The L-shaped property along 9th Avenue Northeast in Issaquah Highlands may finally move forward with development in coming years.
In 1996, the City of Issaquah entered into a development agreement with various partnerships to develop the parcel known as Issaquah Highlands. Issaquah Highlands Investment Fund-Commercial, LLC (IHIF-C), also known as Shelter Holdings, owns about 21.5 acres of land intended for various commercial, retail and residential uses.
Shelter Holdings submitted a preliminary plat application for the “High Street Collection” project in August 2017, which the city determined to be complete. Over the next few months, Shelter submitted a site development permit (SDP) application and several administrative site development permit (ASDP) applications for a medical office building and self-storage facility as well as retail and office space. However, the city determined the initial submissions to be incomplete and requested corrections as well as additional information.
In March 2018, Shelter claims the city agreed that all site development permit (SDP) applications were complete. Not long after that, Issaquah City Council passed an ordinance terminating the development agreement with Shelter and adopting new regulations governing the property.
The city informed Shelter that new regulations did not recognize vesting under the development agreement and its pending SDP applications were subject to new standards, according to a filing for the Washington State Court of Appeals. Shelter argued that it submitted its applications before termination of the development agreement, and the new regulations should not apply to their plans for the parcel.
The new regulations required Shelter to modify structural aspects of the project such as parking and floor aspect ratios, which the developer declined to change. For more than five years, there has been ongoing litigation between Shelter and the city concerning vesting rights to the old Issaquah Highlands regulations.
In August 2022, the Washington State Court of Appeals ruled in favor of Shelter Holdings. In October 2023, just a little over a year later, Shelter applied for a new development agreement with the city.
According to the application, the project will feature up to 325,000 square feet of commercial and retail uses as well as 1,250 residential units. The developer plans to include at least 200 age-restricted or assisted living units, with 20% of the remaining residential units designated as affordable housing.
The proposed project would add 35,000 square feet for community recreation, which may include amenities such as interactive water features, sports courts, climbing walls, adaptive playground equipment or outdoor fitness equipment. The application also mentions pedestrian-friendly connections to other Issaquah Highlands locations, in addition to a trail linking High Street Linear Park to Discovery Drive.
If approved, this new development agreement would resolve outstanding litigation with the city. Other applications would then be required for city review such as certification of consistency, site work permit, building permits and other construction permits.
There will be several opportunities for the community to learn more and provide comments during the city’s review process. A public comment period for the proposed development agreement is open through Oct. 20 at 5 p.m.
Send your written comments to Community Planning and Development, P.O. Box 1307, Issaquah, WA 98027, or by email to Planning Manager Christian Geitz.
Issaquah City Council will hold a public hearing at City Hall South, 135 E Sunset Way, on Nov. 13 at 6:30 p.m. Application documents can be reviewed here.
