City of Burien officials are looking forward to developing the "most pad-ready spot" in the Northeast Burien Redevelopment Planning Area after a deal between the Port of Seattle and the King County Housing Authority (KCHA) for affordable housing at the Lora Lake Apartments fell apart last week.

The Port and the housing authority mutually agreed to rescind their agreement for the sale of the apartments to the KCHA following the completion of environmental testing that revealed significant soil contamination at the Burien property.

The estimated cost to remove and dispose of contaminants and restore the site to the residential standard could potentially reach $8 million. Cleanup standards for residential use are much more stringent than standards for industrial use.

"Despite everyone's considerable efforts to preserve Lora Lake as much-needed affordable housing for the region, given these findings it is not in the community's best interest to continue forward with this project," said KCHA director Stephen Norman. "We appreciate the Port's cooperation in rescinding an agreement to purchase an apartment complex that would have been financially infeasible to operate as housing."

Burien City Manager Mike Martin observed, "For a long time, we have felt it is a bad place to put people.

"We are glad others have come to the same conclusion."

Burien officials' belief in Lora Lake unsuitability for housing was based on the proximity of the SeaTac International Airport's third runway, not soil contamination.

The apartments are less than 1,000 feet from the new runway's center line.

In the spring of 2007, KCHA and King County Executive Ron Sims, citing an affordable housing crisis, went back on a long-standing agreement with Burien and the Port for demolition of the apartments to make way for commercial development.

But the city council voted in May 2007 to proceed with demolition, as the port commission also did in August.

The housing authority then filed suit to block demolition on the grounds that it has a legal claim to the property, which it classified as surplus. A hearing had been scheduled for March but was preempted by the previous agreement.

Martin said the hard feelings between the city and county may still linger although Burien and the Port are now free to develop the area for industrial use after the apartments are demolished.

The city manager commented that the apartment area is the "most pad-ready spot" in the city's northeast development area.

The city will retain some benefits it received as mitigation for previously losing the site for development.

The state legislature awarded Burien $1.5 million to help move the Highline-West Seattle Mental Health Center from the old Sunny terrace School site at 1010 S. 146th Street. The center will construct new buildings on the old Burien Heights School location, near the intersection of Ambaum Boulevard Southwest and Southwest 136th Street.

Burien also received funds to subsidize housing in the city for Highline district teachers.

Another $.5 million was given for planning in the redevelopment area.

However, off the table is $1 million from the county for Burien's transit area development.

Burien Mayor Joan McGilton recalled that Burien offered to replace affordable apartments lost at Lora Lake with housing near the transit center. That housing would have allowed moderate and low-income residents to live near bus transportation and the city's new downtown area.

McGilton said county officials never pursued the proposal.

The mayor said Burien officials had considered Lora Lake "not a good place for permanent housing but it served a need for temporary housing as we completed negotiations with the port on the third runway.

"It always has been Burien's intention to put the land back into a viable tax base."

The Port will refund the initial $1 million payment for the property to KCHA.

"The Port regrets this site is no longer the best investment to help address our region's desperate need for affordable housing," John Creighton, Port Commission president said "The Port is committed to returning this site to a productive use for our community, and stands ready to help our region respond to important housing issues."

The property, which is situated atop a former barrel cleaning facility that became an auto wrecking yard around 1950, showed soil contamination in just completed tests that are consistent with its historical uses.

Testing and clean-up standards have been made more stringent since the apartments were built.

Though remediation will still be necessary, the lower environmental standard required for industrial purposes means eventual redevelopment for an industrial use, rather than a residential use, likely remains financially feasible, according to Port officials.

(Editor's Note: Information from the Port of Seattle was used in this article.)