Mercer Island Announces Strategic Property Acquisition Adjacent to Former City Hall Campus  

MERCER ISLAND, WA - The City of Mercer Island is planning to acquire a 22,000 square foot commercial office building to address critical facility and operational needs. Located at 9655 SE 36th Street, the building was constructed in 1998 and shares a parcel with the building occupied by Mercer Island Pediatrics. 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.

“This purchase ensures we have the necessary space to continue delivering the vital services our community depends on" said Mercer Island City Manager Jessi Bon. “This building’s convenient location, functional layout, and long-term potential make it a smart investment for the City’s future.”

The purchase will be funded primarily through existing City reserves, supplemented by limited external financing. These resources reflect years of responsible budgeting, careful revenue forecasting, and prudent spending, meaning no additional taxes or revenue increases are required.

"Our community has always supported a thoughtful and responsible financial approach, which positions us to confidently pursue opportunities like this," said Mercer Island Mayor Salim Nice. "This isn't just about purchasing office space. It's about reinvesting strategically in our community to ensure we can deliver the level of service residents expect."

The property, which is a single legal parcel containing two buildings, is currently owned by EPE 2 LLC. The City will only acquire the 9655 building, located on the southern portion of the parcel. The northern building will remain with Mercer Island Pediatrics and other businesses. Due to legal constraints on subdividing the parcel, both parties have agreed that the most effective transaction approach is through eminent domain, and they are cooperating to facilitate this process.

"This move is timely, efficient, and financially prudent," Bon added. "It's more than office space, it's a commitment to ensuring that we continue to provide responsive, high-quality services and improve public access to City services for our community."

For more information, visit the City’s Let’s Talk page at letstalk.mercergov.org/city-hall-closure-and-planning.

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