An update on Issaquah Highlands growth at the May 5 Urban Village Development Commission meeting revealed that while the economy may be slowing development, Port Blakely isn’t backing away from its efforts to keep pushing forward.

Kathy Burnaman, vice president of project development for Port Blakely, met with the commission to bring new members up to date and revealed that, among other things, the Central Market grocery store expected to open in 2010 will not be expanding to the Highlands.

“We’re currently in talks with other grocers, negotiating a new deal,” she said. “We will have a grocer … we just don’t have a name to announce today.”

She cited the state of the economy and grocery industry as reasons for the change of plans.

Port Blakely so-far has seen good retail development in the “Phase 1” section — the area surrounding High Street.

But Phase 2 and 3, areas to the south, are still looking for tenants. Despite that lacking, and some difficulty gaining funding, Burnaman said the company is still optimistic.

“Leasing has been very positive,” Burnaman said. “Slower than we like, but good considering what’s happening nationally … while today a construction financing project is not available to a project our size, we do anticipate something being available by early next year,” she said.

In the meantime, the company is continuing to apply for site development permits and hammer out plans.

And while the bulk of development has so far been residential, people are pushing for a change.

“The feeling of the commission is that we would really like more retail and more commercial space in there,” said commission member John Milne. “I just want to share that encouragement to keep pushing forward. We’d really like a grocery store up there.”

Gas station

Another Port Blakely hope is to bring a gas station into the Highlands; it’s currently a prohibited use, but the company has submitted a request to the city to consider modifying its agreement to allow the station.

That request was heard by the Land Use Committee on May 5, and met with substantial questions.

A gas station was originally deemed prohibited because of the worry that any waste in the Highlands would run down Grand Ridge and get into the aquifer, said Keith Niven, Major Development Review Team project manager.

Another concern focused on how to deal with the storm water runoff from the gas station, he said.

But, in the years since Port Blakely began its development, a few different things have come to light.

One thing the city discovered is that water runoff tends to go sideways down the hill instead of straight down into the aquifer, Niven said. Likelihood that contaminants from the gas station could reach it are low.

Gas station technology has also become more sophisticated, and many blocks are in place to prevent leaks, including tanks within tanks, and stations built with vacuum shut-offs, Niven said.

“The city is very concerned with environmental protection,” he said. “We would only move forward if we believe it can be done in a safe way.”

The Land Use Committee will hear the issue again at its June meeting.

For more information about the Issaquah Highlands, go to www.issaquahhighlands.com.