Developer rethinks project near Alderwood

LYNNWOOD

Because of the recession, Cypress Equities, the company planning a major commercial and residential development on the existing Lynnwood High School site, is reconsidering the kind of development it will build there. That could delay the project.

“It will make a definite difference in the character and nature of the project,” said John Bowler, the Lynnwood senior planner for the project. “It has the potential to make a good deal of difference in terms of environmental impact, particularly traffic.”

The 40-acre site, at 3001 184th St. SW, is across from the north side of Alderwood mall.

Cypress had planned to build a $1.3 million square-foot project with 715 residential units in four buildings, two major retailers, a movie theater, market and small, boutique shops, plus a three-story hotel, restaurants and office space.

That proposal included a new three-lane public street linking 184th Street Southwest to the intersection of Maple Road and Alderwood Mall Parkway.

That’s according to the Draft Environmental Impact Statement for the project. The project is in its early stages — it still has to go through the environmental review process before construction permits are issued.

Cypress intends to proceed with the project, but needs to adjust its concept in light of significant changes in the retail market, Edmonds School District officials said in a statement.

The recession has had an impact in Lynnwood, where major retailers such as Linens &Things, Circuit City and Levitz have shut down. General Growth Properties, which owns Alderwood mall, has been scrambling to pay off millions of dollars in debt, according to a Dec. 16 Herald story.

So called “brick and mortar” retailers have been reeling, not just because of the recession but because customers are increasingly heading online to do their shopping, said Constance Wilde, vice president of commercial real estate broker CB Richard Ellis in Seattle.

“This is supported by the fact that Amazon (.com) was one of the only retailers whose sales increased over the past quarter,” she said.

Edmonds School District assistant superintendent Marla Miller said she’s not surprised the recession has changed the developer’s ideas about what might make for viable retail.

“In a way, if they weren’t looking hard at the tenants, given the economic condition, I’d be concerned about the kind of tenant they’d be looking at,” she said.

The district expects to receive more details from Cypress Equities later this month. The developer is still “very interested” in developing the site, Miller said.

A draft environmental impact statement for redevelopment of the site, originally set to be released Feb. 9, will be delayed.

The new Lynnwood High School on North Road east of Lynnwood city limits is still scheduled to open in September.

Cypress Equities has a development agreement with the school district. The high school was scheduled to be vacated next summer.

Representatives with Cypress Equities, a division of the Staubach Company of Dallas, Texas, did not respond to an Enterprise request for an interview.

“We like the project that’s been proposed,” Miller said. “We think it’s an important aspect of the project that it’s attractive to the community and for consumers.”