Orem council approves Meadow Gold lawsuit settlement 4-3 and rezones behavioral hospital site
December 12, 2023, 5:00 p.m. · City Council Chambers, 56 North State Street, Orem
The Orem City Council voted 4-3 to approve a settlement with Wright Development Group over the former Meadow Gold property at 841 South State Street, allowing up to 311 apartments in a building limited to four stories, after a public hearing in which residents spoke against settling. Members Terry Peterson, LaNae Millett and David Spencer voted no. The council also voted 7-0 to rezone about 6 acres for a 24-bed expansion of Provo Canyon Behavioral Hospital, adopt a new city seal and a historical marker resolution, and accept the fiscal year 2022-23 audit. It was the last meeting for Council Members Lauret and Peterson.
From the approved minutes. Updated October 14, 2026.
Decisions at a glance
Agenda, item by item
Item Sched. · Development
Settlement agreement with Wright Development Group, 841 South State Street (former Meadow Gold property)
Approved · 3-3
City Attorney Steve Earl said Wright Development submitted a mixed-use proposal in 2021, a dispute over the application followed, the city placed a moratorium on it and the developer sued. The settlement would allow a residential project with a maximum height of 52 feet and four stories (a rooftop stair, elevator and lobby structure up to 64 feet), a maximum of 311 residential units, at least 650 parking stalls and no commercial space. The developer would have three years to complete an approved site plan and two more to pull permits; a full site plan and traffic study would still be reviewed. Council members asked about one-way or closed streets such as 900 South and 400 East; the traffic engineer said options existed but a cul-de-sac was harder than he first thought. More than a dozen residents spoke at the hearing, nearly all against the settlement, citing neighborhood traffic, speeding, children's safety, parking, building height and density, and some urged the city to keep fighting the lawsuit or buy the land for a park; one speaker suggested a medical use. Mayor Young said his preference was not to move the project forward, but that the council had been advised to settle and had to weigh the total risk to the city; he asked about traffic measures regardless of the vote. Council Members Jeff Lambson and Tom Macdonald agreed with the mayor, and Lambson wanted traffic calming. Council Member Debby Lauret said she did not want to risk more money being spent. Council Member Terry Peterson said he was angry about the project and would not vote for it. Council Member LaNae Millett said it was high-density housing in a neighborhood but that she was forced to vote and saw no winning option. Council Member David Spencer said he had been sold a different vision under the State Street plan and wanted the developer to work with neighbors.
- Applicant: Wright Development Group
- Max height: 52 feet, four stories (rooftop structure to 64 feet)
- Max units: 311; min parking: 650 stalls
- Commercial area removed from the project
Item Sched. · Zoning
Rezone for Provo Canyon Behavioral Hospital expansion, 1350 East 740 North (PD-52)
Approved · 6-0
Assistant Development Services Director Jason Bench said the rezone from R12 to a new PD-52 zone (about 6 acres) lets the existing behavioral hospital stay and add a 24-bed, one-story expansion, with hospital services and secondary schools the only permitted uses and a cap of 154 beds. The Planning Commission recommended approval. A neighborhood representative supported the expansion after changes made for neighbors but asked that the smoking area near homes be moved or screened; Bench said the council could direct the hospital to keep working with neighbors. The council added the 154-bed maximum as wording suggested by the city attorney.
- Applicant: Provo Canyon Behavioral Hospital
- Acres: about 6
- Current zone to proposed: R12 to PD-52
- Bed cap: 154; expansion 24 beds
Item Sched. · Budget
Independent financial audit, fiscal year 2022-23
Approved · 6-0
Finance Director Brandon Nelson and auditor Jon Haderlie of Larsen & Co. reported an unmodified (clean) opinion on the financial statements and no compliance or internal-control issues on federal funds. The general fund grew $5.4 million, including $3.7 million from interest as rates rose from 1 percent to 5 percent. Two findings: the facilities maintenance fund is in deficit and must be reduced by 5 percent of its revenue annually, and the general fund balance is 40 percent against a 35 percent state limit, held for projects such as the new city building.
Item Sched. · Other
Resolution adopting a new city seal
Approved · 6-0
Deputy City Attorney D. Jacob Summers presented a seal with the city name, year of incorporation, 'Family City USA' and 'In God We Trust'. He said courts have upheld the motto on coins and in government buildings and that he was confident the city would prevail in any challenge.
Item Sched. · Parks
Historical marker resolution and Women's and Children's Memorial
Approved · 6-0
The resolution directs the city to create a historic marker program and includes the Women's and Children's Memorial; the parcel on 1600 North is in the PF zone and the resolution calls for planning landscaped open space, a marker and a possible future well house. Costs are unknown; City Manager Brenn Bybee said only staff time and a design firm would be needed at first, and fundraising may follow.
Item Consent · Appointment
Consent: 2024 meeting schedule, mayor pro tem and appointments
Approved · 6-0
Approved the 2024 council meeting schedule; named David Spencer mayor pro tem for January to June 2024; and made appointments to the Beautification, Recreation, Library and CDBG commissions.
City code
Short-term rentals update (work session)
Discussed
Deputy City Attorney D. Jacob Summers said the Orem administrative court found a rental operation violated city code on animals, single-family use and non-permitted use, and ordered it to cease until regulations are adopted. He gave his legal opinion that short-term rentals are not a permitted use in Orem. City Attorney Steve Earl said a state bill on the topic is expected; the council's direction was to track the bill while continuing to update city code.
Roads and utilities
Traffic tiger team update (work session)
Discussed
Public Works Director Chris Tschirki said the team has handled 54 cases, 29 resolved and 25 active. For the 600 West request raised in November, the team found low volumes and speeds, and the area will be reevaluated when a UDOT signal goes in.
What residents said
Meadow Gold trafficChildren's safetyBuilding height and densityParkingShort-term rentals
Residents commented on the Lights On event (stage lighting and Santa's arrival), thanked the city for short-term rental enforcement, raised the removal of trees on State Street and thanked the council for the memorial designation resolution. Residents who spoke on the Meadow Gold settlement are summarized in that item.