Planning Commission to hear request to rezone Willamette Drive site for housing in Lacey

A proposed zoning change aims to convert nearly 2 acres of Neighborhood Commercial land to High Density Residential in Lacey

The Lacey Planning Commission will hear public testimony on the request at hearing on Aug. 26. The hearing is scheduled for 6 p.m. at Lacey City Hall. 

Tilden Commercial LLC is seeking a Comprehensive Plan amendment and rezone for two undeveloped parcels at 3202 and 3220 Willamette Drive NE. City planning documents list the property at 1.8 acres, which are divided into parcels of 1.4 acres and 0.4 acres. 

The request follows a 2020 rezone that split a larger commercial property into 9.51 acres of High Density Residential and 2 acres of Neighborhood Commercial. 

Planners approved that split partly because the commercial portion matched Comprehensive Plan policy for "neighborhood scale commercial nodes." The residential portion became Tilden Apartments, and nearby Karlo Apartments added more units, bringing more than 400 housing units within 200 feet of the site. 

Current zoning allows mixed-use buildings up to 55 feet; the requested zone permits only housing, at a minimum of 12 units per acre and up to 80 feet. 

City staff findings say the proposal conflicts with 2025 Comprehensive Plan goals tied to walkability, grocery access and vehicle miles traveled targets, and warn that dropping mixed-use requirements could push tax revenue to other cities.

Of four Neighborhood Commercial Districts in Hawks Prairie, north of Interstate 5, three are already developed or in progress. Senate Bill 6026 (state law) requires cities to allow housing in areas zoned commercial or mixed-use. 

Interested parties can review the proposed updates here or at the Community and Economic Development counter at Lacey City Hall, 420 College St. SE, from 9 a.m. to 5 p.m. Monday through Friday, excluding holidays. 

Written comments are due by 3:30 p.m. on Aug. 24 to Planning@cityoflacey.org. People can testify in person or by Zoom during the hearing, or watch via the city's website or YouTube channel.