If you’ve been watching the dirt fly at the Waterfront Gateway Project, you might want to adjust your expectations. While the affordable housing portion is already breaking ground, the rest of this “bridge” between downtown and the Columbia River just hit a major economic speed bump.
Earlier this month (January 2026), the master developer (Lincoln (formerly LPC West) threw a bit of a curveball at city officials. The verdict? The original, ambitious plan just doesn’t…work out in today’s market.
So What’s Changing for the Waterfront Gateway?
The “Waterfront Gateway” was supposed to be the connector between Esther Short Park and the newer waterfront developments. Think: mass-timber offices, a sprawling 2-acre public plaza, and tons of retail with an emphasis on local artisans.
But high interest rates and skyrocketing construction costs have forced a major pivot. Here’s the “before and after” of what’s happening with Block X (the first major piece of the puzzle):
Feature
Original Plan
New Proposed Plan
Office Space
8-story mass timber office
Scrapped entirely
Retail Space
37,500 sq. ft.
9,000 sq. ft. (75% reduction)
Housing
279 units
315 units (Increase!)
Affordable Housing
Included in mix
153 units (at 80% AMI)
Public Open Space
~2 acres
0.3 acres (for Block X)
Parking
593 stalls
306 stalls
Is the Vancouver Waterfront Gateway Dream Dead?
Not exactly…but it’s definitely on hold right now.
Because Lincoln can no longer feasibly build the entire three-block vision (Blocks X, Y, and Z), the City of Vancouver is essentially breaking up the project.
Lincoln stays on Block X: They will focus on getting those 315 housing units built ASAP to help with the city’s housing shortage.
The City takes back Blocks Y & Z: Vancouver will now have to go back to the drawing board and find new developers to tackle the remaining parcels.
“The previous plan isn’t feasible in this market. Our goal is to still see development happen on the site as soon as possible.” – Patrick Quinton, City Economic Development Director
The Silver Lining (Sort Of)
While losing the grand 2-acre public plaza feels like a step backward for the “fun” factor, the pivot actually increases the housing count.
Vancouver is currently staring down a need for 38,000 new housing units over the next two decades. By cutting the office space (which is a tough sell in a post-remote-work world) and doubling down on apartments, the city is choosing what the residents actually need.
What’s Still Happening?
Don’t worry, it’s not all doom and gloom! The 95-unit affordable housing project (at 615 W. 6th Street) is already under construction and still on track for its 2027 completion.
As always, we’ll keep you updated as we find out more. Make sure to subscribe to our free twice-weekly newsletter that delivers breaking Vancouver, WA news and events directly to your inbox.
