Issaquah housing project outlines key adjustments in new cooperation agreement

The Issaquah City Council meeting on May 5, 2025, spotlighted significant developments regarding the Transit-Oriented Development (TOD) project, which has faced numerous challenges since its inception. Originally projected to cost $3 million, the acquisition of the site from Lumen ballooned to over five times that amount due to prolonged negotiations and rising construction costs, which have surged by 86% since 2016.

Key changes in the project’s landscape include a reduction in the maximum development width from 228 feet to 178 feet, a 28% decrease, attributed to a shift in site boundaries and new wetland buffer requirements. These adjustments have raised concerns about the project's viability, particularly for the affordable housing component.

The council discussed five critical requests under the housing cooperation agreement aimed at mitigating the impact of these changes. One major request is to exempt the affordable building from a required step back above the fifth floor, which would incur an estimated additional cost of $1.2 million and result in a loss of six units. This exemption is deemed essential for maintaining project feasibility.

Additionally, the developers are seeking leniency on parking and transparency requirements, which currently mandate that parking areas be separated from public spaces and that a significant percentage of building facades be transparent. These regulations pose logistical challenges, particularly for necessary utility access.

The council also reviewed requests to adjust outdoor amenity space requirements, allowing for flexibility in providing shared or private outdoor areas, which could alleviate costs associated with constructing balconies for every unit. Lastly, the developers are advocating for the affordable building to meet the Evergreen Sustainable Development Standard (ESDS) instead of the more stringent LEED Platinum certification, arguing that the latter adds unnecessary costs without corresponding benefits.

As the project moves forward, the timeline indicates that construction is anticipated to begin in June 2026, with completion expected by June 2028. The council's decisions on these requests will be pivotal in shaping the future of affordable housing in Issaquah, as the city aims to balance development needs with environmental and community standards.