An aerial view of plans for the Shelton Hills development west of U.S. Highway 101.

SHELTON — The developer of Shelton Hills business park is working with Washington Department of Transportation to grade additional ground near the U.S. Highway 101 southbound on-ramp at Wallace Kneeland Boulevard.

Steve Goins, vice president of forward planning with developers Hall Equities Group, told the Port of Shelton commissioners on Tuesday that interest in Shelton is growing.

“I think having the Tractor Supply store open (on U.S. Highway 101 near the port offices) has actually drawn attention to others who want to do the same thing,” Goins said.

Some recent grading work on the future commercial development’s site involved relocating a gas line that crossed the site west of 101 and Wallace Kneeland Boulevard overpass, Goins said.

“In general, we’re pretty optimistic about things coming together,” Goins said. “We have a number of retailers that are interested in coming on to Phase 1, which would be roughly a 20-acre area right off the interchange.”

He said the developer is working with the state Department of Ecology to clean up some hazardous waste on the site from the former Rayonier mill, including Goose Lake.

Hall Equities has finished a design of the Wallace Kneeland Boulevard interchange, which was completed with the state Department of Transportation. It includes a repositioning of the southbound ramp, some minor work of the northbound ramps and widening the overpass, Goins said.

Hall Equities has agreed to do the work on the west side of the overpass.

The developer is now working on an exchange agreement for the surplus right of way to improve the overpass. It will lead to grading the southbound knoll with trees on it.

“We would like to move as fast as we can,” he said, adding there was a “fair amount” of interest following the grading work.

Goins said Mason PUD 3 has enough capacity to power the development after adding electrical infrastructure.

“There’s a lot of things that have to come together before we start putting in infrastructure,” Goins said.

He said Hall Equities is talking to City of Shelton about a development agreement to get infrastructure into the ground.

The development, as proposed, will include a regional retail center of about 550,000 square feet, at least one hotel, a 50-acre business park, a 12-acre mixed-use commercial component adjacent to a 55-acre regional retail power center, and up to 1,800 residential lots, including apartments.

The development will include about 300 acres of forest, wetlands and passive and active parks and recreational spaces, including a network of pedestrian trails linked throughout the community.

Port of Shelton property is included in the development, about 60-70 acres of land nearest port-owned Sanderson Field airport.

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