A creditor is suing Post Falls Landing developer Harry Green, his wife Jann and his dissolved Spokane corporation for $8.2 million.

The suit filed by Liberty Bankers Life Insurance Company in First District Court comes after Green filed Chapter 11 corporate bankruptcy on Dec. 19, the morning an auction sale on the property was scheduled.

The bankruptcy canceled the sale.

The lawsuit states that The Point at Post Falls, LLC breached its financial obligation to Liberty Bankers by failing to pay back when the obligation matured on June 30. It states the principal amount owed is $7.9 million and more than $345,000 in interest.

"By the lawsuit, Liberty Bankers is seeking to enforce the terms of their personal guarantees of the loan made to The Point at Post Falls, LLC," Jonathon Hallin, a Coeur d'Alene attorney representing Liberty, wrote in an email to The Press.

Neither Green nor his attorney, Bruce Anderson of Coeur d'Alene, are commenting on the matter.

A meeting of creditors in the bankruptcy case will be held on Jan. 20.

Post Falls Landing, a 33-acre, multi-use development on the Spokane River next to the Post Falls Dam, has been in the works for 10 years.

However, only two condo buildings and the marina have been built. Retail shops, a hotel, an amphitheater and more residential units are also part of the plan.

Some condo owners said they are upset that a garage has not been built as Green indicated would be and their property values have declined due to slow activity in the project.

Hallin earlier said even though the bankruptcy prohibits the foreclosure from moving ahead, it's possible the foreclosure can resume. He said Liberty would like to re-start the foreclosure process if it's allowed to.

Hallin said it's unclear when the matter will be settled.

The Post Falls Urban Renewal Agency also reimbursed the project about $1.5 million for infrastructure improvements such as streets, lights and curbing in hopes of sparking development in the city center.

"Harry submitted a reimbursement request to the bank and us," said Tom Lien, the agency's executive director. "Our engineer reviewed for appropriate costs and we paid the bank, not Harry."

City officials said Green sought additional urban renewal funding earlier this year, but it wasn't granted. They said they fear the project, aimed at being an anchor for the city center, will remain largely vacant for more years to come.