Hearing examiner leaves record open for Ocean Shores wetland-buffer exception for multifamily project

OCEAN SHORES, Wash. — The City of Ocean Shores hearing examiner left the record open Oct. 7 for a reasonable use exception request that would allow a multifamily and recreational-accommodations development to impact wetland buffers on five adjacent parcels, and said he will issue a written decision within 10 business days after the state environmental review is complete.

The hearing examiner, Yoshi Kumar of Laminar Law, opened the hearing at 10 a.m. and said the single agenda item was RUE case number 25000004, a request to authorize impacts to buffers associated with Category 3 wetlands on lots addressed as 756 and 748 Ocean Shores Boulevard, 738 Ocean Shores Boulevard, 749 Ocean Court and 154 Capstan Street NW.

Why it matters: The proposal would change use and development flexibility on a commercially zoned, gateway-corridor block in the northwest part of Ocean Shores and depends on securing full off-site mitigation credits and completing State Environmental Policy Act (SEPA) review before any RUE-related permits move forward.

At the hearing, Marshall Reed, the city’s lead planner, told the examiner the project will not proceed without full off-site mitigation. "This project will not move forward without full off-site mitigation, whether that be provided by the City of Ocean Shores or another mitigation bank," Reed said, describing the city’s queue for mitigation credits and noting the city is working on other projects that affect credit availability.

Developer Bruce Malcolm, principal and manager of TXE LLC, described the planned layout as a mix of primarily two-unit multifamily buildings along Ocean Shores Boulevard and smaller cabin-style units on the Ocean Court side that fit the site’s motel designation. "We've designed a number of multifamily dwellings. They are primarily 2 unit buildings on the Ocean Shores Boulevard side of the property," Malcolm said.

Wetlands consultant Rosemary Baker, who prepared the critical areas report and delineation, said the team designed the project to avoid and minimize impacts where feasible and that the proposal requests only buffer impacts, not direct wetland fills. Baker said on-site delineation was completed in late spring/early summer and that the eastern lots have greater critical-area encumbrance.

Key facts and next steps - Parcels and zoning: The five parcels are in Division 1, Block E (lots 19, 20, 21, 22, 23) at the addresses listed above; all are zoned B-1 retail commercial and lie outside shoreline jurisdiction, so applicable rules come from the Ocean Shores municipal code rather than the Shoreline Master Program. - Lot sizes and proposed buffer impacts: Parcel sizes were listed in the delineation; individual lot areas include roughly 11,745 sq ft; 12,009 sq ft; 22,543 sq ft; 12,578 sq ft; and (clarified) about 15,000 sq ft for the last lot. Reported buffer-impact acreages by parcel were described in square feet during the hearing (applicant’s delineation provides the authoritative figures). - SEPA review: The examiner said SEPA review should be completed at this stage. The applicant and city agreed to provide a SEPA checklist and disclosures; the examiner left the record open pending that process. - Mitigation: City staff stated there is no current commitment of city-provided off-site mitigation credits for this application; the project is "in the queue" to receive credits as they become available, and may rely on the city or an external mitigation bank. The examiner and staff emphasized the proposal would not proceed without full off-site mitigation. - Early permits: City staff indicated they will entertain permits for two units on the northwest corner of the site that are fully outside the wetland buffer and therefore not subject to wetland mitigation requirements. - Delineation fencing and buffer protection: Participants discussed delineation fencing and signage. City staff said fencing into the public right-of-way would not be required and that where fencing is not used the city typically uses posts with wetland buffer signage to delineate the protected area.

Hearing procedure and decision timeline Hearing Examiner Yoshi Kumar admitted into the record the staff report, application materials, critical areas report, and other pre-hearing exhibits. Kumar said he will leave the record open until SEPA review is complete and will issue a written decision within 10 business days after the close of the SEPA comment/notice period.

What was not decided No formal approval or denial of the reasonable use exception was made at the hearing. No formal vote was taken, and the examiner’s final written decision will follow the SEPA process and the receipt or confirmation of required off-site mitigation credits.

Community and regulatory context Staff and consultants said the site could, in a different configuration (for example, a hotel covering the combined parcels), have required more extensive wetland impacts and possibly federal review (U.S. Army Corps of Engineers permits). The current design was presented as a planned development intended to create placement flexibility to preserve wetland areas where possible while enabling development in upland areas.

The city’s lead planner and the applicant indicated that mitigation plans, the SEPA checklist and any required conditions for protection of critical areas will be further defined in follow-up filings and permitting documents.

Ending The hearing was adjourned after the examiner confirmed no additional public testimony and after the parties agreed on the record‑keeping and SEPA timeline. The examiner’s written decision will be issued within 10 business days after the SEPA period closes, at which point any formal approval, denial, or conditions will be documented in that decision.