Casa Mia site eyed for mixed-use development in Olympia

A proposed mixed-use development at the Casa Mia restaurant site could bring up to 56 apartments and commercial space to downtown Olympia.

During a pre-submission conference on July 1, the City of Olympia Site Plan Review Committee reviewed a proposal to redevelop three parcels on 0.74 acres at 716 Plum St. SE.  

The project site houses Casa Mia restaurant, a parking lot, a single-family residence and a forested, vacant parcel.  

The proposal calls for a four-story, mixed-use building with approximately 55,010 square feet of residential space and 6,145 square feet of commercial condominium space.  

The applicant team, led by Thomas Architecture Studios, is considering two ground floor layouts.  

One option features 56 dwelling units with three commercial condominium spaces and four Americans with Disabilities Act (ADA) accessible residential units.

The second option would convert the entire ground floor to commercial use, resulting in 52 apartments and seven commercial condominium spaces.  

Both options include a two-level parking structure and a pedestrian passage dubbed as “artisan alley,” which would connect Plum Street to parking behind the building.  

Project Architect Jason Mirzayi said the development is intended to create an active streetscape, while supporting neighborhood serving businesses.  

The existing Casa Mia restaurant is expected to remain on site in a new form with additional commercial condominium spaces envisioned for restaurants, breweries or other small businesses.  

Mirzayi described artisan alley as a pedestrian gathering space that could accommodate outdoor seating, artwork and storefront activity.

The proposal includes 37 parking stalls, along with bicycle parking for residents and visitors.  

Planning review 

Olympia Associated Planner Casey Mauck said the proposal appears to meet most downtown business zoning standards, but identified several issues that must be addressed before a formal application is submitted.  

The developer would need to consolidate the three parcels into one lot through a boundary line adjustment because the project combines multiple parcels into a single development site.  

Mauck said the project must demonstrate compliance with safe walking requirements because it is located within 1 mile of Madison Elementary School.

The applicant would need to submit an analysis of how students can safely travel between the development and the school, and identify any missing sidewalk connections.  

Mauck also identified several design issues.  

She said the retaining walls surrounding portions of the parking structure along 7th and 8th avenues should receive architectural treatments so the walls appear as part of the building rather than exposed concrete walls.  

If the developer chooses the option with ground floor residential units facing Plum Street, Mauck said those apartments would need clearly defined private outdoor spaces using features, such as hedges, railings or other physical separations, between public and private areas. Each unit must also include a minimum 6-foot by 6-foot outdoor area.  

Mauck also encouraged the applicant to better define how visitors would find residential entrances located behind the building.

“It was not clear to me at this conceptual level how folks visiting the site would be able to get to those units easily,” said Mauck, suggesting additional signage or wayfinding through artisan alley.  

Frontage improvements 

Senior Engineering Plan Examiner Tiffani King said the proposal would require improvements along the three street frontages.  

She said 10-foot sidewalks would be required along Plum Street, 7th Avenue and 8th Avenue along with on-street parking where applicable.  

Because Plum Street serves as a downtown entry corridor designed to accommodate larger vehicles, the existing 11-foot travel lanes must be maintained.

Also, 8th Avenue is designated as a major collector and exempt from bicycle lane requirements under city code. However, King said city staffers are still evaluating whether the 7th Avenue frontage should include a segment of bicycle lane because it is part of a larger planned bicycle corridor.  

She noted that 7th Avenue carries lower traffic volumes than 8th Avenue, making it the preferred location for solid waste collection and truck access.

Additional frontage improvements are expected to include new curbs, gutters, planter strips, sidewalks, ADA curb ramps at Plum Street and 8th Avenue, as well as removal of existing driveways.  

King also requested an off-site stormwater analysis to determine whether existing public infrastructure has adequate capacity to serve the development.  

Incentives

Olympia Housing Manager Jacinda Steltjes noted the property lies within a Multifamily Tax Exemption (MFTE) District, making the project eligible for several incentives if the developer chooses to provide affordable housing.  

Under the city’s 12-year MFTE program, projects with all residential units designated as affordable may receive a property tax exemption on the residential portion of the development.

The affordability requirement would remain in place for the duration of the tax exemption and, depending on the incentives used, could extend through a 25- or 30-year restrictive covenant.  

Developers may pursue an eight-year tax exemption for market-rate housing. That option does not require affordable units, but requires payment of a fee in lieu of providing affordable housing.  

Steltjes said affordable housing under the city’s programs means rents, including utilities, cannot exceed 30% of a qualifying household’s annual gross income using U.S. Department of Housing and Urban Development income limits.  

She said projects providing affordable housing may also qualify for an 80% reduction in transportation and park impact fees, a 50% reduction in city general facility charges, limited permit fee grants, infrastructure grants, and priority processing under Olympia’s affordable housing emergency declaration.  

She encouraged the development team to evaluate whether the incentives could make an affordable housing project financially feasible.