Lacey staff outline dozens of private development projects, large housing pipeline

City planning staff on April 22 updated the Lacey City Council on private development activity across the city, detailing projects that are under review, have land use approval, or are under construction.

The presentation, given by Sarah of the Community and Economic Development team, covered a long list of projects from Woodland Square to Fifteenth Avenue and included market‑rate apartment projects, single‑family subdivisions, hotel proposals and several commercial conversions and tenant improvements. Staff said the city’s 2025 permit numbers are still early but highlighted a large pipeline of units with land use approval waiting for final building permits.

Sarah told council the Seventh Avenue project by MJR — a 376‑unit apartment project with about 18,000 square feet of ground‑floor commercial space — still intends to move forward and has land‑use vesting that expires in May. She said MJR has already completed some utility work on Seventh Avenue and that their building permit is “ready to pick up.”

Other projects discussed included Lacey Midtown (629 Woodland), an office‑to‑residential conversion of roughly 50 units; a variety of Woodland Square improvements and tenant fit‑outs; and a concept MJR has called “the yard” — a small tap room and outdoor amenity area at Seventh and College intended to serve residents and the public. At Hogan Bay Town Center, staff said residential buildings are rising and that multiple restaurants and commercial tenants are nearing opening dates.

On Fifteenth Avenue staff reported two adjacent multifamily projects — Williams Crossing and Canfield Apartments — that have entitlements and have begun site grading. The presentation also included Ventura Crossing, a single‑family subdivision described in the packet as 53 detached homes plus 16 townhouses, and several medical‑use projects at the Hickory corridor including a 25,000‑square‑foot Olympia Orthopedic building and an 18,000‑square‑foot Pacific Cataract and Laser facility.

Several hotel projects were noted across the city, with staff estimating about 200 total hotel rooms coming online in the Hogam (Holcomb) Bay/Britton Parkway area. Homewood Suites had submitted a building permit and the Residence Inn at Bridal Plaza has active land‑use approval, staff said.

Staff reported earlier 2025 permit activity shows fewer administrative land‑use applications than the same point in 2024, but said that pre‑application meetings (about 24 so far this year) reflect continuing developer interest. On housing starts, staff clarified that two multifamily permits received in 2025 cover about 107 total units, a higher unit count than the raw building‑permit count alone implies. They also said the city has roughly 1,200 units in the pipeline with land‑use approval but not final building permits, and roughly 400 single‑family units approved at preliminary plat stage that could come online in coming months.

Council members pressed on affordable housing. Staff said none of the multi‑family projects in the current pipeline have committed affordable units, though some projects discussed affordable options as part of future proposals. They also noted that the Multifamily Tax Exemption (MFTE) is currently available only in Woodland Square and certain neighborhood commercial zones; projects seeking MFTE in neighborhood commercial zones must include low‑income units if they take the exemption.

Staff also described a recently submitted project by Hewitt Zollars for the North Thurston School District: a 50,000‑square‑foot Young Child and Family Center proposed at Nisqually Middle School. That application was submitted April 7 and staff said it is under completeness review and will be subject to the city’s land‑use decision timeline once complete.

The presentation included a longer roll call of single‑family subdivisions (including Monarch/Monarch Meadows and Morrell Meadows) and a number of multifamily sites (Lodge PRD and Serenity Apartments, Schneider/Hicks Lake, Telco/Corporate Center parcels) with varying statuses, from civil‑drawing review to permit expiration for some earlier approvals. Staff noted some entitlement expirations on previously permitted projects and that market and engineering challenges have delayed some proposals.

Council members and staff repeatedly emphasized the distinction between land‑use entitlement (approval) and pulling final building permits: several developments have entitlement in hand but have not yet pulled permits or started final construction.

As staff closed the update they said they will continue to track the projects and report on permit timing, and invited council questions and follow‑up on specific sites.