Monroe approves deal to develop vacant land for big-box store

Published 10:58 pm Wednesday, January 20, 2010

MONROE — Shoppers are one step closer to getting a new big-box store.

With its unanimous vote, the City Council told Mayor Robert Zimmerman to sign a purchase and sale agreement with a Seattle developer for 24 acres at the corner of N. Kelsey Street and Chain Lake Road.

The agreement, approved Tuesday night, set the price of the land at $9.6 million.

Sabey Corp. is expected to pay the city after clearing a couple more hurdles.

The developer has until mid-April to closely review the property, making sure it is a sound piece of land. It then has until mid-May to present the council with a site plan for the land’s development.

Many believe the developer will try to attract a big-box retailer to the site. Wal-Mart, Costco and Target all have been mentioned.

Before the vote, Councilman Kurt Goering tried to amend the purchase and sale agreement by adding a “no Wal-Mart” clause.

That amendment was promptly rejected, with council members noting they still have final approval over the developer’s plans for the property.

“We still have something to say about it,” Councilman David Kennedy said.

Also Tuesday night, the council discussed hiring a broker to market a separate 23-acre piece of land on the south side of N. Kelsey Street.

The council was considering hiring either GVA Kidder Matthews of Seattle or Grubb &Ellis of Santa Ana, Calif.

Council members delayed a vote on the hiring until their Feb. 2 meeting, however, saying one of the brokers was seeking a higher-than-expected commission rate.

Specifics on those negotiations were discussed in executive session, which was closed to the public.

Sale of the land on either side of N. Kelsey Street will benefit the city’s budget.

The city bought land on the south side of the street from Snohomish County in 2005. The city still owes $11.2 million on that purchase, which has led to more than $1 million in interest payments.

Development of the land also could lead to a larger retail base, generating sales tax revenue in the cash-strapped city.

Andy Rathbun: 425-339-3455, arathbun@heraldnet.com.

More news from Monroe

Mayor Robert Zimmerman also proposed his choice for interim city administrator at Tuesday’s meeting. Read about his pick — a man who started working for the city as a teenager — on Page B2.