Lacey City Council approves annexation of 288 acres near Yelm Highway


The Lacey City Council approved the annexation of the final 288 acres that was not inside city limits in South Lacey during the regular city council meeting on Thursday, July 1.

Under Ordinance 1596, the city fully adopted the annexation which covered several properties including the Capitol City Golf Club Estates, Chambers Estates, Capitol City Townehomes, and the Capitol City Golf Course. Until now this area was outside of the city limits but surrounded by Lacey. (See map, above.)

The area is located between Yelm Highway SE, north of 66th Avenue SE, east of the Chehalis Western Trail, and west of Ruddell Road SE. The site also falls under the Horizons Planning Area and within the Lacey Urban Growth Area.

Property developments

Based on the 2021 evaluation, the properties within the area being annexed are estimated to be worth a combined $134,023,000. Moreover, the properties within the annexed area classify as low-density residential zones which cater to single-family residential dwelling units.

The city plans to maintain its zoning classification even after the annexation.

Several of the developments in the annexed area are the Capital City Estates, Capitol City Golf Course, and the Chambers Estates subdivision that were all built back in the 1960s.

In addition, the Capitol City Townehomes were added in the 1990s. The property is composed of 470 condominium units which houses 965 people.

In terms of utilities, properties such as the Chambers Estates and Capitol City Estates subdivisions are using individual septic systems. As of the moment, city water lines and sewer services are available only to certain streets. Lacey is working to install sewer services in the Capitol City Estates subdivision.


The City of Lacey initiated the annexation and submitted the proposal to the Thurston County Boundary Review Board (BRB) for their review. However, the BRB declined to invoke its jurisdiction on the matter.

In turn, the petition was sent back to the city council for approval. During the meeting, a majority of the city council approved the resolution in a 6-1vote. Only Councilmember Michael Steadman abstained from the vote after he expressed some reservations.

The annexation takes effect on September 1, 2021.


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