The discord between an Irish developer and the Port of Bellingham continues after Harcourt Developments filed a restraining order alleging the port attempted to interfere with the construction of three condominium buildings on the waterfront.
According to court documents filed on Thursday, April 4 in Whatcom County Superior Court, Harcourt alleges the port threatened to call Bellingham police because “Harcourt Construction’s continued use of the Licensed area was an illegal trespass on the port’s property on the basis that the License had expired.”
The restraining order is the latest development in what’s likely shaping up to be a lengthy legal battle between the two parties after the port filed a lawsuit on March 14 over Harcourt’s repeated failures to meet contractual obligations to develop 3.7 acres of waterfront property next to Trackside beer garden and the pump track.
The latest court documents show the port sent Harcourt a letter on Feb. 23 laying out the trespassing allegations, and also requested the developer remove all equipment and materials from the area within two weeks.
Harcourt contends it needs access to the area since “there is insufficient space on the Project Property for equipment and materials,” according to court documents.
Harcourt will be able to continue construction on the condominium buildings after a Whatcom County Superior Court judge granted the restraining order on Monday, April 8, writing that Harcourt had a clear legal right to access the port’s property.
The two parties will be back in front of a judge on May 10 to review the temporary restraining order.
Port officials and Harcourt did not immediately respond for comment.
Harcourt cites supply chain issues among reasons for delay
Harcourt, known for its construction of the Titanic museum in Belfast, Northern Ireland, cited the wars in Ukraine and Israel, labor shortages and floods as reasons why the three-building project on Whatcom Waterway has been delayed, according to court documents.
Originally, Harcourt and the port had entered into an agreement in 2015 where the developer would develop key areas on 18.8 acres of the waterfront, including the Granary Building.
Five years later, the port agreed to allow Harcourt Construction to use a portion of the port’s land to stage material, equipment and parking in order to start construction on the condominium buildings.
Contract extensions allowing Harcourt to use the licensed area until December 2024 were filed between 2020 and 2022. But in March 2023, the port failed to send an updated draft license of the area Harcourt could use during construction, according to court documents.
Throughout construction, Harcourt alleged it had regularly notified the port about delays, including flooding of the area, and in October 2023, it requested an extension to certain provisions within the contract.
At the same time, the port announced in October Harcourt had violated the terms of its contract since it was unable to finish two of the buildings, and lost the right to develop 7.7 acres of the property. Harcourt had previously lost the privilege to develop the nearly 19 acres of land in 2021 after delays, with the port reducing the development area.
Adding to the delay was a utility company Harcourt was required to use that would supply heat and hot water infrastructure. But the developer wasn’t able to enter into a contract with the utility company until March, six months later than what was agreed to in the contract.
By then, the port had filed its lawsuit against Harcourt for defaulting on its development contract.
What happens now?
In court filings, Whatcom County Judge Lee Gromchmal wrote the port and Harcourt must complete dispute resolution proceedings, including mediation and arbitration. If a resolution is not determined, then steps toward a preliminary injunction restricting the port from contacting the police regarding trespassing allegations could be made.
Harcourt has sunk $40 million into the apartment project with 50 people having placed deposits on the future units, according to court documents.
After the October announcement, Harcourt was expected to finish construction on the condominium properties. Cascadia Daily News also witnessed construction in progress at all three buildings on April 3.
Annie Todd is CDN’s criminal justice/enterprise reporter; reach her at annietodd@cascadiadaily.com; 360-922-3090 ext. 130.
