The Lake Stevens City Council on July 15 approved an updated scope and budget for a multi-building municipal services campus and separately approved a Lake Stevens Historical Museum and retail building project, after staff pared back some exterior and add-on features to fit available funds.

Why it matters: the municipal campus and the museum/retail building are multi-year civic projects that change where city staff and services are located, enable downtown activation and affect capital financing and bond or REET allocations.

Community Development Director Russ Wright summarized refinements to the municipal campus program that reduced the earlier projected scope and produced a revised not-to-exceed construction budget of $7,000,000 for the municipal services campus. Wright said renovations focus on mechanical, electrical and plumbing upgrades (the single largest cost driver), interior work to consolidate administrative functions, and modest exterior refresh and plaza connections. He told council that city leaders and the finance director had reviewed funding options and that the project can be paid from existing funds without new revenue; the staff report said that some REET and pandemic recovery funds would be used and that a state legislative change (HB 1791) had increased flexibility for using REET funds on municipal campuses.

Council discussed specific trade-offs: the passport office and an employee wellness center were identified as items to defer or phase in later; AV systems would be right-sized rather than a costly full-spec installation immediately; and site items such as covering a pond to create parking were dropped after cost/benefit review. Council voted to approve the municipal campus scope and budget not to exceed $7,000,000 (one council member voted no).

Wright also sought approval for a combined Lake Stevens Historical Museum and retail building on Millspur Yard (working name) downtown. Staff reported a current project estimate of about $3.9 million; Wright asked council to authorize up to $4 million without prior approval to accommodate contingencies. Staff said two tenant spaces are under negotiation (restaurant and coffee shop) and that the building will include about 3,500 square feet for the museum across two floors and commercial leasable space to help economic viability. Council approved the museum/retail project budget not to exceed $4,000,000.

Next steps: staff will finalize permit drawings and finishes, prepare bid packages and bring construction contracts and budget amendments to council for execution and award as individual contracts move forward.