The Lynnwood City Council has approved a plan to transform a 13-acre retail area around the Lynnwood Event Center into a mixed-use district.

The approval means the development can proceed. Plans call for a two-building apartment complex with 408 to 795 units, up to 150,000 square feet of retail, an event plaza, a hotel which could feature up to 550 rooms, a parking garage, and a parklike street. The event center, which is currently 34,000 square feet, will be expanded to 182,000 square feet, reported the Puget Sound Business Journal.

The project is expected to cost $200 million, with the hotel and housing to be privately developed. The council also approved backing a $15 million loan from the Snohomish County Treasurer’s Office and an interlocal agreement to fund up to $18 million for a ring road around the project. The council also agreed to apply for a $5 million transportation grant, provide approximately $10 million in tax-increment financing and contribute $3 million for the project.