YELM — City staff and councilors used a Jan. 6 study session to walk through the next steps on a proposed annexation and a large, multi‑phased development tied to it.

"There are 312 parcels," said Speaker 7, describing the parcels and owners notified about the proposed annexation and the information mailed to affected property owners. Council members were told the city held an open house attended by about 80 people and that the city will re‑notice the Interlocal Agreement to meet open‑public‑meeting requirements before taking final action.

Why it matters: staff told the council the annexation is intended to bring the city back into compliance with the state Growth Management Act by adding land capacity the city lacks under its current boundaries. Speaker 7 said the ordinance, should the council adopt it, "takes effect 60 days from the date of adoption" and that the city must complete a post‑annexation census conducted door‑to‑door for the state Office of Financial Management.

The session then turned to the Bluefern master‑planning and feasibility phase for a proposed 640‑acre development that city staff and the developer say will require major new infrastructure — including a roughly 3.2‑mile connector road and water and sewer works. Speaker 6 described two statutory financing options under consideration: a tax‑increment financing approach (RCW 39.114) and a community revitalization financing option (RCW 39.89, as transcribed). He said both are structured so the development’s increased assessed value repays bonds used to build infrastructure.

Staff presented estimated costs and financing mechanics. Speaker 6 summarized the funding approach: the city would establish a baseline of current property tax revenue and only the increment above that baseline would be used to repay bonds. "The development of the 640 would pay for this road," Speaker 6 said, adding that the city’s initial estimate for the connector road was "between $50 million and $60 million." He noted the council is working with bond attorneys and a TIF consultant the developer hired, Bob Stowe, and that the city will evaluate options that try to avoid using the city’s nonvoted general obligation debt capacity.

Councilors asked how other taxing districts (schools, fire) would be affected. Speaker 6 said existing baseline tax revenue still goes to current taxing districts and that the principal effect is the allocation of the incremental increase in tax revenue; he noted the fire district is the taxing entity that would be treated differently under some structures and that staff has already briefed the fire chief.

Right‑of‑way and land‑owner issues were raised: councilors queried whether a corridor through property identified in the transcript as "Triple D" would be included in any TIF district or whether the developer would need to acquire easements. Speaker 6 said Bluefern has set aside money in its offer to acquire needed right‑of‑way and that the team is exploring alternative connector routings to limit reliance on that parcel.

Infrastructure details: planners described a need for water towers, booster pumps and new wells to deliver water up an elevation gain of roughly 200 feet; Speaker 8 said the plan includes pressure‑reducing valves and that the project could increase water pressure in some neighborhoods. Staff said some development charges will apply when homes hook up and that the developer is negotiating which fees may be credited or waived as part of the development agreement.

Next steps: staff said they will provide monthly study‑session updates, that consultant Bob Stowe will present a technical briefing to council when ready, and that council will see subsequent ordinances if it chooses to create a TIF district or other financing vehicle. No formal council vote or ordinance adoption occurred at the Jan. 6 study session.

The council also discussed public outreach and timing for the annexation ordinance and related hearings; staff said the final effective date, if adopted, would be set to allow the city to work with the Boundary Review Board and other state processes.