City of Leavenworth backs out of river parking lot purchase amid lawsuit

LEAVENWORTH — The City of Leavenworth recently backed out of a purchase and sale agreement for a lot intended for river use parking in the wake of a lawsuit from a neighboring property owner.

On July 22, Leavenworth City Council voted to terminate the agreement with no further comment following an executive session labeled “RCW 42.30.110 (1)(i) Pending Litigation.” 

Early this year, the city entered into a purchase and sale agreement with MLTE Properties, LLC for 37 and 81 Norling Lane for $650,000. The agreement was contingent upon obtaining a conditional use permit from the county for a public parking lot. The project intended to provide parking for river users entering the Wenatchee River from the Icicle Road Bridge, and discourage unauthorized parking along Icicle Road. 

The move was met with pushback, as the lot sits in the middle of a neighborhood and contains a shared well and private driveway easement. Additionally, alarm bells were raised over the city’s process leading up to the agreement. Neighboring property owner Ellen Beardsley accused the city of exploiting the closed nature of executive sessions to deliberately avoid public engagement and anticipated negative feedback.

With backing from two more neighboring properties, she submitted a complaint in April to the State Auditor’s Office (SAO) challenging the city’s transparency and violation of the Open Public Meetings Act (OPMA). The SAO confirmed that they received what they call a “citizen hotline” concern, which would be incorporated into the regularly scheduled audit, but was unable to provide more information until the audit was completed. The city moved forward with permitting; Beardsley escalated her concerns with legal action. 

"I think we all have an obligation to hold our city officials and government accountable. We have to be involved with the process, and sometimes that's difficult to do, because we all have our busy lives, So when the time comes around and it's your turn to voice your concern, take the step and ask the questions, attend the meetings, do what you need to do to make it feel like you are getting your voice heard," said Beardsley.

In late June, she filed an injunction against the City of Leavenworth, listing complaints alleged  in her SAO letter: the city failed to justify its use of executive sessions under 42.30.110(1)(b), went beyond the scope of permissible discussion, shared publicly withheld information with the Leavenworth Golf Course, and failed to explore alternatives through a public process.

She filed another injunction against both the city and MLTE Properties, alleging that the proposed parking lot would illegally expand the use of a private driveway easement that was created only for residential access. The lawsuit also claims the project would violate state and county regulations protecting the shared drinking water well from contamination.

The city made its decision to terminate the agreement two days before submitting an answer and affirmative defense to both lawsuits. The application for the conditional use permit was subsequently cancelled on July 31, according to the Chelan County Permit Portal. 

When contacted by Ward Media, City Administrator Matthew Selby did not offer an explanation as to why the agreement was terminated or confirm the nature of the pending litigation discussed in the closed meeting, asserting that he could “not disclose discussions that take place in executive session.” 

Mayor Carl Florea told Ward Media circumstances had changed that made the council “feel like it wasn’t a good option to move forward.” Florea would not confirm the decision was motivated by Beardsley’s lawsuit, but indicated that the decision was made following the “pending litigation” executive session discussion. 

“We do feel a sense of responsibility to keep that area as safe as possible, so we will continue to look for ways to mitigate,” said Florea.

Following the decision, Beardsley withdrew her lawsuit against the city, reasoning further litigation wasn't worth the time, expense, or additional conflict — the purchase agreement was terminated, and her OPMA complaints were submitted to the SAO for investigation. She also removed the city from her secondary lawsuit with MLTE Properties, as it was no longer involved with the property.

"I like to think there were overall positive gains – a recognition that decisions regarding Leavenworth’s vacation economy must respect the concerns, needs, and rights of the local community and its residents, and that such decisions need to be made openly and transparently," said Beardsley.

Taylor Caldwell: 509-433-7276 or taylor@ward.media