Port of Olympia Commission approves contract amendment with Panattoni

A proposed industrial development in Tumwater by Panattoni Development Company is one step closer to reality after clearing a permitting requirement that set the project back for almost five years. 

The Port of Olympia Commission approved on Monday, March 10, an amendment to Panattoni’s option to lease agreement, exempting 50 acres of land from requiring a habitat conservation plan if the developer could provide certification that the land is free from pocket gophers. 

The port, which owns the land, entered an option to lease agreement with Panattoni in 2020 to develop a 200-acre site called the New Market Industrial Campus.  

The development of the property required a habitat conservation plan, as the site is considered habitat for pocket gophers, but Panattoni discovered the two parcels they want to initially develop are free from the species. 

The two parcels are located at Center Street, which would be the site of the South Sound Commerce Center. The other parcel is adjacent to the site and located at 83rd Avenue near George Bush Middle School.  

Before the commission voted on the amendment, Warren Hendrickson, the port’s director of operations, said since a briefing on Feb. 24, a new section was added to the amendment stating Panattoni’s commitment to identify a location for a community amenity within the industrial campus. 

“Developer and port commit in earnest to advance the effort to identify a suitable location within the New Market Industrial Campus for the siting of a community amenity with specific effort directed toward a tourism facility,” said Hendrickson as he read the section. 

Port Commission vote

Though the commission’s decision to pass the amendment was not unanimous, no one rejected the proposal outright.

Commissioner Jasmine Vasavada addressed a list of concerns before abstaining. 

She noted the land is zoned industrial, consistent with Tumwater’s development plan, but said she would “regret” if the entire land is developed as warehouses.  

“Warehouses, specifically, provide the lowest employment density and modest revenue while consuming large amounts of industrial land,” Vasavada said. 

Vasavada also spoke about the issue of whether the land is habitat for gophers. She noted the land has compacted soils because of past and present log yard operations and have dense forest cover, making it unsuitable for gophers.

She acknowledged the land could be remediated, but the same could also be done with other properties. 

Establishing a buffer with George Bush Middle School is also an important issue to address, with Vasavada urging the commission and Panattoni to see if they could release land from the option to lease agreement to secure a wider buffer. 

Vasavada also mentioned Tumwater’s permitting requirements for the project, such as plans to mitigate the project’s traffic impact. 

“I wanted to share all that, because I want people to hear that I am very sensitive to the concerns that have been raised. And for me, this is not a clear-cut vote. I want to honor previous commitments from the port, but I'm very uncomfortable,” Vasavada said. 

Commissioner Amy Evans Harding also abstained from voting, explaining she was doing so out of respect to public perception that she has a conflict of interest.  

Evans Harding works at Kidder Matthews, a real estate firm that has brokered deals for Panattoni. She also reiterated she has no conflict of interest and briefly mentioned an investigation in 2022 that cleared her. 

The rest of the commissioners voted to approve the amendment.  

“I believe we've been working at this for quite some time to get some portion of this lease option where we can actually get some progress on it,” Commissioner Bob Iyall said. 

Commissioners Maggie Sanders and Sarah Montano, who both joined the commission in 2024 with Vasavada, mentioned the Panattoni deal was a decision made by a previous port commission. 

“Looking at the broader picture of things and the decisions that were made previously, I feel that as long as that there isn't an impact on the species ... that we're doing our due diligence, I support this amendment,” Sanders said. 

Montano said she was receptive of the comments she heard.

“This was a decision that was made by a prior commission. And you know, this is really tough. Rock in a hard place for some of us that weren’t here when this was originally made. Going forward for the port, with our economic values in mind, this does seem like a decision that needs to be made," Montano said. 

With the amendment approved, Panattoni’s long awaited lease agreement will be coming soon. Port staff previously mentioned they would present the lease agreement to the commission in April. 

According to a previous briefing, Panattoni would pay $51,000 monthly once the lease has been formalized. Payments would start after the developer secures a certificate of occupancy or 14 months after the start of the lease, whichever comes first. 

Environmental, community impact 

Eight people spoke against the project during the public comment portion of the meeting. 

Charlotte Persons, speaking for the conservation group Black Hills Audubon Society, said a 2022 report from the U.S. Fish and Wildlife Service showed the presence of Olympia mazama pocket gophers within 50 to 100 feet from the two parcels that Panattoni aims to initially develop. 

“Federal law requires that no development impedes the recovery of a threatened or endangered species. Construction activities near listed species is considered harassment, a kind of take, and clearly is against that standard,” Persons said. 

Other comments, such as those by Lee Riner, highlighted the impact of the project to the community, particularly to the students at George Bush Middle School, and the impact expected from the development as warehouse jobs don’t pay that well. 

John Saison said the development would need at least 150 workers if the entire site was used as a warehouse.

He noted since most warehouse jobs are low paying, this would further increase the need for low-income housing in the community. 

“We are currently dealing with a serious housing shortage especially for low-income families. An increase in population will only add to the problem. Where will these workers live?” Saison asked.