Post Office site OK'd for school headquarters

School and city officials have reached an agreement that will allow the Seattle School District to consolidate its central offices and shops in a former U.S. Postal Service building in the industrial district south of downtown.

The accord buries the hatchet between the school district and the City Council, which voted 7-2 last fall to deny a zoning waiver for the $43.2 million project.

In exchange for the support of key City Council members, school officials agreed to place a zoning covenant that will allow only industrial uses on another property the district plans to sell in the Sodo area south of the Kingdome.

The school project ran afoul of the city's industrial-preservation policies because it would put more office use into the three-story postal building than is allowed by law. Council members Jan Drago and Peter Steinbrueck, who had voted against the project, played a key role in settlement talks.

"We're thrilled to resolve this issue in a positive way," schools Superintendent Joseph Olchefske said today. "We felt all the way along that this project was a critical piece for the district to both improve the economics of the district and to improve our ability to serve our schools and our community all around the city."

Consolidating operations that are now scattered in 25 other buildings is expected to cut the district's administrative costs by about $2 million a year. Olchefske said he expects the new 189,000-square-foot "support center" to open within two years.

The building, which will require substantial remodeling, is at 2445 Third Ave. S. near Safeco Field and the future Seahawk stadium.

The agreement was endorsed last night by the Manufacturing Industrial Council of Seattle, which previously opposed the school district's property plans.

Terry Seaman, co-chair of the industrial group, said the school headquarters will encroach on industrial uses. "But for the first time the city and the school district . . . have reached an accommodation that minimizes the damage and helps support the industrial areas. Under those circumstances, I think it's a very good decision."

Also under the agreement:

The school district will not protest lawful noise or odors that exist or future industrial uses.

The district may sell to Costco the portion of its Fourth Avenue South logistics center that is now used for store parking. Costco is expected to build a parking garage.

The district and City Council will draft a revised "education action agenda" under which the district will open school buildings to expanded public use whenever schools are not in session. Councilwoman Drago called this "the most important piece" of the agreement.

The school district will withdraw its lawsuit against the city.

"I think everybody wins with this agreement - kids, families, the school system, city - and it protects family-wage jobs and the industrial base," Drago said.

Keith Ervin's phone message number is 206-464-2105. His e-mail address is kervin@seattletimes.com