Questions over sale cloud condo project

Spokane Mayor Jim West said Wednesday that a developer constructing upscale condominiums overlooking the Spokane River may not have the right to build on part of the land.

Also Wednesday, Spokane attorney Steve Eugster filed a lawsuit in Spokane County Superior Court saying that same portion of land where developer Don Barbieri is building the Upper Falls condominiums does not rightfully belong to Barbieri. The lawsuit alleges the land is parkland, which cannot be sold without a vote of the people and it asks that the quit claim deed used to transfer the land be declared null and void.

West said the city disagrees that the property transfer was illegal. The city also disputes Eugster’s contention that the approximately 10,000-square-foot sliver of land stretching east from the intersection of Broadway Avenue and Post Street is parkland. However, he said, documents stating how that land can be used say construction there cannot block anyone else’s view and assert that nothing can be built there without the city’s permission.

“Just in a cursory view, it looks like the developer may have encroached on that land, and that’s a problem,” West said. “In the sales agreement, there were restrictions on the use of the property, that’s why it was almost valueless. That’s why it went for such a low price.”

On Aug. 12, the city sold the land to Barbieri’s company, Upper Falls LLC, for $10,000.

Eugster also contends the land was sold for too low a price, constituting a gifting of public funds, which violates the state constitution.

Barbieri’s attorney, Stanley Schwartz, said city permission to build on the land is implied through the granting of a building permit, which showed where construction would take place.

“It seems to me that approval was obtained based on the building permit,” Schwartz said. “The building is situated where the plan shows it would be built.”

Schwartz made clear Barbieri’s intentions for the land in an April 4 letter to Dave Mandyke, the city’s deputy director of public works. It says, in part, “The main right being acquired is the right to locate a portion of the building in this area.”

Though West insists the land is not parkland, Eugster’s lawsuit includes supporting documentation. On April 5, 1993, the city passed a resolution declaring the closure of Broadway Avenue from Post Street to Riverfront Park. The closure was for the purpose of developing the Spokane Memorial Arena, the lawsuit said.

“The closure of Broadway Avenue will provide for the development of additional landscaping appended to Riverfront Park,” the resolution says. The lawsuit says the Spokane Park Board and Park Department have maintained that land since the resolution passed.

When asked about that phrase, West said, “That’s something we’ll have to look into. We’ve got a whole bunch of lawyers who are going to look at it.”

Park Board President Jeff Halstead could not be reached for comment.

Half of the Upper Falls condominiums, which range in price from $500,000 to more than $1 million, have been reserved by people hoping to move in within a year. Some already have their homes on the market in anticipation of the move. West said the city would not stop construction because that would make it vulnerable to a lawsuit from the developer. He said, however, that city attorneys would review the matter and respond within days.

“We think the project is good and we want to do the right thing there,” West said. “We also want to make sure all the laws are being followed properly.”