Proposed development could add more affordable housing units in Lynnwood

Posted: February 5, 2020 385

A proposed housing development in Lynnwood’s City Center district could mean more affordable housing for the city, according to a draft development agreement discussed at Monday’s Lynnwood City Council’s meeting.

At its Feb. 3 work session, the council was briefed on a proposed ordinance regarding a development agreement for Kinect @ Lynnwood — a multifamily residential project proposed for 4100 Alderwood Boulevard (former location of Speed Trap Espresso and Hertz Car Rental). Plans for the 1.6-acre site include a 239-unit residential building with seven floors — five stories of wood-frame construction and two lower floors of concrete podium.

Like past developments in the City Center district — City Center apartments and Destinations Lynnwood (formerly SHAG) — Kinect @ Lynnwood would use transportation impact fee exemptions (TrIF) and multi-unit housing property tax exemptions (MFTE) to offer low- and moderate-income housing, said City Center Manager Karl Almgren. 

The City Center district covers 48th Avenue West to 33rd Avenue West and 194th Street Southwest to Interstate 5. The district will be the “downtown hub” of Lynnwood’s regional growth center, which will be anchored by the Lynnwood Link light rail station and also includes the Alderwood Mall.

According to Almgren, city staff recommend that the council select the MFTE’s 12-year program, which would mean the complex would offer at least 20% of its units at a reduced price and the rest being listed at market value. Almgren said the City Center district is also the only residentially-targeted area of the city that offers MFTE incentives.

To incentivize building in City Center, city staff initially agreed that the first three developments in the district would be offered TrIF exemptions up to $600,000 for each project. However, Almgren said city staff over-projected the exemptions for the first two developments and a remaining balance allows for a fourth and final project to be offered the exemption. 

“As projects have come in, the first two projects came in significantly less than what was anticipated per project level,” he said.

Almgren said Kinect @ Lynnwood was planned alongside Northline Village — an 18-acre site that will include multi-family housing, retail, professional office and entertainment spaces, located near 44th Avenue West, 200th Street Southwest and 196th Street Southwest. The two projects were initially intended to have been proposed together, but scheduling conflicts resulted in Kinect @ Lynnwood being postponed. 

“When this project and Northline Village were being discussed, they were being timed very closely and we could not anticipate which one was going to be ahead of each other,” he said.

During the discussion, Councilmember Ian Cotton pointed out that the building’s parking would be able to accommodate all of its tenants, meaning neighboring parking lots for businesses and the light rail station would not have to worry about spillover parking from the apartment complex.

If approved, the ordinance would authorize Mayor Nicola Smith to sign an agreement with the developer, Bellevue-based American Property Development.

A public hearing regarding the development agreement ordinance is scheduled for the council’s Feb. 10 meeting.

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