LYNNWOOD—The Lynnwood City Council on Monday, October 13, greenlit a series of pivotal motions spearheaded by Councilman David Parshall propelling the Lynnwood Public Facilities District’s (LPFD) ambitious $600 million Master Phasing Plan forward. The Council also approved changes to the Lynnwood Municipal Code. Councilman Patrick Decker did not attend Monday’s council meeting.
“The Development Agreement has been two-years in the making but decades in community conversations around what Lynnwood needs for a downtown,” said Janet Pope, Executive Director for The District. “It’s a shared vision with the City to meet the economic and community development mission of The District and support City Center planning goals. Our goal has always been for this unique property to become the heart of our City Center, for our local community and all who visit the Event Center. I think we are well on our way. I have to thank city staff, the Mayor, and City Council for embracing that vision as well.”
The Council approved a Development Agreement, a $15 million loan backing for the LPFD with the Snohomish County Treasurer, and the construction of an extension of 194th Street and a new 38th Avenue W that will connect along the perimeter of the proposed LPFD Master Plan site.
Councilman Parshall, who is also the City Council liaison to the Lynnwood Public Facilities District, recognized key people for which Monday’s historic approval would not be possible:
“And let me first thank some of the most important people involved in this. I want to thank the board of the public facilities district, the leadership of Taylor Nordby, board president, the financial acumen of Wally Webster II, the community building of Rosario Reyes, the housing knowledge of Chris Collier, and the business acumen of Frank Percival. They are a fantastic board, and they are serving us so well over there at the Public Facilities District.
“I would also, of course, thank our DBS department. Director Wolters has been incredibly instrumental in this entire process and has been there every step of the way with the Public Facilities District. And even though she’s not here tonight, we do owe a big thanks to City Center Project Manager Sarah Cho as well. And this is a big part of the overarching vision for our City Center. I do, and he’s not here also, I do want to thank former director David Kleitsch as well. He was instrumental in getting this going, and I don’t regret that he chose to retire and enjoy the post-director life, but he deserves some thanks for this as well.
“And some more:
- Director Meyer, a big thanks for this. She is a de facto member of that board and handles overseeing their finances a little bit, even though they have their own financial director.
- Director Bond and City Engineer David Mach.
- And I want to thank the lawyers as well. I’m not going to mention them by name, but they hammered these things out for us and do a great job.
- And of course, last but not least, I want to thank Director Janet Pope. She has been such a leader over there and driving the vision of this project for a long time.”
The District is actively seeking a retail consultant to assist current tenants during the transition and is working on a possible phasing plan to relocate tenants that want to stay in the new redevelopment.
“Our goal is to double-down on local, Pacific Northwest retailers,” said Executive Director Pope. “As a public agency we have an opportunity to do something more for supporting local businesses, which starts with the current tenants. Most of the tenants are locally owned businesses and I would like to have them in the new development. We just hired a retail consultant to assist us with developing the retail program and part of their scope will be planning with our current tenants in 2026-2027. “
Adoption: LPFD Master Plan and Development Agreement
The Lynnwood Public Facilities District (LPFD) is advancing a Master Plan and Development Agreement to guide the future transformation of the Event Center site into a vibrant, mixed-use district.
The City of Lynnwood held a public hearing on Monday, September 22, to hear public testimony regarding the proposed Development Agreement of its Master Plan. The LPFD approved the Development Agreement on October 7 and the Council approved the Development Agreement on Monday, October 13.
“I think this [The Lynnwood Event Center Redevelopment Project] is what we’ll become known for in the not-too-distant future,” said Councilman Robert Leutwyler. “I think once we get there, we’ll look back and everyone will be grateful that people were willing to make the investment, put in the work to get us there. So, I would be enthusiastically joining Councilmember Parshall in voting yes for this and supporting the district and its efforts.”
The motion to approve the Development Agreement was made by Councilman Parshall and seconded by Council President Nick Coelho. The motion passed 6-0.
Ben Wolters, Development and Business Services Director on September 22 provided an overview of the Development Agreement, emphasizing its alignment with the City Center plan and its public benefits, such as economic growth, public infrastructure, affordable housing, and open spaces.
“The proposal is well within the goals and purposes and requirements of the City Center downtown plan,” Wolters said during the September meeting. “It provides mixed-use development for housing, retail, hotel. It provides green space. It accounts for an expanded event center and the opportunity for some potential outdoor event space.”
This Master Plan seeks to transform the surrounding 1960’s era shopping mall into a 13-acre town square with public plazas, downtown open space, festival streets, 80,000 square feet of commercial spaces for local Pacific Northwest retailers, a new hotel, a 550-stall parking garage with a new City Center ring road, and privately developed workforce apartments serving households with 60-80% of area median income.
The Project promotes public benefits like economic growth, job creation (estimated 500 permanent jobs post-construction), and tax revenue ($3 million annually projected), while providing development certainty for The District over a 15-year term.
The total estimated project cost is around $600 million, with potential District investment of $270 million via bonds and private contributions of $320 million.
In the Development Agreement, the City of Lynnwood would take on responsibility for construction of an extension of 194th St and a new 38th Ave to form a Ring Road for circulation, access, and connection to future City Center street grid. The current estimated cost of the proposed Ring Road project is $18 million. Funding would come from a combination of grants, tax increment financing (TIF), and City capital funds.
The Project involves demolishing ~76,500 square feet of existing commercial buildings, expanding the existing 64,000-square-foot Event Center, and adding new multifamily housing, hotel, commercial spaces, structured parking, plazas/open spaces, utilities, and roads. Soil remediation for historical contamination (from dry cleaning and auto services) is required per Washington Department of Ecology standards. The site will feature ground-floor retail activation and public amenities to enhance walkability and event hosting (up to 2,500 attendees).
