Council approves major steps in Lynnwood Event Center expansion

On October 13, the Lynnwood City Council approved three significant measures aimed at supporting the Public Facilities District's event center expansion and its surrounding redevelopment, known as The District. The Council unanimously authorized a development contract, a street construction agreement, and a resolution to guarantee a $15 million loan to enhance the district's financing terms. This 15-year redevelopment plan for the 13-acre site includes housing, retail, a hotel, and an expanded event center nearly double its current size. Council discussions also addressed a projected $11. 8 million budget shortfall for 2025-26, with Finance Director Michelle Meyer emphasizing that state law prohibits ending the year in deficit, which could jeopardize the City’s bond rating.

Coelho urged the identification of revenue options, such as a business and occupation tax, despite the lengthy timeline for generating revenue. The Council also revisited a proposal to lower reserve requirements, which could balance the budget for 2025 but not for 2026. Meyer recommended diversifying revenue sources, suggesting a shift away from reliance on volatile sales tax. The Council directed staff to compile a list of revenue options, including timelines for implementation.