As with much of the land along the Wasatch Front, Farmington's shrinking pool of available real estate became a magnet for developers searching for their slice of paradise.

But paradise is a matter of perspective. In defining land uses, cities struggle to strike a balance between sound planning, historical preservation and protection of personal-property rights. In Farmington, the current planning donnybrook involves a historical stone mill, an auto repair shop surrounded by junkers, and a proposed housing development. The latest salvo is a lawsuit targeting the City Council and its decisions in the matter.

One of the main players in this development drama is Tom Owens, who owns the sturdy Rock Mill. "This is the greatest Mormon relic in private hands," he says of the building he nabbed at an auction in 1992.

Owens said he paid rock-bottom prices, about $216,000 for the seven-acre parcel with two existing structures.

The three-story grist mill, built by Mormon millwright Frederick Kesler, dates back to 1860; a newer reception center was erected to the south of the mill a century later.

"The [mill] itself is a museum piece. If I die before I sell it, I'll leave it to the church," Owens said.

In the past 15 years, Owens poured $1.5 million into refurbishing the majestic 5,500-square-foot structure, but much work remains to be done, he said.

A renegade Mormon, Owens said he's still a member "because I never got kicked out."

Owens views the religion as a "distinctly American movement" that now boasts millions of followers across the world

"I want to protect that history," he said, adding that he believes "Farmington is the last bastion of Utah history."

His vision includes preserving land around the mill as open space.

A difficult transaction

Larry Haugen, who serves on Farmington's City Council, owns and operates an auto-body repair shop on 10 acres southwest of the Rock Mill.

"They've been a thorn in the side of the city for 50 years," Owens said, referring to the junk cars strewn across the land.

Haugen would like to oblige Owens and move.

"We're grandfathered in, but I'm tired of fighting," he said, adding that he has had several offers.

But the whole transaction is not as simple as it sounds.

"The problem we have, the developers did everything they could to comply with the city's wishes and were still denied [a rezone]," Haugen said. "I've never seen it happen like this. Something's wrong."

The North Park Development team of Terry Deru and Brady Hall configured two proposals that sailed through the city's Planning Commission with positive recommendations, only to be be voted down by the City Council.

Their first proposal - 30 upscale twin homes, 60 units total - got axed in November. Deru and Hall scaled back their plan to 12 twin homes and 12 single-family homes - 36 units altogether.

Last month, the council (minus Haugen, who recused himself during both votes) once again slammed the door.

North Park had worked with Haugen and the city for 18 months, trying to find that sweet spot where everyone would benefit. Meanwhile, strong-minded residents banded together to oppose any inclusion of twin homes.

"We rose up in revolt," Owens said, estimating there were "at least 50 of us angry old men trying to preserve the past against the march into the future."

Owens had strong praise for the mayor and council.

"It's wonderful to see democracy working like it should," he said.

A city's dilemma

On March 2, Haugen and North Park filed suit in 2nd District Court against the city and council members, alleging the council's February decision to deny was illegal, arbitrary and capricious.

"We took great care to respect the historic. We were told by some that we'd made the ideal plan," said the frustrated Hall, noting they already had a list of people who wanted to buy units.

Hall asserted that the opposition gained behind-the-scenes momentum by spreading false information that North Park's plan was similar to the high-density Garbett condominiums near Inter- state 15.

"They'd give us direction, then switch gears," Hall said of city officials. "You can't always see the wind, but you can see what the wind moves."

Hall hopes the city's process can be refined to be more equitable and less nebulous.

"Both of us [Deru included] would like to see a correction happen - if not for our sake, for the next guy who comes along," Brady said.

Mayor Scott Harbertson acknowledged that twin homes and fourplexes - dating back to previous decades and city administrations - already populate some of the neighborhood near the mill.

"That property is right at the edge of the historical downtown. The current council felt that more twin homes in that location wasn't what we wanted to encourage," Harbertson said.

While North Park hopes to improve the city's process for the next guy, Harbertson and the council are equally concerned about future proposals and the precedent this one would establish.

"There's another adjacent parcel. What would stop developers from putting more multifamily dwellings to the west?" Harbertson said.

And as much as he and others would like to see the Haugen garage gone - one of the city's wells is in that area - preserving Farmington's old-town ambience won out in the end, Harbertson said.

Max Forbush, Farmington's city manager for 30 years, said Farmington is "strategically located in the high-growth area along the Wasatch Front and land values are escalating beyond imagination.

"Municipalities often dance on the head of a pin in trying to master-plan and follow the values of its citizens, while at the same time treating the development community fairly as required by state statute."

Meanwhile, doomed deals like North Park's end up in court.

As for Haugen, whose shop has been at that location for a half-century, what would a few more years matter?

"We have prime property they're trying to discount. We'll wait them out."

cmckitrick@sltrib.com