Langley has lifted its development moratorium in two neighborhoods in town, but has extended the ban against new property subdivisions on other land in town for another six months.

The moratorium is now set to expire in early June, two years after it was first enacted.

The ban against subdividing land was first approved in June 2007 for one year, then extended again in June 2008. It prohibits new subdivisions in the city’s RS-7,200 and RS-15,000 zoning districts, the areas of town where medium- and low-density housing development is allowed.

Larry Cort, director of planning, said city staff had fashioned an ordinance that would lift the moratorium in two neighborhoods, near St. Hubert Catholic Church and west of Langley Middle School, where properties are largely built out.

Those were the two places in town where property owners had asked about subdividing, and development would likely take place on existing lots, Cort said. Current regulations would apply.

Council members said the six-month extension, with the proposed exemptions, was a good fit.

“I feel very comfortable with what you’ve come up with,” Councilwoman Rene Neff told Cort.

The council unanimously approved extending the subdivision ban at the council meeting Monday night.

In a workshop before the council meeting, however, city officials bristled at recent talk that the city was anti-growth.

The state of Langley’s economy — and the suggestion that local opposition to waterfront development has created a dismal business environment in the seaside village — has been a hot topic since the owner of Linds Langley Drug recently announced he was considering closing.

Linds has been in Langley for 38 years and is a major draw for locals downtown, and the potential closure has led to a long and varied discussion about Langley’s business climate on the Langley Community Forum, an Internet chat site.

Mayor Paul Samuelson said it was “puzzling” to him that Langley has a reputation as anti-growth.

“It doesn’t play out in my mind that we can be regarded as anti-development at all,” he said.

“To label the community, the city of Langley … as anti-development, it defies reason,” he said, adding that the city will grow by 10 percent with projects already in the pipeline.

“Housing is going up,” he said, pointing to the Highlands and other development projects in the city. “We’re talking about a very significant number.”

Samuelson said the problem stems from ineffective communication. Still, he urged caution.

“I think we need to be real careful to not get caught up right now in the large amount of fear that’s out there because of the national economy,” Samuelson said.

Talk of the economy percolated throughout the entire meeting, from a discussion on preparing “talking points” to respond to those who have questioned the recent pay raise for the mayor, to the council’s adoption of next year’s budget.

At the start of the regular session, council members received a briefing from Sherry Mays, executive director of Langley Chamber, about the chamber’s efforts to bring visitors to Langley from on-island and off. The council also heard a presentation by RoseAnn Alspektor, tourism marketing coordinator for Whidbey and Camano islands, to raise awareness about Island County as a travel destination.

Samuelson said the city faces a lot of hard work ahead. On Linds, he said the city was committed to keeping a drug store in town.

He pointed to the recent success at keeping the Langley Clinic in place, which is now open four days a week after completely closing earlier this year.

“The clinic is open and alive and well,” he said. “It’s secure, it’s stable and it will be there.”