Title
Approval of a Resolution Setting a Public Hearing to Consider an Ordinance Amending Olympia Municipal Code Related to the 2027 Parking and Business Improvement Area Assessment Rate
Recommended Action
Committee Recommendation:
Not referred to a committee
City Manager Recommendation:
Move to approve the Resolution setting a public hearing to consider an ordinance amending Olympia Municipal Code related to the 2027 Parking and Business Improvement Area Assessment Rate.
Report
Issue:
Whether to approve the Resolution setting a public hearing to consider an ordinance amending Olympia Municipal Code related to the 2027 Parking and Business Improvement Area Assessment Rate
Staff Contact:
Jennica Machado, Economic Development Director, Community Development, 360.480.9167
Presenter(s):
None - Consent Calendar Item
Background and Analysis:
RCW 35.87A authorizes cities to establish Parking and Business Improvement Areas (PBIAs) to support economic development and neighborhood vitality. The Olympia PBIA was formed in 2005 to fund downtown activities and projects such as, parking improvements, clean and safe services, beautification, public art, wayfinding, business recruitment and retention, and marketing. The PBIA has historically been funded through annual special assessments on businesses within its boundaries.
In 2024, the PBIA Advisory Board determined that a full program evaluation was needed and initiated that process in 2025, with the first phase of the project completing in April 2026, leading to phase two of the project continuing through 2026 and into 2027.
To allow for continued project progress and potential implementation of recommended changes, the PBIA assessment rate for 2027 should be set at $0 to allow for project completion without levying additional assessments during this time.
Under RCW 35.87A.140, any change to a PBIA assessment rate must be approved by Council. Prior to such approval, Council must adopt a resolution of intention to change the rate and then must hold a hearing on the proposed rate change, which must be held not fewer than 15 days following adoption of the resolution announcing the change.
The proposed Resolution sets a public hearing for December 8, 2027, at 6:00 p.m. or thereafter, for Council consideration of an ordinance establishing the 2027 PBIA assessment rate at $0. The subsequent ordinance will be proposed as a first and final reading.
Climate Analysis:
This item does not impact climate.
Equity Analysis:
Setting the 2027 PBIA rate at $0 reduces financial burden on downtown businesses. The evaluation and implementation period provides an opportunity to assess and improve equity in the PBIA fee structure.
Neighborhood/Community Interests (if known):
The downtown Olympia neighborhood would be interested considering PBIA-funded programs directly impacting cleanliness, safety, beautification, and overall economic vitality in the area. No public or neighborhood comments were received.
Financial Impact:
Setting the 2027 PBIA assessment rate to $0 means the City and the PBIA program will not collect any assessment revenue for that year.
Options:
1. Move to approve the Resolution setting a public hearing to consider an ordinance amending Olympia Municipal Code related to the 2027 Parking and Business Improvement Area Assessment Rate.
2. Move to approve, with modifications, the Resolution setting a public hearing to consider an ordinance amending Olympia Municipal Code related to the 2027 Parking and Business Improvement Area Assessment Rate.
3. Do not approve the Resolution to set a Public Hearing for PBIA rate - If not approved, PBIA fees will resume at the 2024 rate level before potential changes are proposed in 2027.
Attachments:
Resolution