SOAP LAKE — A dispute between North Pacific Investments and the city of Soap Lake has intensified following NPI’s recent decision to file a formal legal appeal against the city's administration. The developer says Mayor Peter Sharp's denial of the Purple Sage Meadows' affordable housing project — a $66 million initiative intended to provide 232 affordable homes — represents an unjustified obstruction of the planned development. 

NPI asserts that Sharp's unilateral decision, issued Nov. 5 to deny the project's final approval, is not only unwarranted but also legally questionable. However, the city claims the developer has not completed the full application in compliance with the city code and the Planned Development District for the development.

The developer claims that the denial was based on technical assertions regarding an "incomplete application," which they believe is a mere pretext for administrative obstruction. NPI has been actively pursuing this project, communicating with the city for over two and a half years. 

This legal clash comes at a moment when affordable housing is in high demand in Washington State, according to area realtors. NPI’s project aims to alleviate some of that demand, but the recent assertion from the city has thrown the initiative into uncertainty, according to NPI.  

In a statement released Nov. 21, NPI outlined its rebuttal against the city’s claims, emphasizing the perceived inconsistencies in the city’s narrative. 

"The Mayor cannot publicly claim the PDD is active while privately demanding an illegal amendment to the project structure," said Raymond Gravelle, project consultant for NPI, in a statement.  

He stressed that the city’s failure to communicate effectively and its demands for changing the approved project structure contradict the City Council’s earlier unanimous approval of the project. However, according to previous reporting by the Columbia Basin Herald, the city voted in favor of approving the land use permit for the project with a 4-3 vote in April of 2023. 

NPI details a timeline of correspondence highlighting what it describes as significant delays in the review process. According to the developer, since submitting final technical documents Sept. 23, 2025, communication from the city has been sparse and unacknowledged. NPI claims the city remained silent for weeks before Sharp’s office responded, after which no further communication from the city was received, thereby obstructing the intended review process. 

In a separate administrative complication, NPI alleged that Sharp attempted to obstruct legal proceedings by refusing to accept a delivery of important legal documents required to initiate the appeal process. 

"This shows the Mayor is actively trying to avoid the legal process," NPI indicated in their statement, asserting that the city’s actions have created considerable barriers to moving forward with the project. 

In its own response, the city of Soap Lake maintains that it has acted within the bounds of the law and has not terminated any vested rights under the Planned Development District established for the project. The city asserts that NPI has not submitted a complete application, which is essential for any development to proceed, according to local codes. 

"The City has notified the Developer that they are welcome to submit a full and complete application in compliance with city code and PDD for the Development at any time," the city’s statement read.  

The city emphasized its willingness to work with NPI while outlining the requirements necessary for the submission to be duly processed. 

Soap Lake officials also addressed the changing nature of the project, highlighting its evolution from an RV park to condos to manufactured homes over the years. The city said any changes in project scope may necessitate amendments to the existing PDD, which could further complicate approval processes.  

The city explained Sept. 23, while the city was between planning agencies, the developer reached out to the city, indicating it wanted to finalize the development.  

“At that time, the project was still going through preliminary reviews,” reads a statement from the city. “The city responded with a letter to terminate the continued preliminary review of the development project. The letter terminating review was intended to clarify and confirm that the city had not received a formal application for the development as required by the city code. Therefore, the city would need to stop the “preliminary planning” work to ensure a full proposal (including application and fee) was submitted for final review of the development.” 

NPI, however, said that delays have not stemmed from technical issues but from what they describe as political obstruction from the city administration.  

Moreover, Gravelle warned of potential financial repercussions for the city if it continues down the current path  

"The city is now risking tens of thousands of dollars in attorney's fees and damages by forcing this fight in Superior Court,” said NPI’s statement.  

As tensions mount, the two parties currently stand at an impasse. NPI hopes for an immediate resolution and has proposed a "Proposal to Halt LUPA Proceedings," but as of now, it appears litigation remains a possibility.