Kent staff preview Nathan Avenue proposal, warn of retail shifts and press for Opportunity Zones
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Summary
Economic-development staff told the council the closure of large retailers reflects long-term retail shifts; staff previewed a Feb. 3 purchase-and-sale proposal for the Nathan Avenue assemblage, touted workforce outreach via a 'Future in Flight' expo for ~800 students and urged the city to pursue Opportunity Zones 2 this year.
Bill Ellis, economic and community development staff, gave an extended presentation to the city council on Jan. 20 covering retail shifts, a forthcoming Nathan Avenue proposal and Opportunity Zones planning.
Ellis framed recent closures — including Fred Meyer, Joanne Fabrics, Rite Aid and Walgreens — as part of a long-term shift in how people shop. He said corporate portfolio decisions (he discussed Kroger-owned stores and a brokerage process) are driven by trade-area analyses and other metrics. On the local impact, Ellis said the Fred Meyer closure affected the East Hill trade area but that the property owner appears motivated to sell, which has increased redevelopment interest.
On the Nathan Avenue assemblage, Ellis reminded the council that the city changed zoning in 2017 to allow manufacturing and said the site has attributes attractive to high-value industry: a large power substation, proximity to state highways and King County sewer infrastructure. He said the city conducted an RFP, interviewed three respondents and will present a purchase-and-sale agreement for council consideration on Feb. 3.
Ellis urged the city to pursue the Opportunity Zones 2 federal program during the mid-2026 application period, noting the program’s potential to attract capital gains–sheltered investment to eligible commercial and industrial lands in Kent. He said roughly 83% of the city’s commercial-industrial lands may be eligible and that inclusion would matter for where private investment flows.
Ellis also highlighted workforce outreach: the "Future in Flight" employer expo brought nearly 800 students to meet aerospace and advanced-manufacturing employers, and the program received recognition from the U.S. Conference of Mayors.
The report included numeric details and comparisons (Ellis cited regional aerospace economic figures and downtown tax-exempt square footage), and he said staff will return Feb. 3 with detailed materials on the Nathan Avenue purchase-and-sale agreement. No formal council vote on the Nathan Avenue site occurred at the Jan. 20 meeting.
