Another lengthy clash over development along the St. Croix River was decided in court Thursday, but this one may not be over.

Washington County District Judge Mary Hannon, who has been presiding over a three-year lawsuit by a condominium developer against the city of Afton, rejected the company's request for a new trial. The next step could be the Minnesota Court of Appeals.

"It is our intent to appeal, but we have not made a final decision on that," said Daniel Cragg, attorney for GJ&M Development. The company is co-owned by Gordy Jarvis, who is also co-owner of the Afton House Inn in the city's Old Village. The $16 million, 48-unit luxury condo plan was proposed for the Old Village area.

The case is emblematic of Afton's continuing struggle to balance tax-generating development with a desire to retain the river community's historic character.

Although the legal issues are quite different, Hannon's ruling comes less than two weeks after the Minnesota Supreme Court ended a four-year legal feud and cleared the way for broadcast executive Rob Hubbard to build a 10,000-square-foot home on the river in Lakeland, a neighboring river town.

In the Afton case, GJ&M sued for $6 million in damages after the city held up the project.

In January 2007, Afton's City Council voted to put a six-month moratorium on development with the stated purpose of having its land use and planning evaluated. That decision stopped the condo plan in its tracks, and the development company sued the city and former and current city officials the following April.

Jurors last December found in favor of the city.

Much of Thursday's arguments centered on Hannon's rulings to exclude testimony and evidence over alleged wrongdoing by city officials at the jury trial.

Cragg argued that former Mayor Charlie Devine should have been allowed to testify. "We weren't allowed to argue a case with our key witness," Cragg said.

But George Hoff, attorney for Afton, said the allegations against city officials were without merit, and said Hannon's ruling at the trial was proper.

In ruling against a new trial, Hannon said the role of Devine, who is not named in the suit, was too remote from events leading to the trial and stood by her earlier decision.

A decision to appeal must come within 60 days of the judgment being entered.

Jim Anderson • 612-673-7199