In a decisive move during Monday’s session, the City Council signaled strong backing for the extension of the development agreement with Seattle-based developer, Wright Runstad & Company. This is an important step toward the continued advancement of the Spring District catalyst project in BelRed.
Dating back to 2009, the city’s adoption of a subarea plan and corresponding land use code amendments for BelRed marked a strategic effort to revitalize the formerly underutilized industrial zone. The goal was to foster a transformation into transit-centric neighborhoods, strategically centered around two light-rail stations.
This transformative vision was implemented through a 15-year developer agreement with Wright Runstad. The agreement was a unique pact offering the developer concessions on fee-in-lieu rates and additional incentives.
In return, Wright Runstad undertook the responsibility of setting up developer-funded infrastructure—made up of parks, streets, and other essential elements—in the Spring District neighborhood. Notably, this project stands as Bellevue’s sole catalyst initiative, with the intention of igniting further growth and development across the area.
Fast forward to today, and the west side of BelRed features the Spring District’s evolution. The landscape now includes a blend of apartments, mid-rise office structures, public recreation spaces, and newly laid streets.
Of the 27 designated parcels, 19 have already undergone development under Wright Runstad’s stewardship. This year, the developer approached the city with a proposal to prolong the development agreement through 2037.
With negotiations taking place over the course of two council study sessions, amendments to the agreement have been figured out. One significant aspect involves an incremental increase in fee-in-lieu rates to be paid by Wright Runstad. These adjustments are slated to begin in 2027, with further increments scheduled for 2031.
Notably, the revenue generated from these increased rates may be set aside by the city to facilitate the construction of affordable housing—a critical aspect of community development.
In a proactive move, the council has instructed its staff to draft an ordinance endorsing the amended development agreement. This ordinance is slated for potential council action on December 11, which coincides with a public hearing. Additionally, the council may consider the adoption of a related land use code amendment during this session.
