Development expected to boost city revenue

  • By Mina Williams Enterprise editor
  • Tuesday, February 2, 2010 7:52pm

LYNNWOOD — Lynnwood City Council took several steps forward in creating a friendlier environment for development at its Jan. 25 meeting.

Council members voted unanimously to give up city ownership of 26th Avenue West south of Maple Road. The street, north of Target alongside the southbound lanes of State Route 525, is a 40-foot street that dead ends. The street once served two homes, which are now vacant and will be razed for development of the property.

Albuquerque-based Legacy Hospitality Group Inc. plans to use the plots, including the vacated street, to construct two Hilton brand hotels. One is a six-story Garden Inn with 130 traditional-style rooms; the other is a six-story Homewood Suites with 120 extended stay-style rooms. Ground breaking is slated for next summer, with the entire project expected to be under construction for 14 months.

The completed project will bring 75 to 100 jobs to Lynnwood in addition to tax income and a boost to the city’s tourism business, said David Kleitsch, economic development director for the city.

A sewer lift station is situated on the southern-most end of the street. The city plans to move the lift station to a corner of the three acres alongside State Route 525. This will enable upgrades to the station to be made in anticipation of greater needs when the former Lynnwood High School site is built out. The current lift station site is to be reserved for a future intersection development as the development of that property unfolds.

As part of the agreement with the city, Legacy will give the city $21,000 and will make improvements to the Interurban Trail on the east side of the site. Plus Legacy will dedicate property and construct the first northern segment of a Beech Road connection to extend from Ash Way. This would be the first step in linking Beech Road’s dead end on the back side of Target to Maple Road, crafting a back street connection around Alderwood mall as an alternative to congested Alderwood Mall Parkway.

With the public-private partnership, the city found a way to offer more buildable land with the street vacation, said William Franz, director of public works for the city. “We get better access from Alderwood Mall Parkway, better access along Beech and a better site for the lift station,” he said.

Last fall, a hearing examiner rejected an appeal of the Legacy proposal. Owners of the Residence Inn, 18200 Alderwood Mall Parkway, and of Hampton Inn, 19324 Alderwood Mall Parkway, argued that the city hadn’t adequately addressed environmental impacts and cited concerns with the project’s design.

In a separate move, the council took stock of the current economic climate and approved extending permit timelines in an effort to reduce vacant, dilapidated and underutilized properties. According to city officials there are 26 active permits and 11 inactive permits within the city. The extension is expected to reduce inefficiencies of staff time, re-permitting projects that have already been approved.

Herald reporter Oscar Halpert contributed to this report.

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