Lacey Planning Commission considers new permit timelines, compliance rules 

Lacey's Planning Commission held a public hearing Wednesday, Nov. 13, to discuss proposed amendments to its Development Guidelines and Public Works Standards Manual, prompted by Senate Bill 5290.

Passed by the Washington State Legislature in 2023, SB 5290 requires local governments to update permit review processes to comply with the Growth Management Act. 

The changes, effective January 2025, focus on clarifying permit application rules, setting decision timelines, and introducing penalties for missed deadlines. 

During the hearing, the Planning Commission heard from Planning and Economic Development Manager Sarah Schelling, who presented the amendments and explained their impact on the city and stakeholders. 

 SB 5290: changes to permit review processes 

Lacey City Planning Manager Sarah Schelling explains the planned changes to Chapter 1 of the Development Guidelines to streamline permit processes …

Schelling explained the need to align Lacey’s processes with state law. She also reiterated that the bill mandates municipalities improve and expedite their permit review processes and seeks to resolve procedural delays and inconsistencies in how permits are handled. 

“The intent of SB 5290 was to consolidate, streamline, and improve the local project review processes for applicants and customers alike,” Schelling said. 

 Clarifying the Determination of Completeness Process

A major change is the requirement to determine if a permit application is complete within 28 calendar days. 

Schelling explained that this change would help resolve current inefficiencies. 

“We have to eliminate surprises,” she said. “Applicants can’t come in with all the required documentation and then be told they need more after the fact. The new amendments make it clear that everything needed for a permit review must be identified upfront.” 

The shift from business days to calendar days is also a significant change brought by the new law. 

 New timelines for action on permit applications

The amendments introduce new deadlines for processing different types of permits, starting Jan. 1, 2025. These deadlines depend on the project's complexity and whether public notice is required. 

• 65 days for minor permits: Permits must be processed within 65 days of the application’s completeness determination. 

• 100 days for permits requiring public notice: Projects such as commercial developments must receive a final decision within 100 days. 

• 170 days for complex projects: Larger land-use projects that require public hearings must be decided within 170 days. 

If deadlines aren’t met, the city could face penalties, including partial refunds of permit fees to applicants. “This adds a level of accountability for the city to ensure permits are processed in a timely manner,” Schelling said. 

 Monetary penalties for non-compliance

Schelling detailed the monetary penalties associated with non-compliance. SB 5290 mandates that cities refund a portion of permit fees if they fail to meet the prescribed deadlines. However, cities can avoid penalties by adopting measures to expedite the review process. 

According to Schelling, Lacey has already implemented two such measures and is preparing to adopt a third. These include: 

• Imposing reasonable fees: Lacey’s fee schedule helps cover administrative costs. “Our fees cover about 50% of the actual cost of processing applications,” Schelling said. 

• Streamlining housing permits: Zoning regulations now permit housing types outright in designated zones, reducing the need for conditional use permits. 

• Meeting with applicants to resolve issues: If the city requests additional information twice, it must meet within 14 days. A decision must be made within 14 days if a third submission is needed. 

The new timelines for permit applications mandate 65 days for minor permits, 100 days for permits requiring public notice, and 170 days for complex …

Concerns over implementation and capacity 

Commission members raised concerns about the city’s ability to meet the new deadlines.  

Commissioner Elliot Kirk asked about the city’s capacity to track applications. In response, Schelling assured the commission that a permit tracking system is already in place. 

“We do have a tracking system, and the Department of Commerce is also responsible for developing tools to help cities track permit timelines,” she said. 

Commissioner Judith Doyle expressed concern about staff capacity, especially if there is a sudden surge in permit applications. 

Schelling acknowledged the challenges but said cities still need to meet statutory deadlines. “There’s no protection for cities if demand suddenly increases,” she said. 

 Pre-application conferences to aid in compliance 

The commission also discussed the importance of pre-application conferences in securing compliance with the new rules. 

The commissioners asked if pre-application meetings with developers and planners were included in the updated process. 

Schelling confirmed that such conferences are already standard practice in Lacey for major projects.

“We ask applicants to come in and meet with the Public Works Department, the building department, and the planning department before submitting their application,” Schelling said. 

 Next steps for approval 

Schelling outlined the next steps for finalizing the amendments. “We need to update our permit timelines by January 1, 2025. The amendments will move to the City Council for adoption in December,” she said. 

The Planning Commission voted unanimously to forward the amendments to the City Council for review. 

The council is expected to make a final decision before the new timelines take effect in January.