Bellevue will make a big concession in fees for the development of Kelsey Creek project to ensure that it gets done on time.
Only four days from groundbreaking of the project – 11 a.m. Thursday at the center – designed to revitalize the mostly abandoned shopping center at the corner of 148th Avenue Northeast and Main Street, the City Council on Monday agreed on a resolution that will lead to a savings of nearly $450,000 on transportation impact fees.
Developers were expected to pay $637,069 in fees.
The agreement was made to provide an incentive to fill up the complex by June of 2012 at which time the city could see increased sales tax revenue to make up for the loss in fees. The property owners said the development is scheduled to open this holiday season.
“Every dollar reduction on this project is critical to its success,” said Nat Franklin, of Franklin-West, the company that owns the property.
Several council members showed reluctance to grant the exception for fear that it would open up the flood gates. Before voting in favor of the exception, Council Member Claudia Balducci wanted to know exactly what the body would tell the next developer who asked for such an exception.
Others were set against special exceptions. Jennifer Robertson saw this as an opportunity to examine the fee structure and determine if it is too high. Kevin Wallace felt that the council shouldn’t grant such huge exceptions for one project.
“I think this project is great, and I would like to see it go forward, but at the same time, I don’t think it’s prudent for the city to support a one-off special deal for one property just because we like the project.”
But other council members saw the move as a special situation. Neighborhood shopping centers can be difficult projects to get done, and Kelsey Creek has proved particularly troublesome. Much of the area has sat vacant for the better part of the decade. Changes in zoning over the summer have made the property more development-friendly.
The project is slated to include remodels of existing buildings as well as pedestrian improvements. The old Kmart building will likely feature a health club and a grocery store. The project will make a go-to spot for all nearby residents, property owners said.
The five council members voting for the exception said it puts more pressure on the developer to make sure the project gets done.
“What is being promised here is a timeline when this will be done, and when there will be occupancy,” said Council Member John Chelminiak. “A timeline confirms that we will get the improvements we’ve been seeking.”
