Redevelopment of old Lynnwood High School ‘solid,’ school district says

Published 10:32 pm Friday, November 28, 2008

LYNNWOOD — Despite the economic downturn and the possible bankruptcy of an Alderwood mall owner, developers still plan to tear down Lynnwood High School and build a shopping center and hotel, Edmonds School District officials say.

The long-term lease deal between the district and Texas-based Cypress Equities is on schedule to close this summer, said Marla Miller, an assistant superintendent with the district.

Cypress Equities did not return calls for comment.

The district is counting on $140 million from the lease and a few smaller land sales to pay to rebuild Alderwood Middle School, Madrona K-8 School and Lynndale Elementary School. The money is also needed to find homes for the district’s alternative education programs and other projects.

“If the Lynnwood High School deal did not close, we’d have to start again looking for development partners and the projects would be on hold until we do get revenue secured,” Miller said.

Cypress Equities has a partner who is financing the development in Lynnwood, Miller said.

“They’re confident in the funding available to them with an equity partner,” she said. “That partner is solid.”

General Growth Properties Inc., which owns the Alderwood mall with other partners, could be heading toward bankruptcy. The Chicago-based company is trying to refinance or extend about $1 billion in debt that comes due in December. General Growth is the nation’s ­second-largest mall owner.

The Lynnwood development, which would be across the street from Alderwood mall, hasn’t been as affected by the economy as other projects because it includes office space and residential units instead of just stores, Miller said.

“We are confident our deal with Cypress is still strong,” district spokeswoman Debbie Jakala said. “They are moving forward and we have assurances even as recent as (earlier this month) that there’s no reason for us to believe the current economic situation, or even the news regarding Alderwood, is going to have any impact.”

Construction crews continue to build a new $99.8 million Lynnwood High School east of I-5. Teachers plan to begin moving into the new school this summer.

A bond voters passed in 2006 is funding most of the project, with grants, state funds and timber sales paying for the remainder of the school, which is on a formerly wooded lot in a residential neighborhood. Construction of the high school isn’t dependant on the lease with Cypress.

Herald Writer Yoshiaki Nohara contributed to this story.

Reporter Kaitlin Manry: 425-339-3292 or kmanry@heraldnet.com.