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Council advances first reading to change downtown rules as Midtown Woodinville deal moves forward
Summary
Council approved first reading of an ordinance that would tighten where ground-floor residential is allowed in the CBD and heard extensive revisions to Green Partners’ Midtown Woodinville development agreement, including a negotiated commitment of 15% affordable units at 60% AMI and a requirement that at least 40 affordable units appear in early phases.
The Woodinville City Council at its March meeting approved first reading of Ordinance 804, which would repeal and replace the city’s rule on ground-floor residential dwelling units in the Central Business District and allow council-authorized development agreements to provide exceptions.
Council and staff devoted the evening to detailed changes to the proposed Midtown Woodinville development agreement with Green Partners, a 19.2-acre mixed-use proposal that staff said could include up to 1,300 housing units, roughly 1,800 parking spaces, about 3,900 square feet of retail, and a possible 200-room hotel when fully built out. Council heard public comment both opposing and supporting the project.
Why it matters: The ordinance and the development agreement together set the rules for how downtown ground-floor spaces will be used—prioritizing active commercial uses along key streets while allowing case-by-case flexibility through negotiated development agreements for large projects. The package is central to how Woodinville balances downtown retail vitality with increasing housing supply.
At the meeting, resident Jeff Lyon urged council to reject concessions to Green Partners, saying the developer abruptly ended an earlier partnership that led to demolition of historic greenhouses and that the company’s proposal offers few public benefits. Kimberly Ellertson, representing the Woodinville Chamber of Commerce, said the chamber supports allowing limited ground-floor residential on secondary streets and including smaller retail spaces to help local entrepreneurs and strengthen the local customer base.
Staff presentation and negotiated changes: Jason Grumbaugh, city staff, described a set of revisions to the development agreement that the council asked to see after a February study session. The main changes highlighted by staff include:
- Affordable housing: the developer agreed to a revised commitment of 15% of units at 60% area median income (AMI), up from a prior proposal of 10% at 80% AMI. Staff said the agreement also guarantees at least 100 income‑restricted units at full project buildout, and requires a minimum of 40 income‑restricted units in the first two phases so affordable units are delivered early. The agreement allows reallocation of required affordable units into a later phase or a single all-affordable building only with city approval and where the change would demonstrably provide a greater public benefit.
- Adaptive reuse and activation: language was added requiring Green Partners to initiate adaptive reuse of an existing on-site warehouse for daytime markets and events within 18 months, subject to delays outside the developer’s control.
- Design and open-space requirements: staff described forthcoming Exhibit P to the development agreement to detail additional stepbacks and modulation beyond base zoning. Open space accounting will treat the urban stream buffer and Milwaukee Forest/plaza areas as public open space, but streets, sidewalks and parking will not count.
- Streets and infrastructure: major fronting streets (138th, 139th and 173rd) will be public and built to public standards; many internal streets will be private but built to public standards and maintained by the developer.
Council debate and vote: Council members praised efforts to deepen on-site affordable housing but differed on the balance between preserving retail character and adding flexibility for developers. Councilmember Millman and others argued that flexibility is needed to respond to changing economics; Councilmember Taylor said more protections for existing downtown retail are still needed and announced a no vote. Deputy Mayor Randolph moved the first reading and Mayor Arndt seconded; the ordinance advanced on a roll‑call vote of 6–1 (Taylor opposed).
What’s next: Staff said several exhibits remained to be finalized (including the stepback exhibit and the public‑benefits comparison) and pledged to return to council with those materials and with a consolidated one‑page comparison of negotiated public benefits versus code requirements. Council asked that the information be posted on the project webpage for public review. The development agreement and ordinance will return for further council consideration.
