The Maple Valley City Council heard an update regarding the joint plan for Summit Place, better known as the donut hole, at the Monday City Council meeting.

The 156-acre site is located near 228th Avenue Southeast and Souteast 272nd Street.

The Kirkland-based YarrowBay Group is in the process of purchasing the property from King County for $51 million with plans to develop the land.

The site is surrounded on all sides by the city of Maple Valley. The city, county and YarrowBay have agreed in principle the area should be annexed by Maple Valley.

Community Development Director Ty Peterson said at the meeting the annexation should be completed by November.

Peterson said the annexation process is within range of being completed this year before any development of the property begins.

Mayor Laure Iddings said it was a “major step” in the process for the City Council to accept the Planing Commissions recommendations.

She noted the commission members went through 21 drafts to get the plan to this stage, which has not been officially adopted by the council, county or YarrowBay yet.

Councilwoman Victoria Laise Jonas said she is “cautiously optimistic, but I am pleased we are going to annex. There are going to be hurdles, you bet, but I’m very pleased with the progress.”

According to the joint plan proposal, the commission will continue to work on a document that will set down the zoning requirements for the property, including residential, commercial and open spaces.

A flag was raised during the discussion concerning a public-private partnership YarrowBay is requesting prior to annexation.

Peterson wrote in a memorandum to the mayor and council members, “At the April 16, 2009 meeting YarrowBay characterized their pre-annexation issues as being associated with their desire to have a public-private partnership that ensures that revenues from their development are used on infrastructure that supports Summit Place development. While YarrowBay’s proposal is only vaguely defined at this point, the revenues that YarrowBay would encumber, would not be limited to impact fee revenues, but would apparently also include general fund and real estate excise tax revenues.”

Councilman Noel Gerken noted at the meeting the issue was “potentially a huge change.”

During a phone interview Tuesday, Gerken said the plan was a “work in progress and I think it will move ahead. I’m happy with it (the plan) and there is good trust and a good relationship with everybody. That was a big step last night.”

According to the plan document, the annexation process will begin once the council approves the joint plan.