A developer’s vision for a mix of residential, commercial and public spaces lining the Columbia River shore at Pasco’s Osprey Pointe appears to be all but dead in the water, and the future of the 55-acre property is unclear. 

The Port of Pasco and JMS Development are working through legal entanglements following port commissioners’ unanimous decision in December to sever the partnership that had been in place since 2019 but had yet to result in any groundbreaking. 

Jim Sexton, owner of JMS, did not return requests for comment from the Tri-Cities Area Journal of Business on his next steps related to his development plans for Osprety Pointe. However, he and his proponents aren’t giving up quite yet.  

Several supporters of the JMS project, ranging from those in construction, real estate and other business owners, approached port commissioners during their regular meeting on Dec. 17, urging them to reconsider. 

“I know James has the financing in place and in the bank, and I’m disappointed that we’re not moving ahead with this project,” said David Retter of Retter & Company Sotheby’s International Realty in Kennewick. 

Sexton reportedly delivered a letter to the port with a proposal to pay $11.5 million for the entire property, an amount in line with pricing in the development agreement. Port commissioners were expected to consider that request at their Jan. 14 meeting, which took place after the Journal went to press. 

Adam Lincoln, the port’s executive director, told the Journal the port will not just let the property sit idle forever, but that it is focused on resolving the current situation so that it can focus fully on planning when it is over. 

“I think it’s prudent to get through this process first,” Lincoln said. “We understand there’s an inherent value in this property.” 

Sexton had planned a mixed-use development that would bring hundreds of homes as detached and apartment-style condos, along with dozens of commercial spaces, including a large Market Hall with wine tastings and an art gallery, and an event center with outdoor amphitheater.  

The port’s decision to withdraw from its partnership with JMS came after months of tension. 

In July, Sexton told port commissioners he was ready to buy the initial 9 acres at a previously agreed upon price of just under $2 million before he invested $1 million for needed utility work. 

But port commissioners and staff pumped the brakes on his request, requiring it be made in writing, include a new proposed development schedule and a letter explaining the need for it. The port also posed questions and expressed concerns about how the development has dragged out, and the port’s need to protect its interests. 

Sexton has cited numerous hurdles that stalled the project, including the city of Pasco needing to update its comprehensive plan and building codes to allow the project; staff turnover in the city’s planning office; the back-and-forth on state codes for natural gas in new construction; and the Covid-19 pandemic. 

In a recent memo to port commissioners, port staff wrote that JMS did not meet deadlines in its amended master development agreement, or MDA, resulting in notices of default being issued. Unless port commissioners agreed to another extension, JMS would not be permitted to move forward. 

At a Dec. 12 special port meeting, Sexton told commissioners, “I know we’ve had our ups and downs, but I think we’re at a point where we can move forward.” He had submitted a request to amend the development schedule, as well as a required memorandum outlining the first two phases of the proposed development. 

“I believe in this project. I believe the end of this project will be something the Tri-Cities has never seen. This is the best property on the water,” Sexton said, adding, “I’ve cured these things. I’m still very excited. I still want to move forward. This time last year I didn’t think the port hated me.” 

“The port doesn’t hate you. We just have to protect it,” responded then-Commisioner Jean Ryckman, who retired from the port at the end of December. 

Commissioner Vicki Gordon told Sexton she was excited about his vision for the property because of how special Osprey Pointe is. But she said the port has never had to be as involved in so many minute details in any other development and that shouldn’t be necessary. 

“It’s all just been very confusing and piecemeal, and I’m sorry it’s not completed because I’d likely be in one of the condominiums,” she said. 

Ryckman, Gordon and Commissioner Hans Engelke voted to reject Sexton’s requested amendment and issue a termination notice for the partnership following a brief closed-door session.  

“I think it’s time to look for more realistic options,” Ryckman said before the vote. 

Lincoln told the Journal the port’s agreement with JMS does have requirements for mediation and arbitration arising from disputes and that each entity’s legal counsels are navigating that process.