Potential traffic congestion could prove to be a stumbling block for Fred Meyer’s plans to build a store on the present site of the Tyee Hotel in Tumwater.

“Fred Meyer is the biggest thing we’re looking at right now,” Tumwater development services director Roger Gellenbeck says of plans for the 168,000-square-foot retail store.

But before the store is built, he adds, the City must be assured that traffic flow in the area will not be adversely affected. It’s already stressed, Gellenbeck says. He says an environmental review that will take up that issue already is underway.

“If they can’t satisfy our public works people that they would mitigate the traffic, we would probably arrive at a determination of significance,” he says. “We’re looking at alternatives to resignalize the lanes to enhance the capacity.”

The other big Tumwater project is a 9,200-square-foot metal building for Capital Electric, an electrical contractor.

Capital Electric, meanwhile, is making plans to move into a new building at Mottman Industrial Park as part of an expansion. Builder John Kaufman reports that Capital Electric is planning to sublease a portion of the structure when it is completed, sometime before March.