Nelson Trailhead housing project on hold after lawsuit; annexation noted but zoning remains federal
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Summary
Staff reported that a housing component at Nelson Trailhead is paused after neighbors filed a lawsuit challenging the Forest Service's role; although the town approved annexation for utilities the land remains federal and the town has limited land‑use control.
Paul Anthony told the committee the Nelson Trailhead housing proposal is on hold after a lawsuit from neighbors challenging a Forest Service component of the project. Anthony said a private attorney representing neighbors alleges elements of the proposal — chiefly where the Forest Service is offering housing on federal land — exceed the agency's administrative authority, and that litigation has stalled local action.
Anthony explained the town approved annexation of the parcel for utility connections, but annexation does not give the town zoning authority over federal land; the parcel remains federal property and the town's land‑use jurisdiction is limited. He said the town could provide water, sewer and building‑department review if the developer requests local inspections, but that the underlying land remains outside the town's zoning control.
Because of the lawsuit and federal‑land status, Anthony said the Nelson Trailhead component that would go beyond Forest Service employee housing is effectively on hold and unlikely to proceed this building season.