Pateros City Council grants third amendment for downtown construction project

PATEROS – The Rock Garden Holdings construction project involving eight lots in downtown Pateros received a third amendment to its agreement for development by the city council on Feb. 20.

Rock Garden owner Chris Anderson was present at the council’s Feb. 21 meeting to update the council on project progress and explain his plans regarding a third extension.

City clerk/treasurer Kerri Wilson reviewed the project history and pending motion for council members.

“The original agreement for development was dated Nov. 8, 2017, for the project to be completed within two years,” said Wilson. 

An amendment to the original agreement expired on June 1, 2022.

“We did a second amendment (expired Dec. 20, 2023) and then a third amendment,” Wilson said, “We are at an area of default, and a new contract has to be reinstated.”

Wilson and city administrator Jord Wilson met with city attorney Scott Detro and drafted a new timeline for the third amendment, extending it to Nov. 22. 

“It’s actually for eight months, because the contract actually was in default last December,” Wilson said.

As Anderson reiterated from his remarks delivered at the Jan. 16 council meeting, tenant commitments to the new commercial building have been an obstacle to securing construction financing.

“Unless we get a tenant for one of those buildings, we’re going to have a hard time getting construction loans for the first building,” said Anderson. 

Anderson did commit to civil preparation measures.

“Site improvements can start right away,” said Anderson. “Those site improvements include power, site drainage, some retaining wall work, water hookups, sewer connections, all underground work.”

Anderson estimated his personal investment to get that site work completed to be in the ballpark of $300,000.

“What we want to see if progress,” said council member Frank Herbert, “because the initial agreement was seven years ago,”

Following an exchange between council members and Anderson agreed on conditions for a third amendment.

Wilson read the modified resolution to stipulate “completion of the civil components of the contract by Nov. 22, 2024. With completion of the civil components another year extension would be granted to the developer by the council.”

Council members voted to approve.

Mike Maltais: 360-333-8483 or michael@ward.media