Granville Homes proposed a new development north of town during Tuesday night's city council meeting.
If the proposal passed, more than 200 homes would be located near 18th Avenue and Lacey Boulevard.
"We don't have an application yet. We'll have to go through an environmental review and things of that nature," said city manager Nathan Olson. "They're going to invest significantly to make this happen."
City officials say the planning process is in the early stages.