North Oaks, the exclusive bedroom community in northern Ramsey County, is nearing completion after seven decades of meticulously controlled growth.
But the final build-out in the private, tony suburb of 5,200 is sparking controversy, with some residents and City Council members challenging a longtime developer's plans to build 174 luxury houses, twin homes and condos under a 1999 agreement.
Tensions have run high for the past year and escalated this month at a City Council meeting, when the council confirmed on a 3-2 vote that the North Oaks Co., owned by an heir of St. Paul rail magnate James J. Hill, has the right to construct the last remaining homes in the 1999 agreement.

Mayor Gregg Nelson and two other council members were adamant that the developer can construct the additional homes over the next nine years.
"This is a valid agreement. North Oaks Company owns that land. They have the absolute right to build on it," consistent with the planned development agreement, said Nelson, an attorney.
But two council members say the 1999 contract and ensuing amendments are unclear, and that construction a decade ago of Waverly Gardens, a 235-unit senior living and care campus, may restrict what can be built now.
Council Member Kara Ries said she fears the city is giving the North Oaks Co. "carte blanche" to develop the city's remaining acreage.
"No one is saying we should stop development," said Ries, also an attorney. "We have to think about what's best for the community."