Developer with plans to demolish church backs out

Downtown Seattle's historic First United Methodist Church building won't be facing its last rites after all.

Would-be purchaser Martin Selig withdrew an offer last week that would have demolished the sanctuary to make room for a skyscraper.

Church leaders have turned their focus to another local developer, Nitze-Stagen, which would build a thinner tower — leaving room for the 1910 church featuring a red-tiled dome, brick walls and stained glass.

The Rev. Kathlyn James, the pastor, said she hopes to take a final deal to her congregation for possible approval by mid-September.

"We're certainly optimistic, excited and encouraged," she said.

The church would use an anticipated $31 million in sales proceeds from its half-block at Fifth Avenue and Marion Street to build a new sanctuary — plus space for offices, its two existing homeless shelters and a food program — in Belltown at Third Avenue and Wall Street.

For years, the church has looked to shed the costs of maintaining its old building. With roughly 600 members, and an annual budget of only $865,000, the church says it cannot afford $10 million or more in needed repairs and seismic improvements, after having spent $500,000 after the Nisqually earthquake of 2001.

James called a sale "the only way to survive as a downtown church."

Historic-preservation supporters have worked to prevent demolition of the sanctuary.

But in 1996, the state Supreme Court ruled that the sanctuary could not be designated a landmark, because that would violate First United's freedom of religion.

City officials received a copy of a letter from Selig seeking to withdraw his offer, but he didn't explain his reasons, said Deputy Mayor Tim Ceis. James said the church and Selig "were not able to reconcile" the details of an agreement. Selig was unavailable for comment Saturday.

The alternate offer from Nitze-Stagen is worth around $31 million, King County Councilman Dow Constantine, D-West Seattle, said three weeks ago. The plan includes a $1 million contribution from King County and Seattle governments to fund space for the church's charitable work, he said.

A third proposal, from the Sabey Corp., which also would have kept the sanctuary, is expected to be withdrawn, the deputy mayor said.

Mike Lindblom: 206-515-5631 or mlindblom@seattletimes.com