SEATTLE —  A plan to bring a low-cost grocery store to North Seattle has been sent back for further review after a hearing examiner overturned the city’s environmental approval, delaying efforts to redevelop a long-vacant property along Aurora Avenue.

The April 9 ruling reverses a prior determination by the Seattle Department of Construction and Inspections (SDCI) that found no significant environmental impacts tied to the proposal to convert a former Sam’s Club into a WinCo Foods location. The site, at 13550 Aurora Ave. N., has sat largely unused since the big-box retailer closed in 2018.

In his decision, Hearing Examiner Ryan Vancil found the city made a key error in how it evaluated the project’s environmental impact. Specifically, the city compared the proposal to a previously operating big-box store rather than the site’s current condition as a vacant building. That approach, the examiner wrote, was “clearly erroneous,” requiring the environmental review to be redone using the proper baseline.

The ruling does not conclude that the project would cause significant environmental harm. In fact, the examiner found no evidence in the record demonstrating that the proposal would result in a probable significant adverse environmental impact. However, the decision emphasizes that the city must follow proper procedures in its analysis before allowing the project to move forward.

The appeal was filed by a group calling itself Lake Washington Working Families, represented by a Portland-based attorney. The group argued the city’s environmental review was inadequate, raising concerns about traffic, water quality, air pollution and other neighborhood impacts. While the examiner determined those concerns were not supported by sufficient evidence to require a more extensive environmental review, the procedural issue alone was enough to reverse the city’s decision.

The setback effectively pauses the project while the city redoes its environmental review. No timeline is included in the ruling for how long that process could take.

For many nearby residents, the delay is frustrating. The Aurora corridor has long been a focus of redevelopment efforts, and the former Sam’s Club site has remained a prominent empty space in the Bitter Lake neighborhood.

“It’s just kind of a sad sight on Aurora,” said Hannah Scoyni, a Bitter Lake resident who has followed the project. “It’s just kind of fenced off.”

Scoyni said she was eager to see the property put to use, particularly by a retailer known for lower prices. WinCo is widely regarded as one of the least expensive grocery chains, often undercutting traditional supermarkets like Safeway and Fred Meyer on everyday items.

“No, I do not work for WinCo. I am just a concerned citizen,” she said. “I love public works, I love grocery shopping. So this is like a nice meeting in the middle of those two things.”

Scoyni also questioned the identity of the group behind the appeal, saying she could find little public information about its members.

“It’s frustrating to see a group with no clear ties to the neighborhood step in and try to block something people here actually want,” she said.

Other local business owners say the issue goes beyond one project, pointing to broader concerns about affordability.

“Well, I think anywhere where prices can be something that people can afford,” said Janell Hartman, a nearby business owner. “With everything happening in the world, the whole ecosystem is getting really rough.”

The ruling leaves uncertainty around whether WinCo will continue pursuing the project. Similar redevelopment efforts at the site have stalled in the past, and delays can add costs that make projects less viable.

KING 5 reached out to the attorney representing Lake Washington Working Families but did not receive a response.