Council and commission debate downtown mixed‑use, MFTE timing and business impacts

Lakewood, Washington — Councilmembers and the planning commission spent significant time Monday discussing the city's goals for mixed‑use development in the town center and whether MFTE and other incentives should focus on areas already designated for redevelopment.

Some councilmembers and members of the planning commission said public commenters flagged an alternative to expanding the RTA: rather than extending incentives into new parcels, the city should better incentivize underperforming areas that are already in the targeted zone to encourage mixed‑use projects and support small businesses.

“Why don't we incentivize areas that are already established?” Councilmember Brandstetter asked, reflecting common public comment. Several commissioners and councilmembers expressed frustration that the downtown subarea plan’s vision for ground‑floor retail with housing above has not materialized in multiple developments despite incentives.

Commissioners and staff cautioned that market conditions and financing challenges — including high construction costs — limit developers’ ability to deliver mixed‑use projects immediately, even with tax incentives. Staff emphasized that MFTE is one tool among others (design standards, transit access, density bonuses) and that building momentum often requires a successful flagship project to signal viability.

Councilmembers asked staff and the planning commission to continue public outreach and to consider targeted incentives that prioritize mixed‑use retail support and transit‑served parcels.

No policy decision was made. The council will hear public testimony and consider future options tied to the ongoing comprehensive plan and MFTE/RTA deliberations.