Thursday, October 1, 2026
The Port of Olympia is exploring a potential lease of three East Bay properties to developer Urban Olympia, which is planning to make a mixed-use housing project.
The parcels are three fenced properties totaling 2.86 acres at Olympia Avenue near Hands On Children’s Museum and Westman Mills, a port property developed by Urban Olympia.
Port Community and Economic Development Director Mike Reid discussed the potential lease with the Port of Olympia Commission at a meeting on Monday, Nov. 10.
Reid said staff are engaging with the developer through an exclusive 180-day negotiation agreement to assess the project’s feasibility while clarifying goals for the development.
Under the current agreement, the port would temporarily take the property off the market. The port would also contribute up to $50,000 toward joint planning efforts.
Reid said it was important to be on the table for the planning of the project to influence its outcome so that it meets certain community needs.
“There's a handful of conversations that we want to be a part of,” Reid said. “They are important to us, and we do not want to just exclusively relegate them to the developer as their singular responsibility.”
He said staff are looking to get the developer to commit 40 units for workforce housing, which is defined as housing where rent and utilities do not cost more than 30% of the tenant’s monthly household income and where the income is 80% of or lower than the area median income.
Other priorities for the port include road access, connectivity and public space areas.
Reid added that the properties are tied to multiple environmental considerations, including a covenant that requires the Washington State Department of Ecology to review and approve any development plans for the site.
Reid explained the covenant was established due to upland contamination on the site, which requires soil excavated from the area to be assessed for contaminants.
He added an underground pipe carrying the Moxlie Creek touches the corner of one of the parcels.
Though the commission did not take any action regarding the proposed development, some commissioners expressed support for the project.
Commissioner Jasmine Vasavada expressed appreciation for the staff’s initiative to engage in joint planning.
“I appreciate you entering into this small level of joint planning upfront,” Vasavada said. “I do think we heard from citizens and residents that connectivity to downtown right now — it feels like there's a desert space between downtown and the port peninsula. … I appreciate this approach, and I'm in favor of it.”
Reid noted the current agreement does not require the commission’s approval due to its brief duration. Should the port and the developer move forward, Reid said port staff would return to the commission to request approval of a lease agreement.
Editor's note: This story has been updated to remove a reference to the number of units in the lede.
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Southsoundguy
Almost 50% of the units to be subsidized? Spike Olympia into the dirt more.
Friday, November 14, 2025 Report this
KatAshe
I’d like to know what the elevation above current sea level is? 20-30 years from now will the current street level still be above the highest tides, or will the street level units be unrentable due to constant ‘flooding’?
Friday, November 14, 2025 Report this
HarryBranch
Built in 2021, the Westman Mill complex was the subject of a legal challenge. The decision was that the appellants lacked standing. The case has become the poster child for rights of nature movements. Now the Port pushing an extension as the East Bay Real Estate District. Is there a corresponding East Bay Restoration District? Nope. Here in Budd Inlet there has been, in the past 40 years, a well documented loss of bird and fish species due to persistent contamination and loss of habitat. Puget Sound is a liquid environment. What happens in Budd Inlet spreads. These things could be fixed but the term restoration is not part of our lexicon. It's all about mitigation, stewardship and sustainability.
Friday, November 14, 2025 Report this
OvercastDays
While there probably isn’t much possibility of daylighting Moxlie Creek, I’d still be livid if they try to build on that lot that the pipe goes through. The other two lots could be developed into workforce housing, and that would be good, I guess. Commissioner Vasavada is right that there’s a desert between Downtown and the Port Peninsula, at least if a few solid blocks of small warehouses constitue a desert. The port peninsula doesn’t really seem like the place to be building housing, though, and exclusive agreements with developers don’t exactly inspire great feelings on my end. I hope the new commissioners, once sworn in, will bring a different perspective to this process.
Saturday, November 15, 2025 Report this
jwiley
This area is essentially a liquefaction zone in the likely event of earthquakes. It is also a toxic waste dump under its graveled innocuous looking surface, as is the whole contrived peninsula. The issue of sea level rise is a good one, but yet it took years to get DOE Superfund site's dioxin scrubber evaluated to see if that site could withstand sea level rise. Had to write a lot of letters and make a lot of phone calls. For now it is a paved over parking lot. Nothing to see here folks... Add in an earthquake and all the work of putting historic toxins into one place, that after the fact, happened to have an aquifer discharging into it, and then requiring the filtering out said toxins, will be for naught. Already, they had damaged infrastructure from the last earthquake, where storm drains were spewing out dioxin levels in the 4K ppt amounts onto a heavily used beach in front of Anthony's Homeport. POO again thinks it can make itself whole by creating more leasing infrastructure on their property. As much as I love the Farmer's Market and the restaurants, I also know what lies below. I saw what happened in SF with their 1989 earthquake, and I saw what happened on the fill areas of downtown with our last one. Will the Port require earthquake and flooding insurance? A better project: Moxlie Creek should be daylighted and restored.
Saturday, November 15, 2025 Report this
Bobwubbena
Let's be honest. The City of Olympia's marine waterfront is what they (the City) permitted an allowed to happen for the last 100 years. In about 1920 the Port of Olympia was formed and inherited the then existing industrial waterfront that the community is currently trying to "reclaim" (Clean Up) It is not a Port problem. It is a City of Olympia problem along with the State DES. We all need to work together to develop and FINANCE a plan that supports our future AGREED upon objectives'. At this point it is finger pointing to the others. The new State 30% plan is woefully incomplete) The taxpayer of Thurston County are the same for all projects. Let's get REAL. this is a $1.0 Billion dollar issues that no one is in charge of. Taxpayers, get ready for the excuses and reason $1.0 billion is needed from the STATE or you to address this issue.
Friday, January 23 Report this