Port of Everett Commission Authorizes CEO to Finalize and Execute Option Agreement for Development of the Millwright District at Waterfront Place
On Monday, Dec. 12, the Port of Everett Commission approved an Option Agreement with LPC West for the development of the 10-acre Millwright District at Waterfront Place.
This action provides the framework for LPC West to develop the second, and largest, mixed-use phase of the Waterfront Place project. This district, situated in the uplands between the Port’s Central and North Marinas, will feature up to 60,000 square feet (sf) of destination retail, 200,000 sf of commercial space, and more than 200 multi-family housing units.
“We are so pleased to have reached terms with LPC West to be a part of our waterfront’s future for decades to come,” Port of Everett CEO Lisa Lefeber said. “LPC West has proven experience in delivering quality mixed-use projects that honor the vision and history of the communities they are developing in.”
The Millwright District represents the second phase of public/private development within the Port’s 65-acre, 1.5 million sf mixed-use Waterfront Place project. It builds on the momentum and the more than $150 million in investment into the project to date with new developments at Fisherman’s Harbor, including the new 266-unit Waterfront Place Apartments, the new 142-room Hotel Indigo, restaurant row in Fisherman’s Harbor, new destination retail, public gathering spaces and more.
“LPC West is incredibly excited to reach this milestone and transition into creating plans for a vibrant hub for new residents and businesses at this exceptional waterfront location,” said J.P. Harlow, Senior Vice President of LPC West. “We are honored to be working with the Port of Everett and look forward to a long and successful partnership bringing their vision on the waterfront to life.”
LPC West is the West Coast arm of Lincoln Property Company – one of the largest diversified real estate services firms in the United States – with headquarters based in Dallas, Texas. The company represents projects throughout Washington, Oregon, California and Idaho, and are responsible for a portfolio of more than 33 million sf of commercially developed, managed and/or leased properties.
Port Commission Reaction
“I want to thank the Port team and LPC West for working tirelessly behind the scenes to put this deal together and get us to the starting line for the next phase of private development. I believe this is a great economic development project that will create jobs for our Port, bring additional housing to our Port, and transform this cleaned up waterfront into a true destination.”
- Port Commission President David Simpson
“This mixed-use project honors our heritage, but in an upgraded way, with clean modern infrastructure and facilities. The site has a long-standing history of supporting blue collar jobs, and I look forward to seeing jobs continue to be supported at this site in a new way into the future. I can’t wait for the groundbreaking.”
- Port Commission Vice President Glen Bachman
“This is the largest piece of the Waterfront Place project that will soon bring renewed life to a site that long ago supported Everett’s booming shake and shingle mills. This is a real opportunity for our community to take advantage of new housing and retail, offices, and public access. LPC West is a first-class, quality developer and I look forward to watching them build out a project we can all be proud of.”
- Port Commission Secretary Tom Stiger
This past fall, the Port expanded its construction activity into the Millwright District to prepare for the future site development. A $3 million contract with Strider Construction includes the preparation work necessary to build the next portion of the Millwright Loop Road – including preloading the site for proper compaction.
The work scope also includes widening a section of the northern waterfront trail by 10 feet, temporary realignment of marina and visitor parking lots and building temporary roads. This work is expected to wrap up next spring.
A following project will complete the remaining portion of the road, utility and stormwater improvements, the Central Marina esplanade, including build out of two vistas along the walkway, and rebuilding the Central Marina parking lots.
LPC West expects to start construction on their first option in late 2023/early 2024. This portion of the Millwright District will include a mixed-use building with retail, more than 200 housing units, and surrounding public spaces, including the new Timberman Trail that will create an attractive and accessible connection from the North Marina to the Central Marina.
About the Agreement
An Exclusive Negotiating Agreement was authorized by the Port Commission and signed by the CEO in December 2021. This triggered option and lease negotiations, which were ongoing for the past year. The option agreement approved by the Port Commission includes three development parcels; the West, East and North parcels. LPC has the option to take down the development parcels sequentially or all at the same time, and each subsequent lease triggers additional public access requirements. It is the expectation that LPC exercises the West option (B2-5) first.
The term of the eventual leases would be 50 years, with two, 15-year renewal options. LPC will have the right to negotiate on the final phase of the project, Wharf’s Edge, without competing in a Request for Proposals.
The Option Agreement has specific infrastructure milestones the Port must meet to ensure the project stays on track (this work is currently underway). Under the agreement, LPC West would pay up to 40% of the cost of the infrastructure work and the Port would invest the other 60%, with bonds sold to the Snohomish County’s Treasurers office.
The rent for each lease will be determined based on a third-party appraisal, with adjustments to the appraisal amount due to site specific development issues and opportunities that are not captured by the appraisal. The rent will increase 2% annually for the first 10 years, then between 2% and 4% depending on inflation, with market adjustments at year 15 and year 30, limited to a 10% increase from the previous amount.
The agreement includes a shared-use parking agreement that provides for public parking within the leased parcels. LPC West will be responsible for structured parking on the East and West parcels, and the Port would retain management of street and surface parking.
More information on the deal can be found here.
For more information, contact Catherine Soper, Communications & Marketing Director at catherines@portofeverett.com.
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About LPC West Inc.
Lincoln Property Company (LPC) is one of the largest real estate firms in the United States and the only company of its kind to rank among the Top 10 Owners and Top 10 managers of office, industrial, retail and multi-family developments. LPC’s West Coast operating unit – LPC West – has provided a local presence in Washington, Oregon, California and Idaho since 2005. It responsible for a portfolio of 33 million square feet of commercial properties developed, managed and/or leased. LPC West has 275 employees in eight offices in Los Angeles, Orange County, San Diego, San Francisco, Portland, Seattle and Boise.
About Waterfront Place
The Port of Everett’s Waterfront Place is a new 1.5 million square foot (sf) mixed-use development located on 65 acres at the waterfront near the downtown core in Everett, Washington. The development boasts spectacular views, waterfront access, recreational amenities and a world-class marina – the largest public Marina on the West Coast – with 2,300 slips and 5,000 linear feet of guest moorage. At full build-out, the Waterfront Place mixed-use development will include 63,000 sf of retail/restaurant space, another 20,000 sf of marine retail, 447,500 sf of office, two waterfront hotels, and up to 660 waterfront housing units. Featured amenities include new trails and regional parks together with public gathering spaces, a variety of fine and casual dining, local shops and marine sales and services. The project’s expected $550+ million in public/private investment is expected to support nearly 2,100 family-wage jobs and generate $8.6 million annually in state and local sales taxes. To date, the Port has facilitated more than $150 million in public/private investment here, with more to come.