Tacoma City Council voted Tuesday to approve a plan to sell a parcel of land along Thea Foss Waterway to Pacific Seafood Co. and Johnny’s Seafood Co., which has leased the property for nearly 40 years.

The move allows the city to declare the 28,000 square foot parcel surplus property and sell it to Pacific Seafood for $700,000. The property also includes a 7,720 square foot building that serves as the company’s retail and commercial seafood operations hub. Pacific Seafood plans to invest approximately $1.3 million in improvements to the building, including the construction of a new cafe and bistro, according to documents prepared by City of Tacoma staff. As part of the agreement, Pacific Seafood agrees to complete the public waterfront esplanade that fronts the building.

The city-owned property is located at 1199 Dock Street and is managed by the Foss Waterway Development Authority. City council’s community and economic development committee was briefed on the proposal last month. City officials see the move as one way to create more local jobs, strengthen the city’s tax base and revitalize the area around Thea Foss Waterway.

“This is an exciting development for the City of Tacoma, which looks forward to the new energy this will certainly infuse into the area,” said Community and Economic Development Director Ricardo Noguera. “This property was being managed by the Foss Waterway Development Authority, and the funds generated from this sale will be used to support Foss Waterway Development Authority operations in the 2013-2014 biennium.”

“Being a local, Northwest family-owned business since 1941, Pacific Seafood is proud and excited to be part of the Tacoma community through the purchase of Johnny’s Seafood in 2006 and re-investment in the Foss Waterway development project in 2013,” said Bob Simon, general manager of Pacific Seafood. “‘Seafood heritage’ is an important part of the Tacoma waterfront history that Pacific Seafood played a behind-the-scenes role in as a vendor/supplier to Johnny’s Seafood for many years. We feel it is a benefit to the community to keep this heritage alive for future generations as a seafood supplier and employer in Tacoma and the Northwest.”