With a subpoena arriving in the mail for Issaquah Planning Director Mark Hinthorne and an impending bankruptcy trial date, the end of developer Wellington Park Pointe LLC seemed nigh.
But attorneys for Wellington and lenders Regal Financial Bank appear to have worked out a deal to rescue the proposed Park Pointe development of a 67 acre parcel of land at the foot of Tiger Mountain.
Meanwhile, Highlands developer Opus Northwest, which backed out of a development agreement for a shopping center in the Highlands last year but still planned on building medical offices near the new Swedish Hospital, is seeking to recapitalize their company, and could be put up for sale.
The privately-owned company, which is based in Bellevue, is a wholly owned subsidiary of Minnesota-based Opus LLC. Development plans will continue for now, according to Issaquah Highlands master-planner Port Blakely, but could be delayed by any change in ownership.
In the Park Pointe development deal, both sides confirmed agreement in settlement talks but no final deal had been reached outside of U.S. District Court Judge Karen Overstreet’s courtroom in Seattle.
Issaquah City Manager Leon Kos said the city had not officially received word on any developments, but was advised several weeks ago that a foreclosure would go through last week. Then, several days ago, Hinthorne was advised the hearing he was ordered to attend had been postponed.
“We haven’t heard anything further in what the settlement involved,” Kos said.
Wellington averted foreclosure on the property by seeking bankruptcy protection last November, after it defaulted on repayment of nearly $12 million in loans from Regal and three other undisclosed lenders. The Park Pointe property — which is currently planned for the construction of either 251 or 344 homes near Issaquah High School — was used as collateral.
“There are settlement discussions going on right now,” said Wellington attorney Neal L. Wolf. “In matters of this nature it isn’t done until it’s completely finished … it is still up in the air.”
While attorneys from the two sides remained tight-lipped, details emerged from Regal that an “unforeseen party” had entered the mix. The unnamed party, associated with Wellington, is not one of the other lenders seeking repayment and could indicate a new investing partner seeking to help Wellington retain the property.
Regal Financial’s attorney Michael Fineberg confirmed the agreement of an unnamed third party was needed before a deal could be reached.
“Regal and Wellington would like to settle on terms that we’ve agreed upon and we need approval from other parties,” he said.
Documenting the various parties and entities who have a controlling interest over the property has become something of a past time, said Issaquah’s Kos. He said the Canadian investment conglomerate Triple Five Worldwide, who own holding company Wellington, and continuing involvement by former Kenmore Premix concrete plant owner Gary Sergeant make communications difficult.
“That makes it real difficult to know who is making the decisions,” he said.
The application for transfer of development rights for part of the Park Pointe property, sometimes referred to by the city as a TDR, is still “on-hold” pending more information from Wellington.
A trial date has been repeatedly moved as Wellington has sought additional financing to rescue the planned development, which they previously valued as worth $29 million. Court dates for financing and lifting a bankruptcy stay on the property assets held by Wellington have now been rescheduled for March 9.
