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Planning commission recommends upzones, station-area plan and 10% inclusionary housing for Mercer Island
Summary
City planning staff presented a planning commission recommendation to amend Mercer Island’s comprehensive plan to meet a Growth Management Act hearings board order, proposing upzones in the town center and adjacent multifamily areas, a station subarea plan and a 10% inclusionary housing requirement at 50% AMI with a fee-in-lieu option.
Deputy Director Jeff Thomasp and Principal Planner Adam Z presented the planning commission’s recommended comprehensive plan amendments to the Mercer Island City Council on June 16, 2026. The amendments respond to a Growth Management Act hearings board order and propose changes intended to increase residential capacity and mitigate displacement risks around the light-rail station.
The planning staff said the recommendation would allow greater building heights in the town center and nearby multifamily zones — "allowing eight stories in the town center and six stories in the TCMF" — and add a station subarea plan for the area around the north-end light-rail station. Adam Z summarized the housing provisions, saying there is proposed inclusionary zoning that "would require that 10% of units in that area be affordable at 50% of the area median income or AMI," with a fee‑in‑lieu option to generate funds for deeper affordability.
Why it matters: the hearings board found the city's adopted 2024 plan needed changes on several specific issues. Staff said the recommended amendments include an updated 2026 land-capacity analysis (disaggregated by affordability level), zoning changes to increase development capacity in targeted areas, consistency amendments across transportation, utilities and capital facilities elements, and specific measures to address displacement risk.
The planning commission reviewed the proposal eight times between March 25 and June 10, 2026, and opened a public hearing June 3. A SEPA (CP) determination of nonsignificance was issued May 20 and the comment period concluded June 3 with no comments on that determination, staff reported. The planner said the commission continued the hearing on June 10 and produced the recommendation now before council.
Next steps and implementation: staff told council they plan to bring ordinances implementing the planning commission recommendation for a first reading on July 7 and a second reading on July 21, 2026. The presentation also referenced a separate ordinance (26C) with antidisplacement regulations that staff said had a second reading and adoption this evening.
Council members thanked the planning commission for its work; the chair of the planning commission was acknowledged for six weeks of intensive review leading to the recommendation. If enacted, the changes would increase development capacity in the town center and adjacent multifamily zones, create a targeted station-area plan for the north-end light-rail station, and establish an inclusionary requirement and a fee alternative to support lower‑income housing.
The council did not take final action on the comprehensive-plan amendments at this meeting; staff will return for ordinance readings in July.
