Commuter Parking Expansion FAQ

Due to the unique public-private partnerships proposed, both commuter parking sites will deliver parking facilities for Mercer Island for the least possible cost by leveraging the City’s current and proposed land assets. For the Tully’s site, the City’s actual contribution, if any, for parking facilities is not yet known and will be further defined over the next six months as the City evaluates the property during its Due Diligence period. In the case of the Freshy’s site, the developer has agreed to provide between 65 to 70 public parking spaces to the City during commuting hours in exchange for the City’s sale of Parcel 7.  This arrangement leverages the value of the land, thereby alleviating the financial burden on taxpayers.  

At the former Tully's Coffee site: The City plans to purchase the former Tully’s property located at 7810 SE 27th Street from Parkway Management Group, for a purchase price of $2 million, using a portion of the Sound Transit Settlement funds.  The parcel could then be combined with adjacent property (Parcel 12) that the City already owns at Sunset Highway, and which could serve as a match for the ST funds in keeping with the ST Settlement Agreement. The City plans to construct over a 100 underground parking spaces.  The City anticipates creating a public-private partnership with a developer to bring in the expertise and necessary funding to complete the project. 

At the Freshy’s site: The City is selling a small parcel (Parcel 7) at the southwest corner of SE 24th Street and 76th Avenue SE in Town Center, for an estimated $2.3 million to Twenty Four Eleven LLC (Twenty Four Eleven). WSDOT deeded the triangular parcel to the City in 2000 for limited, specific uses, and will be the ultimate recipient of sale proceeds under the terms of the deed. The triangular property is adjacent to land owned by the buyer, where Freshy’s Seafood Shack operates today.  Twenty Four Eleven plans to build a mixed use project on the combined properties, to include 65-70 underground parking stalls for transit commuters that will be dedicated to the City of Mercer Island’s perpetual use between the hours of 5:30 am and 7:30 pm, Monday thru Friday.
 

The City plans to design a welcoming pedestrian flow from Town Center to the light rail station. The community’s input on the design will be critical.
 

Environmental contamination at the Tully’s site, caused by a gas station that once operated there, will be cleaned up.  The City and Parkway Mgmt Group are negotiating to seek reimbursement for the site cleanup from outside entities, including from the previous owners responsible for the contamination.
 

A Due diligence period allows a buyer to fully investigate property prior to closing (or finalizing the acquisition) to ensure that it is suitable for the buyer’s desired development or use.  Due diligence periods allow a buyer to withdraw from a purchase and sale agreement if something is discovered about the property that does not meet expectations.  In the case of the City purchasing the former Tully’s site, the City will have six months to investigate and evaluate the property in detail before making a final decision to purchase the property and proceed to closing. This is similar to a home inspection when purchasing a new home.  

Discussions are underway between the land developer and the owner of Freshy’s about a suitable space in the new proposed building.
 

Parking spaces on both properties are expected to be available by 2023, in time for the scheduled opening of the East Link light rail service on Mercer Island. 

WSDOT deeded the triangular parcel to the City in 2000 for limited, specific uses, and WSDOT will be the ultimate recipient of sale proceeds under the terms of the deed. The City will receive compensation in the form of dedicated commuter parking provided by the developer: at today’s construction costs of $85,000 per underground parking stall, this is valued at approximately $6M.

Absolutely. The Council is pleased to help develop a project that meets demands for more commuter parking and that also “creates a vibrant, healthy Town Center serving the City’s business, social, cultural and entertainment center” (Town Center Plan). Citizen input will be welcomed and critical to ensuring a successful project.