Thurston County to study DNR-owned 20-acre parcel in UGA for potential housing/infrastructure use

The Thurston County Board directed county staff to perform preliminary research into a Department of Natural Resources (DNR)–owned roughly 20-acre parcel inside the county’s urban growth area near Lacey to evaluate whether the county should pursue partnership or disposal options for housing or infrastructure.

Commissioners described past support and activity on the site, including a previous board letter of support for federal infrastructure funding and ongoing interest from U.S. Senator Cantwell. County staff cautioned the parcel sits within the unincorporated UGA and may not be readily annexable; the DNR’s disposal rules can require transfer to a jurisdiction, which is why the county’s involvement would be necessary.

County Manager Leonard Hernandez and other staff recommended a research phase to map infrastructure needs (sewer, water, roads), funding pathways—including potential new federal requests—and governance factors such as annexation by the city of Lacey and partner roles. Commissioner discussion emphasized engaging the city of Lacey and other stakeholders and returning to the board with a detailed briefing before any policy or financial commitments.

The direction accepted by the board was exploratory: staff are to develop a scope for analysis, identify upsides and challenges, and return with a deeper briefing on feasibility and next steps rather than to commit county resources at this stage.