Rezoning urged to aid project at Goodwill site

Seattle's planning department has recommended a zoning change that would help convert the 10-acre Goodwill Industries site on South Dearborn Street into a large shopping center and 565 apartments and condos.

Thursday's decision would change the site from industrial with a 65-foot height limit to commercial with an 85-foot cap. It would allow 700,000 square feet of retail, which would likely include a Target and large home-improvement store. Goodwill's offices and retail space would also occupy the site.

The plan has proved controversial, generating concerns that rents would rise in nearby Little Saigon and displace merchants.

The zoning change requires City Council approval, as does a proposal to vacate three city streets in the Goodwill site.

In return for the added height, the developer would provide 72,000 square feet of open space. The housing units would be in seven buildings above the stores and underground parking.

"It's smart growth. The mixed use is critical so you get housing and jobs in the center city," said planning-department spokesman Alan Justad.

As part of the streets deal, Mayor Greg Nickels wants to require that 200 of the apartments and condos be affordable to people making close to the city's median income ($57,000 as of Feb. 13, according to the Seattle Housing Authority's Web site).

Developers are negotiating with community activists over additional public benefits, such as job wages and benefits, and assistance for Little Saigon merchants affected by the shopping center.

Bob Young: 206-464-2174 or byoung@seattletimes.com