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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

UI Foundation sues development company

Chuck Oxley Associated Press

BOISE – The University of Idaho Foundation has filed a $7 million lawsuit against the development company formerly contracted to build the now infamous University Place project.

Documents filed Tuesday in 4th District Court allege that Civic Partners West of Newport Beach, Calif., owes the nonprofit foundation at least $5.6 million for costs associated with a large underground parking complex at the Idaho Water Center, the only portion of the real estate deal to go forward.

The lawsuit also contends the company owes the foundation reimbursement of planning, taxes, legal fees and other expenses. Although the suit estimates the total damages at $7 million, it says the exact amount will be determined at trial.

Civic Partners President Steven P. Semingson did not return a telephone message from the Associated Press seeking comment Friday.

Beth Andrus, Seattle-based attorney for the foundation, also declined to comment on the 25-page lawsuit.

“The client and I have decided that at this point, our preference would not be to talk with the press,” Andrus said. “We’ll let it speak for itself.”

The lawsuit claims Civic Partners was “neither competent nor fair” in allocating costs associated with the large underground parking complex constructed as part of the Idaho Water Center.

The lawsuit has been assigned to 4th District Court Judge Deborah Bail.

Civic Partners has been involved in the downtown Boise project of government buildings, which includes the new Ada County Courthouse, since 1998.

In 2001, Civic Partners reached an agreement with the foundation to develop the property along Front and Broadway streets, which would later become known as University Place.

But the multibuilding, $136 million project hit several financial bumps in 2002 and 2003 as the economy slumped.

Loans made to the project by the foundation cost University President Robert Hoover his job. Eventually, only the $50 million Idaho Water Center advanced to the construction phase. It is still being built.

Since then, State Attorney General Lawrence Wasden has demanded that foundation restore $18 million to three scholarship and education program accounts to cover losses.