Judge approves Potala Place market plan

EVERETT — The long delayed opening of an upscale food market in downtown Everett just got a little bit closer.

A federal judge this week gave the OK to a federal receiver’s plan to finish the Potala Place project, which has been stalled by a lawsuit and federal investigations.

Potala Place was envisioned by developer Lobsang Dargey as a mixed-use building with 220 apartments and a high-end market on the vast ground floor.

Last August, the U.S. Securities and Exchange Commission sued Dargey, his company Path America and many related business entities, accusing him of fraudulently raising more than $125 million from at least 250 investors.

The suit also accused Dargey of misappropriating funds for personal use, including lavish spending on a luxury home in Bellevue and cash withdrawals at casinos. The FBI also has opened an investigation.

Dargey has denied wrongdoing. In the meantime, a federal judge put Dargey’s companies into receivership, and construction work halted.

Potala Place was close to completion, and many of the apartments had been rented out, but the commercial space on the ground flood was an empty cavern. The court-appointed receiver, Michael Grassmueck, this month presented a plan to complete the project more or less as Dargey intended, led by one of Dargey’s former business partners, Steve Carlin.

U.S. District Court Judge James Robart approved the proposal on Tuesday. Robart noted that Dargey agreed with Grassmueck’s business plan and also had asked that the project be completed. The SEC did not oppose the motion.

The approved plan has a target opening date of January 2017, and calls for a year-round farmers market, a boutique grocery, a meals-to-go service and a French bakery.

Carlin has proposed renaming the building the Grand Avenue Marketplace, and estimated it would cost $4.2 million to complete.

Chris Winters: 425-374-4165; cwinters@heraldnet.com. Twitter: @Chris_At_Herald.

Talk to us

More in Local News

Sunlight illuminates a framed photograph of Mila and Wilfrido Sarmiento while their daughter Rowella Sarmiento cries reading her statement to the court during Caleb Wride’s sentencing on Monday, Nov. 28, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
At sentencing, family mourns parents killed in fatal DUI crash

Caleb Wride, 23, of Everett, was sentenced Monday for the head-on crash that killed Mila and Wilfrido Sarmiento.

Food forum
Too many Thanksgiving leftovers? Make turkey “glop”

Our reader adapted this turkey casserole from an old Betty Crocker recipe.

The Smith Ave homelessness camp Thursday afternoon in Everett on March 11, 2021. (Kevin Clark / The Herald)
Audit: Snohomish County lacks data-driven approach to homeless services

The Washington State Auditor’s Office this month published a 73-page report looking into four local governments across the state.

Pulitzer winner’s new book digs into Snohomish County cold case killings

The Everett library will host a talk with Edward Humes on “The Forever Witness,” about a double murder and pioneering DNA evidence.

The crab doughnut at Market in Edmonds is a strange delight, with a sweet and dense glazed doughnut topped with bright and briny dungeness crab salad, nutty browned butter and a shower of smoky bacon bits. (Taylor Goebel / The Herald)
This idyllic dining destination is right in Snohomish County

Edmonds boasts fresh seafood, Caribbean-inspired sandwiches, artisan breads, cocktails and more.

Police: Woman shot boyfriend during argument at Everett apartment

The woman, 36, was reportedly trying to throw out her boyfriend’s belongings when he tried to stop her.

Medicare open enrollment ends Dec. 7

Find information and resources to help make the best choice for you.

Marysville Jail (City of Marysville)
Man with hepatitis C accused of spitting on Marysville jail staff

Hepatitis C is usually spread through blood. The suspect, 28, faces allegations of exposing the officers to a contagious disease.

Lawmakers meet on the Senate floor, Thursday, March 10, 2022, at the Capitol in Olympia, Wash. Washington lawmakers were wrapping up their work Thursday with final votes on a supplemental state budget and a transportation revenue package before planning to adjourn the legislative session. (AP Photo/Ted S. Warren)
Crime, climate, abortion on docket in legislative session warm-up

Washington lawmakers will hold 39 hearings this week. Nearly all will be conducted in person, which hasn’t happened in three years.

Most Read