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The Galleria project on First Street has survived what could be its final challenge from local residents who were opposing it since last summer.

Mike Girdner, the businessman who owns the old Lighthouse Inn restaurant building says he’s happy he can start his project moving again.

Girdner purchased the old Lighthouse Inn property on First Street two years ago after it had been sitting mostly vacant since the bank took it back in 2010. Before he began renovating it, the property was deteriorating and turning into a real eyesore on the town’s pretty waterfront boardwalk.

If the project turns out the way Girdner envisions, the old structure will have an added second story and have retail shops at street level with three condos and four offices upstairs.

Shortly after he announced his development plans, a group of residents – mostly people whose Second Street homes overlook his property and the Swinomish Channel, began protesting the size and scale of the plan.

In August the residents argued before the town’s Planning Commission. In response to the initial protest, Girdner had his project re-designed and made smaller.

But the residents brought in a lawyer and continued to oppose the project. They argued before the Planning Commission again in November and then some more before a hearing examiner.

In December hearing examiner Bill Nielsen gave the Galleria project the green light.

There was one more hurdle – the project had to be approved by the state Department of Ecology. After the state agency sanctioned the project, Second Street resident Bob Raymond filed an appeal in January.

The Galleria project calls for upstairs living units to be on the street side of the building, and offices on the water side. Raymond said he wanted assurance that the hearing examiner’s order that there will not be residential use on the water side will be enforced.

The Department of Ecology’s Shorelines Hearings Board set a hearing for late May, and after phone conferences, lots of legal filings from the town and the developer, Raymond withdrew his appeal on March 23.

On Tuesday, Raymond said he called it off because it became apparent to him the hearings board is not an agency that would enforce the hearing examiner’s order. He said that even though the condos won’t be built over the water, he’s still not convinced there won’t be some kind residential uses there, such as benches or gardens for the tenants.

“Those were my concerns .. it was clear to me that the Shorelines Hearing Board would think that’s not their rule,” Raymond said. He said it is up the Department of Natural Resources to enforce the rule, but he does not believe that agency will do so.

Now that the project can proceed, it’s months behind schedule, “and time is money,” Girdner said. With the redesign to downsize the project – which was voluntary on his part – coupled with lawyer bills and expert witness fees to fight the opposition he said he spent an extra $100,000 or so.

Also, the town incurred some legal fees and has paid invoices totaling $7,500, according to Town Administrator John Doyle in his response to a public records request.

From his perspective, Girdner said he’s glad the residents spoke up. He said that when the private sector is challenging the public sector, the residents’ involvement is the way to dispel the notion that, “it’s like me and the government in unison, preying upon some poor citizen.”

He said he has no hard feelings. “I’m just thankful, and feeling blessed to be part of this community.” He plans to make his home in one of the upstairs condos.

Besides, Girdner said when people see the old building when he’s done with it, “I think they’ll say ‘can you do another one?’”