Lacey, WA Zoning Overlays & Bonuses: Downtown Design Guide (2026)

The Central Business District chapter, LMC 16.25, opens with a statement of intent: the district is the financial and business hub of the community and is to be developed as an aesthetically attractive area of intense use. The design rules themselves sit in Chapter 14.23, and LMC 16.25.120 pulls them in with a single sentence saying all applicable requirements of Chapter 14.23 LMC shall be satisfied.

The commercial standard is LMC 14.23.082. For commercial structures developed along arterial or collector roadways, the building is placed as near as possible to the adjacent sidewalk so its walls frame and anchor the streetscape. Structures on corner lots are permitted additional height of up to six stories, and the same section says building heights should step back from the lower level to increase modulation. To avoid flat walls, the section lists stepbacks on upper floors, recessed or clearly defined entryways, ornamentation, varying roof lines, overhangs, awnings and marquees, and window and door fenestration. Subsection C requires exterior finishes to be primarily wood and/or masonry, and rated panel siding such as T1-11 is not allowed.

The process is administrative. Under LMC 14.23.040 the director of community and economic development runs design review concurrent with the underlying planning review or building permit application, and the decision accompanies the underlying land use approval. LMC 14.23.030 applies the chapter to all new residential, commercial, industrial, and institutional development within the city unless otherwise noted. LMC 14.23.086 adds that key commercial designations with pedestrian emphasis, including central business districts, have maximum front yard setbacks of fifteen feet and allow zero feet.

The Woodland District has its own form-based code in Chapter 16.24, which names the Downtown Comprehensive Plan and the Downtown 2000 Plan in its intent section. That chapter is separate from the Central Business District rules described here.