The Port of Olympia is considering the purchase of the Dancing Goats Coffee building near the marine terminal to house the port’s administrative offices.
Port Executive Director Alex Smith briefed the Port Commission about the proposed $2.16 million purchase on Monday, Jan. 27. No decision was made about the purchase, as the commission is slated to vote on the issue on Feb. 10.
The 14,700-square-foot structure is a pre-engineered metal building that is currently used as an office space and warehouse. The building already sits on Port property, so the purchase is only for the building.
Dancing Goats Coffee is selling the building to the Port as the company has been acquired by Dillanos Coffee Roasters, which is currently consolidating its coffee roasting operations in Sumner.
Smith said the building provides a good location, as it is directly adjacent to assets that support the marine terminal.
The building would also allow the Port to save on rental costs, as it is spending more than $300,000 per year on rent for 8,000 square feet of space.
Before the sale of the building was proposed to the Port, staff planned on moving its admin office to the Waterfront Center, a proposed building near Swantown Marina.
The center was originally conceived to house the admin office of Swantown Marina, but is now being developed as a mixed-used, multi-story project.
Documents prepared for the meeting stated that moving the Port’s admin offices to the Dancing Goats Coffee building would simplify the Waterfront Center project and could likely reduce the cost for the building, as it would need to account for less office space.
The current cost estimation for the Waterfront Center is at $22 million for 22,000 square feet of space or $1,000 per square foot.
In comparison, buying the Dancing Goats Coffee building costs $147 per square foot. Accounting for additional improvement costs of $1.3 million to fit the Port’s needs, converting the building would cost $235 per square foot of space.
The Port Commissioners spoke favorably about the proposed purchase and keeping the Waterfront Center project.
Commissioner Amy Evans Harding said that the current marina office is “woefully out of date,” so they shouldn’t let the Waterfront Center project die.
Evans Hardingadded that they could incorporate more public amenities for the project, and encouraged the Port to consider partnering with the private sector to meet their goals for the center.
The Port hired an architectural firm in August 2024 to perform predesign work and market analysis for the proposed building.
Smith said the analysis is complete and will soon be brought to the commission so they can discuss what to do next with the proposed building.
Comments from community members at the meeting also supported the purchase but requested the Port Commission to reconsider the best use for the building.
“Is spending over a million dollars to turn it into office space the best use of that building, or should it become an extension of the farmers market or serve some other more public use purpose?” asked resident Jim Lazar during the public comments section of the meeting.
Resident Carla Wulfsberg also said that based on correspondence with Port staff, she was under the impression that the Port would include the public in discussions regarding the use of the building.
Lazar also asked staff to explain the terms of Daning Goats Coffee’s lease, which requires the Port to pay for the building when the company still has 20 years left on its lease.
Smith responded that the cost associated with the purchase is the cost of remaining useful life of the building, which still has 22 years left in it.
4 comments on this item Please log in to comment by clicking here
BobJacobs
The marina offices need a new building. Seems like a double-wide would do the trick at little cost. Why consider the very expensive Waterfront Center building?
Bob Jacobs
Thursday, January 30 Report this
ddttwo2
BobJacobs, I would be more than happy to provide said "Double-Wide".
Del DeTray
Thursday, January 30 Report this
MrCommonSense
This is a much better idea than the $20M new office building. The office building is a bone-head idea that should be scrapped in favor of housing. Housing will will bring vibrancy to the waterfront and help struggling downtown businesses. We don't need office there.
Dean Stohl
Thursday, January 30 Report this
MrCommonSense
This is a much better idea than the $20M new office building. The office building is a bone-head idea that should be scrapped in favor of housing. Housing will will bring vibrancy to the waterfront and help struggling downtown businesses.
Dean Stohl
Thursday, January 30 Report this