Issaquah council authorizes design supplement for Newport Way improvements and accepts developer fee‑in‑lieu for roundabout

Issaquah City Council · March 3, 2026

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Summary

Council authorized a design‑agreement supplement (about $304,641) to bring the Newport Way Maple to Sunset Improvements to 60% design (approved 6–1) and approved a $199,090 fee‑in‑lieu agreement with Bluefern Group to defer certain frontage improvements and accept right‑of‑way for a future roundabout.

The Issaquah City Council authorized the administration to execute a design agreement supplement to advance the Newport Way Maple to Sunset Improvements (TR‑023) to the 60% design milestone, approving a supplement amount included in the motion of $304,641.26. The project would extend a second southbound lane in places, add sidewalks, protected bike lanes, several roundabouts, and modernize stormwater treatment to reduce roadway runoff that can affect salmon habitat.

City staff described the project as an Intra‑Issaquah Mobility priority that addresses safety on a corridor with a history of serious collisions and prepares the city to pursue construction grants, including PSRC, Safe Routes to School, Highway Safety Improvement Program, and USDOT BUILD/RAISE grants. Staff noted an awarded right‑of‑way grant for 2028 and said completing 60% design will help shape construction phasing and strengthen grant applications.

Staff also reviewed a long design history, public feedback that removed a center median concept, and two recent environmental constraints: emerging research on tire‑wear impacts to salmon and detection of PFAS contamination under the roadway tied to fire suppressant use that required additional geotechnical and design work.

Council discussion centered on project cost and benefits: Deputy President Martz opposed the motion, saying the project carries a multi‑million dollar cost (he repeatedly cited roughly $60 million) for what he characterized as limited travel‑time benefit; other councilmembers defended the project’s multimodal safety benefits, the need to repair failing pavement and drainage, and the leverage of external grants. The motion passed 6–1 with Deputy President Martz voting no.

Related private‑development action: Following the design motion, the council considered a separate packet item for a nearby private development. Community Planning Director Renee Hall briefed council on a Bluefern Group proposal for a 28‑unit townhome project at Newport and Holly. To avoid redundant construction and to secure land needed for the city’s planned roundabout, Bluefern offered to dedicate a triangular parcel (Tract E) and to pay $199,090 in lieu of constructing frontage improvements now. Council authorized the mayor to enter into the fee‑in‑lieu agreement; the motion passed unanimously. Hall and councilmembers said the agreement preserves interim ADA‑compliant frontage, allows coordination with the city project, and gives the city five years to spend the funds on the planned improvements or return them with interest.

What this means: With 60% design work funded and underway, the administration intends to pursue federal and state construction grants and advance environmental review (biological assessment, NEPA) and right‑of‑way planning to position the project for phased construction starting as funding allows.