Title
Approval of an Ordinance Authorizing the Issuance by the City of Olympia of One or More Series of Tax-Exempt Obligations (the “Bonds”) Not to Exceed $28,600,000 to Finance Capital Improvements for the Development of a Community Park and Renovations of the Armory Building and Approving other Related Matters - FIRST AND FINAL READING
Recommended Action
Committee Recommendation:
At the Finance Committee’s June 16, 2025 meeting, staff received direction to present a debt package to Council that fully funds both the Armory Arts Center Phase I Renovations and Yelm Highway Community Park Phase I Construction with limited use of additional parks fund balances and minimal use of Non-voted Utility Tax (NVUT) ½% (sunsets 2029)
City Manager Recommendation:
Move to approve, on first and final reading, the Ordinance for the issuance by the City of Olympia of one or more series of tax-exempt obligations (the “Bonds”) for the development of a community park and renovations of the Armory building.
Report
Issue:
Whether to approve, on first and final reading, the Ordinance for the issuance by the City of Olympia of one or more series of tax-exempt obligations (the “Bonds”) for the development of a community park and renovations of the Armory building.
Staff Contact:
Sylvana Niehuser, Interim Director, Parks, Arts and Recreation Department, 360.753.8068
Mark Barber, City Attorney, 360.753.8223
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
Armory Arts Center
The City of Olympia is converting the historic 1938 Armory at 515 Eastside St SE into a community arts center rooted in equity, creativity, and connection. This long-standing community need, first identified in 1989, aligns with eight planning documents. The State transferred the building to the City in March 2022 for this purpose.
Yelm Highway Community Park
Located at 3323 Yelm Highway in Olympia’s Urban Growth Area, the park reflects 20 years of community planning, including land acquisition, master planning, and permit approvals. It will serve as a key regional recreation site.
Limited Tax General Obligation (LTGO) municipal bonds will be issued to finance the community park development and the Armory building renovations.
The bond sale will provide $26.57 million in project funding to construct the proposed community park and renovate the Armory building. The bond will be paid back using Voted Utility Taxes, Non-voted Utility Taxes (with a 20-year extension of $270K), and Metropolitan Park District Funding. The $26.57 million bond will have a repayment term of 30 years, with an average annual payment of approximately $1.72 million.
The City Council approved moving forward with the bond sale at its July 8, 2025, meeting.
Climate Analysis:
Through a partnership with the State Department of Enterprise Services and Ameresco, construction renovations of the Armory Arts Center will emphasize energy conservation. Despite increased use, emissions are expected to decline over time due to solar integration and energy-efficient upgrades. Solar panels and battery storage will reduce reliance on fossil fuels and enhance resilience as a community hub.
Yelm Highway Community Park will feature energy-efficient maintenance buildings with electric heat pumps and solar-ready infrastructure. The design supports low-carbon transportation with EV parking and proximity to a bus stop and residential areas. Sustainable landscaping includes drought-tolerant plants and synthetic turf to reduce water and fertilizer use, while natural features like forests and wetlands will be preserved.
Equity Analysis:
The Armory fosters creativity, innovation, and connection through the arts, guided by an equity framework. It prioritizes support for organizations serving marginalized groups, including BIPOC, LGBTQIA+, immigrants, individuals with disabilities, and youth. Olympia’s parks further equity by providing free, accessible spaces for social connection, well-being, and engagement with nature.
Neighborhood/Community Interests (if known):
The YES Olympia Parks Coalition was heavily involved in the formation of the Olympia Metropolitan Park District and members continue to take a strong interest in the parks system. Both projects have had extensive community engagement and have been supported by the community for decades.
Financial Impact:
The sale of Limited Tax General Obligation (LTGO) municipal bonds will provide $26.57 million in project funding for the development of a community park and renovations of the Armory building. The bond will be paid back using Voted Utility Taxes, Non-voted Utility Taxes and Metropolitan Park District Funding. The $26.57 million bond will have a repayment term of 30 years, with an average annual payment of approximately $1.72 million.
Options:
1. Move to approve, on first and final reading, the Ordinance for the issuance by the City of Olympia of one or more series of tax-exempt obligations (the “Bonds”) for the development of a community park and renovations of the Armory building.
2. Direct staff to make changes to the Ordinance and bring back at a future date.
3. Do not approve the Ordinance.
Attachments:
Ordinance