LYNNWOOD — Construction of a new development at what used to be the site of the former Lynnwood High School has begun after years of delay.

The first phase of the Lynnwood Place development will bring a 150,000-square-foot Costco. The project got underway last month directly across from Alderwood mall on 184th Street SW.

The second phase scheduled to begin next year will bring as many as 500 apartments and along with retail businesses to the site.

Lynnwood Mayor Nicola Smith said the groundbreaking got people excited.

“The theme of the speeches and the spirit there that day was this is a project that’s just really going to enhance the quality of life not only for our residents but for our visitors,” she said. “People are really excited about it.”

A representative of Cypress Equities, the Dallas-based developer, in an email said the location is desirable with easy access to I-5 and Highway 405. And Lynnwood has “strong and desirable” demographics.

The project was approved by the Lynnwood City Council in two development agreements, said David Kleitsch, the city’s economic development director.

The work underway will build a new road on the land, add infrastructure and building the Costco and Costco fuel center with an opening anticipated in late summer 2015.

“You’re just going to see a lot of trucks out there moving things around and then Costco will go under construction,” Kleitsch said. “Construction will be starting in spring and should be done late summer or early fall, in plenty of time for Christmas.”

The Edmonds School District owns the 40-acre property that is leased to Cypress Equities.

The city is responsible for installing a three-lane road through the property after the area is prepared, Kleitsch added.

The expansion of 33rd Avenue from 184th Street SW will run north along the west side of the property and connect to Alderwood Mall Parkway.

A $3 million state transportation grant was applied for and received by the city to help fund the road.

“It has been designed to relieve traffic at 184th Street SW and Alderwood Mall Parkway,” Kleitsch said. “We worked with the (Edmonds) school district and we have rights in the future to widen it to a five lane road.”

The Edmonds School District has a 99-year lease with Cypress Equities. The lease payments by state law must go into a capital projects fund, said Stewart Mhyre, executive director of business and operations for the district.

“We can’t use it to hire teachers but we can use those funds to do modernizations or upgrades to our facilities,” he said.

The second phase of development is expected to begin in 2015 and includes structured parking and mixed use buildings with commercial uses on the ground floor and apartment housing on the upper floors.

The apartments will offer: media room, roof top common areas and fitness facilities. The retail center will offer an array of shops as well as both full- and quick-service restaurants.

The company would not disclose the estimated cost at build out.

The finished product may be especially appealing to public transit riders and students, Smith said.

“Students get to live here, they get to shop here, they get to eat under their apartment, and they get to go across the street and shop at the mall,” she said. “They can get on the bus and go right to college. They’ve got everything here.”