Judge Rules in Favor of Developer in Suit Over Potala Village Proposal

A judge has ruled that the city of Kirkland must allow the developer of the controversial Potala Village apartments project on Lake Street to build the project at the higher density rate that was in effect when he applied for a shorelines permit, the Seattle Times reports.

If it holds, the ruling would mean that Lobsang Dargey of Dargey Enterprises could build some 143 apartments units in the projects, which includes ground-floor retail space and underground parking, on scenic Lake Street and 10th Avenue South.

King County Superior Court Judge Monica Benton, in a ruling received by the city Monday, ruled that Dargey was vested in the project when he applied for the permit in 2011 and ordered the city to process a building permit at the level allowed at that time.

The Kirkland City Council issued a moratorium on the issuance of building permits for the “BN” zoning category in 2011 after angry neighbors expressed concerns about the number of units planned and the project’s impact on traffic, property value and the scenic lakefront neighborhood, which is marked by some of Kirkland’s signature shoreline parks, Marsh, Brink and Houghton Beach. It extended the moratorium twice as the city Planning Commission studied what level of density would be appropriate for the category. The original “BN” zoning category, which applied to only three small areas of Kirkland, put no limit on densities.

Dargey sued the city over the moratoriums in in May of 2012.

City attorneys argued that the project was subject to new density limits because Dargey had not yet applied for a building permit, only a shorelines permit.

The Times quoted city attorney Robin Jenkinson as saying the city would explore its judicial options, would could include an appeal.

Dargey said he is happy and that the project will be subject to a newer design before he applies for a building permit.  “A rule is a rule,” Dargey told the Times. “It is very clear. It is not something that is very vague.”

For the full Times story, click here.