Sequim staff outlines timeline and hires market consultant for 2025 comprehensive plan; flag market-code mismatch in Bell Creek EOA

SEQUIM, Wash.

At its May 20, 2025 meeting the Sequim Planning Commission received a status update on the city's 2025 comprehensive plan update and on supplemental consulting work to inform the plan.

Staff reported that every comprehensive-plan chapter has a draft in preparation and provided a tentative short-term schedule: June 3 for the community-character chapter, June 17 for natural environment, and a tentative July 15 delivery for transportation (dates described as goals, not fixed deadlines). Staff said parks and open space, transportation and economic development chapters have additional stakeholder engagement planned and may shift as that outreach proceeds.

City staff told commissioners the city has engaged Leland Consulting to perform Sequim-specific work: an update to the land-capacity and housing-needs analyses and a housing and economic market analysis for Sequim. The scope described to the commission includes an evaluation of the residential housing market, a review of employment and retail market dynamics, an assessment of development regulations for barriers to meeting state-required housing outcomes, and inclusion of short-term rental data.

Staff said Leland will provide data-driven analysis the city can use to refine the economic-development and housing chapters; staff cautioned the market study could prompt later edits to draft chapters.

Commissioners also discussed the city's designated Employment Opportunity Areas (EOAs) at Bell Creek and River Road. Staff summarized findings from a 2018 Bell Creek feasibility report (Eric Hovey) and said a disconnect exists between the zoning standards adopted to pursue state Community Economic Revitalization Board (CERB) funding'which favor industrial/job-generating uses'and current market signals, which appear to favor residential development in those same areas. Staff said CERB remains available, but the tax-related federal Opportunity Zone benefits that were discussed previously are separate and will sunset unless renewed by Congress in December 2026.

A developer has expressed interest in the Bell Creek area and reportedly favors a master-planned overlay that would allow a higher residential mix than the 55% commercial minimum currently required by the EOA zoning. Staff said they are scheduling follow-up meetings with the developer and will evaluate options, including potential map or code amendments; they also said the city will publicize an application period for map amendments (annual plan amendment process) and reach out directly to affected property owners.

Staff further said High-Tech Light Industrial (HTLI) zoning along Washington Avenue will be reviewed as part of the market analysis; owners of HTLI parcels are expected to receive direct outreach when the city opens the land-use-designation amendment window. Staff noted the city will continue to depict the manufactured-home overlay on the updated zoning map.

On grants and staffing, staff reported they have met the deliverables for one planning grant and that the city is on track to receive approximately $63,000 in planning-related grants (middle housing, climate planning, and comprehensive-plan update grants) if outstanding deliverables are submitted on schedule. Staff said they are developing on-call contracts and operating procedures to handle anticipated workload from master-plan-scale projects while preserving current planning operations.

What happens next: staff will finalize the scope with Leland Consulting, continue chapter drafting and stakeholder engagement, open the annual plan-amendment application window to receive land-use redesignation requests, and follow up with property owners and interested developers about Bell Creek, River Road and HTLI areas.