TERRACE — The City of Terrace is moving aggressively to reshape its urban footprint, with two major projects reaching significant milestones this week. From high-density residential planning to a total reconstruction of the downtown core, the city is positioning itself to handle the demographic shifts of 2026.
4001 Thomas Street – A Blueprint for Density
Following a public hearing on March 9, the city has finalized the rezoning of 4001 Thomas Street from Neighborhood Residential to Urban Residential.
The 6,309-square-meter development is designed to accommodate up to 26 townhouses and apartments tailored for families. Mayor Sean Bujtas has framed the move as a direct response to the housing affordability crisis, noting that traditional single-family homes are increasingly out of reach for many residents.
“Densification is essential for young people entering the market and for seniors looking for more manageable living options,” Mayor Bujtas stated. “We have to provide options that aren’t just single-family dwellings if we want our community to remain accessible.”
The Lakelse Revitalization – Breaking Ground
Simultaneously, the much-anticipated reconstruction of the 4600 Block of Lakelse Avenue officially commenced on March 9. This $6.19 million project, funded entirely by grants, represents a total overhaul of the city’s functional and aesthetic core.
The current phase involves the removal of aging maple trees, which engineering reports indicated were in poor condition. The removal is a prerequisite for the deep utility work required to replace century-old underground water and sewer infrastructure.
Project Highlights: Lakelse 4600 Block
- Utilities: Full replacement of aging water and sewer mains.
- Aesthetics: New street lighting, benches, and decorative paver stones.
- Public Amenities: Relocation of the Portland Loo to a more accessible site.
- Timeline: Construction began March 9; targeted completion in September 2026.
Terrace Infrastructure Snapshot (March 12, 2026)
| Project | Action Item | Strategic Goal |
| 4001 Thomas St. | Rezoning Finalized | Increasing residential density/affordability |
| Lakelse 4600 Block | Utility & Surface Reconstruction | Modernizing the downtown core |
| The Benchmark | Apartment Renovations | Providing rentals 20% below market rate |
The Lakelse project, pitched by the Terrace Downtown Improvement Area, is expected to transform the block into a vibrant, modern community space by the fall.
