Thursday, October 1, 2026
Demolition appears likely for a city-owned building from Lacey's resort era after the Lacey Historical Commission endorsed tearing it down and installing a historic marker.
The McKinney Building, located at 6426 Pacific Ave. SE, dates back to 1931 when it opened as a café and rest stop serving Highway 99 travelers.
At the site, the McKinney family operated the Lake Lois Auto Camp with rental cabins and gas pumps. Retail filled the front of the building, while the family occupied the back.
Lois McKinney, for whom the lake is named, lived in the building until her death in 1998. The city took ownership three years later.
Historical commissioners voted unanimously at a meeting on Dec. 17 to send the demolition recommendation to the city council following a matching vote by the Lacey Parks, Culture & Recreation Board on Nov. 5.
To assess the building's condition, the city hired consultant Drayton Archeology in 2025. The consultant found the building lacks structural integrity and historical authenticity after two decades of deterioration, vandalism and exposure.
Key architectural elements "including the original fenestration and exterior material, have been lost or heavily altered," according to the consultant's assessment report. The report found "all elevations exhibit signs of structural distress," with the roof near collapse.
The removal of associated resort cabins, gas pumps and other contextual features over the years further eroded the property's historic character.
Based on those findings, Drayton recommended the McKinney Building "not eligible for listing under any (national register) criteria."
Drayton acknowledged the property holds significance "for its association with the Lake Lois Resort and the history of tourism in Thurston County." However, it "lacks the necessary physical integrity" for historic register listing.
Lacey Museum Curator Erin Quinn Valcho told commissioners the building fails to qualify for local, state or national historic registers due to its condition.
"There is very little left of it to give any historic interpretation to it at all," Valcho said. "The building as it stands now is unsafe. It's at risk of collapse, and maintenance costs are escalating."
Staff recommended demolition in 2002 shortly after the city took ownership, but the historical commission advocated for preservation.
The city then invested $50,000 in stabilization work. No dedicated preservation funding materialized in the years that followed, leaving the building to deteriorate further.
Vandalism plagued the property over the years since acquisition, straining facilities staff and city budgets. A staff report found capital and operational costs for rehabilitation prohibitive, with no identified funding sources.
Adding to structural woes, environmental constraints hamper redevelopment. A December 2024 critical areas report by Ecological Land Services identified three sensitive features severely limiting any potential site reuse.
The first involves Woodland Creek, which flows north through a dual culvert underneath Pacific Avenue and requires a 200-foot buffer.
The second concerns Lake Lois, a Category II wetland status demanding a 110-foot buffer requirement.
The third covers more than 30 Oregon white oak trees tagged as priority habitat under Washington Department of Fish and Wildlife standards.
The Lacey Municipal Code requires protection of priority habitats and mitigation when impacts prove unavoidable.
Given the mentioned overlapping restrictions, staff determined no development can occur on the west side of the building due to the Woodland Creek buffer. The east side presents fewer stream and wetland constraints, but oak trees dot the landscape near the structure itself.
Zoning adds another hurdle. The property falls within the Lake Lois Habitat Reserve under Open Space Institutional Zoning. Staff noted any rehabilitation demanding expanded infrastructure for access, parking or utilities would clash with the designation's intent to protect natural areas.
Commissioner Kimberly Goetz questioned whether underground fuel tanks from the resort-era gas pumps remain buried on site. She noted remediation costs could factor into the demolition budget.
Staff, however, could not confirm whether tanks were removed during past road improvements to Pacific Avenue.
In seeking other alternatives, the city also weighed a public-private partnership to offset rehabilitation costs, but deterioration and environmental restrictions make such arrangements improbable.
"We've determined that, after all of this review, it's really unlikely that this option is viable because the building is in such poor condition," Valcho said.
Even if a partner emerged, site constraints would make basic improvements difficult.
"It would be really challenging for somebody to even put in a parking lot to be able to do something reasonable for business on the site," Valcho added.
Commissioner David Shipley called for recommending demolition to Lacey City Council along with the installation of signage featuring historical photos and, if feasible, a small vehicle pullout for visitors accessing nearby trails.
Trail impacts also factored into the discussion. A local Boy Scout troop constructed the natural-surface path connecting Pacific Avenue to Lake Lois along the east side of the building, and staff noted redevelopment would likely require its removal and rerouting.
Valcho also corrected an assumption about the building's uniqueness. When the city saved the structure in 2001, officials believed it represented the only surviving resort-era building in the area.
"When this building was saved, we were under the impression that it was the only resort building left standing, and we now know that that's not true," Valcho said.
At least one building remains at Gwinwood and another at Southwick Lake, she added. Additional structures may exist on private property throughout the region.
When asked about the placement of the marker, Valcho suggested it could go near the trailhead or where the building currently stands if space allows for a small pullout.
Lacey Parks and Recreation Director Jennifer Burbidge flagged Pacific Avenue traffic as a complication for any roadside access plans. Goetz noted visitors can currently park on the soft shoulder near the site or use parking at Woodland Creek Community Park across the street, which features a pedestrian crosswalk.
City staff thoroughly documented and photographed the property before bringing the demolition recommendation forward. The documentation went to the Washington State Department of Archaeology and Historic Preservation digital repository for public access.
The demolition recommendation now heads to the city council for final action. A cost estimate would come in a future budget request, though the timeline remains undetermined pending council approval.
