City Announces Strategic Property Acquisition Adjacent to Former City Hall Campus

The City of Mercer Island is planning to acquire a 22,000 square-foot commercial office building located at 9655 SE 36th Street. The City has proposed acquiring the building for $9.06 million through eminent domain, a legal process necessary to facilitate the creation of two distinct parcels.

Combined with the new Public Safety & Maintenance Facility, currently under design, these buildings will serve as the new home for the departments currently housed in the aging Public Works Building and other departments displaced due to the permanent closure of City Hall.

Pending approval of the acquisition, the City expects to take ownership of the property by Fall 2025. Before opening the building for City use, a number of improvement projects are needed to ensure the space is ready to support the staff and the community. The commercial building will eventually serve as the permanent location for the Community Planning and Development Department, the Public Works Capital Projects and Engineering teams, and the Youth and Family Services Department.

The acquisition will be funded primarily with existing cash-on-hand and a smaller portion through outside financing. No new taxes or revenues will be needed. The available funds are the result of years of conservative budgeting, cautious revenue forecasting and disciplined spending.

The property sits on a single legal parcel that contains two buildings. City operational needs only require the acquisition of the 9655 building on the southern portion of the parcel. The building on the northern portion of the parcel is not being acquired and will continue to house Mercer Island Pediatrics and other businesses. Due to legal restrictions on subdividing the parcel, the City determined, and the seller agreed, that the best method for completing the transaction is through an eminent domain process. Both parties are cooperating to facilitate that approach.

The City Council will consider the eminent domain ordinance during its regular meeting on July 1, 2025.

You can find additional information on the potential building acquisition in the City’s press release linked here(External link) and on this Let’s Talk Page.