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Rathdrum council approves consideration of Hollis Woods text amendment to allow contractor-focused commercial park

Rathdrum City Council · April 22, 2026
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Summary

After a contested public hearing, council approved consideration of a text amendment to allow building-developing/general contracting uses on the Hollis Woods C1 parcel, a move proponents said would ease leasing for small local contractors while critics said it narrows neighbor review of tenants.

Rathdrum — The City Council voted to approve consideration of a text amendment that would allow building-developing and general contracting uses across the Hollis Woods commercial parcel, a single‑owner development planned for the triangle south of the railroad tracks.

The property owner, SAM Investments LLC, represented by Tommy Dman of Lake City Engineering, told the council the project envisions 18–20 small office/warehouse buildings leased to local trades — electricians, plumbers and landscapers — and that a text amendment would spare each prospective tenant a time-consuming conditional‑use permit process. “We’re asking for a text amendment to the zoning on this parcel,” Dman said, describing it as a way to avoid repeatedly asking the council to approve narrowly defined conditional uses.

Opponents and some council members argued a blanket change would remove opportunities for neighbors to review individual tenants. Councilmember John raised procedural and public‑participation concerns, saying the amendment would “remove individual choice and feedback from the community on what individual units go into this particular development.” He urged the applicant to return with a specific list of acceptable business types or seek a different zoning path that preserves neighborhood notice.

Staff said the change is a text amendment to permitted uses for the parcel’s C1 zoning and would not change the map designation. The city attorney warned that if the council denies an amendment applicable to an owner’s land the applicant might request a takings analysis; staff said such claims are evaluated case‑by‑case. Planning and Zoning had recommended approval unanimously.

After extended deliberations over process and public notice, councilmember Larry Sanders moved to approve consideration of the amendment; the motion was seconded and the council recorded the motion as passing. The record shows the council debated but did not adopt code‑wide changes; it approved the specific consideration for the Hollis Woods parcel and directed how the applicant might refine the request going forward.

What happens next: The approval moves the text‑amendment request forward in the city’s land‑use process. City staff said the broader Title 15 code updates that would make similar uses permitted citywide are scheduled for a workshop and public hearings; council members indicated they expect to see refined language and potential limits or conditions — including narrower lists of allowed trades — before final adoption.

Council members, applicants and residents said they expect further hearings and options for reconsideration; neighbors will continue to have the opportunity to submit written comments or speak at subsequent hearings and any final ordinance adoption will be subject to required public‑notice procedures.