POCATELLO, Idaho — A recent ruling by the Idaho Supreme Court has reopened a contentious $21 million lawsuit against the city of Pocatello and private developers tied to the Northgate project. This decision overturned a prior dismissal by District Judge Robert C. Naftz, who had ruled in favor of the city earlier this year.
The Supreme Court’s decision enables a fresh examination of the Rupp family’s allegations that city officials and their development partners conspired to restrict the family’s access to land and reduce costs for water services. The court found fault with Judge Naftz’s earlier analysis, stating he did not adequately consider motions presented by the city and failed to allow the Rupps to contest various legal motions.
In their ruling, the justices noted that the district court did not hold a hearing on the merits of the summary judgment motion. Instead, the decision was made without allowing the Rupps the opportunity to present their case. The Supreme Court’s ruling vacated the earlier dismissal and the associated attorney fee award to the defendants, paving the way for renewed litigation.
The lawsuit stems from the Rupp Family Trust’s claims against Pocatello Mayor Brian Blad, real estate developers Ken Pape and Arvil Swaney, and their companies, Portneuf Development LLC and Millennial Development Partners LLC. The trust is responsible for a 930-acre tract of agricultural land that has been family-owned for nearly a century.
Originally, in 2017, the trust signed an agreement with Millennial to convey a narrow strip of land for the construction of the Northgate Parkway, intended to enhance connectivity between the Northgate Interchange and Olympus Drive. The lawsuit alleges that the agreement stipulated the installation of infrastructure to ensure access to the trust’s property, including critical utilities. However, the trust claims that the developers failed to follow through on these promises, effectively isolating their land.
Further complicating matters, the Rupps allege that a partnership involving Millennial, Portneuf Development, and the city intentionally devalued the trust’s property to acquire it at a lower price. In December 2018, the trust sought to protect its interests by annexing part of its land into Chubbuck for better water rates, a move that seemingly accelerated a strategy to sideline their property.
The Rupp Family Trust asserts that the Northgate Partnership obstructed their access to their land, discouraged potential buyers from considering the property, and interfered with sale negotiations. Following the completion of Northgate Parkway in 2019, an application was submitted to the city, aiming to transfer control of the road, which did not address the crucial side strips that hampered access.
In February 2022, the trust escalated its grievances by filing an official complaint against Millennial, Portneuf Development, the city, and their affiliates, citing breach of contract and fraudulent actions.
The parties involved have not responded to requests for comment regarding the case. The Rupp family, through their attorney, expressed optimism that the Supreme Court’s decision represents a substantial victory for them and sets the stage for a resolution that could benefit both their interests and the broader Pocatello community.
Pocatello Mayor Blad remarked on the Supreme Court’s ruling, noting that it offers the opportunity for the city to openly present its case, maintaining confidence in the legality of their actions. As of now, future court dates remain unscheduled as the case unfolds.
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