Monroe explores plan for retail area

Published 10:57 pm Monday, January 18, 2010

MONROE — The land that sits north and south of N. Kelsey Street has more than a road in common.

City officials have been trying to develop the neighboring parcels for years, but both remain empty.

That could change soon.

At its meeting at 7 tonight, the City Council will consider taking action on two separate projects that ultimately could bring retail stores to the North Kelsey property.

The more promising of those two projects involves a Seattle developer.

The Sabey Corp. wants to purchase 24 acres of land on the north side of the street for $9.6 million. If the council approves a purchase and sale agreement, the developer can start nailing down a tenant for the property.

Many believe the developer will try to attract a big-box store such as Wal-Mart, Costco or Target, but nothing is definite.

“I don’t have any idea what type of business is coming at this point,” Mayor Robert Zimmerman said. “There’s a lot of speculation out there, but I don’t want to deal in speculation.”

If all goes smoothly, a tenant could arrive at the site in the next year.

Development across the street might take longer.

The council is considering hiring a broker to market 23 acres there.

That property has created debt for the city. As of November, it generated more than $1 million in interest payments since the city purchased it from Snohomish County in 2005.

The land has proven difficult to develop. With the real estate market still suffering, that might not change even with a broker’s help.

“It’s anybody’s guess, I think, whether we will be able to get retailers or developers in this market to come to the city with a proposal,” said Hiller West, community development director for the city.

Both projects are important to the cash-strapped city.

The sale of either parcel of land will help the city pay off debt while buoying its 2010 budget.

In the longer term, new stores could give Monroe greater stability by offering a regular flow of sales tax.

“These are the city’s biggest projects,” West said.

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

Attend the meeting

The Monroe City Council will discuss plans to develop the North Kelsey property during its meeting at 7 tonight. The council meets at City Hall, 806 W. Main St.

More info: www.ci.monroe.wa.us or 360-794-7400.