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Committee approves purchase path for 2705 University Ave NE as new water distribution maintenance facility
Summary
The Committee of the Whole approved moving forward on the acquisition of 2705 University Ave NE (four parcels) for a new water distribution maintenance facility, directing staff to execute a purchase agreement and begin a 90‑day due‑diligence period with closing to occur on or before Dec. 31, 2025.
The Committee of the Whole voted to proceed with a purchase agreement and due‑diligence period for four parcels commonly known as 2705 University Ave NE to serve as a new water distribution maintenance facility for the city.
Barbara O’Brien, director of Property Services, told the committee the parcel is adjacent to the East Yard storage and maintenance facility and meets the city’s operational and zoning needs for a water yard. “This particular piece of property checks all those boxes for us,” O’Brien said, listing access, acreage and adjacency to existing municipal facilities.
Annika Bengston, Division Director of Public Works Water Treatment and Distribution Services, described operational constraints at the current facility (undersized, outdated building at 935 5th Avenue with staff in trailers, inadequate warehousing and non‑ADA facilities) and explained space requirements identified in a space needs study: about 1.6 acres for office/shops/warehouse, 1.4 acres for yard storage and roughly 2 acres for fleet parking (about 4.9 acres total) with stormwater best‑management practices planned.
Property Services said a nonbinding letter of intent and a finalized draft purchase agreement are in place; if approved, the city will have 90 days to complete environmental and site due diligence and must close on or before Dec. 31, 2025. The property contains an existing tenant (Bag Tape), whose lease runs through Jan. 31, 2028; staff said the tenant has indicated they do not intend to remain on a long‑term basis and that early termination negotiations are possible.
Council members raised community‑engagement concerns and historical context about other proposed sites; Council President Payne said staff had worked to bring neighborhood stakeholders into the process. The committee approved the recommendation and the item will advance to full council.
