The Fauntleroy Place Development, which was planned to include both residential units and retail space, including a Whole Foods, has been further stalled by two recently filed lawsuits.

BlueStar Construction has filed a suit against Fauntleroy Place LLC, Seattle Financial Group and their subsidiary Seattle Capital for breach of contract. According to attorney Susan Rae Fox, of Ryan, Swanson & Cleveland, BlueStar is attempting to recover unpaid management fees and is "merely seeking to be fairly compensated for the services it rendered."

The total damages amount has not yet been determined.

BlueStar was terminated from the Fauntleroy Place project in December of 2008, a month before Fauntleroy Place LLC announced that they would be selling the property.

In the second lawsuit BAJ Capital Inc. filed action on March 10 against Seattle Capital Corporation, the manager and majority member of Fauntleroy Place, for breach of fiduciary duties in connection with the Fauntleroy Place project.

BAJ Capital is headed by Christopher NeVan, a long-time resident of West Seattle, who first recognized the opportunity to develop the mixed-use project on Fauntleroy.

According to a statement from Fox, also representing BAJ Capital in this case, in June of last year Seattle Capital Corporation took over management of Fauntleroy Place, acquired a majority interest in the project and then converted all of its equity contributions to debt against the project, to the extreme disadvantage of the project and BAJ, as a minority owner.

By converting its equity to debt, Seattle Capital was able to recover its investment ahead of the other owner. On the same day that Seattle Capital took over as manager, it signed a construction loan, acting both as borrower and lender, and awarded itself a $900,000 loan origination fee.

Community members are frustrated that the project could be delayed once again.
“It’s very disappointing,” says Susan Melrose of the West Seattle Junction Association. “It’s such a visible location and so much community input went into that project.”

Melrose also questioned the safety of the stagnant construction site, and she’s not alone in her concerns.

“This has been going on for years, not just months,” says Sharonn Meeks of the Fairmount Community Association. “The West Seattle community as a whole deserves a safer route around the construction site in the foreseeable future.”

Vicki Foley, a representative from Whole Foods was unable to provide information on either lawsuit but reported that "Whole Foods Market is not involved. Regardless of ownership, we are still looking forward to opening the store at this site."