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The Centennial Mills site has a clean slate 鈥� at least legally.

The Portland Development Commission announced Wednesday that it has reached a settlement with Project SEED, LLC over the remaining portion of a $1.7 million lawsuit regarding the aborted redevelopment of the former flour mill. The settlement was the last claim of six that SEED brought against the PDC when the public agency shifted its redevelopment preference from a food-oriented community space to an office-oriented one.

In 2006, the PDC selected Costa Mesa, Calif.-based to redevelop the Centennial Mills site. The company’s pitch, Project SEED, called for a culinary hub for food purveyors 鈥� a project in which LAB was to invest $40 million and the PDC $8.6 million.

In 2008, the two groups signed a memorandum of understanding for the project. In a late 2011, they were nearing terms on a disposition and development agreement when the PDC introduced a new stipulation requiring 50 percent of the project to be used for businesses that sell globally.

LAB Holding, which specializes in community based development, was not prepared to build office space. Shaheen Sadeghi, LAB Holding’s president, said in 2011 that if the original RFP from the PDC had required conventional office space to such a degree, his company would never have submitted on the project. He could not be reached for comment.

Sadeghi maintained that the new focus was not a suitable use for the site and amounted to a waste of the research his company had already completed.

Sadeghi also alleged that there was a conflict of interest by the PDC’s board chairman, Scott Andrews, who is also a president at . In June, the Multnomah County Board of Commissioners agreed to a disposition and development agreement with Melvin Mark to develop the James Beard Public Market at the Morrison Bridgehead.

A similar project to that of Project SEED, Sadeghi alleged SEED was railroaded to eliminate competition with the James Beard project.

Those allegations were never vetted in court, and the Multnomah County Circuit Court found in favor of the PDC on five of the six claims that SEED brought before it. SEED planned to appeal the decisions in the Oregon Court of Appeals, but the recent settlement puts the issue to rest.

鈥淲e still believe in our project concept and culture,鈥� Sadeghi said in a prepared statement. 鈥淗owever, we are pleased to settle this case as we would like to move forward and concentrate our efforts on our new projects.鈥�

Shawn Uhlman, spokesperson for the PDC, said the agency will pay $200,000 to Project SEED. In exchange, SEED will provide to the PDC all of the research it completed regarding the conditions of various buildings on the site.

鈥淎s you well know, when you’re looking to do construction or renovation related to redevelopment, you need to know these things,鈥� Uhlman said. 鈥淪o rather than have to pay to have this stuff done again, we will have this work done and move this thing forward.鈥�

The PDC is currently working with and to redevelop the Centennial Mills site. It has not released details of the proposed redevelopment.