Director reports renewed development activity at Terrace Station, Main Street phase 2 to start this summer

Planning staff told the Mountlake Terrace Planning Commission that development review activity has increased and several commercial tenants are lined up at Terrace Station.

The director reported townhome and multifamily proposals, a rise in accessory‑dwelling‑unit permit activity, and specific planned tenants at Terrace Station — a gym in Building 1, an ice‑cream shop in Building 2 and a market/coffee use in Building 3, plus an entertainment venue (miniature golf, lanes and related family‑oriented uses) in a former Gene Juarez space. Staff said certain commercial spaces are filling after a period of vacancy.

Main Street and grants: Staff said the city has enough funding to proceed with Main Street phase 2 construction this summer and that additional federal or grant funding is being pursued for later phases and east–west improvements. Bids for the pedestrian plaza adjacent to the transit center returned within expected ranges with three bidders; staff said that work will proceed this summer.

Parks and activation: Staff reported phase 1 of Vets Park is substantially complete with minor cleanup and landscaping remaining; future plateau work and trail links to the transit center remain contingent on additional funding. Commissioners suggested pilot programs to activate parks and plazas with cafés or concessions to both serve users and generate revenue for parks.

What’s next: Staff will continue weekly interdepartmental coordination on development review and report back on grant outcomes, construction schedules for Main Street phase 2 and progress on the pedestrian plaza and Vets Park.