Seattle $34M land grab threatens Aurora Avenue businesses

SEATTLE - The City of Seattle is moving forward with a $34 million acquisition along Aurora Avenue North to build a centralized utility operations center, a plan that would replace several long-standing local businesses.

Mayor Katie Wilson approved the land deal following months of City Council reviews. The city confirmed it has placed a $2 million deposit on the bundled properties, which include Puetz Golf, Mekong Village, and Zapffe Silversmiths.

Utility hub planned for North Seattle

The backstory:

Seattle Public Utilities plans to transform the site into the "North One Water" hub. The facility will consolidate water, drainage, and wastewater crews into a single location.

According to SPU, property owner Puetz Associates bundled the parcels together, prompting the city's purchase initiative. Public records show city officials consider the site suitable, subject to routine due diligence reviews.

The purchase is funded through Seattle's 2026 budget, while future utility rate proposals and business plans are slated to cover construction costs.

SPU officials said they foresee no obstacles to closing and expect to take over the properties later in 2027.

Tenants caught unprepared

The potential sale surprised some current tenants whose businesses face uncertain futures.

What they're saying:

Thad Thompson, vice president of Zapffe Silversmiths, said he had no advance notice of the city's plans despite recently spotting SPU crews in the area. His lease expires next month.

"It would've been helpful to know," Thompson said. "We're going to have to make some significant planning."

Zapffe Silversmiths has operated at the Aurora Avenue location since 1994, working out of a converted warehouse space that Thompson said provides ample parking and convenient access for customers.

"It's been in business 107 years," Thompson said. "We specialize in restoration of sterling, brass, copper, bronze, pewter."

Thompson pointed to the front desk of the business, where his mother, who is nearly 101 years old, still handles the phones through the week after working at the shop for decades.

"She's here six days a week because she feels as though she still makes a contribution every day," he said.

After speaking to Thompson, FOX 13 News reached out to SPU for better insight into what the next steps might be for his business. The office was closed due to the holiday, but we'll keep working to get answers.

Property owner calls deal ‘early’

What's next:

While the city prepares for ownership, Puetz Golf leadership emphasized that the transaction is not yet finalized.

FOX 13 News asked for an interview or an official statement but has not received one. However, in a text message, Puetz Golf CEO David Puetz described the agreement as a "potential purchase." He stated that it is "too early — not even a down payment yet" and noted that the city's escrow deposit remains refundable.

Despite the impending displacement, Thompson said a required move will not end his 107-year-old family business.

"We believe we do excellent work. We also believe we have an excellent reputation with our customers," Thompson said, adding that he is incredibly proud of his family's legacy.

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