Kent Council Authorizes Sale of Naden Avenue Assemblage to Mortenson Development

The Kent City Council voted unanimously Tuesday to authorize the sale of the Naden Avenue assemblage to Mortenson Development Inc., a move city officials say is intended to draw high-wage manufacturing jobs to downtown Kent.

Economic development staff presented the purchase-and-sale agreement and selection process to the council. Bill Ellis, the city's economic development presenter, cited the site's strategic infrastructure — including access to two state highways, a King County sewer trunk and an 18-megawatt Puget Sound Energy substation — as reasons the property is suited for purpose-built manufacturing facilities. “It has an 18 megawatt electric substation,” Ellis said, noting Puget Sound Energy crews were upgrading the substation as part of site readiness.

Under the terms outlined by staff, the city set a target sales price of $45 per square foot for the property, a figure Ellis said equates to about $18,300,000 for the site. The assemblage comprises roughly 23 parcels totaling about 9.2 acres. The agreement establishes a 365-day feasibility period for the buyer, a subsequent user-negotiation clock and an entitlement period that may run concurrently; earnest money of $200,000 is part of the contract and becomes nonrefundable after specified milestones, with a portion (up to $100,000) available earlier for site work if conditions are met.

Ellis told the council the city would retain ownership of early site engineering work product and that closing would be conditioned on a development agreement, which the staff said will provide regulatory certainty for both the end user and the city. The purchase-and-sale agreement also explicitly prohibits data centers as an allowable end use, reflecting the city's priority to recruit employment-intensive manufacturing that generates recurring tax revenue rather than low-employment uses.

Councilmembers asked for and received clarifications about the number of parcels, acreage and how earnest money is applied to the purchase price. Councilmember Boyd confirmed the numbers with staff during the meeting, and Councilmember Michelle asked about the city's original purchase price for the land; staff estimated an inflation-adjusted acquisition cost of about $11,000,000 and noted some off-site roadway improvements already completed.

Councilmember Boyce, who served on the selection panel, praised the Mortenson team and their local engagement commitments. “I am totally sold on this,” Boyce said during the discussion.

Councilmember Larimer moved to authorize the mayor to sign the purchase-and-sale agreement and any documents necessary to effectuate the sale, subject to final terms acceptable to the Economic and Community Development Director and City Attorney. The motion was seconded and carried 7-0.

Next steps outlined by staff include the buyer’s due diligence during the feasibility period, continued site engineering and environmental review (SEPA), pursuit of entitlement and the negotiation of a development agreement; a public hearing and council vote will be required for the development agreement before final entitlements are granted.