Bankrupt Spokane Developer Files Suit Against City Glines Claims Breach Of Contract Ended Development, Career
A Spokane developer whose company recently filed for bankruptcy is suing the city for several million dollars for reneging on a real estate deal.
The lawsuit, filed Thursday in Superior Court, says city officials “willfully and intentionally breached their agreements” with Lamont Glines, who planned this year to add 20 home lots to Qualchan Hills in southwest Spokane.
At issue is the subdivision’s water supply, which building officials say is inadequate. To cover the cost of a new water tank, Glines posted a $190,000 bond and agreed to have the new tank built by 1997.
Until then, however, Glines said officials gave him the go-ahead on the 20 lots and agreed they could be served by the existing water tank.
After spending nearly $700,000 to prepare the lots for sale, pave the roads and install curbs and gutters, Glines said the city backed out of the deal and refused to issue building permits until the new water tank is built.
The breach of contract forced Glines’ company, Qualchan Properties Inc., into bankruptcy earlier this year, said his attorney, Bob Dunn.
“They welched on the deal and that’s the bottom line,” said Dunn, who plans to seek $3 million to $5 million in damages for his client. “They just changed their minds and this company went under.”
Assistant City Attorney Bob Beaumier said officials are concerned about the water supply in Qualchan Hills and simply want Glines to address it.
He denies the city ever agreed to let the 20 new lots be serviced by the existing tank. The lots are elevated, which makes them more difficult to receive adequate water pressure, he said.
“There’s a difference in perception on what was agreed upon,” Beaumier said. “We’re concerned about the water and that’s really the heart and soul of this whole thing.”
Glines, 52, said the deal has ended the Qualchan Hills development as well as his own 25-year career in real estate.
“The city is so disorganized, the right hand doesn’t know what the left hand is doing,” Glines said. “They’ve basically let one of the fastest-growing areas in Spokane just die and now the taxpayers will have to cover it.”
, DataTimes