Local development projects stall in tight economy

A weakening retail market and tight credit are causing delays for major developments in the Yakima area.

Riverpointe Landing, an estimated $160 million development on North 16th Avenue and U.S. Highway 12, is on hold until conditions ease, a representative of the developer said Monday.

Jack Evans of First Western Properties of Tacoma said the developer, Northward Real Estate Group of Bellevue, will hold off on construction until the financial squeeze ends.

"As so many other developers are experiencing now, the big tenants have backed off. We are on hold for the moment," Evans said.

He confirmed the first anchor tenant for the 80-acre development, The Home Depot, has chosen to hold off building at Riverpointe for now.

"We won't proceed with any construction until we have tenants that are signed. We have a number of tenants that want to be there but we don't develop until we have the big-box guys," he said.

The Home Depot, the nation's largest home improvement chain, was to be the first major tenant for the retail project, expected to cover more than 806,000 square feet. The project also includes local retail, restaurants and a winery.

Evans said the developer remains committed to the project.

"We aren't leaving the market. We still own the property. We are part of what is going on over there," he said. "It's a matter of waiting until the market improves."

Meanwhile, developers of The Vineyards Resort, a 500-acre golf and residential destination resort southeast of Yakima, has also slowed construction, the developers said in an e-mail to their investors.

"We have hunkered down to maintain both liquidity and momentum as wisely as the markets will allow," the e-mail said.

SBC Development LLC of Ellensburg, a joint venture that includes local developers, is working on the project, estimated to be valued at $500 million when completed.

The Vineyards fought off a foreclosure attempt last month by reaching an agreement with a hedge fund that allows the project to go forward.

The foreclosure was over an unpaid $12.9 million bridge loan obtained in 2006.

Rich Barnes, co-managing partner of the development with Gary Scott of Ellensburg, said the developers are going to be cautious as they move forward.

"Hunkered down means we are going to be as good a businessmen as we can. We are going to pay attention to all the economic conditions," he said.

Like Evans, Barnes said the developers are still moving forward.

"Yakima has a really neat little aura going on. It's different than any place I go. It still has a spring in its step," he said.