With the process moving forward to develop Sound Transit’s “Site D” as part of a tower of student housing on the Seattle Central Community College campus, the school is backing away from plans for another student housing project on Broadway.

From an update on capital projects distributed last week, the potential development of the Atlas Building is apparently off:

The College had a couple preliminary discussions with Capitol Hill Housing regarding a possible partnership for developing the Atlas Building into student housing.  As of December 2012, however, the College and Capitol Hill Housing have mutually decided to not proceed with this plan.

Last month, CHS reported on the potential tie with Capitol Hill Housing to create a student housing project on the school-owned property south of the campus where the former Atlas Clothing store was once located.

Instead, the school’s energy will focus on Site D, 10,000 square feet of Broadway property that could be developed as a 105-foot housing tower by the school.

A required public hearing before a Seattle Community Colleges acquisition took place last week and the Sound Transit Board is moving ahead with the process declaring surplus status for the property around the under-construction Capitol Hill Station so that it can be sold to qualified developers.

“The surplus property declaration was one of the many little steps in the long process to get to an RFQ/RFP for development of the sites later this year,” a Sound Transit rep tells CHS. “Next up will be for the formal Development Agreement to go through the City’s legislative review/approval process via the [City] Council.” Expect that review process to play out this spring.

We’ll follow up with SCCC about plans for the Atlas building and what might come next, if anything for the property.

Sebastian Garrett-Singh contributed to this report.