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A report commissioned by Draper City says there is a potential for landslides within the 3,800-acre SunCrest development now being built high on the hillside above the southeast Salt Lake Valley community.
Attorneys for the developer - a national company named Terrabrook - maintain the report is based on "faulty science," and they worry that making it public would "ruin the reputation" of SunCrest. So they threatened the city with a $500 million lawsuit if it released the report's recommendations.
The attorneys backed off shortly after The Salt Lake Tribune requested a copy of the threatening letter.
One event is not related to another, says SunCrest attorney Bruce Baird, a principal with Sandy-based Hutchings Baird and Jones.
"The withdrawal had nothing to do with the [Tribune] request," Baird said Monday. "We had discussions with the city and felt it was appropriate to withdraw the notice of claim."
The contested report was created by Portland, Ore.-based Landslide Technology (LT). The firm was hired to conduct a cursory review of geological findings along Traverse Ridge, which affords spectacular valleywide views.
Baird pointed out that Terrabrook has spent more than $1.5 million on its own geologic tests. He said those studies - conducted by "people who literally wrote the book" on the subject - show how the developer will minimize the landslide potential.
City Councilman Paul Edwards isn't impressed.
Whenever "we've hired studies to be done concurrently, we've always come to very different opinions," said Edwards, who believes SunCrest's threatened lawsuit was an intimidation tactic.
The LT report indicates an ancient landslide underlies the massive Traverse Ridge where 650 of the 3,800 potential SunCrest homes already have been built.
"There's nothing active that shows it's moving today," said LT's George Machan. "But the ridge has the appearance of having slid in the past."
The clay soils layered underneath were formed from volcanic ash. When saturated with water, these soils could give way, he said, adding that further studies are needed.
The LT report - much of it based on Utah Geological Survey (UGS) data - was initially presented last month to the City Council behind closed doors. The meeting was private, Councilman Bill Colbert said, because officials were concerned the issue could end up in court - and state law allows meetings dealing with potential litigation to be closed.
Council discussions have focused on how early elected officials should let people understand perceived risks, said Colbert, who himself owns a SunCrest home.
"This isn't black and white," he said. "There's no evidence to say there's immediate danger or that anything's moving. But we don't want to get to that point before we respond."
According to senior UGS geologist Bob Biek, landslides may be only one threat to the area.
He mapped the east side of the Traverse mountains two years ago and came to the conclusion that the area - in close proximity to the Wasatch fault - also could be hit by a strong earthquake.
While the risk of both events persists, no one knows for sure if and when either could occur, he said.
"The big problem at Traverse are the volcanic ashes, which are deeply weathered and not very strong," Biek said. "When they get wet or oversaturated, there's a tendency for those things to fail."
Terrabrook Vice President Ed Grampp said SunCrest has been in the works for close to a decade.
"We've spent years doing very detailed studies - we hired the best consultants we could find to study the mountain," Grampp said, adding that those studies have been filed with the city and are a matter of public record.
"We'll meet or exceed industry standards" - in terms of mitigating the threats, Grampp promised.
SunCrest attorney Baird said it is "difficult to know what people are going to do" when they hear about landslide/earthquake potential.
''The trouble in the geologic industry is that some things are called landslides when they haven't moved in a million years. It's very difficult to explain the science of these hundreds of pages of reports if someone gets overwhelmed by the 'L-word.' ''
For now, Colbert said he has no plans to put his SunCrest home up for sale.
"We're not panicking - but I may look into more insurance to protect my investment," he said.
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Tribune reporter Jacob Santini contributed to this report.
About SunCrest:
l Master-planned community
l 6,200 feet above sea level
l 650 homes already built, 3,800 units possible
l Homes range from $220,000 to $2 million
l 2,000 acres of open space
l 35 miles of hiking trails
l Village center with a store What's next:
l Tonight at 7: Utah Geological Survey presentation at City Council meeting, 1020 E. Pioneer Road.
Dealing with landslide risks
Actions that unbalance landslides:
l Large fills with residences on top of landslide terrain
l Cuts near toe of landslide
l Changes in groundwater - irrigation, leaking pipes & pools, runoff
Risks of developing on ancient landslides
l Earthwork can unbalance potential slides
l Comprehensive geotechnical models can yield uncertain results
l Mitigation might not be done in the right location due to those uncertainties
l Mitigation may reactivate or unbalance other landslide areas
How to manage potential landslide risks:
l Inform the public
l Implement city program to monitor possible ground movements
l Establish emergency fund for potential landslides - either developer-financed or with a special improvement district
l Require full disclosure for all home sales
l Consider group landslide insurance
l Devise new paradigm for development, requiring either avoidance or full mitigation
l Consider changing the development-permit process
- Source: Landslide Technology Report