Olympia planners propose changes to neighborhood center policies 

Olympia city planners are proposing an overhaul of neighborhood center policies, recommending clearer zoning guidance, a new classification system for commercial zones, and the potential elimination of three designated sites unlikely to be developed.  

In a presentation at a Land Use and Environment Committee meeting on Thursday, April 24, Senior Planner David Ginther outlined the policy recommendations to the Land Use and Urban Design chapter of Olympia's comprehensive plan.  

He recommended creating a more flexible approach to neighborhood centers and allowing small-scale commercial spaces within residential zones.  

The proposal would establish two neighborhood-serving commercial areas: larger neighborhood centers/retail and smaller neighborhood nodes.  

The land use map currently indicates the city has 17 neighborhood centers, but many lack proper zoning or infrastructure to become viable commercial spaces.  

Three existing proposed centers — Kellerman's Korner, Yauger and Capital Mall Drive, and Cooper Point and Evergreen Park Drive — are likely to be removed.

"The neighborhood center strategy has determined that they would likely not come to fruition due to several circumstances surrounding those," Ginther said.

Another map showed two neighborhood centers on Boulevard Road and Fones Road at 18th Avenue lack retail zoning.  

"We have a few of these that we call neighborhood centers that are 'floating.' They don't have the zoning in place yet because a process has not been conducted to figure out exactly where that neighborhood retail zone would be placed to support the neighborhood center," said Ginther, adding that refining guidance on siting the locations is important for moving forward.  

Ginther noted nearly all of Olympia's proposed neighborhood centers are served by public transit, with just one exception: a center located in the far northeast corner within a planned development.  

While sidewalks exist for all neighborhood centers, Ginther said coverage is often sparse and inadequate, limiting residents' ability to safely access these areas.

The Handy Pantry location on Division Street and 20th Avenue exemplifies the challenge.

"The amount of sidewalks nearby for someone is significantly lacking," he said.

Ginther explained that the three neighborhood centers on the west side, which are proposed to be removed, are sitting within intense commercial zones.

"Having a neighborhood center in those areas doesn't make too much sense, since it's already a large commercial area," he said.

Flexible zoning  

During the committee discussion, Council member Robert Vanderpool advocated for a more flexible approach to commercial development.

He criticized the city's current system of prescriptive neighborhood center designations. He wants to allow small businesses to emerge more naturally across the city, and make zoning and permitting processes easier.  

Susan McLaughlin, Community Planning and Economic Development (CPED) Director, clarified that planners are proposing two things: making changes to existing neighborhood center land use designations to make them more realized; and enabling small-scale commercial uses through conditional use permits.  

She agreed with Vanderpool's concept, but she stressed the importance of having some level of regulation will be necessary to ensure appropriate uses in residential neighborhoods.  

Council member Jim Cooper called for eliminating multiple zoning categories, including neighborhood centers, in favor of flexible and simpler designations.

"I think you could easily take out five or six future land uses and just make them go away. That's what I think this committee was asking for," he said.

Cooper emphasized urgency in updating land use policies to support walkability, affordability, and more flexible urban development.  

Vanderpool supported Cooper's direction, but expressed concern about the time it would take to fully update a comprehensive plan. He proposed considering a temporary ordinance to allow small-scale commercial uses until the zoning overhaul is completed.  

According to Senior Planner Joyce Phillips, the city plans to keep neighborhood centers but make them smaller than originally proposed to offer more flexibility for small-scale commercial uses in residential areas without requiring rezoning.  

Committee Chair Dani Madrone agreed with this approach. She proposed two options: a conditional use permit system for case-by-case review, and citywide standards for small-case businesses.  

To clarify how CUPs might work, CPED Deputy Director Tim Smith explained that Olympia's permitting process is efficient.

"In Olympia, a lot of our conditional use permits are administrative. We bundle them with our land use review process. It is not a lot of added process. It can be fairly streamlined. We review them quite quickly," he said.