MUKILTEO—Approximately 100 Mukilteans came out in full force at Monday’s council meeting and won their plea to halt a proposed rezone of the Harbour Pointe Tech Center property from “industrial” to “multi-family” for a 200-unit high-density housing development.
“I would like to make a motion to direct staff to update the land use designation zoning of maps in the Comprehensive Plan to deny rezone of 6500 Harbour Heights Parkway and leave property zoned Business Park,” said Councilman Mike Dixon which was seconded by Councilman Steve Schmalz.
The motion passed 6-0-1 with Councilwoman Donna Vago as the lone abstention.
Council Vice President Jordal expressed that he would like to see a “development that is compatible in the community” as his reason to deny the rezone.
“I tend to trust the collective intelligence of the neighbors there,” he said.
The rezoning of 6500 Harbour Heights Parkway, better known as the Harbour Pointe Tech Center property, was first brought to the council’s attention in April by Councilman Jason Moon, who during his unsuccessful run for State Representative in August, was critical of recently approved House Bill 1110 by the legislature which forced densification onto local communities.
“I am so happy we had so many people voice their opinions and give us some great data,” said Councilman Moon. “We heard from the residents, we heard from [the] owner and developer, and I think it is now time to make a decision.”
During the near two-hour public hearing on October 7, none of the residents that spoke were in favor to rezone the property, which was reminiscent of the first Public Hearing on the subject on September 16.
“Leadership accepts risk, managers manage,” Jim Mills, President of the Sundance HOA told councilmembers during Monday’s second Public Hearing requesting the council to vote no on the rezone. “I’ll say it again, leaders accept risk, and that is what you are doing. You are very courageous to do this, very courageous.”
He added, “My message is about courage. I implore you to please own the process as the city council. Please own it. And by owning it I mean 20 years from now or 10, when you drive down the parkway and you look at any rezone and any development down there, you can look at your grandchildren and say with a straight face, ‘I did this!’”
Harbour Pointe Tech Center property is owned by HPTC Property, LLC, which is owned by Tom Prenzlow, the former owner of Systima Technologies, Inc., a current tenant in the business center. Prenzlow purchased Harbour Pointe Tech Center and property, for $46.75 million in September of 2020—adjusting for inflation this would equate to $56.8 million in 2024. A year later, Karman Space & Defense acquired Systima where Prenzlow remained as an equity holder.
Prenzlow shared the current financial plight with residents as the reason to transform the 30-acre site from a business park to a 200-unit multi-family development. He shared that after years of trying to find tenants to utilize the office space, half of the 335,000-square-foot four-story building is still vacant.
“I just want everyone to know that Harbour Heights is a great building, but the Tech Center is not sustainable the way it is going right now,” Prenzlow said. “With the current work-from-home atmosphere… the chance of keeping Harbour Heights full is very slim.”
He shared that he is facing two options: develop the existing seven of the 30 acres zoned as multi-family with 80-units if the rezone is denied or build a 200-unit (houses and townhomes) multi-family development if the rezone is approved.
A week before Monday’s second Public Hearing, former Mukilteo City Council President Bob Champion sent an email to the Mukilteo City Council urging them to “table” the upcoming October 7 vote to rezone the property.
In that email, Champion called the arguments to rezone the property by local politicians “very weak and hyperbolic” adding that if the council “caves to [the developers] recommendation, the character of Mukilteo will be changed forever.”
The original September 16 voting action by the city council was postponed to October 7, given a mishap by the city in sending out adequate notices of that public hearing four days into its required 10-day lead-time. The action to delay was in response to a letter sent by Telegin Law on behalf of Sundance Homeowners Association to the City on September 13, urging the council to postpone its public hearing.
Over the two Public Hearings, Mukilteo staff was criticized by residents of mishandling the rezone and using “net density” —a non-industry term—instead of gross density to skew density comparisons to adjacent properties. They accused one of the attorneys for the developer Tri Point, of being a “bully” and “threatening” residents with an ultimatum for the council to approve the rezone or it will seek a Growth Management Hearing Board appeal.
At its ruckus August 8 Planning Commission meeting with almost 100 residents in attendance, the motion to recommend that the City Council approve the Comprehensive Plan draft with a density of 13 units per acre with a 180-unit cap of the Harbour Pointe Tech Center property was approved 5-1 with Commissioner Ashvin Sanghvi dissenting.
“The decision of the council is really simple, if you follow the recommendation the Planning Commission made of 185, you are opening yourself to some kind of litigation,” Commissioner Sanghvi told the council at the October 7 Public Hearing acting in his capacity of a citizen. “Do not rezone. Wait until you have a better plan on the table… there is no pressure that this needs to be rezoned for the comprehensive plan.”
Originally, Nevada-based Tri Pointe Homes applied to rezone the Harbour Pointe Tech Center from Business Park to Multifamily Residential-High Density/Multiple Residential (MR) on April 4, 2024, and sought approval for a 275-unit development. The multifamily rezoning could allow up to 600 units on the property.
After a series of meetings with residents, Tri Pointe reduced the number of proposed units to 222 and now 200. However, residents argue for a gross density in line with the surrounding community at 136 units over the picturesque 30-acre property overlooking Possession Sound.
Several residents expressed to the Lynnwood Times that they are still open to working with property owner Prenzlow to find a mutually beneficial solution. Mayor Joe Marine told the Lynnwood Times that he will extend an invitation to the affected Homeowner Associations for them to directly address their concerns.
Other Council Business
- Council denied Hawthorne Hall rezone to commercial from residential with a vote of 5-2. Council President Louis Harris and Councilman Richard Emery dissented stating they want to preserve Mukilteo’s historical buildings.
- The motion to direct staff to update land use designation and zoning on maps in the Comprehensive Plan to approve rezone of Cannon Property to Open Space was unanimously approved.
- The motion to direct staff to include land acknowledgement in the Comprehensive Plan to use language at Mukilteo public meetings passed 4-3 with Council members Moon, Vago, and Jordal dissenting.
- The motion to leave economic development policies and analysis in Land Use Element of the Comprehensive Plan was approved 6-1 with Councilman Dixon dissenting.
- The motion to direct staff to revise the draft Comprehensive Plan and implementing ordinance to reflect the direction from the previous motions and present those documents to the Council at a future meeting for adoption was unanimously approved.
- The Mayor’s Budget Address was rescheduled to the October 14 Work Session. All members of the public are welcomed to attend.
