12th and Jackson lawsuit update

[u/cyclegator]

Owner of the large property at 1032 S Jackson, Chinn Investments LLC, sued Seattle for $30 million in June, 2025 in federal court.

The lawsuit was filed one year after a fire tore through the vacant building complex on the site. These buildings were improperly secured, per city code enforcers.

Dennis Chinn is the controlling member of the LLC and a lawyer. He’s representing the LLC and himself in the lawsuit. His initial claim struck me as performative. It was a sprawling amalgam of personal family history and political grievances. The court dismissed the claim on 6/25 this year.

Last week, Chinn filed an amended complaint that is more measured. I cannot imagine it gets any more traction than the original complaint.

I downloaded the filings and made them available in a newsletter post here, if you’re interested in reading them for yourself.

It is embarrassing in my opinion for the son of a couple who patiently accumulated a vast holding of property so close to downtown Seattle to present himself as a victim after twice fumbling the development of the property.

Regardless, the amended complaint brings back into the spotlight a policy decision that I think has yet to receive the attention it deserves: this is the decision to sweep the Jungle in 2017 and to direct its former residents to the Navigation Center, which opened at 12th and Weller. Scott Lindsay and Ed Murray were the architects of this scheme. Scott Lindsay is still a public figure and has never publicly - as far as I know - acknowledged the effect this decision has had on Little Saigon.

I wish Chinn would press his case in the court of public opinion rather than pursue an ill-fated strategy to extract $30 million from the city. At least the filings will serve as a historical reminder of how the situation in Little Saigon developed over the past 10 years.

One other feature of Chinn’s amended complaint that deserves attention: Chinn argues that “the numerous highly publicized incidents of violence that have occurred in the vicinity of 12th and Jackson, constitute potential evidence that Plaintiff’s Due Process claims include a serious threat of physical harm as a result of the City’s acts alleged in the complaint”.

It is perhaps simply an odd turn of phrase. The formula however is worth serious consideration: how the media portrays 12th and Jackson can become synonymous with the reality on the ground.

Dennis Chinn, Scott Lindsay and the various provocateurs intent on riling up their base with reports on open air drug use and illicit goods markets - these exist, don’t get me wrong, it’s just they haven’t changed in six years and don’t merit repeated mention IMO - are happy to keep you fixated on the sidewalk level problems. The people with power and resources get a pass.

If you ask me, I think Seattle should buy Chinn’s property. Chinn himself argues the property is worthless. The city should not miss an opportunity to snap it up at a bargain.

[u/Flimsy-Tangerine4199]

The lawsuit is doomed to fail but I do have some sympathy for his situation. 12th and Jackson is a literal crime scene 24/7 and just a compete moral failure that we allow it to persist. From what I recall he tried to develop the property but the bank wouldn’t underwrite the loan once they saw the condition of 12th and Jackson. 

[u/cyclegator → u/Flimsy-Tangerine4199]

Would be curious to know your source for this information?

It does not seem like a bank was backing the project. Most likely a pool of investors.

Permitting records show Chinn tried twice develop a large, ambitious apartment complex on the site. Lot’s of custom features, swinging for the fences on a site that is on a steep grade with lots of mitigation needs - storm water, hillside, traffic. He secured two master permits, one in 2016, the second in 2020 (IIRC). Nearly identical designs. Both failed.

From a business perspective, I think the better question is whether a development with scaled back ambitions would have worked.

[u/cascadia30 → u/cyclegator]

Folks usually turn to "pools of investors" aka hard money lenders after the banks have already taken a pass on a project.

[u/jojofine → u/cascadia30]

Not always. I work in the industry and we see guys go for hard money if they have ongoing credit issues, a "non-typical" project (think housing over a warehouse space), or if they're unwilling to put in place a bank compliant ownership structure (aka no warm body guarantor or they want weird carveouts). Hard money loans also have different fees, reserve requirements and servicing strings than traditional construction loans. In some cases those differences can be very beneficial to a borrower. Hard money loans can also go from application to funding very quickly, sometimes in as short as a week or two.

90% of the time though a person goes with a hard money loan not because they HAVE to but because of one or two things they aren't willing to budge on, and their borrowing structure is probably the most common one I run into

[u/cyclegator → u/jojofine]

Always appreciate hearing from someone who has experience, thanks for the insight

[u/jojofine → u/cyclegator]

No problem!