Thursday, October 1, 2026
Citing a challenging housing market, the developer of the Lister Glen project is scaling back plans to an eight-home short plat from 24 with room for future expansion at the site.
Tom Barghausen, of Core States Group representing the applicant, said the team is proposing a phased approach after encountering difficulties in completing the larger subdivision in a single phase.
The new proposal would create eight, single-family home sites on the property, while preserving the remainder of the 4.8-acre property as a future development tract.
The Lister Glen property has been in the city’s development pipeline since 2020. The applicant’s first proposal was a nine-lot plan.
After the Site Plan Review Committee’s initial review, the developer shifted to a larger 32-lot full subdivision in 2022. The plan was later refined into a 24-lot preliminary plat.
The city’s hearing examiner approved that plan in December 2022, giving the developer permission to move forward with the subdivision.
However, the project direction shifted again in 2025.
“We tried to develop the property as a subdivision, and there were just some challenges with getting the whole thing done in one fell swoop,” Barghausen said.
He added the client chose to start with a part of the property developed and preserve a short plat, and preserve the rest of the site for future development while watching how the housing market evolves.
At a Site Plan Review Committee meeting on Nov. 12, City of Olympia Planner Casey Mauck noted the proposal does not meet the city’s minimum density requirements.
While a short plat is still possible on the site, Mauck said it must meet the density requirement for the full 4.8-acre property, which is a minimum of 19 units.
Looking at other options, Mauck said she evaluated whether the proposal could qualify for any of the city’s clustering options, which allow reduced lot sizes in exchange for preserving permanent open space, steep slopes or sensitive areas.
“It does not meet any of those criteria. We don’t allow clustering suit market conditions or avoid achieving minimum density," she said.
At the time of the review, Mauck also noted the city had draft housing code amendments in progress that could open up additional development options. Those changes, which would allow up to four units per lot plus two accessory dwelling units (ADUs) in areas like Lister Glen, had not yet been adopted.
However, the city council approved the housing code changes on Nov. 18, expanding middle housing, accessory dwelling units and co-living housing. It allows more flexible housing options in the city.
Mauck also rejected Barghausen’s suggestion of a “shadow plat” or future development tract to meet the minimum 19-unit density requirement.
Barhausen said the remaining area is large enough to accommodate additional units needed to reach the required 19, and asked whether the city could allow assigning part of the density to that future tract rather than building all units immediately.
She said the city does not allow shadow plats as a way to meet density requirements.
“You could move forward with this proposal, but you still have to meet the total 19 units on the part that you are developing. We don’t do shadow plotting in Olympia," Mauck said.
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TheVirtualOne
This article describes the reason why housing is expensive and developers find themselves unable to build homes. The red tape and bureaucracy are a minefield. No one in their right mind would want to build homes in Olympia.
Thursday, November 27, 2025 Report this
jimlazar
This developer has an opportunity to build a simple, affordable housing project, but seems to want to adhere to obsolete large-lot subdivision standards.
Meanwhile, other developers are moving ahead with lots of housing in this market. More than 1,000 new apartment units are approved and under construction in Tumwater. A very large development is going in between Sleater-Kinney and the C/W trail. And the townhouse units at Mill Pond are moving ahead.
Kelsie Estates, the first development proposed under the new rules just adopted, with a house and two ADUs on each of eight lots on 1.2 acres (24 dwelling units) got pretty much all thumbs-up responses from the same Olympia development staff. If that density applied to this parcel, which is 4 times as large, that would be 96 dwelling units. It is not that hard to meet the City's density requirements. A smarter builder would probably be looking to build more like thirty to sixty homes on this parcel, using the new standards.
Seems like this developer is not creative enough to be successful in that business.
Thursday, November 27, 2025 Report this
Southsoundguy
The apartments in Tumwater are transient dormitories. All of this development sucks. There isn't a shortage of housing.
Friday, November 28, 2025 Report this
Bobwubbena
It is always interesting to how some retired economists have the answers to tax and spend some one else’s investment funds. Jim will you make your retirement account available for risk home construction and long term mortgages under the ever increasing cost of rental properties?
Friday, November 28, 2025 Report this
Claire
Gosh. I'll bet none of the builder's issues have anything to do with the onerous and complicated building requirements.
Saturday, November 29, 2025 Report this
slavmauve
I didn’t know that the townhouses were going up in Mill Pond. I have heard that the builder is having money issues.
Saturday, November 29, 2025 Report this
The_Armed_Gardener
Olympia wants little junkie homes for illegal immigrants, junkies, liberal crybabies, all of which amount to modern-day slaves owned by their Democrat masters, just like the cotton pickers they used to own. It's CLEAR. They don't want strong, productive people living here. CLEARLY, they don't want developers they can't control or citizens they can't control. How more obvious can it be?
Monday, December 1, 2025 Report this