Former Bellingham Mayor Seth Fleetwood and the City of Bellingham are named as defendants in the lawsuit.
A temporary order prohibiting the officer from possessing firearms remains in effect until June 27.
The new library will include a youth collection, meeting room and an outdoor reading area.
The apartment complex, located west of the encampment, claimed the lawsuit was not moving fast enough.
The deal is said to close by the end of the year.
Medics pronounced him dead at the scene.
Officers found drugs and paraphernalia on the suspect upon arrest.
He was arrested June 13 following a months-long investigation into the nature of their relationship.
Police logs state Brennan Haggstrom turned himself into custody just before 5 p.m. Thursday.
BPD was on the scene fast as the incident occurred in front of the police station.
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