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===Late 20th century=== The completion of the [[Boeing Everett Factory]] spurred continued population growth in the region, with Mountlake Terrace nearly doubling to over 16,000 residents by 1970.<ref name="HistoryLink"/> The prosperity was short-lived, however, as Boeing announced major [[layoff]]s after the collapse of the [[Boeing 2707|supersonic transport program]], which caused a local recession.{{sfnp|Cameron|LeWarne|May|O'Donnell|2005|p=340}} The city government had hoped to develop a standalone town center, but local businesses were unable to compete with the [[Alderwood Mall]] in Lynnwood, which opened in 1979 and drew away shoppers.<ref name="HistoryLink"/> Mountlake Terrace's population declined slightly in the 1970s, resulting in the closure of some local schools and the post office.<ref>{{cite news |last=Macdonald |first=Sally |date=January 7, 1981 |title=Edmonds to close 2 junior highs this year |page=F1 |work=The Seattle Times}}</ref><ref>{{cite news |last=Suffia |first=David |date=April 18, 1979 |title=Mail suit slow to make it to docket |page=H5 |work=The Seattle Times}}</ref> The number of housing units increased significantly through the construction of apartments and [[Condominium (living space)|condominium]]s, but the average occupancy per household decreased.<ref name="Times-1985">{{cite news |last=Aweeka |first=Charles |date=May 29, 1985 |title=Mountlake Terrace block houses are bleak but cheap |page=H2 |work=The Seattle Times}}</ref> The city government had a budget deficit of $420,000 in 1979 (equivalent to ${{Format price|{{Inflation|US-GDP|420000|1979}}}} in {{Inflation-year|US-GDP}} dollars){{inflation-fn|US-GDP}} due to declines in revenue and its small [[sales tax]] base.<ref>{{cite news |last=Suffia |first=David |date=November 21, 1979 |title=Terrace facing half-million-dollar budget deficit |page=F4 |work=The Seattle Times}}</ref> Fluke moved its headquarters in Everett in 1981 and was later replaced by [[Premera Blue Cross|Blue Cross]], which moved from Seattle and became the largest employer in the city.<ref name="PI-Bailey1998"/><ref name="Times-220th">{{cite news |last=Bergsman |first=Jerry |date=June 2, 1982 |title=Interchange may face opposition |page=F6 |work=The Seattle Times}}</ref> The city government continued to encourage development of its industrial center on the northwest side of Interstate 5, including improvements to a freeway interchange and special zoning initiatives.<ref name="Times-220th"/><ref>{{cite news |last=Aweeka |first=Charles |date=May 16, 1984 |title=Mountlake Terrace working for new image as business center |page=F2 |work=The Seattle Times}}</ref> The freeway project also included funding from the state government to improve city parks and sports fields as compensation for lost land at an [[elementary school]] in Melody Hill.<ref>{{cite news |last=Bergsman |first=Jerry |date=March 13, 1985 |title=Changes to I-5 give Mountlake Terrace $420,000 to play with |page=H1 |work=The Seattle Times}}</ref> A {{convert|18|acre|ha|adj=mid}} site at the southwest corner of the original subdivision with 14 homes and several small business was proposed for a hotel and commercial development that was later put on hold because of planning complications.<ref name="Times-1985"/><ref>{{cite news |last=Aweeka |first=Charles |date=March 16, 1983 |title='Tourist Zone' plan supported for site in Mountlake Terrace |page=F2 |work=The Seattle Times}}</ref> The site was later revived in the late 1980s as Gateway Place, an office and retail complex that began construction in 1989.<ref>{{cite news |last=Koch |first=Anne |date=January 31, 1989 |title=Mountlake Terrace development appears to be back on track |page=B3 |work=The Seattle Times}}</ref><ref>{{cite news |last=Milburn |first=Karen |date=October 18, 1991 |title=American States finds a home |page=D8 |work=The Seattle Times}}</ref> Despite repeated decreases in spending, the city's budget had a $1.3 million deficit (equivalent to ${{Format price|{{Inflation|US-GDP|1300000|1989}}}} in {{Inflation-year|US-GDP}} dollars){{inflation-fn|US-GDP}} in 1989 due to increased administrative costs.<ref>{{cite news |last=Koch |first=Anne |date=November 29, 1989 |title=City council tries to close $1 million gap |page=H3 |work=The Seattle Times}}</ref> A pair of [[arson]] fires in downtown Mountlake Terrace destroyed two shopping centers and caused $3 million in damage (equivalent to ${{Format price|{{Inflation|US-GDP|3000000|1990}}}} in {{Inflation-year|US-GDP}} dollars).{{inflation-fn|US-GDP}} As a result, one shopping center took 20 months to reopen and the other was closed permanently.<ref name="Times-Plans2006">{{cite news |last=Brooks |first=Diane |date=April 7, 2006 |title=Big plans for Mountlake Terrace |page=B2 |url=https://archive.seattletimes.com/archive/?date=20060407&slug=mltdowntown07e |work=The Seattle Times |access-date=April 28, 2020}}</ref> The city government opposed the construction of a [[strip club]] in the 1990s and debated a comprehensive rezoning of the town center to support traditional retail and commercial uses.<ref name="HistoryLink"/><ref>{{cite news |last=Brunner |first=Jim |date=October 29, 1999 |title=Traffic, business dominate election |page=B3 |work=The Seattle Times}}</ref> Mountlake Terrace rebuilt its high school in 1991 and opened a variety of recreational facilities by the end of the decade, including an indoor [[ice-skating rink]] and a section of the multi-use [[Interurban Trail (Snohomish County)|Interurban Trail]], alongside plans for two casinos.<ref>{{cite news |last=Monson |first=Suzanne |date=January 6, 2002 |title=Recreation, affordability reward Mountlake Terrace residents |page=E2 |work=The Seattle Times}}</ref><ref>{{cite news |last=Anderson |first=Lenny |date=April 15, 1994 |title=Olympic-sized ice rink for Mountlake Terrace |page=E4 |work=Seattle Post-Intelligencer}}</ref><ref>{{cite news |last=Thompson |first=Lynn |date=October 22, 2003 |title=Mountlake Terrace may get 2 new casinos on 220th Street |page=H17 |work=The Seattle Times}}</ref>
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