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Judge Lifts Injunction, Clearing State to Build Laurel Psychiatric Facility

A Yellowstone County judge dissolved the order that froze work on the state's forensic psychiatric facility west of Laurel since August, though a residents' group still has claims pending over water supply and no start date has been announc

The state of Montana can move ahead with construction on a forensic psychiatric facility just west of Laurel, after a judge lifted the court order that stopped the project in its tracks this summer.

Yellowstone County District Court Judge Ed Zink issued an order Tuesday dissolving the preliminary injunction that had been in place since August, Montana Free Press reported. The ruling was first reported by The Billings Gazette.

It's still unclear when construction will begin, according to MTFP.

How the project got stopped

The injunction halted construction shortly before it was set to begin. It ordered the state Board of Investments and the Department of Public Health and Human Services, which are jointly overseeing the project, to redo the environmental assessment, take a closer look at possible water supply problems, and allow public comment.

When the judge first ruled in late August, KTVQ reported that the order stopped all construction, groundbreaking and permitting on the project. The station reported that the state had bought the land for $4.25 million and was sitting on plans, contractors and deliveries. At that time the delay was costing taxpayers more than $8,000 a day, KTVQ said.

In new court filings, the state agencies estimated the delay is now costing $10,242 a day, according to MTFP. Laurel CARED, the residents' group that brought the lawsuit, argues the estimate isn't reliable.

Why the judge lifted it

When deciding whether to grant or lift an injunction, the court has to weigh the effect on local and state economies, Zink wrote, and any injunction must be "as narrowly tailored as the facts allow."

"In balancing these factors, the Court is compelled to lift the injunctive relief because the economic harms to the State of Montana are significant and growing," the judge wrote.

Zink wrote that the injunction was needed to make sure the state answered questions about water capacity. Since the agencies did the additional analysis he ordered, he said he needed to lift it, and an "ongoing full stop to all work" would be inconsistent with state law.

The fight isn't over

Laurel CARED has more claims pending, including that the state's additional environmental analysis falls short.

The group questions the state's water numbers. The analysis says the proposed 32-bed facility would use 2,000 gallons of water a day, but only 2,600 gallons a day if it expands to 64 beds.

"In other words, despite a 100% increase in patients and a 60% increase in employees, the State projects only a 30% increase in potable water demand," Laurel CARED attorney Liz Forster wrote.

The state agencies argue the residents haven't met the legal bar for another injunction and that the public interest favors "urgently moving forward with the acutely needed" facility, MTFP reported. Forster declined to comment beyond the group's court filings, and a DPHHS spokesperson did not immediately respond.

What the facility is for

The facility is a key part of the state's plan to ease a backlog at the state hospital and in county jails, where current psychiatric resources can't keep up. It would serve only people involved in the criminal justice system, including those awaiting trial, according to MTFP.

Laurel's water limits

The project has set off a larger fight with the city. Earlier this month, a bipartisan group of lawmakers accused Laurel officials of discriminating against people with disabilities. City officials deny it and say the city has imposed a moratorium on all new development because its water infrastructure can't support it, MTFP reported. KTVQ described the City Council's July moratorium as covering annexations.

Why it matters for contractors

The injunction is gone, but this job isn't clear yet. Contractors lined up for the project should be ready to move but keep an eye on the court docket, since Laurel CARED's remaining claims could still affect the schedule.

The bigger story for the Laurel area is water. With the city limiting new development because of its water system, builders and developers should expect water capacity to come up on projects there.

The daily cost of delay is also worth noting. At more than $10,000 a day by the state's estimate, holdups on public projects add up quickly. The state has argued in court for moving forward urgently, so crews tied to the job should be ready if work starts on short notice.