Issaquah committee weighs future of TOD Opportunity Center after service providers withdraw

Issaquah Deputy Council President De Michel and the Services, Safety and Parks Committee on July 22 heard options for the Transit Oriented Development Opportunity Center (TODOC) after the two planned tenants, Valley Cities and HealthPoint, withdrew their participation. City staff asked the committee whether it wants the administration to continue pursuing a single service provider similar to the original plan or instead develop a plan B to share the space among smaller providers and city human services staff.

The decision matters because roughly $9 million the city has set aside for acquisition and tenant improvements is tied to specific uses and deadlines, and the King County Housing Authority (KCHA) — which owns the parcel and is moving toward building permits this summer — needs timely direction to finalize building plans. City staff told the committee that the state reappropriation of $3 million for the Opportunity Center expires June 30, 2027, and that the city is working toward a May 2028 opening if the project remains aligned with the residential TOD schedule.

City staff presented the history and the constrained timeline. Andrea Snyder, deputy city administrator, said, “the purpose of our meeting is to talk about what, what, is the future for the opportunity center.” The city issued the original request for proposals in 2016 and later negotiated an MOU with Valley Cities and HealthPoint for the 10,000-square-foot commercial condominium within the TOD. KCHA retains ownership of the land. Snyder told the committee that Valley Cities and HealthPoint “pulled out of this partnership with us” citing timing and uncertainty in Medicaid and federal grant funding.

Management analyst Jillian Straub laid out the funding landscape and options. Straub said, “the city has called has set aside, a…