Marysville and Arlington discuss interlocal agreement over ‘Project Cascade’
Published 1:30 am Saturday, May 16, 2026
EVERETT — Marysville and Arlington are in the early days of ironing out an interlocal agreement over a proposed development project within the two cities’ industrial hub.
The proposed warehouse and distribution-type facility will be located along 172nd Street Northeast and 59th Avenue Northeast as part of the Cascade Industrial Center, the second-largest manufacturing-industrial center in the county.
The approximately 1.2 million-square-foot project, currently known as Project Cascade, sits on the city limit lines, said Marysville Community Development Director Jeff Wilson at a May 4 city council work session.
“For as long as this building is gonna exist over the city limit lines,” Wilson said. “We have to have a mechanism in order to be able to address anything that may come up from now until the future.”
Panattoni Development Company, Inc., an international real estate development company, is the project applicant. Panattoni has worked on projects ranging from industrial, retail and office spaces to data centers.
Panattoni did not respond to The Daily Herald’s requests for comment.
Only 13% of the project will be located in Marysville, according to the proposed interlocal agreement. Officials will amend the Coordinated Water System Plan, which designates service areas, to allow Arlington to be the water and sewer utility provider for the project.
“The project’s anticipated water demand appears consistent with other industrial buildings in the Cascade Industrial Center,” said Arlington spokesperson Mandy Kruger in an email. “Requests such as this will be evaluated through the City’s standard review process when an application is received, including review by the Public Works Director.”
Project Cascade’s interlocal agreement is still under review and Arlington has not issued any building permits at this stage, Kruger said.
The project is estimated to use 9.5 megawatts at peak demand load, according to planning documents. Snohomish County Public Utilities District considers between 2 and 100 megawatts to be a large-load applicant.
Little is known about the project’s specifics.
Arlington doesn’t know which company would operate the facility or for what purpose, said Thad Newport, the city’s development services engineering manager, in an interview after Monday’s meeting.
Panattoni signed a nondisclosure agreement to not reveal the eventual operating company, Wilson said on May 4.
During that meeting, the Marysville City Council discussed adjusting the boundary for the land in question.
”What do we lose by changing the boundary? Let them have it,” Council member Mark James said. “At some point, it would become Arlington’s and not our problem.”
Transferring the land to Arlington is possible, Newport said Monday, but the process is complicated.
The project is in the very early stages, and there is still a chance it doesn’t happen, he said.
Arlington City Council member Heather Watland said she doesn’t know how to feel about the project.
“I need more information,” she said in an interview Monday.
Jenna Millikan: 425-339-3035; jenna.millikan@heraldnet.com; X: @JennaMillikan
Taylor Scott Richmond: 425-339-3046; taylor.richmond@heraldnet.com; X: @BTayOkay
