Economic Development

Our Mission

The Economic Development Department is committed to creating meaningful economic opportunities for individuals and businesses of all sizes.

Why Lacey?

Located along the I-5 corridor between Seattle and Portland and just east of Washington’s capital city, Olympia, Lacey is a dynamic and rapidly growing community. With a 30-minute drive-time market reach of over 425,000 diverse and welcoming people, Lacey is positioned for opportunity and growth.

Experiencing steady growth business activity, the city features a mix of educational institutions, public administration offices, retail centers, small businesses, light industry, healthcare uses, and abundant natural amenities including lakes, trails, and parks.

A Community That Works

Lacey’s greatest strength is its people; educated, entrepreneurial, highly skilled, and drawn to the area by its unbeatable value: a high quality of life combined with a surprisingly low cost of living. Lacey is home to the most diverse population in Thurston County, which continues to expand as our population grows.

A Business-Friendly Environment

Lacey sets itself apart with a pro-business mindset. City staff are known for their customer-first approach; working collaboratively to ensure a development process that is clear, predictable, fast, and efficient. With over 17,000,000 square feet of commercial real estate and a strong presence of home operated businesses, the city encourages the development of a diverse, inclusive, and well-connected business community. We recognize that entrepreneurship and local business growth are essential to our economic foundation.

Strong Partnerships, Real Results

We work hand-in-hand with regional partners to support entrepreneurs and growing industries. Lacey collaborates with the Thurston Economic Development Council and South Puget Sound Community College to establish the Center for Business & Innovation on the College’s Lacey campus; a hub designed to fuel business success and support key sectors in our region.

Lacey is also home to the Lacey Maker Space, a non-profit providing community access to high tech fabrication tools and training.

Thurston Economic Development Council

Lacey South Sound Chamber of Commerce

Washington Small Business Liaisons

Grow your Business

Starting Your Business

Interested in starting your business in Lacey? We have step by step guide to launching your business successfully.

Research and Plan

Before buying property or signing a lease, take time to research and plan. Make sure there’s a market for your business and that you have funding to move forward.

Thurston CB&I: (360) 754-6320

The Center for Business & Innovation

Choose a Location

Once you have funding, look for a location that fits your needs. Make sure it supports your operations and follows local zoning and code rules.

Lacey Zoning Map

Lacey Zoning Code: Title 16

Contact Staff

Talk to City staff to confirm your business is a good fit for the location. They’ll let you know if should schedule a free presubmission conference before moving ahead.

Lacey Planner: planning@cityoflacey.org, (360) 491-5642

Apply for Land Use Permits

If staff finds that your proposal needs land use permits, they will explain the permitting process and any requirements in a presubmission conference. The meeting will cover zoning codes, fees, and how to move forward with your project. Come prepared to discuss your business and location.

Land use review can take up to four months after a complete application is submitted, excluding any time needed for you to prepare material. After your land use permits are approved, you can move on to applying for your construction permits.

Lacey Planner: planning@cityoflacey.org, (360) 491-5642

Lacey Presubmission Conferences

Lacey Permitting Portal

Building and Land Use Applications

Apply for Construction Permits

Submit any required construction permits. A permit is required for any project to construct, enlarge, repair, alter, move, demolish, or change the occupancy of any building within the City.

Complete applications will be reviewed for compliance with the appropriate code(s). Review may take 3-4 weeks until you receive the first Plan Review Letter.

Lacey Building: build@cityoflacey.org, (360) 491-5642

Lacey Permitting Portal

Building and Land Use Application

Get Permits

Once approved, you’ll receive all your permits and can start construction. After you finish construction, schedule an inspection. Staff will check that all the work matches your approved plans and meets code, and will issue a certificate of occupancy.

Lacey Building: build@cityoflacey.org, (360) 491-5642

Lacey Permitting Portal

Get a Business License

Before opening, register your business with the Washing State Department of Revenue and get a state license. Add the City of Lacey as an endorsement to receive your city business license.

Washington State Department of Revenue

Lacey Depot Food Truck Park

Lacey District Subarea Plan

In August 2018, the City of Lacey adopted the Depot District Subarea Plan to shape the future of a key area near the historic train depot. The plan outlines a clear, achievable vision for revitalization while staying aligned with the city’s broader comprehensive plan.

Highlights of the plan include:

Pedestrian-focused improvements along Carpenter Road and Pacific Avenue, enhancing walkability and linking Saint Martin’s University to the future museum site.

Development of the Lacey Museum and Cultural Center on a city-owned triangular lot near Lacey Blvd and Pacific Ave, serving as a cultural anchor and catalyst for nearby redevelopment.

Mixed-use opportunities around the museum and adjacent properties to energize the eastern end of the couplet island and support infill growth.

Community gathering spaces such as an indoor/outdoor farmers market, event venues, trail rentals, and a food truck park.

Vibrant commercial zones offering diverse dining and retail options to attract residents and visitors.

