COEUR d'ALENE - A controversial Hayden Lake subdivision proposal was denied Thursday.

The Kootenai County Commissioners turned down the Hemlock Hills subdivision proposal by a 2-1 vote, citing density, slope, and erosion concerns that could prove to be a burden for the neighborhood.

"That said, the project does have merit," said Dan Green, commissioner, who made the motion to deny the request.

If the developer, Coeur d'Alene businessman Chris Cheeley, brings a scaled-down version of the plan that included 34 lots and seven open spaces on 45 acres, fronted by Upper and East Hayden Lake roads, Green said he would be open to consider it.

Until then, the plan can't go forward, he said.

"I have to say it's disappointing, but I still think we can get there," said Sandy Young, land use planner with Verdis and representing Cheeley. "We're going to take what the commissioners said seriously and go back and see if we can design something that meets those concerns."

It's been nearly a year since the application for the subdivision was filed, and more than three years since Cheeley had been working on a plan.

The property sits south of Hayden Lake on forested residential land.

The development called for homes to be built on slopes greater than 15 percent, which county subordinances recommend against.

Opponents of the project spoke of their concerns that construction on the steep sloped property would lead to erosion and landslides, as has occurred with past projects in the area.

Project engineers, meanwhile, maintained that swales and trenches would be installed to catch runoff, and that building could be done on the slopes - which contain grades of up to 30 percent - safely and efficiently.

Commissioner Todd Tondee voted against the denial, saying that the developer and engineers met all the requirements in county ordinances.

He said the plan was consistent with the surrounding neighborhood and that the commissioners shouldn't turn down hillside development at an arbitrary slope degree because there isn't a rule establishing one, and engineers can feasibly build at any angle.

"If we pick it today," he said of choosing the angle degree cutoff, "it's picked."

But other issues played in, said Commissioner Jai Nelson, who also voted against it.

She also said she would consider a scaled down version of the plan should it come forward in the future.

"It has the potential to be a good project and a feasible project," she said. "But I can't get over my concerns of the stormwater and the erosion risks."

The proposal spurred five hours of public testimony earlier this month before the commissioners tabled the decision and visited the site. The topic reopened Thursday, with testimony and deliberations lasting four hours.

"If we have to keep going to get the plan that works, we will," Young said.