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May 25, 2016

Judge OKs plan to sell Dargey project

SEATTLE — A U.S. District Court judge OK'd plans for a Las Vegas developer and a Chinese firm to take over a stalled 41-story hotel and housing project at 2116 Fourth Ave. in Belltown.

The ruling paves the way for Molasky Group of Companies and Binjiang Tower Corp., an original investor in Lobsang Dargey's Potala Tower, to come to an agreement to acquire the site from a receiver in charge of the project.

Dargey would transfer ownership to Molasky and Binjiang and receive $1.8 million for legal fees.

Potala Tower was one of several projects being developed by Dargey that were put in control of receiver Michael A. Grassmueck following accusations by the Securities and Exchange Commission that Dargey was misusing federal EB-5 funds.

According to the ruling by Judge James L. Hobart, Grassmueck must submit a final agreement with the developers by June 23 before the July 8 hearing.

EB-5 investors will have until Aug. 24 to decide whether to continue their involvement. The ownership transfer would close on or before Aug. 31.

Court documents show several competing developers objected to the proposal, arguing they submitted superior offers.

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