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Potala Village

Potala Village Mixed Use Development (updated 2/21/2018).

(This web page was updated & reformatted on 3/11/2016. You can view the web page before the 3/11/2016 revisions were made here.)

City File Nos. DRV15-01250, DRV14-02047, BMU13-03290, BMU14-01940, PUB14-04905, SHR11-00002, SEP11-00004, DEM13-07101, DEM13-07102 and LSM13-07487

Project Status
SEPA Addendum Issued for Aegis Project 2/21/18 (PDF 8.5MB)
SEPA Addendum Notice of Availability for Aegis Project 2/21/18 (PDF 128kb)
Design Review

07/13/17 - The Potala Village Design Response Conference application (File DRV15-01250) has been withdrawn.

05/22/17 -
The Design Response Conference has been continued to August 21. 2017.

03/06/17 -
The Design Response Conference will be held on March 6th at City Hall.  The staff report and drawings are available on the Design Review Board webpage

11/21/16 -
The Potala Village Design Response Conference has been continued to March 6, 2017.

- The Potala Village Design Response Conference has been continued to November 21, 2016.

- The applicant has requested that their Design Response Conference scheduled for July 18, 2016 be continued to the November 21, 2016 meeting of the Design Review Board.

03/07/2016 -
The Design Review Board continued the Potala Village Design Response Conference to July 18, 2016.

01/04/2016 -
The Design Review Board continued the Potala Village Design Response Conference to March 7, 2016. The applicant is expected to ask for another continuance on March 7th.

- The Design Review Board continued the Potala Village Design Response Conference to January 4, 2016.

08/24/2015Letter summarizing Design Response Conference on 8/24/2015

06/16/2015Design Response Conference application - Design Response Conference will be held on 8/24/2015. Staff report is here.

04/13/2015Letter summarizing the Conceptual Design Conference
Next step: Design Response Conference with Design Review Board will be scheduled once an application is received.

02/26/2015 - The applicant has submitted an updated Conceptual Design Conference application (DRV14-02047). The Conceptual Design Conference is scheduled for March 16, 2015 at 7:00 pm in the Council Chambers at Kirkland City Hall, 123 5th Avenue and is open to the public.

02/2/2015 Conceptual Design Conference application - this application was updated on 2/26/2015 (see above).

11/17/2014 - Conceptual Design Conference - Cancelled

10/17/2014 - The applicant has submitted a Conceptual Design Conference application (DRV14-02047). The Conceptual Design Conference is scheduled for November 17, 2014 at 7:00 pm in the Council Chambers at Kirkland City Hall, 123 5th Avenue and is open to the public.

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Litigation Status
4/22/2016 -  The Washington State Court of Appeals has dismissed an appeal filed by the applicant for the proposed development of the Potala Village project on Lake Street South.  The appeal was dismissed at the request of the court-appointed receiver now in charge of the property at the Potala site.  The receiver’s dismissed request was supported by the City of Kirkland. 

The agreement means that any development on the property will be subject to current Zoning Code regulations for the Neighborhood Business (BN) zone. 

The Potala Village project was originally proposed for development in 2011.  The size and scale of the project prompted concerns from the neighborhood and the Kirkland City Council passed a moratorium on development in the neighborhood’s business zone.  After analysis, discussion and community input, the City Council later changed the BN zoning regulations to better match the character of the neighborhood. 

The developer sued the City, claiming that it was vested prior to the code changes even though a complete building permit application had not been filed and the Court of Appeals ruled in the City's favor in 2014. 

A plan for Potala Village under the current Zoning Code requirements is being reviewed by the Design Review Board.  The next Design Response Conference for Potala Village is scheduled for July 18th, but may be postponed until at least the fall of 2016 if requested by the receiver.

4/18/2016 -
Dear Interested Party - On April 5, 2016, Potala Village Kirkland LLC filed a motion with the Court of Appeals to dismiss their appeal. The motion submitted to the Court is attached. While the Court has not yet acted on the motion, the City of Kirkland supports the action and we expect the Court to accept the dismissal soon. The City did not agree to any settlement or change of position in order to secure the dismissal. The City stood firm on its legal positions and remained confident of victory on the merits. Potala Village made the decision to dismiss the appeal without any concessions from the City.
Kurt Triplett
City Manager

3/1/2016 -
The Court of Appeals has scheduled oral argument for April 25, 2016, at 9:30 am.  This is for an appeal from Superior Court Judge Lum's May 22, 2015, ruling which granted the City's motion for dismissal of Potala Village's third Superior Court case against the City.

