Appeals court reverses decision, sides with city of Kirkland in lawsuit with Potala Village developer

Potala Village has been a source of controversy for more than four years in Kirkland.

image credit: Reporter file photo

The Washington State Court of Appeals unanimously reversed a previous court ruling siding with Path America and Dargey Enterprises, the developers of Potala Village in Kirkland, in its battle with the city of Kirkland as to how many residential units would be allowed in the development. Potala Village is to be built along Lake Street near 10th Avenue South on the Kirkland waterfront.

"We are very happy with the decision," said Karen Levenson, who has helped spearhead the neighbors' fight against the development during the past four years. "The judge did a very thorough job."

The ruling overturned a previous order granting Path America's motion for a summary judgment and dismissal. It also essentially cuts in half the number of residential units allowed on the properties from what was planned. Path America was preparing for a structure with 88 residential units.

In its 25-page ruling, the court of appeals concluded that while Path America did complete the filing of a shoreline substantial development permit before the city of Kirkland imposed a moratorium on the issuance of permits in November 2011, it did not file an application for a building permit until afterwards.

During the moratorium, which the council extended numerous times, they eventually amended the business neighborhood code, placing a limit on residential density at 48 units per acre on the property. The change meant it was limited to 60 units instead of 143 as originally intended, according to the court documents.

Previously, there had been no restriction on residential density in neighborhood business zones. In other properties within the business neighborhood zone, the residential density was set to 12 units per acre.

Lawyers representing Potala Village argued that the shoreline development permit application was sufficient to vest rights to the zoning codes at the time the permit was approved, before the code amendments.

The court of appeals ruling stated a building permit application is also necessary in order to vest rights to zoning.

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Appeals court reverses decision, sides with city of Kirkland in lawsuit with Potala Village developer