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Hayden Planning Commission recommends annexation of North Government Way for future commercial and residential development
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Summary
The Hayden City Planning and Zoning Commission on Dec. 15, 2025, voted to recommend a city-initiated annexation of North Government Way and three adjacent parcels, imposing standard conditions including an annexation agreement, fire-district access requirements, a Coeur D'Alene Airport navigation easement and a requirement that buildings connect to municipal sewer when available.
HAYDEN CITY — The Hayden City Planning and Zoning Commission voted on Monday to recommend that the City Council approve a city-initiated annexation of North Government Way and three adjacent parcels, a move city staff said is intended to allow access improvements and future commercial and residential development.
Donna Phillips, presenting on behalf of the City of Hayden, told commissioners the annexation would bring the Government Way right of way — roughly the stretch about 700 feet north of West Lancaster Road — and three privately owned lots into the city’s limits. “We’ve never forced anybody to annex,” Phillips said, describing outreach to landowners and the five standards staff used to evaluate the request under Hayden’s comprehensive plan and city code.
Phillips said agency review produced few objections. Northern Lakes Fire Protection District provided comments on development access and hydrant placement; North Kootenai Water and Sewer District said it is prepared to provide water service; the Idaho Department of Water Resources and Fish and Game filed “no comment.” The Coeur D’Alene Airport requested a navigation easement over the three properties; Phillips said the city added that as a condition and that property owners must enter an annexation agreement.
Two supporters of the annexation spoke during the public hearing. Bill Lehi, a land-use attorney with Foster Garvey representing Hayden Canyon 64 LLC, said the right of way is “very important” to a proposed residential and multifamily development and that annexing the right of way would allow necessary access and improvements. Lehi requested that the commission recommend approval. A representative from Artios Architecture, Lehi Lanker, told the commission the planned master plan for the site includes a fitness and wellness center, a grocery or health-food store and a sit-down restaurant and said those uses are consistent with the requested commercial zoning.
The commission heard a brief deliberation in which members agreed the proposal met plan and zoning standards. A motion to recommend approval carried with Commissioners Graham, Johnson and Morris and Chair Taylor recorded voting in favor. No opposing votes or abstentions were recorded in the roll call on the record; the commission will forward its recommendation to Hayden City Council for final action.
If the council approves annexation, Phillips said conditions will require the property owner to sign an annexation agreement; dedicate right of way and easements in accordance with the city’s transportation and intersection plans; meet fire-district access and design requirements at the time of development; and extend municipal sewer to property boundaries and connect buildings to sewer within one year of availability. Phillips also noted that applicable development and design standards in the Hayden City code will apply to any future site plans.
The commission closed the hearing after public testimony and moved directly to deliberations. The item was identified on the agenda as “PZE-twenty four-one hundred and 33, city initiated annexation of North Government Way.” A commissioner announced a recusal from the planning commission on the record, saying they expect to hear the item at Hayden City Council after stepping down from the commission.
Next steps: the Planning and Zoning Commission’s favorable recommendation and the staff analysis will go to Hayden City Council for consideration and final vote; the council hearing date was not specified on the record.

