The Gravel Park by the Mukilteo Ferry Has Been Rezoned. Only One Developer Answered.
October 29, 2026
October 29, 2026
Walk west from the ferry holding lanes toward Lighthouse Park and you cross a gravel lot that hardly reads as a destination. It has a few picnic tables, some garbage cans and a view of Possession Sound. You can't get down to the beach from it. The city calls it Lot 5, and it has been city property since 2016.
For anyone who walks this stretch, the strip of shoreline in front of the lot matters most. The city kept a 20-foot band between Lot 5 and the water for a beach-access promenade. It also made finishing that promenade a requirement of whatever gets built on the lot, with funding to be worked out in the development agreement. So the beach walk between the ferry and the lighthouse is tied to a lease, and only one developer applied for it.
At its October 5 meeting, the Mukilteo City Council voted 6–1 to change Lot 5 from Open Space to Waterfront Mixed Use. Bob Champion cast the only no vote. The new zoning allows retail, restaurants and cafes on the 1.2-acre site, as The Daily Herald reported. The vote had been delayed. In September, the council unanimously pushed it back two weeks to talk it over more, according to the Herald's September 23 coverage.
The rezone does not decide what happens to the lot. Planning director Andy Galuska told the council, as quoted by the Herald, that "any of those future decisions about leasing the property, what the specific development would look like, those will all still be in the council's hands." The council could also still choose to make the land a park. Champion argued the council was "jumping the gun." Council member Don Doran voted yes and said the property could "look exactly the way this community wants it to look, whether that's with a commercial establishment or a park."
The public comments split along the same line. The city's own 2016 Downtown Waterfront Master Plan showed this lot as a park. At the September hearing, one resident asked, as The Urbanist recorded:
"Why can't we just look at open space and water and some green grass and a promenade shore? A walking path, a bike path."
Other speakers argued that businesses would make the site more productive and bring in more visitors.
The city opened its request for qualifications on July 29. It offered a lease of up to 80 years, with the city keeping ownership of the land while a private partner builds and runs the project, according to the Herald's July 31 report. The city's pitch focused on the location. The ferry next door runs one of the three busiest routes in the state system, carrying about 3.7 million riders a year to Whidbey Island, and the Sounder station and the 1906 lighthouse are a short walk away, as the Lynnwood Times described it. The city expected to send two or three teams on to the full proposal stage.
More than two dozen real estate professionals toured the site in August. By the September 9 deadline, Kirkland-based MainStreet Property Group was the only one that had submitted qualifications, Seattle Red reported, citing the Puget Sound Business Journal. The outlet said concerns about parking, financing and development approvals narrowed the field. Bob Stowe of Stowe Development & Strategies, the consultant the council hired this spring for $65,875 on a 4–2 vote, told the Business Journal that "one qualified respondent can absolutely carry this process forward."
MainStreet works mostly on the Eastside. Its projects include The Schoolhouse District in Woodinville and Seaplane in Kenmore. The Urbanist passed along the Business Journal's report that the firm expects to explore a multifamily mixed-use building with below-grade parking. The same article notes a condition on Lot 5 that bars residential use because of the site's history as an Air Force fuel tank farm. Galuska said the city attorney believes that condition could be removed if the city can show the cleanup is sufficient.
This is where the promenade comes in. The city says it has finished an initial promenade design and set aside the land, and that it is ready to help pay for completion through the development agreement. The city's RFQ document says Mukilteo may put money toward public amenities and will apply for local, state and federal grants. It gives no promenade budget and no start or finish date. Whatever terms come out of the talks with the one applicant will shape the schedule for that 20-foot strip.
Lot 5 is one piece of a 26-acre waterfront. Since a 2022 visioning effort with the architecture firm NBBJ, the City of Mukilteo and the Port of Everett have shared one set of guiding principles for it. Most of the land on the walk toward downtown belongs to the Port. In a February 25 release, the Port described a pedestrian-oriented Front Street with restaurants, retail, small-scale housing and a promenade.
| Parcel | Owner | Size | Status on the latest public record |
|---|---|---|---|
| Lot 5, between the ferry terminal and Lighthouse Park | City of Mukilteo | 1.2 acres | Rezoned October 5; lease proposals due October 28 |
| Former NOAA site, east of the Silver Cloud Hotel | Port of Everett | 1.1 acres | Transferred to the Port in early February; Port exploring interim uses |
| Ivar's Mukilteo Landing, 710 Front Street | MSI Mukilteo, LLC, under Port purchase agreement | 0.55 acres | Closing pushed from July 1 to August 1, 2026 |
| Former ferry holding lanes, 707 Front Street | Port of Everett | 99 spaces | Interim visitor and commuter parking |
The Port's purchase agreement for the Ivar's parcel includes the 9,637-square-foot building, the parking lot and a long-term lease with Ivar's. The Port said in February that the restaurant "will continue to be" a waterfront staple. The same release said the Port would issue its own call for a development partner that spring, and that it will keep control of its land and how it is used.
The two programs run on separate tracks. The city has said the two agencies are coordinating so that "their independent development programs complement each other and deliver a cohesive waterfront experience from end to end." As planned, the continuous walk from the ferry to Lighthouse Park would cross both the city's land and the Port's, so neither agency's deal can finish it alone.
Proposals were due Wednesday, October 28. Here are the rest of the city's estimated dates, which it says may change:
The community presentation is the first chance residents will have to see a proposal for the lot. Updates will be posted on the City of Mukilteo bids page. For now, the lot is still a gravel park with picnic tables, and the shoreline strip in front of it has a finished initial design but no construction date.
If you own a home near the Mukilteo waterfront and want to know how the Lot 5 decision and the Port's plans might affect value on your street, Adam Cobb and our team follow every step of this process. Request your complimentary home valuation, and we'll walk you through what we're seeing on the ground.
With an unwavering commitment to client satisfaction, Adam's approach is both approachable and highly responsive, earning praise for his ability to exceed expectations. Let Adam Cobb and his team guide you through a seamless real estate experience. With us, your goals are always our priority, and our expertise is your advantage.