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Salt Lake City may lead the nation in home resale values, but that distinction is leading to what some consider a disturbing trend: a proliferation of monster homes in quaint neighborhoods.

Look at the Avenues, a bastion of quaintness where wedging a 7,000-square-foot "McMansion" between smaller, historic homes was once considered financial suicide.

Now, in Utah's red-hot real estate market, some homeowners believe that ostentatious is more likely to sell.

And despite a sweeping policy change in 2005 that was intended to curb monster homes in such neighborhoods, critics say the city's inconsistent permit process and blasé enforcement has created urban warfare in neighborhoods across the capital.

"Adjacent property owners [are pitted] against each other in a way that is destroying the fabric of this community," laments Shane Carlson, housing chairman for the Greater Avenues Community Council.

In case after case, once-civil streets have crumbled into caldrons of enmity. Neighbors rage at new homeowners for such construction designs. Home builders turn defensive, then resentful, pointing to permits they swear are legitimate.

In some cases, fortunes are lost and futures left cloudy. And the confusion is not confined to the upper-crust Avenues. Similar squabbles have erupted in neighborhoods spanning the city and elsewhere in the Salt Lake Valley.

Now, after 18 months of dust-ups and bruised feelings, community-council volunteers insist they have captured the culprit: the city process itself.

A Mosaic of monsters

A tour through the city's Avenues district reveals a somewhat seamless mix of historic homes and cottages. But look close and you'll find new construction that startles.

For example, the corner of 9th Avenue and G Street sat empty for years, allowing easy valley views for nearby residents. Now, a three-story mammoth with a three-car garage - it is almost finished and listed for $1.2 million - crowds the corner.

Housing watchdogs say the finished product ballooned beyond the blueprint. The roof, they say, soars above the height limit, while the city never measured. Neighbors living in the shadow of these towering structures are livid, fearful of plummeting property values and a dangerous precedent.

And critics say the design problems could have been avoided with a $1,500 survey the city refused to conduct.

"They said it was unreasonable," Carlson shrugs, pointing to the obvious spots where the home seems out of scale. "They [city inspectors] go out of their way to bend the rules for the developer."

Not far away, at 678 F Street, an architectural wonder has led to a turf war that promises to drag on for months and could cost millions to solve. The modern marvel is squeezing adjacent owners who say the city granted quick approval - then left the fight for the neighbors to fix.

"It's really cool," says Capitol Hill Community Council Chairwoman Polly Hart. "It just belongs in Holladay."

Orion Goff, the city's building-services director, respects Carlson's passion and calls him "good for the community." But Goff thinks the alarmist rhetoric is overblown.

"There's a fairly small percentage of them that cause this rancor," he says. "We used to constantly get calls on these monster homes. I get very few calls now."

But the two worst offenders remain.

At 678 H Street, a 14,000-square foot giant - it dwarfs the modest homes on each side - recently was reclaimed by the bank after the $4 million asking price scared buyers. And the McMansion at 675 8th Ave., which Goff calls "obnoxious," continues to rile residents and eviscerate views.

Still, since the 2005 ordinance, Goff notes neither could be built now.

Moving targets

Below the Avenues, compatibility problems proliferate, despite the city's efforts to literally crack down.

Air-conditioner condensers straddle property lines in the Central City area, which also is dealing with a controversial Trolley Square makeover. "Creative" home designs sprout in Wasatch Hollow. And remodels that push the edges of violation persist across the Tudor village of Yalecrest, where the worst is dubbed the "Garage Mahal."

George Shaw, the city's new planning director, says the 2005 ordinance leaves room to interpret rules in different ways - and miscommunication can be rampant.

"It's kind of plowing new territory when it comes to regulating height and bulk on these projects," he says. "Sometimes developers build things that are not in the plans, and we have to catch that."

But inconsistent planning protocols also work the other way.

On Capitol Hill, a couple wasted months and thousands of dollars fighting for approval on a modern, but modest, home measuring fewer than 1,000 square feet.

Neighbors blew the whistle on what they considered to be a street-setback infraction. It turns out that the setback was measured incorrectly. Today, the tiny lot at 667 Wall St. still sits, empty and covered with weeds.

To establish a uniform process - and put a halt to haughty homes - Yalecrest and the Avenues recently adopted still-tougher zoning standards. The motive, resident activists say, is to enforce predictable building patterns and, more importantly, keep the neighborhood peace.

Ralph Becker, an urban planner who represents the Avenues in the state House of Representatives and is running for mayor, says enforcement must be the city's responsibility.

"There just seems to be continuing problems," says Becker. "We have to work very hard to protect the historic value of these neighborhoods.

"That doesn't mean you don't allow for new development or modern structures. But it needs to be done in a way that reflects the neighborhood character."

High time for tweaks

This spring, community councils fired sharp-tongued letters, alleging that the city acts as an advocate for applicants - even when their plans violate zoning restrictions. The message was loud, clear - and, says the city's Goff, it was heard.

He believes that while land-use rights need to be honored, the housing ordinance should be tightened.

"City staff is willing to do that," he says, hopeful that recommendations will come from a broad base of residents. "The frame for that ordinance skeleton is fine. It just needs a few adjustments."

And to start, Goff pledged to get tough in the Avenues.

That should come as welcome news to area City Councilman Eric Jergensen, who has battled the bureaucracy for years to solve what he calls the "real contentious issue."

Even if loopholes are snagged, critics point to the frequency of counter permits they say are issued with no review and fuel the construction maelstrom.

Residents have just 30 days to appeal. Problem is, they often are not notified that such a permit has been filed. And they hesitate to sue, since it is too expensive and offers little reward.

Carlson and his ilk insist they are not pointing fingers at specific applicants or developers. But he's wagging one squarely at the city, calling for consistency.

"It really does hurt the people who play by the rules."

Fighting back the beast

In 2005, Salt Lake City passed Utah's most comprehensive ordinance designed to deal with so-called monster homes. City officials like the regulations, crafted after substantial input from the building community, but concede some tweaks may be necessary to prevent ongoing problems.

The new rule includes:

* Height and bulk restrictions on homes citywide

* More strict rules governing street setback

* Limits on lot coverage

* A tiered approval process that allows neighbors to police neighbors - or grant approval - before applicants face the Board of Adjustment.