Lynnwood resident Ted Heichel in September expressed concerns about the development’s impact on the adjacent single-family neighborhood, particularly regarding insufficient parking, noise from outdoor events, and financial burdens on the city.
He criticized the agreement’s vagueness (e.g., “blank pages” in attachments) and the city’s potential liability for PFD debts, including a $15 million loan backed by the city. Heichel also worried about the precedent set by allowing taller buildings closer to residential areas and questioned the adequacy of parking provisions (1.5 spaces per apartment unit).
Wolters clarified the flexibility in the Development Agreement, which includes three housing scenarios: a low-density option (~400 multifamily units), a medium-density option (up to 550 units), and a high-density option (up to 795 units) if the proposed 300-room hotel does not materialize. These scenarios align with the City Center subarea plan’s environmental impact statement and mitigation measures for infrastructure like roads and utilities.
Rosemary Graziani, representing 21 petition signers, voiced concerns about the development’s impact on her quiet cul-de-sac (192nd Street). She highlighted parking shortages, predicting that new apartment residents would park in nearby neighborhoods due to insufficient on-site spaces (1.5 per unit). She urged the council to require two parking spaces per unit, preserve existing trees as noise buffers, and ensure developers, not the city, bear infrastructure costs.
Wolters shared that surface parking will be available during interim phases, with a dedicated parking garage for the event center and potential hotel parking.
Ray Liao, Legal Counsel for LPFD, reinforced that the Development Agreement adheres to city codes, with minor modifications supported by mitigation measures (e.g., landscaping, noise control). The planned parking garage and surface parking for the project will address parking needs, with exceptions for large events managed through permits or shuttle services, she said.
Chip Peterson, Hilton Garden Inn General Manager, supported the Development Agreement, emphasizing its economic benefits for the city including increased tourism, job creation, and tax revenue from an expanded event center and new hotel. As a member of the Tourism Advisory Committee, he argued that the project would make City Center a regional destination, benefiting local businesses despite potential competition for his hotel.
Councilmen Goerge Hurst raised concerns about the city’s current Multifamily Tax Exemption (MFTE) ordinance and asked Wolters whether the Development Agreement would lock in the proposed ordinance or allow developers to apply under a future, updated ordinance.
Wolters clarified that it does not lock in the current MFTE ordinance and allows developers to apply under future ordinances.
Adoption: Public Facilities District Short-Term Financing Resolution
The Council approved 6-0 to adopt a resolution to provide City of Lynnwood backing to a short-term $15 million loan between the Snohomish County Treasurer and the Lynnwood Public Facilities District contingent on the adoption of the Development Agreement between the City and the District which was approved earlier in Monday’s meeting.
The Lynnwood Public Facilities District (otherwise known as “The District”) sought to utilize the Snohomish County Treasurer’s Community Investment Program with the issuance of up to $15 million bonds towards its economic development goals and refinancing its existing debt obligations. A similar $15 million short-term loan was utilized by the Port of Everett back in 2022, to fund its economic development at Waterfront Place.
If awarded, the loan will be used to refinance The District’s remaining $9 million worth of debt from its Lynnwood Event Center construction (which opened in 2005) as well as receive additional funding to pay for the schematic designs for its downtown redevelopment Master Plan.
The City of Lynnwood currently provides credit backing for approximately $9.6 million in long-term PFD bonds. From the short-term loan currently being considered, $9 million out of $15 million will be used immediate to pay off the PFD’s existing debt, bringing the City of Lynnwood’s total debt backing to $15.6 million while the loan new is outstanding, according to Lynnwood Finance Director Michelle Meyer.
The PFD’s Board of Directors approved a resolution seeking this loan at its July 8 meeting and has was discussed in Lynnwood’s Finance Committee on July 23. The approval on October 13 of an additional $6 million debt backing of the Lynnwood PFD, would reduce the City’s current non-voting bond capacity from approximately $76 million to $70 million—a value within healthy parameters according to Finance Director Meyer.
Adoption: LPFD Ring Road Project Financing and Future Connection Interlocal Agreement
The City Council approved 6-0 to accept the terms of a proposed Ring Road Project Financing and Future Connection Interlocal Agreement between the Lynnwood PFD and City of Lynnwood. The motion to approve was made by Councilman Parshall and seconded by Councilman Leutwyler.
In the proposed Development Agreement (DA) for the Lynnwood Public Facilities District (LPFD) Master Plan, the City and the LPFD agreed to detail terms for the process and financing of the design and construction of the proposed Ring Road (part of the Master Plan) in a separate agreement titled the Ring Road Project Financing and Future Connection Interlocal Agreement (ILA).
The Ring Road Project will construct an extension of 194th Street and a new 38th Avenue W that will connect along the perimeter of the proposed LPFD Master Plan site. The project will provide traffic and utility connections for future development of the Master Plan.
The project also advances the future connection of 194th Street between 40th Avenue W and 36th Avenue W as identified in the City Center Subarea Plan to improve traffic circulation and support redevelopment in the area.
Vote on proposed update to LMC to update an RCW reference
The City Council unanimously approved updates to Section 2.92.070 of the Lynnwood Municipal Code that updates the reference of a specific RCW (from RCW 39.04.155 to RCW 39.04.152) related to procurement using a small works roster for public works projects. The RCW has been updated, necessitating a change in the corresponding LMC. Lynnwood Finance Director Michelle Meyer will be presenting the changes to council members.
The motion was made by Councilman Leutwyler and approved by Council President Nick Coelho.
Author: Mario Lotmore
