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Mukilteo council weighs leasing waterfront parcel versus sale; surplus resolution would be next step
Summary
Staff presented sale and lease options for a waterfront city parcel; council generally favored exploring leasing to retain long-term control, but some members suggested partnering with the Port of Everett. Staff said a resolution to declare the property surplus would be needed to pursue either option.
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Community/Project Director Galuska summarized options for an underused waterfront parcel the council has previously reviewed and confirmed staff’s understanding that sale and lease for commercial redevelopment were the two most popular options from earlier outreach. Galuska said that to move either option forward staff would recommend the council first pass a resolution declaring the parcel surplus so staff can engage brokers, solicit proposals and study feasibility.
Several council members told staff they prefer leasing rather than selling, arguing a lease preserves long-term public control while allowing private development and an ongoing revenue stream. One council member urged staff to rezone the site from open-space to waterfront mixed use to preserve development options; Galuska said rezoning is on the docket and could be advanced if the council directs it.
Some councilors suggested the Port of Everett may be better positioned to execute large-scale waterfront redevelopment and recommended further discussion with port staff. Galuska and others noted trade-offs: port or third-party ownership could accelerate coordinated development and infrastructure delivery but might reduce direct municipal revenues (for example, the port may not pay property tax; the city could receive leasehold tax and sales-tax benefits from businesses operating there). Staff recommended clearer public communication on constraints and opportunities, including a sketch of the Shoreline Management Act’s 200-foot shoreline environment so residents can visualize what type of development and promenade would remain.
Council member Richard (speaking remotely) said a graphic showing the 200-foot shoreline environment would help residents understand how much open space would remain and where a promenade would be located. No formal decision or surplus resolution was taken at the work session; staff said it would return with additional analysis should the council direct further study.
