Voice of the Mid-Columbia | Kennewick, Pasco and Richland, Wash. |
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closeWednesday, Nov. 04, 2009
Deal to develop Kennewick land falls through
By John Trumbo, Herald staff writer
A California developer's offer to purchase 23 acres of land in two parcels in Kennewick’s Vista Entertainment District with hopes of building a long-desired convention center hotel is a dream gone bust.
Jim Provost of Provost Group in Santa Rosa, Calif., told officials in the city of Kennewick and at the Kennewick Irrigation District that he was backing out of purchase options on the properties.
"We have received written notice they want to terminate the agreement to purchase the 14 acres next to the Toyota Center," said Joetta Rupert, realty manager for KID.
KID entered into the purchase agreement with Provost Group in late July, with a 180-day option and an agreed-on price of $3.3 million. The development company put up $30,000 to retain the purchase rights.
Two months earlier, The Provost Group took a sales option to buy nine acres for about $2.2 million from the city of Kennewick in the Vista Field area.
That deal also is terminated, said Jeff Kossow, economic development director for the city.
Kossow said he received an e-mail Tuesday from Jim Provost that called for ending the option. He said he planned to pass along the bad news to the council Tuesday night.
"It is the (bad) economics and the timing," Kossow said.
In both land deals, money put up by The Provost Group is refundable based on a condition in the purchase contract that allows a money-back deal if "the project isn't feasible."
The Provost Group manages and owns several retail shopping centers in Northern California.
The group's plans for the Kennewick properties included a convention center hotel next to the Three Rivers Convention Center and a cluster of retail business and restaurants nearby.
-- John Trumbo: 582-1529; jtrumbo@tricityherald.com
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