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Amazon's 'Project Cascade' Mega Warehouse Roils Arlington-Marysville Line

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Published on May 20, 2026
Amazon's 'Project Cascade' Mega Warehouse Roils Arlington-Marysville LineSource: Google Street View

Amazon is now tied to a massive new logistics hub on the Arlington-Marysville border, and the proposal is already stirring up a classic Snohomish County fight over growth, utilities and traffic.

The 1.2 million-square-foot warehouse, dubbed Project Cascade, is planned for the Cascade Industrial Center and would straddle the city line in an area that has seen steady industrial expansion in recent years. Industrial developer Panattoni is leading the effort, and city staff and elected officials are deep into interlocal talks and environmental review that will decide whether the project ever breaks ground.

Project footprint and developer

According to city records, Project Cascade is laid out as a single, roughly 1.2 million-square-foot warehouse built on contiguous parcels in the southeast corner of the Cascade Industrial Center, with about 85 percent of the building within Arlington city limits and the rest in Marysville. The application lists Panattoni Development as the developer and outlines required steps, from boundary adjustments and utility amendments to a long list of permits, with a target opening in the first half of 2029, according to Arlington city documents.

Amazon: operations, not a data center

As first reported by The Business Journals, the project is linked to Amazon, which told reporters the proposed building would operate as an operations facility intended to support customer deliveries across the Central and North Puget Sound region. Company representatives said they plan to work with local officials and community members as the proposal moves through the review process.

Neighbors flag water, power and traffic concerns

Planning materials and local reporting indicate developers are projecting about 44,000 gallons of water use per day and a potential peak electricity need of roughly 9.5 megawatts. Those numbers have prompted pointed questions from residents about utility capacity and rate impacts. The Snohomish County PUD classifies any load over 2.5 megawatts as a large customer, and Amazon’s existing 2.9 million-square-foot fulfillment center in Arlington averaged about 5.2 megawatts of power use last year, according to HeraldNet.

Permits, interlocal agreement and timeline

Because the warehouse would cross city boundaries, Arlington and Marysville are drafting an interlocal agreement to coordinate SEPA review, utility service boundaries and permit responsibilities. The draft agreement designates Arlington as the lead agency for consolidated review and lists likely permits ranging from grading and stormwater to design review, according to the city packet. It also notes council study sessions held earlier this month and anticipates that formal votes could be scheduled once the interlocal agreement is finalized, per Arlington city documents.

How this fits a regional buildout

The proposal slots into a broader push by Amazon to grow its network of logistics facilities outside major city centers, a strategy that can speed up delivery times but also ramps up pressure on local roads and utilities, as reported by OPB. Local officials will be weighing potential jobs and tax revenue against traffic, environmental impacts and long-term demands on water and power as the permit process plays out.

For now, Project Cascade is still in early review. Residents and officials can expect more study sessions, detailed traffic analysis and public hearings before any construction is allowed. Whether the warehouse actually rises on the Arlington-Marysville line will hinge on the outcome of permitting, the final interlocal agreement and how the developer addresses the community’s concerns about utilities and congestion.

Seattle-Real Estate & Development