Development of the Des Moines Creek Business Park is rapidly moving forward, Des Moines Planning Director Grant Fredericks told the city council on Feb. 25.

The DMBP is 89 acres of land currently owned by the Port of Seattle sitting between South 216th Street to South 208th Street, from 20th Avenue South to 24th Avenue South.

The city and the Port have been working together to develop the land. On the northern end of the property, the Port plans to build warehouses.

As part of an agreement to purchase the road right-of-ways from Des Moines, the Port is offering the city a five year assignable option to acquire 27 acres of land facing 216th for a retail store.

The city will do a feasibility study to determine if retail will work in the location. If it is determined retail could work in the location, the city would solicit plans from developers and assign their option to buy the land.

As part of the agreement, the Port is asking for a new appraisal to be done on the property. The last assessment was done in 2006.

There is currently over $3 million in an escrow account to purchase the streets owned by Des Moines inside the property. Councilman Dan Sherman restated his desire to not re-assess the land. He said especially in these economic times the land will be worth less today than it was four years ago.

The Federal Aviation Administration is also considering the site for a new office building.

The FAA is looking to build a new office somewhere in Renton, SeaTac, Kent Tukwila or Des Moines. According to Fredericks the DMCBP site is one of two places that meets the FAA's criteria. The other location is Port owned property on South 200th Street across the street from the Federal Detention Center.

Fredericks explained to the council the FAA is accepting plans from developers from all across the country. He said several developers are using the Des Moines site for their plan.

"It's a good place to be in," Fredericks said.

The FAA wants a 518,000 square foot office building, 40,000 square feet warehouse and 10,000 square foot child care facility. The FAA is looking to occupy the building by September 2014.

Fredericks also gave the council an updated on proposed state legislation regarding the DCBP. The legislation, which would apply to the DCBP and any property within a quarter mile, would redirect six percent of the state leasehold excise tax to Des Moines for city gateway improvements, as well as allowing businesses making sales, manufacturing or performing services, to retain the state portion of the business and occupation tax until 2025.

It would also increase the city's portion of sales tax by .1 percent for gateway improvements.

Fredericks said the bills were referred to the House Finance Committee and Senate Ways and Means Committee, but did not receive hearings and are considered dead for the 2010 Legislative Session.

City Manager Tony Piasecki said it is good to have the bills on the radar of such high level people and he feels they are in a good position for next session.