Council pauses Bellevue College transfer‑of‑development‑rights decision, sends DA extension to September Committee of the Whole

The Issaquah City Council on July 21 declined to approve a proposed two‑year extension to the WSDOT transfer‑of‑development‑rights (TDR) development agreement for a Bellevue College parcel in the Issaquah Highlands and instead agreed to send the matter to the Committee of the Whole for further study and public discussion.

Community Planning & Development Director Minnie Dhaliwal explained that the 2011 development agreement (DA), adopted as part of a larger WSDOT TDR agreement, currently allows institutional uses through 2044 and includes an option tied to the DA that could permit residential development on the 19‑acre Bellevue College parcel (Parcel 4), subject to the DA’s density and other terms. Bellevue College requested a two‑year extension so it could research options, solicit community input and return with one or more vetted proposals rather than immediately seeking approvals.

Bellevue College Vice President Jorge (no last name provided) told the council declining enrollment, rising construction costs and longer‑term shifts in higher education have made building a stand‑alone satellite campus impractical at present; the college said it needs time to explore alternatives and to consult with the community. Dhaliwal noted the DA includes an expectation of at least 50 affordable units across the broader set of parcels tied to the TDR deal; she said it is unclear whether that obligation was satisfied under subsequent, related transactions and that staff would research recorded covenants and the history of the other parcels.

Council members raised multiple concerns and requests for additional information before deciding. Among the issues they asked staff to research and present at the Committee of the Whole were: • The history of the DA sale price and any public benefit expectations tied to the reduced price; • Whether affordable housing commitments associated with the original DA were recorded or fulfilled on the other parcels; • Clarification of tax implications if the college leases the land rather than sells it (discussion referenced leasehold excise tax vs. property tax); • Emergency evacuation access for the Highlands neighborhood and trail connections; • Potential tools the city could use in a DA to narrow allowable building types or otherwise shape future development; and • Options for collaboration with the Issaquah School District and other potential institutional users.

Given the number of substantive questions and the expected public interest, Deputy City Administrator Andrea Snyder recommended and the council agreed to refer consideration of the resolution to the Committee of the Whole on September 8 to allow staff and the college to return with the requested information and possible conditions. The referral was supported by a majority of council members; the council did not adopt the extension at the July 21 meeting.

Dhaliwal told the council that, if the DA lapsed for residential uses, institutional uses would remain allowed under the current agreement through its existing term. The college confirmed that any future development would be required to meet the environmental, critical‑areas, stormwater and tree preservation rules in effect at the time of a formal land‑use application.