Carefree Town Council discusses the next move in Peloquin case
Developer and attorney say latest ruling means ‘it’s over’
by Barry Cohen                                   

CAREFREE – In a closed‑door meeting August 1, Carefree Town Council considered its next legal move following the latest court ruling in the town’s ongoing battle with developer Michael Peloquin and his company, Phoenix‑based G.P. Properties.

The Arizona Court of Appeals last week dismissed Carefree’s appeal of an April 2005 ruling by Maricopa County Superior Court Judge Anna Baca. In her ruling, Baca declared that issuance of a special use permit is an administrative action and, therefore, such permits can be issued by town staff. Carefree officials have maintained that the issuing of a SUP is a legislative act, requiring approval by majority vote of town council.

Under the administrative interpretation, it would be far more difficult for Carefree, or any Arizona municipality, to deny an SUP.

“Judge Baca’s decision was so flawed it could create havoc throughout the state,” said Carefree Mayor Ed Morgan. “All it does is show the influence developers have over the court system.”

Morgan estimated the town has already spent more than $100,00 in legal fees fighting Peloquin in the courts.

The legal battle centers on Peloquin’s plans to build a 156‑room resort hotel on 11 acres at the northwest corner of Tom Darlington Drive and Carefree Highway. The property is currently zoned residential.

Morgan emphasized that the town and its citizens do not want the resort built on that property.

The town’s planning and zoning commission in October 2004 recommended denying G.P. Properties the special use permit it needs to construct the resort. Following that recommendation, town council took no action on the SUP and, citing an “implied threat” of litigation, voted to table the application hearing.

Peloquin’s attorney, John. C. Marcolini, said, “With all due respect to Mayor Morgan, he either doesn’t understand the ordinance or doesn’t want to understand it.” He added that the Appeals Court decision means “the case is over.”

Peloquin was even more direct about the impact of the court’s dismissal.

“We have an opinion from the courts and we’re going to build a resort‑hotel,” Peloquin said. “We’ll start construction as soon as we get that SUP (special use permit).”

Although Morgan did not specifically say what the town will do in the wake of the latest court decision, he did say the town may consider filing an appeal in the Arizona Supreme Court.

The legal battle between the developer and the town extends to the federal courts. In a separate action, G.P. Properties in July 2005 filed a lawsuit against the town, its council members and their spouses over the permit denial. That case is currently pending in the U.S. District Court for the District of Arizona.

Reach the reporter at barry@thedesertadvocate.com.