The Rathdrum City Council unanimously approved Hayden Homes' request Wednesday to rezone the 127-acre Arestad property, clearing a path for a 500-home development.

While the request was initially denied following a public hearing last month, Hayden Homes requested a redeliberation June 11.

The request to rezone the acreage bordered by Boekel and Meyer roads to mixed-use residential was approved 2-0, with John Hodgkins again recusing himself from deliberations following previous allegations from Hayden Homes that he had engaged in “multiple ex-parte actions.” 

Councilor Ken Owens was not present.  

Mischelle Fulgham, a land use attorney and legal representation for Hayden Homes, said the homebuilder had met the criteria for rezone approval.  

"The action that the council instructed ... that the applicant could take to gain approval was very clear — fix all of the items identified in the traffic impact study," Fulgham said.  

Fulgham said Hayden Homes has agreed to facilitate road improvements to the Lancaster Road and Railway Avenue intersection as well as the Meyer and Nagel intersection.  

The homebuilder also agreed to frontage improvements on Boekel and Meyer roads, traffic mitigation on Nagel and Railway and an extension of Hiawatha Lane, “a collector roadway which is to be located along the east property line of this development," according to a March 2025 memo from city engineer Kevin Jump.  

Hayden Homes will also foot 10%, or up to $150,000, of construction costs for a roundabout at the intersection of Lancaster and Meyer, which the city identified as “operating below the acceptable level of service” in 2022.  

“The applicant has gone above and beyond,” Fulgham said.  

Hayden Homes plans to build nearly 500 homes on the property over the next six to eight years.  

"I think a lot of people think these houses are going to show up Aug. 1," said Councilor Larry Sanders. "We're only talking about rezoning; this isn't a subdivision. It's potentially going to be, but that's a different process at a different time."

The approval was met with silence by the several dozen residents in attendance, with many leaving after the vote was made. 

“People want a small town, but (Rathdrum) just keeps growing,” Lois Sales said. “People are going to be upset — they're tired of it.” 

Hayden Homes could not be reached for comment.