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Federal Way Council authorizes staff talks with Sound Transit over downtown TOD parcels
Summary
The council voted to authorize city staff to open discussions with Sound Transit about acquiring one or more surplus transit‑oriented development (TOD) parcels downtown after staff described site conditions, expected timelines for an RFP and uncertainties about contamination and appraisal values.
The Federal Way City Council voted Jan. 21 to authorize staff to initiate discussions with Sound Transit about the possible acquisition of one or more surplus transit‑oriented development parcels in the city’s downtown.
City planners told council members the parcels are being offered in phases and that a formal request for proposals (RFP) originally expected soon is delayed by “at least another two to three months,” and will initially cover only two of four downtown parcels. Keith Niven, the city’s community development director, said the two parcels selected for the first RFP are the cleanest; the other two have contamination from a former dry‑cleaner site and an old gas station and will require additional work before they are released to market.
The council’s action asks staff to open conversations with Sound Transit to explore whether the city might acquire one or more parcels. Niven told the council that Sound Transit historically has disposed of properties through competitive RFPs and has not, to his knowledge, directly sold complete TOD parcels to municipalities outside an RFP process. He outlined three options: pursue direct discussions with Sound Transit (the mayor’s recommendation), wait for the RFPs and re‑engage then, or take no action.
Council members debated tradeoffs: several emphasized the opportunity to shape downtown housing and senior housing outcomes if the city is involved early, while others raised concerns about the city’s capacity to own and maintain property and the risk of diverting funds from existing capital needs such as parking for the Performing Arts and Events Center. Niven also provided preliminary market valuations using a working figure of roughly $1.7 million per acre and noted that cleanup costs (the dry‑cleaner parcel’s remediation was estimated in the millions) would reduce market value.
After discussion, Council President Kochmar moved and the council seconded the motion to authorize staff to initiate discussions with Sound Transit. The motion passed unanimously as recorded by the mayor, with no roll‑call tally provided.
Council members said they expect staff to return with more information for council consideration or to include the topic in the upcoming council retreat for strategy discussion.
