Housing developers file lawsuit against the city of Walla Walla

A group of developers filed a lawsuit against the city of Walla Walla.

The group, Cottonwood Investors, said that Walla Walla’s City Council improperly denied their recent proposal to build 257 homes at the intersection of Cottonwood and Kendall roads, on the city’s southern edge. 

While the construction of housing in that area has been a heated topic for nearly a decade, the decision being litigated occurred on Oct. 9. That’s when the City Council went against the recommendations of city staff, voting 4-3 to reject a development agreement that had been made between the city and Cottonwood Investors. 

The council members who opposed the project said they didn’t think it aligned with the city’s comprehensive plan. Some also raised concerns about roads and flooding.

But Jim Hayner, an attorney for Cottonwood Investors, said those council members were asking the wrong questions. “The standard that they should have used was, ‘Has the development agreement met the requirements of the city development code?’” Hayner said. “And it has.”

Hayner said the 104-acre parcel on Cottonwood Road has been designated for residential development since 1994. He also said his clients have spent more than three years and hundreds of thousands of dollars working with the city to conduct studies regarding traffic, stormwater mitigation and more. 

“The City Council was simply acting arbitrarily and capriciously,” Hayner said. “The development agreement met all the statutory requirements and was fair, and therefore we believe that they were legally required to approve the development.”

Hayner noted that the development would have created jobs, housing and tax revenue for the city. One of Cottonwood’s investors previously said the project would have generated $100 million in taxes during construction and an additional $6 million annually. 

Many of the residents who live near the proposed development, however, have been opposed to it from the beginning. They feared the hundreds of new houses would affect traffic, pedestrian and cyclist safety, and their views of the Blue Mountains.

Despite neighborhood opposition, Hayner said he was surprised by the City Council’s decision. 

“I believe, from listening to them, that there are a couple of City Council members who simply are against growth,” Hayner said. They “have continually voted against projects that will add additional housing to Walla Walla, both in this area and other areas.” 

Whatever their reasoning, Hayner said council members stepped outside their lane in denying the project. And because of that, he believes the court should overturn the City Council’s decision. 

If their appeal fails, Hayner said his clients plan to sue the city for $25 million worth of damages. 

“If the court allows the city decision to stand for some political reason, then nevertheless, that’s the same as if the city has condemned the property,” Hayner said. “As we know, municipalities can condemn property and take it away, but they have to pay fair value for the property if they do so.”

NWPB reached out to the city’s attorney, Tim Donaldson. But he said he was saving his comments for court.