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CONTACT THE HERALD
Robert Frank, City Editor
frank@heraldnet.com
 
Published: Wednesday, May 14, 2008

Site bought for landfill may become commercial hub

Hundreds of acres of Snohomish County land once bought for a landfill might be transformed into new neighborhoods and a hub for jobs with office buildings and businesses.

Snohomish County Executive Aaron Reardon laid out details Tuesday for a new vision for the county-owned Cathcart property east of Mill Creek just off Highway 9.

"It can be a flagship for redevelopment, environmental development and be a revenue producer for Snohomish County," Reardon said.

The county owns about 350 acres at the site, including sensitive wetlands. Reardon proposes to set aside 168 acres for wildlife habitat. The rest of the land could be leased for commercial or office development or sold for new housing. Also, a transit hub on Highway 9 is proposed.

The county might require that any construction on the land follow environmentally sensitive building practices, Reardon said.

More details, such as how many houses and jobs are planned for the property, will be clearer this summer, Reardon said.

In June, county officials plan to hold a series of community meetings to ask for ideas on how Cathcart should be developed.

There's no rush to make a decision, Reardon said, but the county needs to figure out how to pay off a multimillion dollar bank loan on the property that is accruing about $1.5 million a year in interest.

Reardon is stepping into a debate that has lingered for years and his proposal might help focus upcoming policy discussions, County Councilman Brian Sullivan said.

"This is a great starting point," Sullivan said. Reardon's proposal will help "solve this financial problem and take this gem in the rough and make it a wonderful and great legacy for Snohomish County."

Reardon shared his plans with County Council Chairman Dave Somers and other council members Monday.

The proposal has more development than council members want to see, Somers said.

Together, Somers, Sullivan and Councilman Mike Cooper steered the council earlier this year toward keeping the land in public ownership rather than selling it off for development.

"Housing and commercial development was something the majority was not too keen on," Somers said. "To me, that's the kind of stuff we have all over the county."

Then again, "we do have to figure out how to pay the debt on the property so I'm open to options."

The financial web the county wove for itself is complicated.

The county originally bought the property using fees collected from garbage customers. It has owned the property, more than 600 acres, since the 1980s and until 1992 operated a landfill there.

Later, the county built -- but never opened -- a second landfill on the property. The county chose instead to haul garbage to a landfill in southeastern Washington. It also carved off 90 acres for Willis Tucker Park, and land for a public works maintenance center and sheriff's office rifle range.

The County Council bought the property from the solid waste department in 2005 for $31 million.

Soon after, it sold property to the school district for $8.5 million, which paid off some of the debt.

The county paid off the solid waste department by taking out a loan in 2006, but as of this month county taxpayers still owe $24 million on the property, including $1.6 million in interest.

To cover just the interest payments, the county faces about $1.5 million in annual cuts to the budget if the county doesn't do something with the Cathcart property, Reardon said.

Meanwhile, the solid waste department spent most of the $31 million from the sale of the Cathcart property to keep tipping fees -- the fees paid for dropping off garbage -- low at transfer stations. The County Council declined to raise fees in years past.

"It's insane," Sullivan recently said of the financial position the county is in with the Cathcart property. "To me, this is a bit of a mess."

Sullivan's frustration led the council this spring to cancel an $800,000 contract with consultants hired to help create a master plan for developing the property. The five members on the council couldn't agree what to do, so spending money on a consultant was wasteful, he said.

The option of selling or leasing the Cathcart property to private companies won't happen until the real estate market turns around, Reardon said.

"Developers are land rich and cash poor," Reardon said.

The downturn already is forcing the county to dip into reserves this year and maybe next year.

In concept, Reardon's proposal echoes the direction the previous County Council was heading, Democratic Councilman Dave Gossett and Republican John Koster said.

"I'm glad he liked the old council's original concept for that property," Koster said.

If having the executive propose the plan gets the Democratic majority closer to settling the fate of the property, "then I'm a happy camper," Koster said.

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