Tri-Cities Area Journal of Business May 2019

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May 2019

Volume 18 • Issue 5

Hanford

A specialty publication of the Tri-Cities Area Journal of Business Insert

Arts & Culture

Wet Palette paint studio’s new location and name reflects expansion with food and wine. Page 11

Real Estate & Construction

Construction underway on Vista Field. Page 21

Agreement on supercar facility ends in lawsuits

Vista Field lands in new phase

SSC North America faces $10.3M lawsuit over loans; founder files counterclaim BY JEFF MORROW

for Tri-Cities Area Journal of Business

The long-planned SSC North America supercar production facility destined for the Belmont Business District in West Richland is now at the center of a $10.3 million dispute. A new $3.2 million commercial building — tenant to be determined — is going up at the property instead, and the high-performance car manufacturing plant is moving to Richland. Ron Asmus, his wife Tracey and R.E.A. Construction LLC have sued Jerod O. Shelby and SSC North America LLC. Shelby is the chief executive officer and founder of SSC. Shelby’s former business partners are suing for breach of contract related to multiple loans for construction of the West Richland vehicle production facility and to manufacture the Tuatara supercar for an upcoming car show. The lawsuit alleges Shelby “breached the implied covenant of good faith and fair dealing when they failed and/or refused to comply with the agreed-upon conditions.” The lawsuit also requests recovery of the plaintiffs’ fees for attorneys, as well as lost profits and opportunity costs. The plaintiffs filed the lawsuit Dec. 24, 2018. Shelby and SSC filed a counterclaim Jan. 24, asking the court to dismiss the lawsuit, citing breach of contract, good faith and fair dealing related to the ownership and plans to build a car manufacturing

uSUPERCAR, Page 33

Courtesy Port of Kennewick

An aerial view of Port of Kennewick Kennewick’s Vista Field shows the progress being made on the first phase of the site’s development. As summer progresses, concrete bridges spanning a water feature and other paved elements and streetscaping will begin to take shape. See stories, pages 19 and 21.

I-3 Global faces lawsuits

Tax warrant also placed against founder Kristopher Lapp BY ROBIN WOJTANIK

for Tri-Cities Area Journal of Business

Once named the U.S. Department of Energy’s Protégé of the Year, a Kennewick business and its founder are now facing two lawsuits and a tax warrant totaling $1.3 million. Kristopher Lapp, i-3 Global president, is being sued for breach of contract by Columbia State Bank, which alleges Lapp failed to pay back $883,000 borrowed through an original $700,000 line of credit that was increased to $1.2 million. The lawsuit came days after another lawsuit valued at $446,000 was filed on behalf of Integrated Global Staffing, a company governed by former i-3 Global intern and

KRISTOPHER LAPP

employee, President Jessica Holloway. The lawsuits add to a growing list of debts already established, with a $44,000 tax warrant filed by the Washington state Department of Revenue in early

April for unpaid taxes. The company, founded by Lapp in 2013, offers technology, multimedia and staffing services to federal and commercial customers. uI-3 GLOBAL, Page 4

Richland City Hall opens doors BY KEVIN ANTHONY

for Tri-Cities Area Journal of Business

The numbers aren’t all that far apart — from 505 Swift Blvd. to 625 Swift. And the physical move into Richland’s new City Hall from the old building amounts to several hundred feet across Jadwin Avenue. But after $18.4 million and 20 months of construction — plus some 14 years of planning and negotiations before the first shovel broke ground — the move into the new City Hall will be the culmination of an almost Herculean effort when it opens to the public May 28. “It’s so rewarding on behalf of the community to see the final product,” said Joe Schiessl, Richland’s director of parks and

public facilities. “I think everybody will be really pleased when they see it.” People should use the old City Hall through May 24. The nuts and bolts of the new building are straightforward: It’s 44,000 square feet with three stories above ground and a partial basement for storage, built on 1.8 acres purchased from the federal government in the oversized parking lot that serves the Federal Building. Ground was broken in September 2017, and Schiessl said there were no major hiccups from there. The money for the project came from selling councilmanic bonds, or non-voted debt,

uCITY HALL, Page 32

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Tri-Cities Area Journal of Business May 2019 by Tri-Cities Area Journal of Business/Senior Times - Issuu