In a move seen as an olive branch by some and a tactical ploy by others, Cottonwood Heights is poised to create a new zoning designation for the controversial Tavaci development at the mouth of Big Cottonwood Canyon.

The Cottonwood Heights Planning Commission was scheduled to discuss the proposal for a new zone earlier this week, and the matter will come before the City Council next week. But neither body is voting at these meetings.

As described by Mayor Kelvin Cullimore, the new category would allow developer Terry Diehl to build just under 200 single family dwellings on 43 acres on the north side of the canyon's mouth. It currently is approved for 43 structures, although the present zoning would allow for about twice that many.

News of the proposed zoning designation comes after a closed joint meeting between the Planning Commission and City Council on Tuesday evening. Diehl has petitioned the city for disconnection of his land from the municipality.

The Tavaci developer earlier had sought a zoning change that would allow resort development, including a hotel, restaurant, condominiums and commercial space. The two-year effort to secure a zoning change failed after a citizens' movement in Cottonwood Heights alleged irregularities in the planning process.

Cullimore said Monday that he believes the proposed zoning has a good chance of being approved.

"We're trying to propose an ordinance that makes sense," he said. "It's a reasonable approach to something we think makes sense and would be financially viable."

The mayor conceded the proposed ordinance could be seen as an olive branch offered to Diehl after the City Council voted down his request for resort zoning in August. He noted, however, that the developer most likely would continue to seek disconnection from the municipality, although he hopes Diehl will reconsider.

"If he disconnects, we lose the tax base but still have to deal with the impacts," Cullimore said.

The City Council is slated to vote on Diehl's petition Nov. 1. If his request to disconnect is denied, he can seek redress in 3rd District Court. And that is exactly what the developer will do, according to his attorney, Bruce Baird.

Baird said Monday that the proposed zoning designation to boost the density for Tavaci to just under 200 units is a nonstarter.

"We don't appreciate the fact that the city created this zone in secret without involving the only private stakeholder," he said. "Second, this is effective down-zoning. While it appears to allow more density, when you get into details — setbacks, open space, lot coverage ratio — the so-called extra density goes away."

Diehl no longer believes he can get fair a zoning decision in Cottonwood Heights, Baird said.

"The Cottonwood Heights [planning] process is dysfunctional and captive to a citizenry that consists of NIMBYs [not in my backyard] and BANANAs [build absolutely nothing anywhere near anything]," Baird said.

One Cottonwood Heights resident, Nancy Dahill, who is a member of the citizens' group CH Voters, said she doesn't favor the proposed zoning being considered by the Planning Commission.

"Basically, I'm worried about the road. The reason they allowed as many variances [on the steep and narrow roadway] as they did was because it was for only 43 houses," she said. "With more than 43, it would cause traffic problems and the road would deteriorate very quickly."

Dahill doesn't want to see Tavaci disconnect from Cottonwood Heights, but she also doesn't think the Planning Commission or City Council should attempt to placate Diehl.

"They keep trying to make peace with the developer and it just doesn't seem to work," she said.

csmart@sltrib.com