EVERETT — A Chicago federal court judge accepted an agreement Wednesday between the Port of Everett and the Everett Maritime bankruptcy trustee to dismiss the remaining legal claims against the North Marina property.
The settlement agreement, which is subject to a 30-day appeal period, was the last legal hurdle encumbering the Port’s 65-acre mixed-use parcel as a result of the Everett Maritime’s bankruptcy in 2009.
“After the appeal period lapses, we will have no remaining claims against our property, and we will have full control of the property and the conference center,” Executive Director John Mohr said.
This two-year legal wrangling has tied up development on the site, with the exception of the Port’s Craftsman District, which was amended out of the development agreement in 2008.
“This is very good news,” Port Commissioner Troy McClelland said. “We are pleased and look forward to having this chapter fully behind us, and ultimately moving forward to develop the site in a way that supports our marina population and benefits our community at large.”
In May 2009, Everett Maritime filed for bankruptcy protection after it failed to make its progress payment to the Port of Everett.
In August 2010, after several days of testimony and legal filing, the bankruptcy judge ruled that Everett Maritime’s lease with the port was no longer under the protection of the bankruptcy court. The court’s action required Everett Maritime to pay the port nearly $800,000 in option payments, which the company failed to do. The port then declared Everett Maritime in default on Aug. 31, 2010, and the port commission terminated the development agreement with the company.
In December, the Chicago bankruptcy court converted Everett Maritime’s bankruptcy from a Chapter 11 into a Chapter 7 liquidation. This set the stage for the settlement agreement.
The port commission will discuss next steps for the North Marina Redevelopment project at the commission retreat beginning at 1 p.m. Feb. 24 at the Waterfront Center, located at 1205 Craftsman Way, Everett.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
