Seattle Neighborhoods: Magnolia — Thumbnail History (historylink.org) Seattle’s Magnolia neighborhood, a peninsula situated at the northern entrance to Elliott Bay, is home to pairs of nesting eagles as well as 20,000 human residents (in 2001) dependent upon bridges to gain access to the rest of the city. Magnolia consists of two hills once blanketed by forests and separated by a natural meadow. The area’s development started in 1853 with a dreamer’s vision of a transcontinental railroad, which arrived four decades later. Also at home in Magnolia’s four square miles is the oldest lighthouse on Puget Sound, Discovery Park (Fort Lawton), a state-of-the-art water treatment plant largely hidden by foot paths and creative landscaping, and Fishermen’s Terminal, which berths much of Puget Sound’s fishing fleet.