summary
City attorney and planning staff reviewed Sandpoint’s PUD ordinance, explained the two-step (preliminary/final) approval path, described findings required by ordinance and highlighted implementation risks tied to phasing, ownership changes and unclear design-review language.
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City legal counsel and planning staff gave commissioners a detailed refresher on Planned Unit Developments (PUDs) at the Feb. 4 Planning and Zoning Commission meeting, walking through the ordinance’s required findings, the two-step approval sequence and common implementation challenges including phasing, transfer of ownership and the role of development agreements.
Fonda Jovic, the city attorney, framed PUDs as quasi-judicial actions that affect individual property rights and called for strict adherence to hearing and deliberation procedures: “Quasi judicial hearings deal…with specific individual rights,” she said, and reminded commissioners they must avoid ex parte communications and disclose potential conflicts before hearings. Jovic said that when quasi-judicial process rules are not followed, decisions can be subject to judicial review.
Bill Dean, a planning staffer, led a clause-by-clause review of the PUD ordinance and emphasized it is intended to allow flexibility in site design — for example, to blend housing types or mix uses — while requiring public benefit and perimeter performance standards to reduce impacts on surrounding properties. Dean described the ordinance’s two-step process: a preliminary development plan that signals whether a project may proceed, and a final development plan that contains detailed engineering, landscaping and other implementation items.
Key takeaways for commissioners: - Two-step approval and commissions’ role: Dean said the commission plays a significant role in preliminary approval, which is a “green light” that authorizes applicants to prepare final-level materials. The final plan goes to City Council for action and requires clearer, more detailed submissions. Staff recommended commissioners focus on the stage at which an application is being considered and tailor questions accordingly. - Required findings and standards: Dean highlighted the ordinance’s finding that proposals must further the public interest, be capable of being initiated within two years, and include adequate infrastructure and open space. Jovic stressed that commissioners’ written or oral deliberations must identify findings of fact that support each decision standard. - Implementation risks tied to phasing and ownership: Staff warned that a PUD approved under a single developer can become difficult to manage if phases are sold off before promised common facilities are constructed. Dean recommended clearer, tabular permit summaries and stronger implementation conditions so that long-term outcomes match approvals. - Design-review ambiguity: The ordinance contains a provision requiring “design review approval” for structures in an approved PUD; staff noted the code does not clearly define that review step and said they will return with options for how to operationalize it so building permits implement the approved plan.
Jovic reminded commissioners of due-process safeguards in quasi-judicial hearings: notice requirements for nearby property owners, a transcribable verbatim hearing record, restrictions on off-record deliberations, and a requirement to disclose ex parte contacts or conflicts of interest. She warned that public statements outside hearings (for example on social media) can create grounds to bar a commissioner from participating in a later proceeding if a petitioner proves bias.
Next steps: Staff told the commission it expects a PUD application in March and said planning staff will bring clearer guidance and checklists to streamline preliminary-review materials and improve public records. Dean said staff will explore mapping existing PUDs in the city’s GIS to make permit responsibilities and restrictions more transparent for property owners and buyers.

