QFC's plans to develop Stone Way project on hold

Water bubbles up from the ground at this street corner, turning the gray gravel to a light brown gravy that clings to concrete walls enclosing an open pit. It's the only sign of life on the site — now and for the foreseeable future.

Many years ago, a Safeway store stood here along Stone Way North, between North 39th and 40th streets, at the junction of two neighborhoods, Fremont and Wallingford.

Residents of Wallingford, who have been anticipating a new grocery store there for years, are furious that QFC — the site's owner — recently decided to put the project on hold indefinitely. The chain hasn't ruled out selling the property.

The Wallingford Community Council plans to discuss its options at a meeting Wednesday night.

"I'm not pleased with the progress QFC has made on this project," said Bob Quinn, acting chair of the council's land-use committee. "I would hope QFC would expedite getting the project back on track."

Quality Food Centers (QFC) bought the property in 1993 and planned to redevelop the site as a mixed-use project: a QFC grocery store, parking garage and residences on the upper floors. The city approved QFC's plans in late 2005 for a 31,000-square-foot grocery store and underground parking garage and townhouses on the upper floors, said Kristin Maas, a QFC spokeswoman.

She blamed soaring construction costs for the suspension of the project.

"We definitely wanted to move forward and that was our intent," Maas said. "But when those final bids came back in, it just was not going to work."

Maas refused to say how much over budget the bids came in at but said the project managers were discussing with architects and engineers how they could reduce the costs.

Karen Buschow, a Wallingford resident who served on a committee that reviewed QFC's design plans, said the whole neighborhood has been looking forward to a new grocery store and is upset it will have to settle for a crater for the time being.

"I don't think anyone wants a hole there," Buschow said.

Kathy Goodwind, owner of the Gasworks Park Kite Shop a few blocks away, says she doesn't mind the pit because she hates seeing more "skinny" townhouses in the neighborhood.

"I'd rather see a pit than see the city turned into cheap-looking houses that are costing a fortune for people to buy," she said, adding that she would welcome a grocery store without residences above it.

QFC says the site is secure, Maas said. That hasn't stopped some creative graffiti artists from tagging the walls.

The chain has no specific timeline for starting construction and remains open to selling the property.

"That's not our intent, but it does have to be an option on the table," Maas said.

Sanjay Bhatt: 206-464-3103 or sbhatt@seattletimes.com