Traffic moves along Avenue D in Snohomish next to a 9.4 acre lot recently put up for auction, but that did not sell. (Olivia Vanni / The Herald)

Traffic moves along Avenue D in Snohomish next to a 9.4 acre lot recently put up for auction, but that did not sell. (Olivia Vanni / The Herald)

Snohomish Midtown property falls short of $10 million minimum bid

The 9.4-acre plot is back off the market. Inflation and interest rates may have influenced the lower-than-desired bids.

SNOHOMISH — A prime piece of property in Snohomish Midtown is back off the market and up in the air.

The county set a minimum bid of $10 million for the property in a sealed auction-style sale. The 9.4 acre lot, located on Avenue D at 13th Street, was listed through Oct. 14 and has gained public interest because its development would drastically change the area.

However, no offers reached the county’s desired $10 million minimum.

Special Projects Manager Randy Blair, with Snohomish County Public Works, is the lead for the property. Blair explained that higher interest rates, inflation and capital market financing influenced the lower-than-desired bids.

“According to County’s broker, numerous parties expressed interest in the property and have requested more time to evaluate the property, prepare plans and obtain some initial entitlements,” Blair said.

A due diligence policy of 120 days for solicitation and closing proved to be too short of a window for proper evaluations to be made, according to Blair.

The county hopes to have it back on the market again soon.

“I haven’t set a time yet. I would say it’ll be a few months,” Blair said.

The parcel’s development has also stirred up debate over recent tax policies — or lack thereof.

On Sept. 21, in a split 4-3 vote, the Snohomish City Council rejected an ordinance that would have offered developers a break on their property taxes for up to 12 years if they construct multi-family housing projects with low-income units. The Multifamily Property Tax Exemption program has been implemented in areas of Seattle.

“My brokers have not told me that (the lack of multi-family tax exemptions) influenced the bid or not,” Blair said. “We were disappointed that the City Council did not provide that provision because it does provide an opportunity or an incentive for affordable housing.”

The property’s development has been up in the air since 2008, when it became surplus land.

For 50 years, the parcel had served as a “shops site property,” according to Blair, and was used for road maintenance purposes, housing sand, gravel and equipment. But in 2008, the county no longer needed it, and environmental investigations found some property contamination from oils and solvents in the maintenance equipment. The county then went through proper procedures to remediate the situation. In 2019, the Department of Ecology said no further action was required to clean the property.

“Subsequently, the city embarked upon what’s called the Midtown plan,” Blair said.

To develop Midtown, the county participated in public outreach to create a sales package for the property. In June, the land went up for sale and there was “a lot of interest,” Blair explained.

“The Midtown plan has very comprehensive goals, guidelines and development regulations for mixed use development,” Blair said. “We support the provisions, and any future development would have to be in conformance with that plan.”

The county has yet to decide if the minimum bid will remain $10 million.

Kayla J. Dunn: 425-339-3449; kayla.dunn@heraldnet.com; Twitter: @KaylaJ_Dunn.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Olivia Vanni / The Herald 
The Mukilteo Lighthouse. Built in 1906, it’s one of the most iconic landmarks in Snohomish County.
The Mukilteo Lighthouse. Built in 1906, it’s one of the most iconic landmarks in Snohomish County. (Olivia Vanni / The Herald)
Mukilteo mayor vetoes council-approved sales tax

The tax would have helped pay for transportation infrastructure, but was also set to give Mukilteo the highest sales tax rate in the state.

Marysville Mayor Jon Nehring gives the state of the city address at the Marysville Civic Center on Wednesday, Jan. 31, 2024, in Marysville, Washington. (Ryan Berry / The Herald)
Marysville council approves interim middle housing law

The council passed the regulations to prevent a state model code from taking effect by default. It expects to approve final rules by October.

x
State audit takes issue with Edmonds COVID grant monitoring

The audit report covered 2023 and is the third since 2020 that found similar issues with COVID-19 recovery grant documentation.

Bothell
Bothell man pleads guilty to sexual abuse of Marysville middle schoolers

The man allegedly sexually assaulted three students in exchange for vapes and edibles in 2022. His sentencing is set for Aug. 29.

Larsen talks proposed Medicaid cuts during Compass Health stop in Everett

Compass Health plans to open its new behavioral health center in August. Nearly all of the nonprofit’s patients rely on Medicaid.

Snohomish County Health Department Director Dennis Worsham on Tuesday, June 11, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Snohomish County Health Department director tapped as WA health secretary

Dennis Worsham became the first director of the county health department in January 2023. His last day will be July 3.

Logo for news use featuring the municipality of Gold Bar in Snohomish County, Washington. 220118
Lynnwood man dies in fatal crash on US 2 near Gold Bar

The Washington State Patrol said the driver was street racing prior to the crash on Friday afternoon.

Community members gather for the dedication of the Oso Landslide Memorial following the ten-year remembrance of the slide on Friday, March 22, 2024, at the Oso Landslide Memorial in Oso, Washington. (Ryan Berry / The Herald)
The Daily Herald garners 6 awards from regional journalism competition

The awards recognize the best in journalism from media outlets across Alaska, Idaho, Montana, Oregon and Washington.

Thousands gather to watch fireworks over Lake Ballinger from Nile Shrine Golf Course and Lake Ballinger Park on Thursday, July 3, 2025 in Mountlake Terrace, Washington. (Olivia Vanni / The Herald)
Thousands ‘ooh’ and ‘aah’ at Mountlake Terrace fireworks show

The city hosts its Independence Day celebrations the day before the July 4 holiday.

Liam Shakya, 3, waves at a float passing by during the Fourth of July Parade on Friday, July 4, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Everett celebrates Fourth of July with traditional parade

Thousands celebrated Independence Day by going to the annual parade, which traveled through the the city’s downtown core.

Ian Saltzman
Everett Public Schools superintendent wins state award

A group of school administrators named Ian Saltzman as a top educational leader.

Former Lake Stevens City Council member sworn in to fill vacant position

Kurt Hilt fills the seat left vacant after the sudden passing of former council member Marcus Tageant.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.