- Potala Village Kirkland, LLC is appealing King County Superior Court Judge Dean Lum's May 22, 2015, Order Granting City of Kirkland Motion for Summary Judgment. The Court of Appeals has established a briefing schedule for the parties and will ultimately set the matter for oral argument.

5/22/2015 - King County Superior Judge granted City's motion for summary judgment and further denied Potala Village's cross-motion for summary judgment and dismissed the case, with prejudice, meaning it cannot be refiled. (May 22, 2015)
See attached order.

 -The City received the Land Use Petition Action and Complaint for Declaratory Judgment , Writ of Mandamus, Constitutional Writ, and Injunction from Potala Village Kirkland, LCC and Lobsang Dargey and Tamara Agassi Dargey.

- The Washington Court of Appeals issued its opinion in Potala Village, LLC v. City of Kirkland, No. 70542-3-1, reversing the decision of the trial court and holding that Washington’s vested rights doctrine does not apply to the Shoreline Substantial Development permit application filed by Potala Village on February 23, 2011. A copy of the Court of Appeal’s opinion is attached. The Court of Appeal’s stated: “[W]e hold that the filing of the application for the shoreline substantial development permit, without filing an application for a building permit, did not vest rights to zoning or other land use control ordinances.” (Page 12 of opinion.) At this time, the City and Potala Village must both comply with the Court of Appeal’s decision.

Potala Village Kirkland, LLC, Respondents v. City of Kirkland, Appellants, Court of Appeals, Division I, Case No. 70542-3-1 

The City appealed the May 2013, decision by Superior Court Judge Monica Benton granting the motion for partial summary judgment brought by Potala Village Kirkland, LLC. Judge Benton ordered the City to accept a building permit application that would be vested to the zoning and land use regulations in place when Potala Village Kirkland, LLC, filed its application for a shoreline substantial development permit in February 2011.

The applicant filed a petition before the
State Growth Management Hearings Board (No. 12-3-0005) on the BN Moratorium that did not allow a building permit to be submitted to the City. The board ruled that the petition was moot with expiration of the Moratorium on December 31, 2012.

The applicant filed two complaints before the
Superior Court of Washington for imposition of the moratorium and new zoning regulations. The orders linked below were entered by the Superior Court Judge in the first of these two matters. Back to top of page

Site Remediation
The applicant is working with the Department of Ecology (DOE) on the site cleanup.
Visit the 
DOE webpage for Potala Village

Under the terms of the shoreline substantial development permit issued for the project, site remediation is required for contaminated soil and groundwater, and removal of underground storage tanks. The City has hired a consultant (Kane Environmental) to monitor site clean-up and ensure compliance with Department of Ecology rules.

 - Department of Ecology Opinion Letter on Potala Cleanup.

 - Kane review of Potala Cleanup Action Report.

Notice of Cleanup Action letter- letter from Howard F. Jensen (attorney for Potala Village) to Department of Ecology.

Amended tree protection plan - Soil contamination was found to extend into the root ball of a 24" alder tree on site. It was necessary to remove the tree for over-excavation of the contaminated soil to occur.

Early notice letter to Potala Village Kirkland LLC from DOE

Early notice letter to Luella O'Connor from DOE

12/19/2013 - Field Report #1 -
 site visit report from applicant's consultant on site cleanup.

9/19/2013 - The applicant's Cleanup Action Plan is available at this 
link. This means that there will be work occurring on the site before the building permit is issued. 

1/28/2011 2011 Test Data at Arco Site -
Results of testing of material submitted on January 21, 2011 (report dated 1/28/2011)

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Building Permit (BMU13-03290) and Shoring Permit (BMU14-01940)
Permit status can be checked at the MyBuilding web site:
Click on case # to see permit details.

The proposed building includes 88 residential units and 4,802 square feet of commercial space.

