Thursday, October 1, 2026
The 18-month transition from the Lee Creighton Justice Center is nearing completion, but it has also resulted in an additional $589,000 in one-time costs.
During an Olympia City Council study session on a 2027 budget update, City Manager Jay Burney said staff had expected proceeds from the property sale, coupled with previously programmed capital facilities funds, to cover the relocation work.
“We had hoped early in the process to break even, or maybe come out a little bit ahead in terms of those proceeds,” said Burney at the meeting on Tuesday, June 9. “We got pretty close.”
He added an additional $589,000 will be drawn from the city’s fund balance to complete the transition.
Burney said the additional money was tied to unanticipated security and parking requirements identified during negotiations with Thurston County.
“We are covering those costs as a one-time figure in year one," he said.
Burney added that the expenses are expected to be shared among participating jurisdictions in a future regional rate or cost allocation study.
About $8.9 million in combined funding came from the property sale proceeds and previously programmed capital facilities dollars to support the relocation and associated work.
A large portion of the transition expense involved replacing secured parking and evidence storage previously housed at the justice center.
Burney said the city purchased nearby properties — a former used car lot, the old Capital Plumbing building and an adjacent parking parcel — for more than $2 million to provide fenced, secured parking, and to convert a warehouse into a secure evidence storage facility.
The city separated 14 employees as part of the transition process and negotiated settlement agreements with unions.
He also mentioned efforts to relocate residents of Plum Street Village as part of the closure, and that no one lost housing. Units and shared facilities were redistributed to other shelters and programs. Some were moved to Franz Anderson, OlyMAP and Union Gospel Mission.
Staff reported relocation costs of around $350,000.
The future of the Yahsiro Japanese Garden was also discussed. The city has allocated $350,000 for design work, community engagement and salvaging materials from the garden for future reuse.
Burney acknowledged the eventual reconstruction cost will likely exceed that amount.
Council member Paul Berendt raised concerns that future garden costs could delay or compete with other planned park projects, particularly Lily Road Park, which he described as being located in a park desert.
“I am concerned that these costs related to the redevelopment of a new Japanese garden are going to be hoisted onto the parks department, and they are not accounted for in the budget,” Berendt said.
Burney said the current funding allocation is intended only to carry the project through early design and planning phases, before returning to council with more specific cost estimates and funding options.
“That’s a policy choice this council will get to wrestle with and make,” Burney said. “Do you want this Japanese garden to leapfrog or be prioritized over something else, or do you not?”
He added staff would return with funding options once the size and scope of the garden project are more clearly defined.
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KarenM
This is an unfortunate outcome from the sale of the old city hall property. This will be a net loss overall. With advance planning it might not have been the case. Sure, the Council will 'get to' make the policy decision about the timing of the Japanese Garden relocation. But that decision is a result of a hasty decision on sale of the property. And they will 'get to' decide between delaying existing planned projects and delaying the establishment of the new location for the Japanese Garden. That policy choice, and other moves and costs, should have had more careful consideration before the sale of the property.
Thursday, June 11 Report this
BobJacobs
So what was the rush on selling the old city hall site to the Squaxins, with no public process and no time to do a thorough analysis? Now we know that the sale price should have been significantly higher. Good deal for the tribe, not so good deal for the taxpaying public.
Bob Jacobs
Thursday, June 11 Report this
OlyBlues
Had the city of Olympia council exercised their required fiduciary duty to taxpayers, they would have sold the Lee Creighton Justice Center for fair market value instead of selling at a fraction of the price to the Squaxin Tribe for woke feel good vibes, they would have plenty of money to replace the well established Japanese Garden and cover the $589K++ overage costs from the hasty sale of city property. Jay Burney can pretend to just excuse this away but he is responsible for this million dollar deficit the city has no money for. He should be fired! Both he and the council displayed very poor judgement with this decision and if they had any ethics, morals, or integrity they would own it. Based on their history, they will just continue to screw Olympia taxpayers and residents. It will be interesting to see how, if, and when the Japanese garden is rebuilt.
Friday, June 12 Report this
JW
The incompetence of this city leadership has no ceiling.
Friday, June 12 Report this
BettyVerdammt
Council and the City Manager have a Trump-level grasp of fiscal responsibility.
Tuesday, June 16 Report this