Lawyers for Beaver County also were pleased when 5th District Judge John J. Walton dissolved a temporary restraining order filed against the county by a group of property owners in Elk Meadows Resort.

The restraining order had put a hold on the exclusive Mount Holly Club, which is proposed for private land within Elk Meadows, until a trial can determine if the process used in creating the development agreement followed county and state law. The trial also would decide if a petition for a vote on the development agreement would stand.

The Elk Meadows property owners claim the public process that resulted in a development agreement between the county and Mount Holly developers was flawed. The county commission approved the agreement in May.

A group of Beaver residents also joined the lawsuit and filed a petition with the county attorney that calls for a referendum on the development's planning agreement.

On May 25, 5th District Judge G. Michael Westfall granted the temporary restraining order and set a trial date for July 12.

Westfall recused himself from the case this week, and it was given to Walton.

After dissolving the restraining order during Wednesday's motion hearing, Walton set a new trial date of June 21-22 in Beaver to hear arguments on the validity of the residents' referendum petition and if the planning process was accomplished by the county in compliance to state and county laws.

Also on Wednesday, Walton granted a request by CPB Development LC of Salt Lake City and Mount Holly Partners LLC to join the lawsuit as a defendant with the county.

Lawyers for the developers argued that as property owners in Elk Meadows the developers have a right to defend their interests.

The developers' lawyers were pleased with Walton's decision to include them in the suit and to dissolve the temporary restraining order.

"We're happy its gone," said lawyer Jay Peck, of Walton's ruling. "We'll see what happens now."

Since proposed more than nine months ago, the Mount Holly Club has been met with suspicion and fears the development will pollute pristine water sources and deny access to areas in the mountains that have been used for recreation by generations of Beaver families.

Others support the project as the economic panacea the county needs to help schools and build a strong tax base.

Bill Quick, a spokesman for the developers, said after court Wednesday there have been a lot of rumors going around the county by opponents of the proposed club, especially about water.

"They're scaring a lot of people by spreading false information, even if unknowingly," said Quick. "We're not here to steal their water. It's not true."

Many who hold water rights on the Beaver River are still afraid the proposed club could leave downstream users high and dry in summer. Promises of compensating water users for lost water doesn't satisfy Carol McCully, who owns water shares from the Beaver River.

"I don't want compensation," she said Wednesday. "I want my water."

mhavnes@sltrib.com