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Economic development staff outline activation plan for Northeast 85th Station area; council tables townhome ban
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Summary
Kirkland’s economic development manager summarized outreach, marketing and infrastructure steps intended to catalyze redevelopment around the Northeast 85th transit station, including developer roundtables, TIF-funded street work and grocery/hotel outreach; staff reported council tabled a proposed townhome prohibition and asked for a narrower option.
Jen Davis Hayes, Kirkland’s economic development manager, told the Planning Commission at a study session that staff are actively marketing the Northeast 85th Station area to developers and investors, pursuing outreach with real-estate groups and running targeted promotions to show the area’s redevelopment potential.
Davis Hayes said the station-area plan — adopted in 2022–23 and centered on the NE 85th and I‑405 intersection where Sound Transit will operate a STRIDE bus rapid transit station — raised allowed heights and created incentives such as a pioneer program and tax‑increment financing (TIF) tools intended to offset upfront infrastructure costs. She said two early redevelopment prospects at the Lee Johnson site and a former retail center stalled when market conditions changed and financing became more expensive.
Why it matters: staff described the work as a mix of marketing, one‑on‑one developer outreach and practical steps to reduce redevelopment costs. “We don’t have grants. We don’t have loans. It’s more about the services and connecting, with those things,” Davis Hayes said, describing the two‑person economic development office’s role in convening developers and helping businesses navigate city processes.
What staff reported: Davis Hayes described a November developer and property-owner roundtable, ongoing meetings with NAIOP, the Urban Land Institute and BizNow, and follow‑up conversations that have led several developers to explore the area privately. Marketing materials aimed at investors and a branding effort for the station area have just launched. Staff also said the TIF district is already funding street improvements (including a right‑turn lane on NE 85th) that can make brownfield and utility work less cost‑prohibitive for developers.
Market conversations included grocery chains and hotel developers. Staff said regional grocery operators report their existing stores are performing adequately but that Kirkland has engaged grocery chains to explore options for the corridor; staff also cited a city study finding a shortage of local hotel room nights and said the Kraken iceplex is expected to add demand for hotels and related visitor amenities.
Developers’ top code concerns surfaced repeatedly: parking minimums, design-review requirements and affordable-housing rules. Staff noted the city moved quickly on some items since the roundtable — streamlining design review and eliminating parking minimums in the station area — but said the market’s high interest rates and investor return expectations mean regulatory fixes are only part of the solution.
Commission questions and staff responses focused on competitiveness studies, the development pipeline and smaller-scale development strategies. Staff said the major development project spreadsheet (updated quarterly) shows continued multifamily and ADU activity even if large commercial projects have slowed, and they raised the idea of encouraging smaller footprints and phased construction to reduce financing barriers.
Council action reported: staff briefed the commission on a council discussion of planning-commission recommendations to amend the station-area rules. An amendment by Council Member Paschal, seconded by Council Member Falcone, sought to remove a proposed townhome prohibition from the package. Council ultimately tabled the motion and asked staff to return with options to more narrowly scope any townhome restriction at the May 5 meeting.
Next steps: staff said they will continue marketing and outreach, meet with national and regional developer groups, prepare materials for prospective investors, and follow up with council on the townhome-prohibition options. The Planning Commission was told to expect a May 14 meeting that will include officer elections and a public hearing on a state lot‑splitting bill.
The study session closed with no public commenters. The planning commission’s next regular session is scheduled for May 14 and council’s follow‑up on the station-area amendments was set for May 5.
