Lacey council reviews draft land-use and housing policies, weighs annexation and displacement protections

City of Lacey staff and councilors held a work session on May 6 to review the draft land-use and housing elements of the city’s comprehensive plan update, focusing on a new future land-use map, rezoning opportunities and state-mandated housing changes.

The draft map splits the city’s existing mixed‑use category into two subtypes — “commercial mixed use” and “transitional mixed use” — to protect high‑visibility commercial frontages while allowing residential transitions near less‑intensive areas. Staff also proposed consolidating several Central Business District subclasses and removing a small mineral‑extraction zoning designation where owners support a change, Ryan (staff) said.

City staff emphasized new state requirements for this cycle, including environmental‑justice considerations and a December 31, 2025, deadline for the comprehensive plan. Jennifer (staff) said Lacey conducted a land‑capacity analysis and a regulatory review, and that the city is preparing a displacement‑risk assessment as required by state law.

The draft adds a discrete annexation goal that “prioritizes completion of annexation of unincorporated islands that contain significant development capacity, commercial development and qualify for the state sales tax credit,” staff said, noting the city will receive a presentation of a commissioned annexation study at a May 27 work session.

Council members asked for clarifying links between the comprehensive plan and the city’s equity work. Council Member Bernanke asked that committee representation be reviewed so councilors vote with clearer direction from the full council on interjurisdictional bodies. Council Member Greenstein urged combining opioid‑abatement funds among jurisdictions; that discussion is on a separate council report but ties to housing and services planning.

Staff said they received about 50 community requests for rezoning during outreach and carried roughly 15 forward for additional review this cycle (staff described these as cleanup rezonings, consolidation candidates and community requests). Examples carried forward included a cleanup near City Hall and Department of Ecology parcels, rezoning the Rack Phase 3 parcel from residential to open‑space institutional, and a cluster of parcels near the Lacey Community Center where owners requested a commercial designation.

Staff told the council it expects to release a public draft of the updated comprehensive plan — including the future land‑use map and any rezonings staff recommends carrying forward — in late June or early July for community review. The city also intends to add a recommended policy linking land‑use and equity work to account for environmental‑justice concerns and to guide future code changes, staff said.

Councilors and staff agreed to continue the review, and staff will incorporate council feedback into the next draft before releasing it for public comment and subsequent hearings with the planning commission and other advisory bodies.

The presentation included discussion items only; no formal zoning changes or votes were taken at the May 6 meeting.