Neighbors of a controversial proposed housing development at the edge of an environmentally sensitive wetland in Savage are willing to withdraw a lawsuit against it, declaring at least a temporary cease-fire.

That doesn't mean the issue has disappeared. But it does suggest that a messy problem has been put on hold.

"Right now there's nothing for a judge to decide," said Alexandra Klass, a University of Minnesota law professor representing the unhappy neighbors.

The battle was turning out to have the worst possible timing. The city is trying to drum up support for a major civic undertaking, the $2.4 million McColl Pond Environmental Learning Center, which seeks to promote awareness of the importance of the natural world. Groundbreaking for that was in May.

At issue in the lawsuit was the proposed Dan Patch Trail housing development, which was to be located near the main body of a celebrated natural feature, the delicate Savage Fen.

Neighbors objected, and demanded a far more thorough environmental review than had been done. They sued.

Recognizing that litigation could halt the process for years, Red Angus Development LLC agreed to order its own study.

After that, the city withdrew its approvals for the project, asking the developer to take some additional steps before resubmitting a new application.

Given that all that has happened, Klass said, it makes sense to drop the suit. "But we are reserving the right to challenge the city and the developer in any new project, if one ever comes along."

Jason Kuboushek, an outside attorney with the Iverson Reuvers firm in Bloomington, which is representing Savage in the case, said he expects the parties to agree to dismiss it.

"We're waiving any possible costs," he said, "and the plaintiffs are willing to voluntarily dismiss it."

With all that would need to be done to restart a development, it's questionable whether the process to get it rolling in this construction season could be completed, said the city's planning manager, Bryan Tucker.

"It's not their intent [to miss this season], but a lot of things have to come together here," he said. "The best I can tell, they are still committed to doing this project and still trying to work through the check-off list of things that need to be done, including a renewed wetland permitting process."

The suit has always been directed mainly at the city, not Red Angus Development, but a company attorney could not be reached for comment.

As for the neighbors, Klass said, they are waiting and watching.

"There would need to be significant environmental review done if any new project comes forward," she said, "but we don't know what that would end up looking like at this point."

David Peterson • 952-882-9023