By JC Medina
The Lacey City Council received a comprehensive update on the city’s active and upcoming development projects, which include hundreds of new residential units, commercial builds and hospitality developments.
Sarah Schelling, of the Community and Economic Development Department, presented the update during the council’s work session on Tuesday, April 22, noting while early-year permit numbers are lower than in previous years, indicators suggest continued developer interest.
“We have pre-application meetings two times a month and 24 pre-application meetings, I think, is a pretty good sign that there's still interest in commercial activity thus far in the year,” Schelling said.
A notable highlight is the Seventh Avenue apartment project, which includes 376 housing units and 18,000 square feet of commercial space.
The developer is expected to begin construction before the land use approval expires at the end of May.
According to city staff, the project's permit is ready for pickup and initial utility work has already been completed.
Other projects advancing in 2025 include a nearly finished office-to-residential conversion at 629 Woodland Loop, which will offer 50 market-rate units; continued buildout at Hogum Bay Town Center, with new tenants including Cooper’s Bar & Grill and Do Zone expected to open this summer; and several hotel developments, including two Hilton brands and a Marriott in the Britton Plaza area. Combined, the three hotel projects will add around 200 rooms north of Interstate 5.
In terms of housing, the city has received two multifamily building permits this year accounting for 107 units, compared with 53 units submitted during the same period in 2024.
While single-family housing starts remain modest with only three permits submitted, Schelling emphasized he city has more than 1,200 residential units with land use approval that are expected to move forward.
“Some of which will come on this year,” she said.
While the city is seeing steady development momentum, affordable housing remains a gap.
“None of the multifamily projects in the pipeline right now have committed to affordable housing,” Schelling said.
However, she noted some developers are exploring affordability options through tax incentives, such as the multifamily tax exemption available in specific zoning districts.
The council expressed interest in tracking progress on housing affordability and emphasized the importance of aligning economic growth with community needs as development continues to expand throughout the city.
HappyOlympian
City council in Olympia says developers would not build here without having the rest of us paying their share of the taxes needed to support services. Hard to miss that the Lacey developments north of I-5 become occupied as fast as they are built. Clearly, the tax incentives not needed.
Friday, April 25 Report this
Yeti1981
The tax incentives are absolutley needed. Low-Income projects typically don't pencil, and that's why they don't get built. Nobody is going to build a project that they can't make a profit off of. People deserve to be able to earn a living. The homebuilding industry is the 6th lowest profit margin of any industry.
Friday, April 25 Report this