13 comments on this item Please log in to comment by clicking here
JulesJames
Put the historical marker across the street at the community center. It would be relevant there, a lonely traffic-hazard at the site of the building.
Friday, January 2 Report this
olyhiker
$50,000 for a building doing nothing but falling down and a target for derelicts? Common sense is needed in this town.
Friday, January 2 Report this
COLHOTY22
About time. This is one of Mayor Ryder's pet projects that has lived too long. There was even discussion by the Lacey City council of making a tunnel or a bridge over the Pacific highway to get there from the other side of the road.
Friday, January 2 Report this
OvercastDays
Nooooooo, not that random building that’s falling apart! Lacey seems to put a lot of effort into that Depot Museum and associated stuff, so dutifully cultivating history that’s barely extant. It’s kind of like when I try to grow carrot seedlings which I can sense will never exceed the height of one inch. And now they’re tearing down one of the few historical remnants in the center of town? Preposterous! Of course, I should probably calm myself down, because it sounds like the environmental regulations in place were a big part of why any grand preservation/enhancement projects didn’t occur—and I happen to be in favor of environmental regulations! In any case I hope this sign, if implemented, will become the regional historical destination its parent building could not be.
Friday, January 2 Report this
Chris_R
A simple marker with pullout can be placed where the building now sits. Much like what is found on Yelm Hwy just east of Meridian.
Friday, January 2 Report this
DonDan1960
I know a person who grew up in that area and in her younger years, she decided that she wanted a piece of that history from her childhood, and took the old wooden door from the "Men's Room". She had seen how this historical place was left to fall apart, and wanted to preserve a piece of it, even if her methods were wrong, the internet was good. The door now takes up room in my garage.
Saturday, January 3 Report this
COLHOTY22
To OvercastDays: You're right, there wasn't much of a justification for history to redo the Depot in Lacey. I do imagine you're an Olympian that has a condescending remark and an eye roll for anything that Lacey does, correct? The Friday night markets at the Lacey Depot are some of the most diverse gatherings of the Lacey community. While there might not be much historical significance, it does provide a place for our community to gather. Have you ever given it much consideration why Lacey is the most diverse community in Thurston county? It's because "Liberal" Olympia did not allow Blacks to move there. Blacks had no choice but to live in Lacey. Just remember that any criticisms of Lacey coming from people from Olympia is rooted in racism.
Saturday, January 3 Report this
longtimeresident
Have an artist do some drawings of the building before it is torn down, and make the drawings available for purchase. Put the history of the building/place on the backside of the drawing. Sell the drawings at the Lacey Historical Museum.
Saturday, January 3 Report this
EdieMG
To Olyhiker: I believe that 50k figure was back in 2002 when the city took it over.
Saturday, January 3 Report this
OvercastDays
COLHOTY22– Your point is well taken. Lacey is now the biggest city in Thurston County, and merits respect, even if Olympians like me may have a hard time seeing it as anything other than a suburb of Olympia. To the extent that I’ve considered the reasons for Lacey’s greater diversity as compared to Olympia, I’ve thought it was a result of proximity to JBLM. I’m aware of our history of redlining/discrimanatory housing practices in Olympia, and that’s definitely a stain on the record. Olympia’s current overwhelming view is of acceptance towards underserved populations, though. A city can be built of past or present. Lacey doesn’t have much of a past, which was my point, if I had one. It’s fair, then, to turn the mirror on Olympia and ask why, if its past is so treasured, racism was so present. I was being facetious about the whole building thing, but I realize there are real points of contention and I have biases that I left unconcealed.
Sunday, January 4 Report this
PissAnt
OK this is not some Random Building. This building is most likely the last building left from the historical "Lake Resort" area of Lacey that is the whole reason Lacey exists. Lacey was a Resort town and keeping the last remnant of that history should not be a burden but something we celebrate. I remember this building having a "Sunny Jim" hand painted graphic on it and I still think of it as the Sunny Jim building. To tear it down now would a travesty, an abomination, an ignorant decision disregarding the history of Lacey. Lacey has so little history to recommend it and this "Lake Resort" angle is probably the best, most positive history a town could have. We aren't a Mining town, or a Mill town, or some factory town. Lacey is a town where people historically went to relax, imbibe, swim, cool off and have a nice vacation. I know most people don't understand this about Lacey, but that doesn't make it right. I understand the building is close to the historical water source for Lacey, thats why its there. The wetland buffers and precious trees as an excuse to turn your backs on History is a thinly veiled excuse because you never want to prioritize preservation of the very small amount of Lacey History. Please don't do this. There must be some answer for this building.
Tuesday, January 6 Report this
PissAnt
Ken Balsley would be very upset about this. It may not be the last building but its the most prominent one and it also highlights the automotive travel history of highway 99 and buildings like this one and the Holly Motel are some of the last remnants of this period in travel history before I-5 was constructed in the 50's. This building should be preserved as one of the oldest General Stores in thurston county and Automotive history museum. This is perhaps the last standing General Store in Thurston County and its being torn down because its not convenient to save. I don't think the City Council is convenient to save and anyone who thinks tearing down this building is a good idea.
Tuesday, January 6 Report this
Boatyarddog
PissAnt Few if Any remember that kind of History! Is not History Its a derlick Building Tear it down Ppst a sign and Move on. Like A Cemetary Remember, and MOVE ON♡
Wednesday, January 7 Report this