- The following two letters have been sent to the applicant about their building permit application.

Letter from the Building Department
Letter from the Planning Department

4/8/2014 - Shoring Permit application was submitted - No. BMU14-01940

3/13/2014 - The City received revisions addressing the comments in the City's comment letter on the building permit application (see below).

2/25/2014 City Comment Letter on Building Permit Application -
this letter includes the City's comments to the applicant after the first review of their building permit application. The applicant will now make revisions to their application based on these comments.

12/18/2013 - Building permit application revisions: Revisions to the building permit application were submitted on 12/18/13. Staff will begin review in early January 2014.

Letter from the City Manager, Kurt Triplett - to clarify the status of the building permit application for Potala Village.

 - Review of building permit - On Hold (per applicant's request made 9-10-13): pending resubmittal of revisions based on environmental review.

  • The Potala Village building permit (No. BMU13-03290) application has been determined to be complete. The project is for 97 residential units and 7,985 square feet of commercial space. Citizens may view the building permit application by submitting a public records request and referencing "Potala Village Building Permit #BMU13-03290 submitted for review." The City Clerk's office will then make the permit available on line to download or on a CD.

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Environmental Impact Statement
12/20/2013 - Potala Village Mixed Use Development Final Environmental Impact Statement Mitigation Measures and Zoning Code Requirements: The applicant met with City staff on November 1, 2013 to discuss the mitigation measures and Zoning Code requirements for the project. The applicant then sent staff a response packet including conceptual drawings for review. This document includes staff analysis based on the conceptual drawings that were submitted. A complete review of the building permit application drawings will be necessary to be sure that the mitigations are met. 

Final Environmental Impact Statement:
Issued on November 2, 2012, and available at link above. Paper copy available for review at City Hall and downtown Kirkland Library. Paper copy or CD available for purchase at City Hall upon request by contacting Teresa Swan,

The subject property consists of property located at 1006, 1008, and 1020 Lake Street South and 21 10th Avenue South. The subject property currently contains a dry cleaner, a restaurant, and single family residences. 

Original Proposal
Lobsang Dargey of Dargey Enterprises is proposing a 4-story mixed use development containing 6,200 square feet of ground floor commercial space and 143 residential units in the stories above. The height of the proposed building is 30 feet above existing grade. Underground parking is proposed to contain 316 parking stalls. Vehicular access will be from Lake Street South. View the project summary

Original Project Plans

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Shoreline Substantial Development Permit
Conditions of Approval for the Shoreline Substantial Development Permit (see Pages 3 and 4 of attached document). The entire Notice of Decision is available at the link below titled "revised decision for the Substantial Development Permit".

8/20/2015 - City has determined that the tolling provisions in RCW 90.58.143(4) and WAC 173-27-090(4) apply to toll the two-year time-limit to commence construction on the Potala Village shoreline substantial development permit. See 
letters for additional information.

GMA Advocates filed a petition for review before the
State Shorelines Hearings Board on the City's decision on the shoreline Substantial Development Permit (see below). On June 19 and 20, 2013, the Board held the hearing on the appeal. On August 8, 2013, the Board issued its decision and order. Pursuant to the Board's decision and stipulation regarding legal issue No.11, on August 12, 2013, the Planning Director issued a revised decision for the Substantial Development Permit.

The Planning Director issued the decision on the shoreline
Substantial Development Permit (SDP) on January 17, 2013. Except for limited shoreline provisions, the permit only applies to the portion of the property within 200' of Lake Washington. Up to approximately 53' of the western portion of the property is subject to the SDP. The Decision and Attachments are available below:

The SDP reviews for compliance with the City's Shoreline Master Program which includes the applicable policies in the Shoreline Area Chapter of the Comprehensive Plan and the applicable shoreline regulations in Chapters 83 and 141. The scope of the SDP does not include other chapters of the Zoning Code or Comprehensive Plan. 

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Review Process

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  • City planning staff contact for building permit: Angela Ruggeri, Senior Planner, 425.587.3256

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Planning & Building Department
123 5th Avenue, Kirkland WA 98033

General Inquiries:
Contact us via the: 
Our Kirkland Customer Service Portal
T. 425.587.3600 | F. 425.587.3232