A legal battle that has been unfolding for months stems from the Wayzata City Council’s 3-2 vote on April 16, 2025, to deny a proposed three-lot subdivision at 565 Ferndale Road West—a decision that sparked both support and opposition, and ultimately led to a lawsuit now working its way through the courts.
The property owners—sisters Samantha Capen Muldoon, Allison Capen, and Heather Capen Cox—filed suit on May 15 through Dray Trustee, LLC, the legal entity representing the family. Their complaint alleges that the city’s denial was “arbitrary and capricious” and in violation of Minnesota law. The plaintiffs are seeking a writ of mandamus to compel the city to approve the project or, alternatively, monetary damages.
From Planning Approval to Council Denial
The proposed Ferndale Bluffs subdivision originally called for four residential lots on the nearly 12-acre parcel, but was scaled back to three lots in response to staff input and neighborhood concerns. On February 24, the Wayzata Planning Commission voted unanimously to recommend approval of the project, noting it met the city’s zoning and subdivision standards and was designed with the property’s steep topography and environmental features in mind.
At the time, the applicants emphasized that the road complied with state fire code and that a hammerhead turnaround with a 10% grade would reduce environmental disturbance.
“I felt this addressed their concerns as much as we could within the fire code—a 20-foot road, a hammerhead, at 10% grade—that’s as good as it’s going to get,” said Samantha Capen Muldoon.
However, during a March 25 City Council meeting, the proposal drew skepticism from councilmembers concerned about the visual and environmental impacts of the public road, including tree removal, grading, and retaining walls. The council tabled the item and directed the applicants to work with city staff on alternatives.
Following a collaborative meeting on April 2, two road designs emerged: Exhibit A (a narrower hammerhead turnaround, supported by the applicants) and Exhibit B (a standard cul-de-sac preferred by city staff for consistency with design standards and fire safety).
The applicants also proposed a text amendment to the city’s subdivision code that would allow more flexible “Minor Local Road” standards for small subdivisions like theirs. Staff supported both the amendment and the modified project.
Council Vote and Legal Fallout
On April 16, the City Council voted 3-2 to deny the subdivision. Mayor Andrew Mullin and Councilmember Jeff Parkhill voted in favor of approval, while Councilmembers Alex Plechash, Molly MacDonald, and Ken Sorensen voted against it, citing concerns about setting precedent, neighborhood character, and long-term planning consistency.
The applicants’ attorney, Patrick Steinhoff of Malkerson Gunn Martin LLP, warned the Council that denial could lead to litigation. “The application met the subdivision code,” Steinhoff argued at the meeting. “Denial based on neighborhood aesthetics is not a valid legal basis.”
Weeks later, the lawsuit followed. Filed in Hennepin County District Court (Case No. 27-CV-25-9408), the complaint argues that the project fully complied with the city’s subdivision ordinance and that denial violated Minnesota’s Municipal Planning Act and Uniform Declaratory Judgments Act. It asks the court to either order approval of the subdivision or award damages for what it characterizes as an unlawful denial.
City Response and Next Steps
In its formal answer filed June 2, the City of Wayzata denied wrongdoing, stating that its decision was lawful, within its discretion, and consistent with applicable regulations. The city asserts that it followed proper procedures and acted in the public interest.
The lawsuit underscores ongoing tensions between private property rights and community planning priorities in Wayzata, especially in legacy neighborhoods like Ferndale Road. While some residents supported the applicants’ conservation-minded plan, others worried about the road’s impact on the area’s wooded character and precedent for future development.
As of press time, a court hearing has not been scheduled. Wayzata.com will continue to follow the case as it moves through the legal process.
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