Douglas County pauses Muller Parkway Phase 2; RTC removes Phase 2 from contractor scope amid ongoing litigation

The Douglas County Board of County Commissioners voted unanimously on May 21 to pause construction of Muller Parkway Phase 2 until the pending litigation over the project is resolved. At the joint meeting sitting with the regional transportation commission (RTC), staff also were directed to issue a change order removing Phase 2 from the current contractor's scope of work.

County engineer Jeremy Hutchkins told the board that staff lacks permanent easements and legal access needed to install multiple culverts and slope work on land owned by Park Ranch and other parcels. "Those lands have not been obtained, and we do not have the ability to occupy them from the court," Hutchkins said, describing physical impediments that make continuing work impractical.

Deputy District Attorney A.J. Hayes outlined the legal risk: Park Ranch has asserted claims that the county's design would redirect flood flows and could expose the county to damages the company has estimated in prior communications at "in excess of $15 million to $20 million or even more." Hayes said the county believes those claims will not ultimately succeed at trial, but he recommended pausing construction while the parties resolve claims or proceed to trial (the litigation is scheduled for October 2026). "Our recommendation is for the board of county commissioners to direct staff to pause construction of Phase 2 until the litigation is resolved," Hayes said.

Commissioner West Rice moved the pause, seconded by Commissioner Tolbert. The motion passed 5-0. The board's pause directs staff not to proceed with activities that would further install the Phase 2 improvements until either (a) litigation is resolved or (b) the parties reach a settlement that clears the legal cloud over the project.

Separately, while sitting as the RTC (three voting members present), commissioners directed staff to issue a change order to remove Phase 2 from the current contractor's contract. The contractor's name is recorded inconsistently in the meeting materials and public transcript (appearing as Call Contractors Incorporated, "Calcon," and "Qualcom/Qualcomm Incorporated" at different points in the record); county staff explained the change order would remove Phase 2 from the active contract so the contractor would be relieved of that portion of the scope. If and when construction resumes, the county would need to rebid the Phase 2 work or negotiate a new contract.

The decision followed extended public comment from landowners, attorneys and residents who urged transparency and asked why alternatives identified in prior planning materials ' including upstream detention at a Douglas County Sewer Improvement District (DCSID) site ' were not advanced. Several speakers argued the county and staff had earlier analyses indicating upstream detention would substantially reduce peak flows, and asked why that information had not been presented to the board at the time the 2019 development agreement was adopted.

Hayes and Hutchkins said the pause is a risk-management decision to avoid the possibility of having to remove new improvements or pay large damage awards if a court finds the county acted improperly or if Park Ranch proves its claims. The county will return to the board if parties reach a settlement or after court resolution.

What happens next: staff will suspend Phase 2 construction activities; the RTC change order removes Phase 2 from the contractor's scope, and the county will evaluate contracting and permitting options if the litigation is resolved. The board also signaled it will continue public reporting and transparency about the project's status.

Quotes: "Without the ability to install the culverts, it is impractical to continue with construction," county engineer Jeremy Hutchkins said. Deputy DA A.J. Hayes warned, "There is the possibility that if the road is constructed the county could be on the hook and the taxpayers therefore could be on the hook for a 15- to 20-million dollar award."