LYNNWOOD—Lynnwood City Council will host a Business Meeting at 6 p.m., Tuesday, May 27, to possibly vote on establishing a Tax Increment Area to fund $24 million in public improvements, authorizes funding the WAORCA Diversion Program, and discuss updates to housing in the area. The Lynnwood City Council Work Session will be held in-person and virtually by Zoom or Lynnwood, WA Video Archive (swagit.com). To view the agenda in its entirety, click here.
Lynnwood Tax Increment Financing (TIF) Program for City Center
The City of Lynnwood is proposing to establish a Tax Increment Financing (TIF) fund within a Tax Increment Area (TIA) in accordance with RCW 39.114 to fund public improvements to support growth and development.
With the Lynnwood Link Light Rail Extension opened in 2024, the City of Lynnwood expects to see transit-oriented development building a new downtown neighborhood in Lynnwood’s City Center. The City Center infrastructure is being upgraded with utility and street improvements to enable new urban growth.
The proposed TIA covers approximately 67.9 total acres and 53.8 parcel acres in Lynnwood City Center. The TIA includes both The Lynnwood Events Center District and Northline Village developments plus other potential development parcels along 198th St SW between 44th Ave W and 40th Ave. W. and 196th St SW and Alderwood Mall Blvd.
The proposed TIF program, with an available tax levy of up to $2.6606 per $1,000 of assessed value, is projected to contribute approximately $24 million in bond capacity (e.g. new taxes) toward the total cost of $66 million in the following three proposed projects:
194th St and 38th Ave Ring Road: Build two new streets along the north and west perimeters of the PFD property to provide access, circulation, and future connection to the 194th St extension for the PFD redevelopment and nearby properties in Lynnwood’s City Center.
42nd Ave Phase 1: Construction of a new street and two intersections mid-block between 196th St and 200th St/Alderwood Mall Blvd to provide improved access, circulation, and street frontage to support the future development and mobility needs of Lynnwood’s City Center.
City Center Park: Town Square Park will be a 1.6-acre destination urban park for residents and visitors to the area surrounded by a growing, vibrant mixed use residential and commercial neighborhood.
According to the City, the 25-year debt service for the $24 million bond starting in 2027 will be a total repayment cost of $37.2 million. The expected tax revenues from the TIF are expected to generate between $38.375 million to $62.116 million with the moderate scenario estimated at $46 million accounting for projected risks. The City has identified the Moderate Scenario as the most likely development scenario to occur at this time unless a specific and planned development is identified.
The city currently has $71.7 million in non-voted debt capacity, well below the $24 million (FV $37.2 million) proposed bond for the TIF.
Supporting Documents for agenda item:
- REVISED LYNNWOOD CITY COUNCIL BUSINESS MEETING 5.27.2025.pdf
- Revised Lynnwood TIA Ordinance – Final (5).pdf
Lynnwood WAORCA Diversion Program
The WAORCA Program was to be funded for 2025 by State Department of Commerce grants. That funding is ending on June 15, 2025. The proposal is the City Council to authorize the use of Opioid Settlement Funds (Fund 147) to continue through January 15, 2026.
The City Council is expected to vote on funding the WAORCA Diversion Program from City Fund 147 to the Opioid Settlement Fund. The ask is for $211,330 from that Fund 147 to continue the Program from June 15, 2025, to January 15, 2026. The funds will be provided to the ZSK in the amount of $123,330 and to LEAD in the amount of $88,000. ZSK will continue to reduce billings to the City by $10,000/month during the continuation of the WAORCA Diversion Program.
The current balance of the City’s Opioid Settlement Fund 147 is $1,149,940, as of March 31, 2025.
Supporting Documents for agenda item:
Other City Business
- Chris Collier, Program Manager, Alliance for Housing Affordability, at Housing Authority of Snohomish County- HASCO will provide Council with new developments and information on housing in the area.
- Introduction of Diversity, Equity, & Inclusion Commission Applicant Rebecca Thornton
- Introduction of Human Services Commission Applicant Martin Munyoko
Author: Mario Lotmore
