Fremont Brewing owner Sara Nelson conceded the race for City Council Position 8 on Thursday evening, shortly after King County released a batch of ballots showing her losing more ground to second-place candidate Jon Grant.

Nelson's concession sets up a general election contest for the citywide position between tenant advocate Grant and Teresa Mosqueda, the political and strategic campaign director for the Washington Labor Council.

With 142,556 Seattle ballots counted, Grant is ahead of Nelson by 3,567 votes, or 2.76 percentage points. Mosqueda continues to lead the field of eight candidates with 31.68 percent of votes.

In a statement, Nelson said, "While I am disappointed by the results, I am proud that our collective efforts garnered the support of almost a quarter of voters in this race. I said from the beginning that even if I lose, I will have started a conversation in Seattle and these results demonstrate that there is a place for the voice of small business in Seattle politics."

Nelson, endorsed by the Seattle Times and the political arm of the local Chamber of Commerce, ran as the self-described "business candidate."

With Grant and Mosqueda running head-to-head, the general election is poised to trigger fierce debate among Seattle's left. While both candidates are running on solidly progressive platforms, Grant calls for policies that Mosqueda says aren't feasible. Among them: Daylighting police union negotiation and increasing requirements for affordable housing to 25 percent when developers build in recently up-zoned areas.

As Stranger staff writer Heidi Groover puts it, "Grant argues he's willing to be bolder; Mosqueda argues she can be more effective."