Thursday, October 1, 2026
A proposed waterfront wellness facility at 500 Deschutes Parkway SW in Olympia will need to navigate some tough conditions in order to get clearance.
The Olympia Site Plan Review committee held a presubmission conference for the project called “The Water Club” along Capitol Lake at a meeting on Wednesday, May 20.
The proposal from Lurida Capital Investments LLC, outlines a “water enjoyment” destination featuring spa and fitness amenities, including cold plunge pools, saunas, steam rooms, wellness treatments, and a smoothie and refreshment bar with some public-access components.
In a narrative, the developer stated the facility qualifies as water enjoyment use under Olympia’s Shoreline Master Program due to its views of Capitol Lake and proximity to the waterfront trail system.
The proposal also noted its location across from Heritage Park and near the Capitol Lake trail network, which the developer said would help position it as a destination for both members and the public.
Olympia Senior Planner Jackson Ewing said the project faces regulatory constraints due to the site’s shoreline designation, wetlands, steep slopes and access limitations.
Ewing said the property lies within the Urban Conservancy shoreline designation, where recreation may be allowed, but commercial development is restricted within shoreline jurisdiction.
“The entirety of that commercial use would have to be outside of that shoreline jurisdiction," he said.
Ewing said portions of the proposed building appear to fall within the 200-foot shoreline jurisdiction boundary shown on the submitted plans.
Under current shoreline regulations, he said, commercial elements of the club, including the building and parking tied to fee-based services, would need to be located outside that area.
Passive public features, such as trails or viewing areas, could potentially be allowed if they remain publicly accessible and are not part of the commercial operation.
The proposal identified the club as a conditional use on Olympia’s R6-12 zoning district and would require a hearing examiner review due to critical areas, including landslide hazards.
The site is described as heavily constrained by wetlands and steep slopes. The developer said the northern portion of the property was selected because it is the “highest, driest, and least sensitive area” available for development.
Transportation access emerged as another issue. Olympia Senior Engineering Plans Examiner Tiffani King said commercial projects like the proposed club are typically expected to take access from higher capacity roads, in this case, Deschutes Parkway SW, rather than Olympic Way SW, which is a local access street.
She noted Deschutes Parkway presents additional challenges because it is state-owned and separated from the site by a railroad right-of-way, and the future 5th Avenue Bridge replacement could also affect access and circulation in the area.
Project applicant Sean Threatt questioned the requirement. He noted other commercial developments exist along similar residential streets in west Olympia. He asked whether a variance or alternative interpretation could allow access from Olympia Way if no feasible alternative exists.
Because the shoreline management rules and the city’s transportation regulations can point in different directions, Ewing said the design will need to “thread the needle” among multiple codes and coordinate tightly with state agencies, particularly the Washington State Department of Ecology, before a land‑use application could proceed.
A Traffic Impact Analysis scoping meeting would also be required. King addedthe analysis would be the appropriate forum to evaluate whether an alternative access exception or variance is justified.
13 comments on this item Please log in to comment by clicking here
olyhiker
We have so many spas, health clubs, exercise gyms that I think this is unnecessary.
Friday, May 22 Report this
chrispc2u
Hell no! Don’t trash our beautiful lake views with a “club” that will service only wealthy elites!
Friday, May 22 Report this
Snevets
I look forward to hearing more.
Saturday, May 23 Report this
Jamama
Beware the euphemisms and trickery.
"Waterfront Wellness Facility" is quite the sly cover for "Country Club"...especially since it's entirely unclear what parts of the facility would even be 'public'. Even if all public, it'd be insanely pricey as a new build.
It strains credulity anyone private or agency would consider a development on a waterfront which will be moving from a lake to an estuary in the near future.
Saturday, May 23 Report this
BobJacobs
Our state and local agencies have been incredibly shortsighted regarding the wooded slopes surrounding Capitol Lake/Estuary. These wooded slopes need to be preserved for both esthetic and environmental reasons.
Bob Jacobs
Saturday, May 23 Report this
peterpumpkinhead
May not be quite as appealing once the lake becomes a tidal mud flat.
Saturday, May 23 Report this
36098501
This is a challenging parcel in so many ways, but I wish the City was as concerned about environmental issues when it was being overrun with intense pollution.
Someone please correct me here, but isn't this a parcel that could potentially be involved with the redesign of the bridge. If so, this creates an interesting situation when the City will have to adhere to these same standards for any construction that takes place in this area.
Saturday, May 23 Report this
Olyrkrgrrl
Um, I thought we had agreed to restore the estuary, not build it out with giant buildings. The location on that steep slope, seems very unlikely to be a good site for such a large building. So, shall we also build a huge shopping mall for the elites? Maybe the Wild Waves park can be relocated here too. Why not build a new speedway for racing around the lake? What other giant buildings can we cram into that location, now that residents have decided to restore the natural estuary? A concrete manufacturing facility? Unbelievable some things that get proposed and permitted in Olympia.
Saturday, May 23 Report this
Positivity
In my experience, this is fake project on a likely unsuitable building site, designed solely to try to raise the property value of the site so the owners can price gouge the State of Washington (and possibly the City of Olympia) when it comes time to acquire part or all of the site for the new bridge connecting the Deschutes Parkway with 5th Avenue over the the mouth of the rehabilitated Capitol Lake estuary. Shameful.
Saturday, May 23 Report this
GPodxt
The streets and wilderness need sorted, first!
How’s the nice “lake front spa” gonna be.. when you’ve foil smokers passing out in the lawn?!
There’s too much that’s been “allowed.” And needs to be handled. Stop mowing down the Evergreen State for trash business. And trash people.
Time to clean up!!!
Saturday, May 23 Report this
RondaLarsonKramer
I agree with @Positivity. It's entirely possible that this is a fake project that is solely intended to push the property value up so the owner can receive more money when the city condemns part of it using eminent domain for the new bridge that will be built as part of the dam removal and estuary restoration. A spa/country club in that location wouldn't be economically successful. There is not a large enough market for that kind of niche business here. It overlaps too much with existing spa businesses that have already saturated the market. Maybe in a big city there would be enough demand, but not here.
Monday, May 25 Report this
Wesley
Sounds good. Let's do it!
Thursday, May 28 Report this
northbeachcomm
About a decade or more ago, this site on Evergreen Parkway, right next to Capital Lake, was to become a outdoor "Wedding Venue", you can still see the structure there for that purpose. The permit application submitted to the City of Olympia did not meet many of the standards needed for that kind of business. The City rejected that application. As I remember, the land owner, the business went ahead, and conducted that business there for awhile. After complaints from citizens, the City of Olympia stepped in and shut it down, and sanctioned the business for violation of that code. Because of this violation on this property, the owner of the property has kept quiet for a few years.
Now we will see what will happen. I agree with other comments; the owner of this property is trying to use this permit application, this proposed business, to drive the price of the property higher and higher, so that WA State/ City of Olympia will be paying tons of our tax payer dollars to this land owner, when they need to buy this property for the dam removal on Capital Lake.
Tuesday, June 16 Report this