Lynnwood staff report housing pipeline gains, but Northline Village financing delays one phase

City planning staff briefed the Lynnwood City Council on March 18 about a busy housing pipeline, growing middle‑housing proposals and specific projects that are advancing through permitting or facing financing pressure.

Community Planning Manager Carl Almgren said multifamily production jumped in recent years, citing a 2020–24 average of about 403 multifamily units annually and an uptick in 2025. He highlighted a pipeline of ADUs, duplexes and small single‑family units enabled by the Unified Development Code and middle‑housing changes, including roughly 122 middle‑housing units currently in early stages and more than 42 detached single‑family units expected within five years.

Almgren reviewed several major projects: Scriber Place, a 52‑unit Housing Hope project serving McKinney‑Vento‑eligible households that received about $5 million from the Department of Commerce and HOME funding plus a $1.9 million CHIP award; Apollo Scriber Creek, a 173‑unit affordable project targeting households below 60% AMI that applied for LIHTC and received a $900,000 CHIP grant; and a new Haskell (formerly Pinewood/Timber Glen) proposal for about 124 units with substantial affordable and senior set‑asides.

On market‑rate development, Almgren noted the Enzo project has 316 market-rate units and has begun leasing; retail build‑out is pending tenant readiness and infrastructure features (for example, grease-trap readiness for restaurants).

Staff also described Northline Village, where a development agreement is in force and some engineering permits are ready to issue, but underwriting for the initial development phase found construction and sewer connection costs that make the first block financially uncertain. Ben Walters, Director of Development and Business Services (DBS), said the city meets with the owner and project managers roughly every two weeks and has already coordinated utility upsizing and other on-site investments; both staff and council discussed potential tools such as deferring impact-fee payments until certificate of occupancy and exploring state funds that can offset impact‑fee burdens.

Walters outlined options under consideration: delaying collection of impact fees until occupancy (a practice being considered in other jurisdictions and enabled by state law in some cases), using state-created funds to defray fees for qualifying projects, and targeted exemptions or calibrations for small-unit transportation impact fees. Almgren noted the city is also piloting pre‑approved building plans to streamline permits and help residents avoid contractor scams.

Councilmembers asked about traffic and school-site access near Scriber Place and offered to form closer partnerships with Northline Village developers where feasible; several asked staff to convene a developer roundtable so council can better understand financing (pro forma) and how fee timing affects project feasibility.

Next steps: staff will continue regular coordination with Northline Village developers, pursue fee‑timing policy options and pursue grant and CHIP‑program opportunities to support affordable projects. Council expressed interest in a developer workshop to deepen understanding of financing and fees.