(The Center Square) – Seattle ratepayers may spend an estimated $34 million on three Aurora Avenue parcels for a new utilities complex if approved by the city council this week, with the total cost unclear.
The North One Water Operations Complex would consolidate three facilities that Seattle Public Utilities claims are aging and undersized. The upgrade would provide more room for utility crews, vehicles and equipment, while expanding SPU’s footprint to the north and capacity to withstand natural disasters.
Most of SPU’s workforce facilities south of the Ship Canal are on land at risk of earthquakes, flooding and landslides. The new complex has been in the works since 2018 and became a top priority in 2024
“Acquisition of the property will enhance SPU’s ability to efficiently operate across its geographical service area, improving system reliability, maintenance, customer support, and emergency response times,” according to Tuesday’s proposed deal with Puetz Associates Limited Liability Partnership.
The $34 million property acquisition is only an estimate, with the final negotiated price split between SPU’s Water Fund and the Drainage and Wastewater Fund. At the current estimate for all three lots, each fund will contribute about $17 million for the parcels at 11762, 12004 and 12020 Aurora Ave. N.
A presentation in fall 2023 set the project at $120 million to $140 million, including land acquisitions.
The business plan adopted in 2024 estimated $120 million to $170 million, but it was last updated in May 2023 and used a $120 million placeholder for land, construction and other costs.
“Funding for options analysis, design and construction of the new complex is included in SPU’s current [Capital Improvement Program],” according to a summary for Tuesday’s property acquisition proposal.
The CIP lists the complex among shared-cost projects, but it doesn’t include a total cost estimate, so it’s unclear what that figure might be now, based on the documents reviewed by The Center Square.
SPU media relations manager Cody Bowman wrote in an email on Monday that Seattle had negotiated an agreement with willing sellers, but did not provide an updated total cost estimate. He said funding for site development is reflected in SPU’s Strategic Business Plan and its “upcoming rate proposals.”
Bowman did not respond when asked whether the city considered cheaper alternatives for ratepayers.
Dave Speers, a real estate broker who listed the Puetz property, declined to discuss the transaction, citing a nondisclosure agreement, when asked about the final price and impacts on current tenants.
Puetz Associates Limited Liability Partnership owns all three parcels, which include leases with Puetz Golf, Zapffe Silversmiths and Mekong Village. City staff recently told the council that the $34 million property acquisition estimate includes a separate $2 million fee to terminate that golf tenant’s lease.
“This investment will build a new facility that will consolidate SPU operations (Water crews and Drainage and Wastewater crews) to support reliable service delivery for North Seattle and improve emergency readiness,” Bowman wrote Monday in response to an inquiry from The Center Square.
The Seattle City Council is scheduled to vote on the property acquisition during Tuesday’s meeting.