Developer seeks extension of option on Northgate lot

Development plans for a piece of property just south of Northgate Mall are once again on hold, this time while the developers seek an extension on their expired option to buy the acreage from the mall's owner, Simon Property group.

Security Properties had a six-month option, which expired in September, to buy the 13 acres. The land has been mired in disputes over what to do with a part of Thornton Creek that runs through the parcel in an underground pipe.

Some neighborhood and environmental groups want the creek brought back to the surface as part of any development.

Security Properties has asked to have the purchase option extended.

"We are trying to put everything back together. Whether we are going to be able to do that or not, I can't say at this time," said Don Moody at CB Richard Ellis in Seattle, representing Simon Property Group, based in Indianapolis. "We have three interested parties at this time. We are working on it right now."

"There could be one or a combination when we're done," Moody said. Simon Property Group was originally planning to develop the property itself, but was stymied when the Thornton Creek Legal Defense Fund sued two years ago to force the developer to bring the creek to the surface.

The group argued that restoring the creek, which was buried in the 1950s, would improve salmon habitat and reduce flooding.

Simon maintained that the creek is just a drainage ditch.

A King County Superior Court judge sent Simon's development plan back to the city for further study of the project's environmental impact on the creek. Simon decided to sell the property, asking $25 million.

Security Properties asked for a six month option before signing the final sale agreement, and then began a series of community meetings to talk about the density of the development and the community's desire to bring the creek to daylight.

Security is planning a mix of residential, commercial and retail users on the property. Some of the buildings will be up to 10 stories tall. Offices, a grocery store and small businesses are part of the plan.

"Security Properties has felt throughout the process that the community's desire to 'daylight' the creek was so strong, it would be difficult to proceed without that being a part of the plan," said Art Brochet with Muir Public Relations, which represents Security.

Discussions hit a snag when the community group asked for a buffer along the newly surfaced creek wider than the 25 feet the developers were offering.

In the meantime, the purchase offer expired.

"We tried and didn't come to an agreement," said Janet Way, head of the Thornton Creek protection group.

"We didn't want to agree to something that didn't benefit the creek, but we are willing to work on it. We have all kinds of ideas."

Way and her group would like to see more involvement in the project by the city of Seattle and King County, which have both looked at parts of the site for various projects, including transit parking, a library or a community center.

"There are great possibilities for coming up with some solutions," Way said.

Meanwhile, Security Properties is developing a 130-unit residential and retail project in the Fremont neighborhood.

For decades, the property was the site of the Red Door Ale House. The tavern was moved in May to a new location down the street.

Excavation has started on the development, which is on schedule to be completed in spring 2003.

The apartment buildings will be brightly colored and are expected to be named after different planets in keeping with Fremont's "Center of the Universe" theme. The developer has set aside $250,000 for artwork on the site, including a major piece on the corner of Fremont Avenue North and North 34th Street.

P-I reporter Kathy Mulady can be reached at 206-448-8131 or kathymulady@seattlepi.com

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