
Crews poured the first concrete foundation on Oct. 2 for Tacoma Water's new $37 million operations building at 3506 S. 35th St. in Nalley Valley, marking a major construction milestone for a project meant to replace an 87-year-old warehouse deemed vulnerable to collapse in a major earthquake. The 60,000-square-foot facility is rising just south of the utility's existing building, with crews working to keep water service running uninterrupted throughout construction.
Tacoma Water, which is operated by Tacoma Public Utilities, is replacing the aging warehouse, identified in 2016 as a seismic risk. The utility runs hydrant, pipe and meter shops and maintains 24/7 water operations.
Building Around an Active Utility Yard
Because the new structure is going up directly adjacent to the facility it will replace, Tacoma Water has had to keep operations fully functional while construction proceeds next door. The utility installed temporary electric vehicle chargers elsewhere on the site to maintain full operational capacity in the existing building throughout the build, per the same account from the business journal.
That operational juggling act matters because Tacoma Water serves more than 111,000 customer meters across a 119-square-mile service area. The system has nearly $1 billion in fixed assets, including 1,459 miles of water mains, and supplies up to 150 million gallons of water daily drawn from the Green River.
Design-Build Team and Statutory Approval
Tacoma Water selected Puyallup-based Absher Construction and architectural firm DLR Group as its primary progressive design-build team, with infrastructure consulting firm Parametrix serving as the utility's owner's advisor, the business journal reported. The Washington State Capital Projects Advisory Review Board approved the project. Tacoma Water submitted a 2023 application to use progressive design-build, a delivery method that allows early collaboration with contractors.
A separate municipal infrastructure project is also reshaping access to the site: South Burlington Way is being built as a new road along the southern boundary of Tacoma Water's property, paired with intersection upgrades at South 35th Street and South Union Avenue, according to the outlet's reporting.
WestRock Mill Closure
The WestRock paper mill was scheduled to close Sept. 30, 2023, with an estimated $25 million economic impact on power and water. The mill had accounted for about one-third of daily water supply, equivalent to the consumption of roughly 100,000 residential homes, according to Tacoma Public Utilities.
Tacoma Water has an S&P AA+ bond rating.
A Industrial Valley With Deep Roots
The 1,900-acre Nalley Valley industrial district carries its own long industrial history, having taken its name from Marcus Nalley, who began making potato chips in 1918, according to the Daily Journal of Commerce. Nalley Valley remains a vibrant industrial district as Tacoma Water modernizes its own footprint there.
Tacoma Water was founded in 1884, and Tacoma Public Utilities has operated since 1893, according to the utility. Tacoma's system draws on Green River water, while the new seismic-resilient facility takes shape in Nalley Valley.
The project adds to a string of recent headlines involving Tacoma Water's infrastructure, following a record settlement over a flooded Federal Way home. For now, the Nalley Valley build is aimed at ensuring the next major earthquake doesn't take down the warehouse that keeps the region's water system running.









