The city of Redmond remains financially stable during the recession and is working hard to prepare for a rapid growth spurt, especially in the downtown and Overlake areas.

That’s what Redmond Mayor John Marchione told a group of business people at Wednesday’s Greater Redmond Chamber of Commerce luncheon at Matt’s Rotisserie during a State of the City address.

The city’s focus remains on developing two “urban centers” in the downtown and Overlake neighborhoods while remaining fiscally responsible, Marchione said.

“I want to improve our housing and make (downtown and Overlake) into urban neighborhoods,” Marchione said. “As a city as a whole, we want to enhance our connection with our neighborhoods. As a city, we want to provide high-quality, responsive services that engage the community.”

Marchione covered the city’s highlights of 2008, which included the kickoff of the $9 million Bear Creek Parkway Extension, a large transportation project, and finalizing a budget with “no surprises.”

“It was a good year,” Marchione said. “We ended last year a little better than we thought. We assumed we would finish last year with a $14 million in surplus and we ended up with $16 million in surplus. (The extra money) gives us a cushion as we enter this budget year.”

Marchione then gave a glimpse of the city’s future plans, including continuing to build infrastructure to handle growth in the city’s two “urban centers,” the search for Redmond’s next police chief and upcoming parking enforcement.

Redmond’s ‘ ‘urban centers’

The Bear Creek project – a major component of the downtown revitalization plan – will better connect the downtown corridor and provide the proper infrastructure to help “stimulate the type of growth we planned for in our downtown core,” Marchione said.

Once completed, Redmond Way and Cleveland Street will be able to handle transit, pedestrian and bicycle traffic. And maybe someday – downtown will be home to a Sound Transit station, Marchione said.

Downtown Redmond is buzzing with construction, with seven mixed-use projects going on right now. To help ease the pain of congestion, the council recently passed an emergency ordinance where “construction companies can rent parking space from churches and other places outside the downtown corridor and then shuttle into downtown. That way, the parking is there for commercial activity,” Marchione said.

In addition, Marchione said the city will begin enforcing the two-hour parking limit downtown. The city has never really enforced the downtown parking restriction, but “in October, tickets will be written,” Marchione said.

There are plans for a downtown park in Redmond and the state senate is proposing to offer $2 million in its budget for infrastructure for the park. So if you support a downtown park, let your legislators know, Marchione said.

Overlake is another neighborhood on the rise, led by Microsoft, Nintendo and Group Health. One of the major components of the Overlake development is a Sound Transit station and the Northeast 36th Street Bridge project, Marchione said.

“This bridge will connect the neighborhood,” he said. “The Group Health master plan has $1.2 million square feet of commercial space, 1,500 new residences and plans for a hotel…. Having this bridge and connecting the community will help this economic development.”

The search for a police chief

Longtime police chief Steve Harris retired at the end of last month after 28 years of service to the Redmond community.

“I’d say about 20 percent of the officers in Redmond weren’t born when he became chief in Redmond,” said Marchione.

Marchione has asked the Redmond Police Department to list their goals and values in addition to telling him what needs to be improved, fixed and maintained. Then he said the city will reach out to the residents and ask them what want in their new police chief before hiring Redmond’s next top cop.

Marchione said he estimates a new police chief will not be hired for another “year or so.”

In the interim, Marchione appointed Fire Chief Tim Fuller as the police department’s Transition Team Leader.

“Our community is in good hands,” Marchione said.