WOODINVILLE, Wash. — The developer of a Woodinville real estate project centered around community staple Molbak's Home + Garden has revealed additional details about what led to the pause of the plans.
Green Partners released a statement to KING 5 Tuesday in response to Molbak's announcement in late November it was "forced out" of the Gardens District construction project by the developer. Green Partners identifies several different reasons for not continuing with the project, including finances and development hurdles.
“Late last week, Green Partners asked Molbak’s to continue negotiations over the future of the Woodinville site after Molbak’s upended the talks. Green Partners, which for years has allowed Molbak’s to operate rent free, hopes Molbak’s will abide by the terms of its existing lease, which continues for several more years.
"The wider Gardens District project as envisioned is no longer being developed due to a combination of factors including the economic uncertainty brought on by higher interest rates and rising construction costs along with the complexity of creating a large-format garden center in a dense urban development. We remain grateful for the community’s patient support and hope to resume development of the land when conditions allow."
The Gardens District project was set to be a privately funded 19-acre development in the heart of Woodinville to create apartments, retailers and restaurants within a garden space. A new Molbak's location was going to be built as a part of the project and was set to be a featured aspect of the new neighborhood.
Molbak's told KING 5 in November that it was stunned when it got word it would no longer be part of the project.
"We spent, you know, 10 to 15 years creating this vision for what could be," said Molbak's CEO Julie Kouhia. "We're not exactly sure why this happened, so we're a little bit baffled."
Earlier in the month, she said they got word from their landlord that they were being forced out of the project's plans.
"They did not say why," said Kouhia.
The agreement cancellation came as a surprise to Molbak's due to recent public support expressed by Green Partners.
On June 20, 2023, during a Woodinville City Council meeting, a Green Partners spokesperson said, “It is a pretty rare circumstance we find ourselves in, with such a storied business and a beloved business like Molbak’s. We take great pride in what we have been able to put together with them and to create a project that integrates it for the next 65 years.”
Mayor of Woodinville Mike Millman said in November the store drives business and tourism and is important for downtown Woodinville's economy.
"This is an institution here," he said.
He and his council approved a plan that included Molbak's at a meeting back in June, so he is now hoping for a resolution.
Cascade Investment LLC previously told KING 5 that they are not planning to remove the store from its current location and added that Molbak's has years left on their lease.
Molbak's sent a new statement to KING 5 on Wednesday from Kouhia.
“Green Partners decision to remove us from The Gardens District has created uncertainty about our future. We’ve agreed with Green Partners to not talk publicly about details of our lease and we’ll honor that commitment. But we can say that our goal is to work out a lease that’s financially feasible and allows us to stay in our long-term home of Woodinville. We’ve asked Green Partners to agree to mediation with us so that we can find a way forward that works for both sides.”
