Wright Development sued the city in 2021 after a moratorium was placed on developments along State Street, halting the project. According to court documents, the developer purchased the land with the intent of building a bank, but in 2018, the city rezoned the area for mixed-use projects.

In the lawsuit, the developer argues that the project was approved before the moratorium and they had met all legal requirements to begin the project.

Council members LaNae Millett, David Spencer and Terry Peterson voted against the settlement. Mayor Dave Young and Council members Jeff Lambson, Debby Lauret and Tom MacDonald voted to approve, while each expressed disapproval of the project itself.

The settlement reduces the size of the project, putting limitations on the height from 79 feet, or about six stories, to 52 feet, or four stories, and reducing the number of apartment units to 311.

Young expressed that he strongly opposed the project but, “I’m up here with one hand behind my back tonight.”

Young blamed the issue on past city leadership, who had approved the development and the State Street Master Plan. He also stated the public doesn’t have the whole story, adding at some point “we can tell you the rest of the story,” but he didn’t further explain.

Residents within the neighborhood, some families with children, came out in force against the project during public comment, expressing concerns about traffic, safety and parking.

The mayor and other council members argued that without the settlement, the lawsuit could go forward with the possibility of the city losing, meaning the project would go back to the original plan and occupancy.

Some of the citizens argued against the compromise, saying having the development there, no matter the scope of the project, would harm the neighborhood and increase traffic.

Peterson, who voted against the settlement, said he was against any compromise.

“Wright Development, their developers, I don’t know why you’d want to take on people in this neighborhood and think that you might win this battle,” he said. “You’ve got other properties in the state.”

Millett, who also voted against it, stated this issue arose because past city leaders approved the State Street Master Plan.

Young asked the developer to take a “heartfelt” look at their actions after listening to residents speak against the project. “Is that what you want your legacy to be?” the mayor said, speaking to the developer.

Short-term rentals and a new city seal

The City Council also was given an update on short-term rentals during the council’s work session, with city representatives making recommendations to clarify the city code on such rentals and updating on the Goat House issue.

The City Council was informed that the Goat House property was found in violation of city regulations and had been ordered to cease operations until they were in compliance.

The Goat House was a short-term rental property located in an Orem neighborhood and caused many complaints from residents about traffic, a high number of guests and large parties. In one instance, a sorority had rented out the property for a party of nearly 200 people, a city official said during the meeting.

While the city seemed to resolve the Goat House issue, officials also found the city code didn’t have specific regulations or recommendations regarding short-term rental properties and recommended the city work to create and adopt requirements.

It was also noted some members of the Utah Legislature have draft bills addressing short-term rentals, but that draft legislation hasn’t been made public yet. Currently, Rep. Gay Bennion, D-Cottonwood Heights, and Rep. Stewart Barlow, R-Fruit Heights, have open bill files on the subject, but draft language is not publicly available yet.

The City Council also adopted a new city seal during Tuesday’s meeting, adding “In God We Trust” to the top. The city previously adopted “In God We Trust” as its official motto.

Earlier this month, the Freedom From Religion Foundation sent the Orem mayor and City Council a letter arguing against the motto, saying it is “inappropriate for the City to adopt a religious motto.”

City Attorney Jake Summers reassured the mayor and council on Tuesday that any legal challenge regarding the motto’s constitutionality would likely fail, as most legal challenges against the display of the motto have failed across the country.

The resolution for the new city seal passed unanimously.