Lake Stevens planning commission reviews subarea updates as state bill could allow ground-floor housing in commercial zones

Senior planner Troy Davis told the Lake Stevens Planning Commission that Text Amendment 1 on the 2026 docket would make technical updates to three subarea plans to align zoning maps, tables and capacity calculations with the city’s 2024 comprehensive plan. Troy Davis said staff will draft policy and code amendments, post draft documents online for public review, provide required 60‑day notice to the Washington State Department of Commerce and hold public hearings before council adoption.

Troy described an immediate wrinkle: Senate Bill 6026, which staff said would require cities within roughly 18 months of the governor’s signature to allow residential uses in commercial zones, including expanded ground‑floor residential in some cases. "Essentially what that is gonna do is force cities within the next 18 months — provided the governor signs it — to allow residential development in our commercial zones," Troy said, adding that the bill could permit ground‑floor residential up to roughly 60% of a zone’s capacity while capping required ground‑floor commercial at about 40%.

Planning Director David told commissioners the legislation would ripple through local assumptions about employment and housing capacity, and would affect the city’s planned-action ordinance and SEPA thresholds. He said the bill would likely give cities until about Sept. 18, 2027 to amend development code if the governor signs it, and that Commerce guidance or litigation could influence how strictly that deadline is applied.

Commissioners pressed staff on implementation options and tradeoffs. Commissioner Morton said market demand appears to favor housing over commercial uses and said the city should consider adjusting designations to respond. Commissioner Huxford and Commissioner Duer urged caution, recommending a measured approach while potential legal challenges and referendums play out. Commissioner Lewandowski asked whether property owners might accelerate or delay projects depending on the bill’s status; staff replied that vesting rules mean many projects would remain tied to the code in effect at application.

Staff reviewed subarea specifics, noting that the 20th Street Southeast corridor had an original allocation of 1,000 residential units under the planned-action ordinance and that staff has approved 916 units so far, with additional projects in the pipeline. David warned that site constraints — including the Everett waterline easement, critical areas and parcel assemblage challenges — limit where large residential projects can go and complicate options for shifting capacity between employment and housing.

Commissioners asked for options staff could return with, including targeted overlays, incentives to encourage ground‑floor commercial (such as density bonuses and taller building allowances), and horizontal‑mixed‑use approaches that preserve a commercial “face” along arterials while allowing residential behind or in separate buildings. Christy Schmidt, planning manager, said staff would examine existing incentive tools in the municipal code and consider ways to strengthen them.

Votes at a glance: - Motion to place the prior meeting minutes into the record: moved by Commissioner Huxford and seconded by Commissioner Duer; outcome: approved (voice vote). - Motion to adjourn: moved by Commissioner Shaw and seconded by Commissioner Connor Davis; outcome: approved (voice vote).

What happens next: Staff said it will draft policy amendments and return to the planning commission and city council for further direction; drafts will be posted on the city website for public review and Commerce will be notified as required. The commission requested staff provide a suite of implementation options and an analysis of employment‑land impacts and planned‑action thresholds before formal code amendments are initiated.

Speakers quoted or referenced in this article are listed in the commission roster provided at the meeting.