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Issaquah to buy Opportunity Center condo for behavioral‑health and related services; council authorizes purchase
Summary
The council authorized purchase of a 10,438 sq ft Opportunity Center commercial condominium in a TOD building for up to $7.54 million, to be funded from set‑aside affordable housing and mitigation funds and reimbursed in part by a $3 million state appropriation; staff will pursue tenants and tenant‑improvement planning through 2027.
The Issaquah City Council on June 29 authorized the mayor to execute a purchase and sale agreement covering the city's acquisition of a 10,438‑square‑foot Opportunity Center condominium within a transit‑oriented development at 1467 NW Maple Street.
City staff said the unfinished shell price is $7,536,237; the agreement requires a 5% earnest money payment in mid‑2026 and a final construction closing expected in late 2027 when the building is finished. Staff proposed funding from three buckets: a $5 million set‑aside in the city's affordable housing fund (historically reserved for the Opportunity Center), about $1 million of mitigation fees, and a $3 million state appropriation that would reimburse the city after acquisition. Finance staff said the affordable housing fund can carry the purchase and be replenished by state reimbursement.
Because the unit is part of a condominium association that is not yet formed, the council also authorized acceptance of condominium governing documents (declaration, bylaws, and board structure) and delegated the mayor authority to approve limited change orders up to specified thresholds for material adverse impacts. The agreement provides that additional increase costs up to $376,812 are the city's responsibility; the city and seller split costs above that amount and the mayor was authorized to approve change orders up to a $500,000 increase to facilitate timely construction management; council action would be required above that level.
Staff said tenants for sliding‑scale behavioral health, dental or medical services remain under recruitment; the city has conducted letters of interest and follow‑up outreach and is in discussions with two to three potential providers. Tenant improvements (interior build‑out) were not covered by the purchase agreement and will be planned after construction is complete; preliminary estimates for tenant build‑out range from about $225 to $300 per square foot for medical‑grade improvements, lower for behavioral health‑only build‑outs.
Councilors who supported the purchase framed it as a decade‑long priority to host public behavioral health services in a transit‑served location. A few councilors expressed caution about using affordable‑housing funds for the purchase and asked staff to ensure state reimbursement flows back to the affordable‑housing fund when it arrives.
The council moved, seconded and unanimously approved the purchase authorization, condo governance acceptance and mayoral delegations as presented.
What happens next: The city will pay earnest money in July 2026, continue tenant recruitment and RFP work through 2027, close on the purchase in late 2027 and expect state reimbursement in 2028. Staff will return with lease and tenant‑improvement plans and detailed budget sequencing for council approval.
