EVERETT – Five months after the city of Everett expected to hammer out a deal on a expansive riverfront redevelopment project, an agreement still hasn’t been struck.
OliverMcMillan, the developer tapped to revitalize an old landfill on the banks of the Snohomish River, is asking the city to extend negotiations for the second time.
“We truly believe that we are 60 to 90 days (away), realistically, before we can complete the transaction,” Everett Mayor Ray Stephanson said.
On Wednesday, he will ask the City Council to extend until Jan. 31 the negotiating period with the San Diego developer.
OliverMcMillan plans to transform the former industrial area into an upscale shopping and residential neighborhood, with waterfront access, open space and parks.
The company entered into exclusive talks to purchase and develop 96 acres of city land a year ago. An additional 100 acres in the area will remain open space.
Company representatives did not return several calls seeking comment Thursday and Friday.
Stephanson said OliverMcMillan has spent more than $1 million drafting development plans and is negotiating in good faith.
The sales price, phasing, public improvements, design standards and balance of retail and commercial space are some of the details being worked out, he said.
Environmental permitting for sensitive wetlands on the property also is being discussed.
“It’s a little more complicated than anyone at the city expected it to be,” Council President Brenda Stonecipher said.
How to connect the development with downtown is also a big factor, she said. The city hopes to expand redevelopment north to Pacific Avenue to tie everything together.
How much the city is willing to spend on building roads, sewer lines and other public improvements hasn’t been determined.
However, some major stumbling blocks have been overcome.
The city was able to resolve legal challenges to 41st Street improvements that will provide better access to I-5.
It also reached a deal with Burlington Northern Santa Fe Railway to relocate a switching yard that cuts the property in two.
While city officials remain optimistic, the nation’s building boom has begun to slow.
This week, Chang Mook Sohn, the state’s chief economist, predicted a downturn in Washington’s construction and housing industry.
“That’s the sense that we developed after carefully analyzing the information we have accumulated,” he told The Herald on Friday.
Even so, council members say they are confident the riverfront development will move ahead.
“I haven’t seen anything that gives me concern that the process is foundering,” Councilman Drew Nielsen said. “Quite the contrary. It seems to be proceeding with some very careful attention to detail.”
Councilman Mark Olson also said he doesn’t see any signs of a collapse.
“It’s years in the making,” he said. “It’s worth spending additional time to make sure that we get it right.”
Reporter David Chircop: 425-339-3429 or dchircop@heraldnet.com.
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