A strong district identity through cohesive design, public amenities, and improved pedestrian corridors.

Support for microbusinesses, especially food vendors and entrepreneurs, to foster local economic growth.

Lacey Depot Food Truck Application

Depot District Subarea Plan

Depot District Projects

To bring the Depot District Subarea Plan to life, City of Lacey staff launched a series of strategic projects aimed at realizing the district’s long-term vision. These initiatives were carefully designed to reflect the community’s goals for revitalization, connectivity, and economic opportunity.

A key focus of the City’s investment was supporting small business development and fostering entrepreneurship. By creating spaces that encourage local commerce—such as food truck depot, flexible retail areas, and community markets—the City is helping cultivate a vibrant business ecosystem. These efforts not only stimulate economic growth but also empower local entrepreneurs to thrive within a dynamic, walkable district.

Through targeted infrastructure upgrades, public space enhancements, and cultural asset development, the City is laying the foundation for a thriving Depot District that blends civic pride with economic vitality.

Food Truck Pilot Program in the news:

Lacey’s first food truck court is set to open in late April

Lacey’s New Food Truck Court Combines Good Eats, Local History and Outdoor

Friday Night Market at the Depot Project:

Lacey Night Market

SWAE Night Market (current contractor)

Night Market Video from KIRO 7

Lacey Food Truck Depot: Building Community One Tasty Plate at a Time

Lacey MakerSpace (Depot District adjacent)

With partnership from Thurston Economic Development Council and Saint Martin’s University, the City of Lacey launched the Lacey Makerspace in 2019 at Zaverl Hall.

Economic Development Strategic Plan

Purpose of the Strategy

Community and Economic Development staff is currently working with ECOnorthwest to develop a Five-Year Economic Development Strategic Plan to guide economic development work in the City of Lacey. Currently in draft form, the strategy is designed to be both aspirational and action-oriented, outlining a long-term vision while giving City staff, elected leaders, and organizational partners a framework to prioritize their work, coordinate effectively, and measure progress. The finalized draft plan is scheduled to be presented to City Council for review in December 2025.

Economic development is inherently collaborative—duplicating efforts or working in isolation can dilute impact and limit outcomes. This strategy aligns the work of multiple partners and targets Lacey’s resources toward the most impactful projects and programs. By combining data-informed analyses, deep community engagement, and a shared vision for the future, the economic development strategy positions Lacey to strengthen its role as a regional leader and a place where people choose to live, work, and invest.

The strategic plan and its actions are aligned with the City’s long-term vision and priorities and it is informed by multiple discussions with key stakeholders, partner organizations, and an Advisory Group established to discuss early research then refine recommendations. It establishes a common understanding between the City staff and community members, and it prioritizes the City’s next steps to build a thriving economy in a changing world.

Economic Development Strategic Plan

Lacey Midtown

Temporary Expanded Alcohol Service

Temporary Expanded Alcohol Service

In 2025, the State Legislature passed HB 1515, allowing cities, counties, and ports to authorize temporary “libation zones.” These areas let liquor-licensed businesses serve alcohol in expanded outdoor areas during and after the 2026 FIFA World Cup.

The City of Lacey has been approved by the Washington State Liquor and Cannabis Board (LCB) to offer expanded outdoor service under HB 1515.

Responsibilities & Requirements

Eligible Licensees

Spirit, beer, and wine restaurants
Taverns
Domestic wineries
Domestic breweries and microbreweries
Distilleries
Snack bars

General Requirements

Licensees must be located within City of Lacey boundaries.
Licensees must have a building that provides indoor dining.
Licensees must ensure an employee with Mandatory Alcohol Server Training is assigned to area where patrons are present.
Expanded outdoor alcohol service areas must be enclosed by a barrier or boundary. Barriers must be at least 42 inches in height, and may use stanchions, fencing, or planter boxes. Fence free demarcation.
Openings into and out of the expanded outdoor alcohol service areas cannot exceed 10 feet.

Potential requirements depending on size and scope of the proposed activity

Limits on hours of operation within the expanded area
Noise mitigation
Parking/traffic plan
Private security measures
Additional conditions, as applicable

Application Process

1. Temporary Use Permit (TUP)

Licensees must apply for a TUP through City of Lacey Community and Economic Development Department (CED).

Fee: $258

Submittal requirements:

General Land Use Application
TUP Application Supplemental
Site Plan, including applicable items:
- Private property boundaries and dimensions
- Fencing, barriers, and public entrances/exits.
- Height of fences and distance of demarcations.
- Signage
- Expanded alcohol service area and Points of Sale (POS)
- Permanent on-site structures
- Tents, stages, or temporary structures
Operating Plan, including:
- Litter Management Plan
- Hours of operation
- Size of pour and alcohol type
- Age verification process

2. Expanded Alcohol Service Attestation

Licensees must apply for expanded alcohol service through the LCB Portal. There is no fee for applying or receiving authorization for expanded service.

Submittal requirements: