Gosnell's people clearly believe the latter.
Ric Williams, president of Gosnell Builders, says it should have been clear from the beginning that Hayenga wasn't entitled to residential units.
Jamie Peachey
The condominiums that Hayenga eventually developed.
Peggy Bilsten
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"Ms. Hayenga was clearly wrong and failed to adequately research the entitlements and/or received very bad advice from her attorneys and land use people," Williams said in a written statement. "Justice was served with her misstep and the actions of her team of contingency lawyers; hopefully, she will confront reality and drop her misguided legal attack on our city."
But Beus Gilbert disputes that. And at least one city official sees things much differently.
Peggy Bilsten was the councilwoman representing the Tapatio area through the 1990s. In fact, Bilsten happened to be present at the meeting in 2000 when city planners suddenly revealed that Hayenga didn't have 120 units after all.
Hayenga had hoped to call Bilsten in for a deposition. But the city's lawyers at Gust Rosenfeld claimed that the former councilwoman wasn't amenable to being called.
As it turns out, the city was playing hardball — dishonest hardball at that. Bilsten would have none of it.
Without even consulting a lawyer, Bilsten wrote up a notarized statement last November and gave it to Hayenga's lawyers.
"I am more than happy to give my deposition," Bilsten wrote. In fact, Bilsten explained, she was writing her statement because she was terribly concerned that she'd have to leave for an international trip before she'd have a chance to be deposed.
As Bilsten explained, she'd been told during meetings in 2000 that Hayenga didn't have units at her disposal. After reading the testimony of city planners Richert and Muenker, Bilsten became convinced that they'd concealed the truth.
"At no time during the meeting held in 2000 was I ever informed that the 120 dwelling units were illegally allocated by the city in October of 1995," she wrote. "Furthermore, I was never told that the city could have taken action to give property rights back to Ms. Hayenga, or I would have insisted that we do that.
"We have a responsibility as trusted public servants to do what is right and honorable."
And that wasn't all. Bilsten wrote that she had concerns about how the city had allocated those units back in 1995, the ones that ended up being taken from Hayenga. If the neighbors had really been properly notified that more density was being added, they surely would have been angry. (Just look what happened when Hayenga asked for a rezoning.) Why was no one even aware that a rezoning had taken place?
Bilsten was concerned that the city failed to post the change properly, and that the neighbors weren't notified, as required by law.
She called it a "cover-up."
"My heart is heavy as I am writing this statement, because I believe the role of public servants is to serve with integrity and honesty," she wrote. "According to the sworn statements enclosed, this was clearly not the case."
Indeed, maybe a good lawyer should have discovered why there were no units left, as Gosnell avers. But Hayenga was a Phoenix resident seeking information, in multiple meetings with the city, about property: Should it have really taken a lawyer to get to the bottom line?
Why, when Hayenga went to City Hall three times before buying the property, did the city fail to explain that there was a zoning cap that could affect her development rights?
And why, once city planners realized that there were no units left, didn't they simply explain where the units had gone? They could have told Hayenga that they'd allowed someone else to build a bunch of apartments and that subsequently, to keep the cap intact, no one else could build.
That would certainly have been preferable to making her hire lawyers and wade through years of litigation.
"I suspect the lawyers at Beus Gilbert didn't know enough about the case to ask the right questions," says Leonard, Hayenga's new attorney. "But the city certainly wasn't volunteering anything."
The city declined comment, citing the pending litigation.
To anyone's who been following the case, the question is whether the city is conspiring against Miriam Hayenga or it's merely incompetent.
Last year, something curious happened, something that suggests the latter — that city staffers really have no idea what's going on at the Pointe Tapatio.
Just to recap. First, the city told Hayenga there were 120 units available. Three years later, it turned out that there were only 12 — it'd given the others to another developer. Ultimately, Hayenga was forced to get a zoning change just to get enough units added to build condos.
Guess what the city is saying now?
You won't believe this: There are still units left.
Last year, a developer named Joe Meza wrote to the city, inquiring about how many units were available on a hilly piece of the Tapatio Cliffs development that he'd just purchased.
The city told Meza that there were 12 units.
Hayenga and her lawyer were stunned. If there were still units available, why had she been forced to go through a rezoning?
To get answers, they summoned the Phoenix planner who'd written the letter on behalf of the city, Elizabeth DeMichael. Under oath, DeMichael explained that, yes, the Meza parcel still had units.