30-year debt bond approved for Armory Arts Center and Yelm Park projects 

The Olympia City Council approved a 30-year bond package totaling $26.57 million to fund two major projects — construction of the long-planned Yelm Highway Community Park and Phase 1 renovations of the historic Armory Arts Center.  

At a council meeting on Tuesday, July 8, Sylvana Niehuser, the interim director of Parks, Arts, and Recreation, presented the comprehensive plan, which included a financial analysis and an update on rising construction costs.  

To help cover the annual debt payment of $1.72 million, the city will rely on three funding sources: the Voted Utility Tax (VUT), the Olympia Metropolitan Park District (OMPD) levy, and a proposed extension of the one-half percent Non-Voted Utility Tax (NVUT), which is set to expire in 2029.  

The plan would extend the NVUT for an additional 20 years, through 2049, although only the first 20 years of NVUT revenue would be used to support the repayments.  

"What we would ask for is a 20-year extension. I want to specify that we are not asking for it for 30 years, because we have another bond that is going to be paid back in 20 years. The idea is that it would free up more revenue," Niehuser told the city council.  

The VUT fund balance will be reduced to roughly $2 million after the investment. Meanwhile, $750,000 in annual OMPD funds will be redirected toward the bond repayment, which may reduce funding available for other capital maintenance projects. 

City operating budgets are also expected to grow as the new facilities come online.  

"Operating budgets will also see increases. By 2028, maintaining and staffing both new facilities will add nearly $300,000 in net annual costs. To help cover these expenses, the department plans to shift VUT and OMPD dollars from capital operations, temporarily reducing funding for ADA (Americans with Disabilities Act) upgrades and facility improvements," Niehuser said.  

Yelm Highway Community Park  

The 83-acre Yelm Highway Community Park has been in planning for more than two decades. Phase I improvements include a synthetic turf soccer field, 13 pickleball courts, basketball courts, a playground, picnic shelters, walking trails, a dog park and electric vehicle parking. The park will also feature a Sounders RAVE Foundation mini-pitch with free youth programming. 

The city has already invested more than $14 million into the park, supplemented by nearly $3.9 million in grants and donations from state agencies, the Sounders RAVE Foundation and local organizations. Construction is expected to begin in early 2026 and take approximately 12 months. 

Armory Arts Center 

The former National Guard Armory, built in 1938 and located at 515 Eastside St. SE, is being transformed into a community arts center, with plans for a grand opening in 2027.  

The city took ownership of the building in 2022. Eight local nonprofit arts organizations have signed on as future tenants, including Capital City Pride, Olympia Film Collective and TC Media. 

Phase I of the Armory project focuses on critical life, safety and accessibility upgrades. Delaying the project would risk forfeiting more than $2.6 million in state grants and contributions, including a $1.5 million solar energy grant and $1 million from the state's Heritage Capital Grant program. 

The Yelm Highway Community Park and Armory Arts Center projects total $45.6 million, with $3.85 million and $2.5 million in grants secured, respectively.  

"These are legacy projects that have been decades in the making," Niehuser said. "They reflect our values around access, creativity, inclusion and environmental responsibility. With this decision, we can finally bring them to life." 

Council member Clark Gilman, who also chairs the Olympia Finance Committee, emphasized the long-term significance of the projects.

"We are planning projects that will be used for generations, and we are making investments today that will be paid off across a generation and will serve the community for generations to come. … It is a moment to be bold and unafraid, and trust the years of planning so far," Gilman said.