The Northwest Design Review Board is still unsatisfied with how the design of a new condo treats an iconic corner in Ballard.

Kirkland-based developers Rhapsody Partners plan to build Market Street Landing, a five to eight story building at the corner of Northwest Market Street and 15th Avenue Northwest, where the once historic Manning's/Denny's building stood.

This corner is seen by many in the community as the "gateway to Ballard," so the board, all Ballard residents, is paying special attention to what is developed there.

The News-Tribune recently reported that the project was on hold due to lack of funding. But Arthur Chang, the architect for the project, said the financing situation has been "blown out of proportion," and that not having funding is typical at this point in the development process, before master-use and construction permits have been obtained.

"I think people are just nervous and they want to see something at that corner, and so do we," said Chang, with Freiheit and Ho Architects. "We are moving forward with this project."

It had been about a year since the project had been before the design review board. The process was held up for several months while the former building went through a landmark nomination process with the City of Seattle.

The old 1960's diner was deemed a city landmark, but the decision was quickly reversed because the designation would have prevented the owners from seeing a reasonable economic return on the property, which had been purchased by Benaroya Co. for $12.5 million.

The design review board had several issues with the last design.

They wanted more attention to be paid to the prominent corner. They also asked the architects to unify the architectural expression of the facade; provide more canopies for weather protection; and lessen the scale, height and bulk along Northwest 56th Street.

The architects presented a "tower" element now designed for the corner, which is meant to be derived from a lighthouse or maritime theme and reminiscent of the old Ballard City Hall to create a "way-finding" piece for the community, said Chang.

But board members were not convinced it was the right fit.

Katie Vance of Rhapsody, said her company has been doing a lot of outreach with the community on their "wants and needs" for the look and feel of the new building. They toured old Ballard and the Nordic Heritage Museum and held focus groups, where they received "excellent feedback," she said.

"Ballard's a very diverse place and we got a lot of diverse opinions," said Vance.

Board member Guy Peckham said he was pleased with the amount of public outreach done, but the corner element "feels like it needs more work," he said.

The design also calls for a "gabled" effect along the roof of the condo. Peckham and other board members said the gable features didn't seem to fit with the architecture of the rest of the building.

Board member Bill Singer said the newest design is a major improvement since the last round, but he was concerned that there were no public amenities. He said other projects nearby of similar size, like the Sunset Bowl, were able to add this feature and still make the project pencil out.

"The public deserves something," he said. "There should be something here in what is probably the most important lot in Ballard. Something."

Three levels of below grade parking are planned with 446 total stalls; 116 for commercial use and 330 for residents. About 32,000 square feet of retail is planned with a Bartell drugstore as the anchor tenant in the 287 unit building.

The project will require the removal of two existing vacant structures on the site. The proposed building would cover the entire site, with the easterly third of the project at five stories (65 feet) and the westerly two-thirds at eight stories (85 feet).

Other changes include reducing one floor to five stories along 15th to add the gable accents on the roof in hopes of unifying the facade, said Chang.

One woman who commented on the design said the building was too "ugly" to go on such an important corner.

"I'd like to see something more fun," she said. "It just looks like a big Bartell's drugstore. It doesn't speak to the neighborhood."

Rebekah Schilperoort can be reached at 783-1244 or rebekahs@robinsonnews.com.