134th Street Lofts to get renewed permit soon, county says

Employees at multiple nearby businesses on 134th Street told The Columbian this week that they couldn’t remember seeing any major activity at the site in recent months, although one employee mentioned occasionally seeing people and vehicles entering and exiting the site.

An extension to the project’s original permit was revoked in January, prompting the developers to re-apply earlier this month. It’s unclear whether that change impacted construction.

Legal battle

Plans for the $22 million apartment complex near Legacy Salmon Creek Medical Center were announced in 2013 by Files and local developer Dean Kirkland, although the project was managed by a separate business entity called 134th Street Lofts LLC.

The LLC partnered with investing group iCap Northwest Opportunity Fund to build the project, with additional financing supplied by private construction lender Parkview Financial.

The project’s scheduled groundbreaking was delayed by at least two years, according to Clark County Community Development records, but a November 2017 Columbian story indicated that the apartments were under construction and slated to open in April 2018.

According to Clark County Superior Court records, 134th Street Lofts LLC and iCap went to court in 2017 due to a dispute over how the project was progressing. They settled in January 2018, but returned to court in July after 134th Street Lofts LLC alleged that iCap had taken actions that caused Parkview Financial to withhold funding.

Work on the site was halted by the lack of funding, and the project remained paused through the summer and into the fall while the court case played out.

Wendy Lyon, lawyer for iCap, told The Columbian in October that the firm had secured a new loan that would enable construction to resume immediately, although the broader court case had not yet been resolved.

Clark County Superior Court Judge Daniel L. Stahnke ruled in favor of iCap in November, dismissing 134th Street Lofts LLC’s claims. A subsequent ruling in December awarded iCap $139,977 in damages, plus $41,624 in attorney’s fees.

134th Street Lofts LLC appealed the ruling in early January, and the case is still ongoing in the Washington State Court of Appeals, Division Two.

Project permit

Clark County staff granted three permit extensions over the course of the development, but the third extension on July 2, 2018 included a note stating that no further extensions would be granted and the builders would need to re-apply for their permit if the project was not completed by June 4, 2019.

On Jan. 25, Clark County chief building official Jim Muir sent an email to his staff directing them to revoke the project’s most recent permit extension, based on the fact that “no appreciable, nor inspected, progress has been undertaken since the extension was granted.”

It’s unclear if the court case impacted or prevented construction between October and January. Calls and emails to Lyon this week were not returned, and Robert Sellers, an attorney for 134th Street Lofts LLC, declined to comment.

At some point since October, a new sign was added at the project site that lists the project’s financier as Seattle-based real estate loan firm Pyatt/Broadmark Management, which also did not return calls seeking comment.

Files stated this week that work had been performed on interior features such as electrical wiring, and said the project is back under construction.

Clark County records show iCap re-applied for the permit on Monday, and Muir told The Columbian on Wednesday that he expected a renewed permit to be issued very soon.

“They’re back on track, is the bottom line,” he said.

All county building permits are valid for two years, Muir said, so iCap will have two years to complete the project once the renewed permit is issued. Files said it won’t take that long, however; he estimated the project will be completed this fall.