The council recently approved the creation of a new zone, similar to the city's residential zone, specifically to accommodate the proposed subdivision. Residents were unable to convince council members to postpone approval of the zone to take time to look at the geological issues raised by Gibby's subdivision proposal, but won a small victory when council members wrote in a stipulation placing critical-environment zone restrictions on hillsides with a slope greater than 30 percent.

"Knowing the special deal had already been approved, the next question is how to limit the impact of that decision," Lundberg said. "Heightened standards of development for the environmentally sensitive areas is the best we could hope for."

Gibby didn't object to restricting development on steeper hillsides, but, he said, the limitations imposed by the critical environment zone are stricter than necessary.

"If homeowners are going to have to have a permit to dig a hole or plant a bush, I'm not OK with that," he said.

Mayor Jim Brady didn't seem overly concerned about geotechnical problems with the property. It is understood, he said, that Gibby will only build on land that is considered stable.

At any rate, the City Council intends to rezone the land regardless of residents' concerns, he said.

"The reasons for the settlement still exist today," he said. "Some neighbors concerned about a new development uphill from them isn't a basis to turn around."

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