Developer sues Everett Port over development

Published 11:53 am Tuesday, May 4, 2010

EVERETT — A Chicago developer has filed suit against the Port of Everett, asking a judge to prevent the port from dissolving an agreement for a $400 million waterfront development.

At the heart of the legal dispute is a $1.1 million payment from Everett Maritime, a subsidiary of Chicago’s Maritime Trust, that port officials said was due by contract on April 30.

Everett Maritime is in bankruptcy court in Chicago, but port officials said that doesn’t absolve it from the payment, which was to compensate the port for lease fees it has lost as the 65 acres of waterfront in the development have sat idle.

“If they don’t pay it, the contract is terminated,” the port’s Jerry Heller said today.

A similar payment was due last year. The port and the developer talked about other options, but when the port insisted on payment, Maritime filed for bankruptcy, which set the payment aside. Maritime and the port also disagreed about the amount of this year’s payment.

Heller said the contract was set at $1.5 million minus lease payments, which it calculated at $1.1 million. Maritime said it should be $770,000. A judge was to decide the amount when the new lawsuit was filed.

Heller said the judge has set a hearing for May 11.

In its suit, Maritime said it has already spent about $16.2 million on the project and owes another $1.8 million. It contends that the port has breached its agreement and that Maritime will lose the $18 million and its chance to reorganize if the port is allowed to dissolve the contract.

It asks the judge to issue an injunction stopping the port from finding Maritime in default of the contract.

“We don’t believe their claims have merit,” said Lisa Lefeber, port spokeswoman.