Lacey reviews five‑year economic development strategy; advisers caution against relying on Queen Meath Village

Consultants from ECHO Northwest presented a draft five‑year economic development strategy to the Lacey City Council at a work session on May 27, outlining data, a phased timeline and stakeholder engagement to implement the economic development element of the city’s comprehensive plan.

The strategy is intended to identify three to five city-level goals and a set of prioritized short‑ and medium‑term actions staff can implement; consultants told the council they expect to deliver goals, policies and an implementation program by the end of the calendar year and to complete a strategy development phase in the fall. "If we do our job well, we'll be able to answer these questions collaboratively with you," said Britney Bejent, project director for ECHO Northwest.

Why it matters: the strategy will guide the city’s economic development priorities and staff workplans, set measurable metrics for success, and shape engagement with local partners including the Port, Thurston County Economic Development Council and private property owners.

Consultants James Kim and Britney Bejent summarized data showing Lacey’s population growth and changing household composition. Kim said the city’s older (65+) population has grown faster than elsewhere in Thurston County over the last decade and that single‑person households are increasing while four‑plus person households are shrinking as a share of the population. He also presented employment and retail analyses, noting that about half of residents work in four industry groups — education, health, retail and government — and that the city draws retail activity for building materials, groceries, auto parts and general merchandise while losing some spending on restaurants, clothing and auto dealerships.

"There's a lot of players in this space," Bejent said, describing a plan to combine quantitative findings with stakeholder interviews, an advisory group and focus sessions through the summer to validate the data and add qualitative context. The advisory group was described as launching next week; consultants said they will interview business and community stakeholders and present to the Planning Commission the day after the council work session.

Council members pressed for clarity about uncertainties. One councilmember said the presentation put heavy emphasis on a large proposed project the materials call "Queen Meath Village," and asked the consultants to model a scenario in which that project does not materialize. "I would at least like to see a third alternative where what is the economic impact or economic outlook look like if there is no development," the councilmember said. Bejent acknowledged that the consultants had not assumed the project as guaranteed and said the strategy will focus on what the city can control while allowing room to integrate large projects if they advance.

Council members also urged the consultants and staff to treat distinct commercial areas differently rather than a single one‑size strategy. Multiple speakers pointed to three distinct commercial areas — the South Sound Center/Fred Meyer/Target/Kohl’s area, Midtown, and the Hawkes Prairie/Martin Way corridor — and recommended targeted strategies for each. One councilmember said Martin Way could become the city’s future commercial center if the city can align key property owners and address site constraints; another noted Hawkes Prairie’s recent industrial and housing growth and said new residents there will increase demand for retail.

On real estate, James Kim highlighted new industrial development in Hawkes Prairie and noted pockets of retail vacancy in Midtown. He said office vacancy improved from near 10% during the 2010 recession to about 4% more recently, and that some office conversions to housing have occurred but were not the main driver of vacancy improvements.

Consultants described deliverables and timing: research and analysis (complete), engagement with stakeholders and an advisory group through the summer, and strategy development with measurable metrics and partner lists to be wrapped in the fall. They also said the consulting team was contracted in late 2024 and began work in January 2025.

The council asked about the advisory group composition and the consultants clarified the process: short stakeholder interviews, a standing advisory group of about five members to meet regularly as a sounding board, and broader outreach. Named advisory participants mentioned during the discussion included the Port, Thurston County EDC, TwinStar and Top Rung; private owners such as Target and Kohl’s were discussed as stakeholders for the South Sound Center area.

Next steps: consultants will continue stakeholder interviews, convene the advisory group, present to the Planning Commission and return with a draft strategy in the fall. Council members asked staff and consultants to include analysis showing an alternative where the large proposed tribal project does not proceed and to tailor recommendations by commercial district rather than a single overarching approach.