The City of SeaTac was an $18.3 million loser and K&S Developments was the winner in the largest land use judgement in the history of Washington State on July 8. In addition the judge, made a recommendation that the in house counsel for the City of SeaTac be formally sanctioned in a case that involved years long deception and dishonesty by the City and its staff. This was the final judgement of findings of fact and conclusions of law of the case won by K&S in January. This also included determination of attorney's fees.

The issues in the case brought by K&S, owned by Gerry and Kathryn Kingen who also own Salty’s Seafood Grills in Seattle, Redondo and Portland, began in 2004 when they proposed to build a parking garage on land they owned in SeaTac.

They were first led to believe they could go ahead with their plan but were later turned down by the Central Planning Staff of the City of SeaTac who, working with the legal staff, began a pattern of changing the land use rules to delay and thus prevent the development.

Since the city had a plan to build an entertainment center and parking structure roughly one mile away at 176th South they felt the Kingen's plan would have been competitive with theirs. The city did not honestly attempt to buy it, and formed a secret partnership with another developer to in fact develop a parking garage on that site, but one controlled by them.

Additionally K&S introduced evidence at trial of former Mayor Gene Fisher’s motives in preventing or delaying the project. While assuring the Kingens he would fully support their proposed park-and-fly, K&S argued that Mayor Fisher, who lived about two blocks away, was actually privately against the park-and-fly because he wanted condominiums on the property. 

K&S argued the former mayor felt condominiums would increase housing prices that in turn would help drive out the large refugee population. K&S also argued Mayor Fisher believed condominiums, instead of a park-and-fly, would increase the value of his nearby home and Christmas tree farm. K&S was right—shortly before trial, Mayor Fisher sold his property to a developer of townhouses and moved to Nevada. Mayor Fisher unlawfully ignored a court subpoena and refused to testify at trial. 

By changing the rules for development over a period of five years the Kingen’s were delayed and eventually forced into financial distress. The City then anonymously hired a real estate broker to purchase the rights to the loans. The broker threatened to go after the Kingens personally on the loans unless they conveyed the property to his “undisclosed client” for $8,000,000 less than the tax assessed value.

After signing K&S became aware that the phantom buyer was the city and filed for public records on the matter that the City then delayed, hid records, and continued to engage in deception. Over a period of three years public records were acquired and K&S filed a lawsuit.

The City of SeaTac attempted to claim that the Statute of Limitations had run out but since it was clear the delays were caused by the City K&S was awarded $9.6 million in January by the King County Superior Court. Then on July 8, after interest, penalties and legal fees were finally determined the $18.3 million judgement was made.

Judge Richard F. McDermott said in an unusual statement:

“A government entity owes a duty of honesty and transparency to those people to whom they deal with…The City (of SeaTac) violated that duty so many times I’ve lost count,…it’s amazing.  Quite frankly, the actions of the City of SeaTac in this case are unexplainable and totally unacceptable.  The period of deception even lasted through their answer in the public records…I find this to be the worst thing about this case is the actions of the City and how dishonest they were and I find that to be completely and totally unacceptable.”

If in fact formal sanctions are brought against City of SeaTac’s legal Counsel headed by Mary Bartolo and other members of the City’s legal staff they may be disciplined.

Judge McDermott said, “…the City Attorney’s Office participated in this profound and unacceptable pattern of deception.  That violates the rules of professional conduct.  That is totally and completely unacceptable to this court… I have never filed a complaint against a lawyer, but I would seriously recommend that you take some advantage to do that, counsel, because that can’t be allowed to exist.”

To date the award has not been paid and as such will accumulate interest at the rate of $6000 per day, or $180,000 per month.

"This case has been a long ordeal for our family, and we are thankful the facts have been revealed and the jury understood the government overstepped its bounds. Today's verdict re-affirms private property rights," said Gerald Kingen when the first verdict was awarded in January.

The City of SeaTac's Acting City Manager Joseph Scorcio AICP said, "The City of SeaTac and its insurance carriers are preparing to appeal the decision in the K&S lawsuit. Now that the written judgment has been provided by the court and can be fully reviewed, the next steps in the legal process can proceed. Post-trial motions and a notice of appeal will be filed. Because the matter in under appeal, we cannot comment further on the substance of the pending litigation.

More information on timing of processes and the schedule of filings will be provided in the future."

"We're proud to have stood up for property rights. This is a win for property owners everywhere," said Kingen.