The rulings were issued by 5th District Judge John Walton based on a two-day trial last month on a lawsuit filed by current homeowners in the area where the development is planned, claiming the agreement between CPB Development LC and the county was illegal because the county did not follow legal procedure in its creation.
Walton disagreed, saying the agreement adopted as an ordinance in an administrative action did not change the county zoning ordinances so as to constitute a new law.
He also ruled that notice of hearings and procedures, and access to documents in the approval process, were legally posted.
CPB has proposed a multibillion-dollar development where the Elk Meadows Resort is now situated on private and state land surrounded by the Fishlake National Forest.
A conceptual plan for the Mount Holly Club was approved last spring by the county and requires a development agreement between the developer and county to delineate what each party would be responsible for during development.
Developers foresee about 2,000 homes on 1,800 acres to be completed in three phases spanning 10 years.
The ruling also denied an attempt by a group of county residents to get approval of the development agreement before voters.
The group gathered 845 signatures for the referendum, which would have been on the Nov. 4, 2008, general-election ballot.
Craig Smith, an attorney for the Salt Lake City-based developer who intervened in the suit as a defendant, considers the ruling filed with the court on Friday a victory.
"You never know how a ruling might go," he said. "We felt we had good evidence coming in [at the trial] and made the points we wanted to make."
County Commissioner Chad Johnson was also pleased with the ruling.
"We feel good about the decision," said Johnson. "We feel it went the way it should have."
Alan Bradshaw, a lawyer for the plaintiffs, said Friday he would reserve comment on Walton's decision until he had read the entire document.
He said it was too early to say if an appeal would be made.
Carol McCully, president of the group that gathered signatures for the referendum effort, was disappointed but not discouraged.
"We're surprised we were denied the right to vote," said McCully. "We'll have to ponder this, but it is just a pause. We're not done yet."
mhavnes@sltrib.com
* Size: 2,000 houses and town houses along with a 250,000-square-foot clubhouse to be built on 1,800 acres in three phases.
* Amenities: Private ski resort and an 18-hole private golf course.
* Cost: About $3.5 billion.
* Baseline price for house and lot: About $4 million.
* Completion: Expected to take 10 years.
