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Developers seek council support to revise Lakeview Flats plan to two-story commercial proposal
Summary
Owners of the Lakeview Flats parcel asked council for guidance to replace the previously approved three-story mixed-use plan with a smaller two-story, all-commercial design because current market conditions make the original plan financially unfeasible.
Developers of the downtown Lakeview Flats property asked the Lake Stevens City Council for permission to pursue a revised development agreement that would shorten the previously approved three‑story mixed-use project to a two‑story commercial building, citing changes in financing and current market conditions.
Christy Schmidt, planning manager, reminded council that the original development agreement (DA) was approved in June 2022. The approved plan called for a three‑story building with ground-floor commercial space (about 17,000 square feet, room for three tenants and a restaurant) and six residential units above, plus 26 on-site parking stalls.
Brian Lewandowski, the property owner, and partner Chris Adams told council they had secured permits and purchased the parcel but that rising costs and changing financing climate made the three‑story, mixed-use layout difficult to complete. Lewandowski said the owners were proposing a smaller two‑story building of roughly 9,000–10,000 square feet and a single commercial tenant as a viable near-term alternative. "We're basically here just asking if you want to give us the opportunity to explore the possibilities of a two‑story design idea," Lewandowski said.
Why it matters: The parcel sits adjacent to downtown streets and public areas and has been the subject of council interest for years. A built project, even in a reduced form, would fill a visible gap in the downtown core and influence parking, pedestrian circulation and the look of Main Street.
Schmidt said any revised DA would be a new legal document subject to council review and negotiation — the applicant would return with a fresh agreement if council signaled support for proceeding. Council members expressed general support for staff working with the applicant to draft a revised agreement that reflected the two‑story proposal; they also noted project design and parking implications and asked staff to bring a negotiated DA back for formal action.
Ending: Council provided direction for staff to work with the developer on a new DA for a two‑story commercial building and to return to council for review and action; staff and the applicant will negotiate terms, including timelines and permit extensions, and present a new agreement for council consideration.
