Gas tanks latest Landing dispute
<p>JEROME A. POLLOS/Press The Post Falls Landing developer Harry Green is facing financial and legal issues from his bankruptcy and the recent "red tagging" of the marina gas pumps located at the Post Falls Landing.</p>
The city of Post Falls has locked the gas tanks at the Post Falls Landing's marina due to them being on city property and public concerns.
It's the latest action regarding the financially-troubled, 33-acre, multi-use project on the Spokane River next to the Post Falls Dam that has been in the works for a decade and was among the topics discussed in U.S. Bankruptcy Court on Tuesday.
"It is unfair to city taxpayers to subsidize private enterprise with the fuel tanks," said Post Falls Mayor Clay Larkin, who testified in court. "We need to get a land exchange done or the tanks are coming out of the ground."
The tanks were recently locked to prevent them from being filled with fuel. A No Trespassing sign was also posted at the site.
A quarter-acre land swap proposal between Post Falls Landing Developer Harry Green and the city has been in the works since 2007.
Mayor Clay Larkin signed the documents in 2007 for the swap, but Green didn't.
In 2009, both signed the documents, but Larkin said the city learned from its attorney that Green didn't have legal standing to sign the deal.
The city owns property where tanks to the marina's gas station sit. Green, meanwhile, has a similar-sized parcel that has a view of the dam that the city is interested in for a park area.
City officials said they are uncomfortable subsidizing private enterprise and are frustrated that a permit for the tanks on city property was issued. They said they've worked on getting the deal sealed, but to no avail.
Liberty Bankers Life Insurance Company, a creditor on the Landing project, is suing Green, his wife, Jann, and his dissolved Spokane corporation, The Point at Post Falls, LLC, for $8.2 million.
The suit came after Green filed Chapter 11 corporate bankruptcy on Dec. 19, the morning an auction sale on the property was scheduled. The bankruptcy canceled the sale.
Green has declined to comment to The Press on matters regarding the project.
Post Falls City Administrator Eric Keck said the city has had questions from the public as to how the city could allow the marina to continue to utilize property owned by the city for commercial gain.
"Due to the trustees sale that was scheduled earlier this year, the property exchange could not be completed," Keck said. "Our legal counsel was in touch with Liberty Bankers Life Insurance Company last year to finalize the release of the property for the exchange, but it could not be finalized due to the foreclosure. When Harry Green then filed for bankruptcy at the Point at Post Falls, the whole process was once again delayed in finalizing the property exchange."
Other topics in court included whether Green should be considered a "single asset real estate" debtor, which would remove protections from creditors and allow them to try to liquidate the assets to get paid, and whether Green's attorney fees of $325 to $374 per hour are excessive and commensurate with other attorney fees in Idaho.
Attorneys for Lukins and Annis, the firm representing Liberty Bankers, could not be reached for comment.
No decisions were made on Tuesday. Closing arguments are today. It is unclear when decisions will be made.