The Lynnwood City Council on Oct. 13 approved a package of actions to advance a planned expansion and redevelopment around the Lynnwood Event Center led by the Lynnwood Public Facilities District (PFD).

Actions included adoption of an ordinance approving a development agreement with the PFD for an expanded event center and master plan; approval of an interlocal agreement with the PFD to fund 30% design of a new Ring Road around the PFD property; and adoption of Resolution 2025-57 authorizing city backing of subordinate PFD notes to support a $15 million short-term loan from Snohomish County to the PFD. Each action passed the council with unanimous recorded votes.

Development agreement: Development and Business Services Director Ben Walters described the agreement as the culmination of more than two years of staff work and public outreach. The development agreement establishes a 15-year legally binding framework between the city and the PFD that: confirms allowed ground-floor uses, design standards, a master signage program, minimum open space requirements, parking and phasing plans (including a future parking garage), utilities and road improvements, and a phasing plan with alternatives and a process for future amendments. The agreement also identifies potential public benefits, including added housing, public open space, stormwater improvements and affordable housing measures that the PFD and city said will implement elements of the city center environmental impact statement.

Ring Road interlocal agreement: The council then approved an agreement to advance the Ring Road project—a proposed extension of 194th Street around the northern perimeter of the PFD property and a new 30th/8th Avenue connection—by contracting for 30% design. The city intends to apply for a Transportation Improvement Board (TIB) grant of approximately $5 million and the agreement anticipates that the PFD will finance 50% of the cost to reach 30% design, with the PFD contribution capped at $400,000. Staff said the 30% design estimate is expected to cost between $500,000 and $800,000 total, and the city and PFD will review cost estimates at 30% and 90% milestones to confirm overall financing before proceeding.

Short-term loan/resolution: The council adopted Resolution 2025-57 to allow the county treasurer to issue subordinate notes to evidence loans from Snohomish County to the PFD and to provide the county-required form of city backing for that short-term borrowing. Staff explained the PFD board had already authorized seeking a $15 million loan; under the plan roughly $9 million would refinance outstanding PFD bonds and roughly $6 million would be used for schematic design and contingency. Staff said the action requires city backing (a typical requirement for PFDs) but does not request an out-of-pocket general fund appropriation and should not affect the city’s immediate general fund cash flow.

Councilmembers and PFD board representatives spoke in support of the plan’s economic development potential, the intent to provide additional housing and public spaces, and the multi-step funding and design process intended to control risk. The council recorded unanimous votes on the development agreement (Ordinance 3491), the Ring Road interlocal agreement and Resolution 2025-57.

Council asked staff to continue monthly invoicing to the PFD for shared design costs and to return with milestone updates at 30% and 90% design.