Forest Lake council denies developer's request to release two early building permits in Hidden Creek

The Forest Lake City Council voted to deny a developer amendment that would have allowed Headwaters Land Group to obtain two early building permits for the Hidden Creek subdivision.

City planner Abby told the council the developer’s amendment would release two building permits for early starts despite incomplete site work. “To date, the milestones have not been met, but the developer has come to the city asking for a development agreement amendment, which would allow for the release of 2 building permits for early starts,” she said, and recommended denial because the lots do not yet have base course, utilities or full mass grading completed.

City counsel urged caution, saying the amendment would alter protections in the original development agreement and create financial and logistical risk if the broader project falters. “Staff’s recommendation to deny here is based on the fact that the conditions on the ground really aren't as important as the conditions being proposed in the development agreement amendment,” counsel said, warning of the potential consequences if the development were to fail.

Council members said they have worked with the developer on previous phases but sided with staff that the developer must meet the agreed milestones before permits are released. After discussion a council member moved to deny the request; the motion was seconded and the council voted to deny the amendment.

The denial maintains the city’s requirement that base course, utilities and mass grading milestones be met before the city releases building permits for Hidden Creek’s next phase. No further action on the amendment was taken at the meeting.