City Completes Purchase of Former Tully's Property

On Friday, December 27, 2019, the City of Mercer Island completed its purchase of a key property adjacent to I-90, signaling another significant step in the development of a Town Center Commuter Parking and Mixed-Use Project. View a map here.

“The Council spent many hours discussing this complex process with the needs of residents in mind, and I’m pleased to see this day arrive,” said Salim Nice, Deputy Mayor. “This project promises to provide much-needed commuter parking while enhancing our Town Center retail core and creating a new gateway for Mercer Island, just steps away from the future East Link station.”

The property, adjacent to the future Sound Transit Light Rail Station and site of the former Tully’s coffeeshop, also formerly hosted a gasoline service station operated by the Atlantic Richfield Company (ARC). ARC has agreed to reimburse the City for the majority of clean-up costs arising from excavation, segregation, transport and disposal of contaminated soil as part of the redevelopment of the property [more detail available from the prior Nov 14 news release below].

“Redeveloping this property through a public-private partnership without an additional burden on taxpayers, and having clean-up costs covered by the previous owner, is truly a once-in-a-lifetime opportunity for our community to help address its commuter parking needs,” said Councilmember Benson Wong.

When combined with the adjacent portion of Sunset Highway (“Parcel 12”), which the City already owns, and a small portion of WSDOT property, this purchase allows the City’s proposed public-private development project to proceed, with completion targeted for 2023, in advance of East Link’s opening. The project would include: City-owned commuter parking; a performing arts facility in partnership with the Mercer Island Center for the Arts (MICA); and a mixed-use residential and commercial structure based on the City’s Town Center vision and code.