Lacey commission begins formal review of Bowker House special tax-valuation application

The Lacey Historical Commission on Oct. 15, 2025 began a formal review of a special property tax-valuation application for the Bowker House at 915 Lacey Street after staff said the property owner submitted additional documentation required by Thurston County.

Jen Burbage, director of Parks, Culture and Recreation, introduced the item and said the county gives property owners until Oct. 1 to provide supporting documents; the owner met that deadline and the commission will make a recommendation to City Council at its November meeting. "This can be a really difficult benefit to receive as there's a lot of hoops to jump through, and many of the eligibility requirements make it a challenge," Burbage said.

Erin (staff member), who presented details of the application and the technical requirements, described how the special valuation works and the legal standards the commission must apply. "It's a financial incentive. The only basic real benefit that we can give to properties on the register ... it reduces their property tax by subtracting the amount that they put into the renovation from their value, so it just calculates a lower property value," Erin said. She emphasized the state's procedural limits: qualifying rehabilitation costs must be incurred within a 24-month window before the application and must meet specific federal and state rehabilitation standards.

Erin reviewed the three legal references the commission must use: the Lacey Municipal Code section governing special valuation (listed in the meeting materials), the state statute RCW 84.26 (the special valuation statute), and WAC standards codified for rehabilitation review. She noted the commission's role is to determine eligibility and to recommend approval or denial to City Council, which then makes the final decision and must file a certified finding with the county assessor if it approves eligibility.

On the eligibility threshold, Erin summarized the key numeric tests the commission must apply: the cost of qualifying rehabilitation must be at least 25% of the building's assessed value (land excluded) for the tax year used in the calculation, and only costs incurred in the 24 months immediately before the application are eligible. In the Bowker House example Erin presented, the 2022 building value was $57,100, making the 25% threshold $14,275; the qualifying expenses window for this application runs from May 20, 2023 to May 19, 2025, because the owner submitted the county application on May 20, 2025.

Erin said she has completed an initial review of receipts and other documentation submitted by the owner. She reported many receipts fall outside the 24-month window and that some items are ambiguous (for example, general Home Depot paint purchases that may have been for small portable items rather than historic fabric). She said staff will follow federal-qualified rehabilitation guidance and consult the Certified Local Government (CLG) coordinator and other preservation colleagues on ambiguous items, then prepare a staff report and a recommended finding of fact for the commission and City Council.

No formal vote or recommendation was taken at the meeting; Erin asked commissioners to identify any additional information they need before the November meeting. The commission is scheduled to vote on a recommendation at its Nov. 19 meeting; if the commission recommends approval, the city must execute a 10-year agreement with the owner and file the certificate and supporting findings with the county within 10 days of City Council's decision.

Erin told commissioners she will post two folders with the documentation: one with all submitted materials and one with a shorter packet of items needed for a decision. She set a deadline for the owner to respond to staff requests for clarification and additional detail (Oct. 27 in staff materials) so staff can finish its item-by-item eligibility review before the November meeting.

Commission members asked procedural questions about signatures and who executes the certificate; Erin said that City Council and staff signatures are involved and that staff will confirm the exact signatories. The commission will review staff's eligibility determinations and then vote on a recommendation to City Council in November.

The commission's review will be limited to the eligibility criteria enumerated in local code and state law; Erin emphasized decisions must be made on findings of fact supported by the record and by the rehabilitation standards the commission is required to use.