Justices deny Rock Canyon property owner's annexation challenge

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The Utah Supreme Court says it's too late for a Rock Canyon property owner with rock extraction ambitions to fight Provo over whether his land is within city boundaries.

Richard Davis of Springdell purchased 83.5 acres near the mouth of the canyon with a business partner in 1998, aiming to extract some of the rock there and sell it. He had hoped to seek approval for the project through Utah County rather than the city, which has expressed interest in preserving the land. To do so, his attorneys challenged the Heritage Mountain Annexation, which turned over the land from the county to the city in 1978.

Davis's attorneys argued that under state code, annexation is not completed until taxes have been levied against landowners in the affected area for more than a year. Davis said his property was never taxed, hence a one-year window to challenge the annexation didn't apply. But the state's highest court upheld the decision of the 4th District Court in Provo that a broader four-year statute of limitations applies, prohibiting Davis from challenging the annexation.

The decision is a blow to Davis's efforts to build an extraction operation on his property. He did not return a phone message left at his home early Monday afternoon. His attorney, Michael Zundel, did not offer comment by press time, citing other obligations to his time.

Provo spokeswoman Helen Anderson said the court's decision brings involved parties one step closer to resolving Rock Canyon's fate.

"There are many other issues in the case, and it's nice to have this one behind us," she said. "The decision that the city's annexation of the property 30 years ago was valid will help us move forward."

Thanks to the plot's convoluted ownership history, there is more litigation pending. Much of it surrounds the 50-percent interest Davis doesn't own. That was originally held by Greg Sperry, an Arizona man who bought the property with Davis. Sperry came up $37,500 short of his half of the $150,000 purchase price a decade ago, and later transferred half his interest, or a quarter of the total, to the Stephen Kapelow family after Davis had paid the difference. Davis sued, citing intentional misrepresentation and breach of a partnership agreement, but the deal stood.

In October 2003, Davis hired Saratoga Springs contractors Michael McPhilomy Sr. and son to begin excavating at the Gate of Rock Canyon on the south and cliffs on the north. Without municipal approval, the move was illegal and set off a firestorm of criticism and concern from local residents who felt the natural beauty of the site was being desecrated.

In response, state Sen. John Valentine, R-Orem, and Phil Lowry, a Provo lawyer, established Red Slab LLC to acquire the property, and then granted Provo city a conservation easement. The city provided $190,000 for the group to purchase Kapelow and Sperry's remaining interest. Sperry sold his final 25 percent -- but the Kapelow deal has yet to wrap up because of legal questions.

Two central questions remain: Which of the owners has the right to say what happens to the land, and what -- if anything -- will Provo allow Davis to do?

Valentine said he still hopes that Red Slab will acquire all the land at some point and ensure its safekeeping for recreational use. The group has made offers in the past to buy out Davis -- including a $400,000 bid composed of private donations and a grant from the LeRay McAllister Critical Land Conservation Fund -- but the parties haven't been able to come to an agreement. The grant has since expired, so any attempt to buy would have to be made without that $200,000 boon.

"I'm still very interested in trying to settle this case and try to resolve it," Valentine said. "This part of the canyon is the gateway for the whole Rock Canyon area. It is used by the public and has been used by the public for decades. If you have large machinery or large rocks coming off the Rock Canyon trails, that doesn't seem like a safe place to have a mine."

• Ace Stryker can be reached at 344-2556 or astryker@heraldextra.com.

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