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Urban Partners asks to extend construction deadline

By TOM CORRIGAN
Bothell Reporter Reporter

Nov 12 2008

A sluggish economy may put some plans for the revamping of downtown Kenmore on hold for up to one year.

At a City Council meeting Nov. 3, Dan Rosenfeld of developers Urban Partners asked officials to extend the deadline for construction of the first phase of Kenmore Village from the end of 2009 to possibly as late as the end of 2010.

City Councilwoman Laurie Sperry and others stressed a one-year extension may be put in place, but development still could move forward more quickly.

“As everybody knows,” Rosenfeld said, “we are in the middle of a global financial readjustment and the key to our project is to get the highest quality mix of retailers.”

Rosenfeld added that with the sluggish economy in mind, many retailers are focusing on promoting year-end holiday sales, not on expansion.

In 2007, the city chose Urban Partners as the developer of what is officially known as Kenmore Village by the Lake, a mixed-use development that is planned to cover 10 acres stretching from the corner of Northeast 181st Street and 68th Avenue Northeast to the nearby Park-and-Ride near Northeast 185th Street.

Urban Partners originally had planned to start construction early this year, with the first homes and retail spaces available in 2009.

According to Kenmore Community Development Director Debbie Bent, finding the right anchor tenant for the mixed-use development is crucial. In response to Rosenfeld’s request, she said the city administration will spend some time readjusting the development agreement and bring any changes back to council for approval early next year.

Though he didn’t mention any names, Rosenfeld said his company has spoken with various national, regional and local retailers. But he said nothing is finalized.

“We want to get it right rather than rush into transactions that don’t get the highest quality for downtown Kenmore,” Rosenfeld said.

Bent added Rosenfeld and Urban Partners are seeking a grocer as the anchor for the 10-acre site. She also didn’t mention any particular retailers, but said the hope is to attract someone who fills a need that isn’t already met within Kenmore’s borders.

“Everything is just kind of on hold,” said Sperry, who noted the city has adjusted the 87-page development agreement with Urban Partners in the past.

Those previous changes have included a reduction in the minimum number of housing units and seeking a provision allowing for surface parking in all retail portions of the project. The number of housing units now sits at 300, including a specified number of affordable units.

According to Bent, in his comments to City Council, Rosenfeld stressed he believes the project is viable, that it still makes sense. He later said his firm has made progress on the project in terms of planning, completing environmental studies and community outreach.

In the meantime, Bent said other plans to enhance downtown Kenmore are progressing. She said construction and improvements on State Route 522 are hard to miss. Plans for a new Kenmore City Hall are under review. Bent also pointed to a proposal for a new Kenmore public library.

“We can show we are moving ahead,” Bent said.

Bothell Reporter Reporter Tom Corrigan can be reached at tcorrigan@bothell-reporter.com or (425) 483-3732, ext. 5052.
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