Title
Public Hearing on the Intention to Change the Olympia Parking and Business Improvement Area Assessment Rate
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Hold a public hearing, and move to change the PBIA rate to zero dollars for 2025 consistent with the Council Resolution M-2580.
Report
Issue:
Whether to change the rate of for the Parking Business Improvement Area to zero dollars for the year of 2025 with the stated intention of using the year to do a program reevaluation.
Staff Contact:
Mike Reid, Economic Development Director, 360-753-8591
Presenter(s):
Mike Reid, Economic Development Director
Background and Analysis:
The Olympia Parking and Business Improvement Area (PBIA) was established by the City Council in 2005 under Ordinance No. 6375. It was brought forth by the downtown business community with a petition to the City Council to implement a self-imposed business tax that would be used to support downtown priorities. With the use of these collected funds the PBIA provides funding for various downtown programs, including parking improvements, public safety, beautification efforts, and business support initiatives.
In 2010, the City Council removed the PBIA’s renewal clause, allowing ongoing operations without a mandatory recertification or required program renewal. Other than a boundary modification there having been very few changes to the program as adopted in 2005, including there has been no change to rates, business classifications, or operational practices.
For 2025, the PBIA Advisory Board recommends conducting a comprehensive evaluation of the PBIA’s effectiveness and future role in downtown Olympia. To support this, they suggest setting the 2025 assessment rate to $0 for all ratepayers, utilizing $60,000 of the PBIA’s estimated $85,000 fund balance for program evaluation and downtown beautification, and retaining $25,000 as a reserve.
On November 19, 2025, City Council supported this recommendation with the passage of Resolution M-2580 “A Resolution Of The City Council Of The City Of Olympia, Washington, Stating Its Intention To Change The Olympia Parking And Business Improvement Area Assessment Rate And Setting A Time And Place For The Hearing On Such Rate Change”
The 2025 evaluation will engage stakeholders to address questions regarding the PBIA’s structure, funding, and goals to determine the optimal approach to supporting downtown needs.
The proposed 2025 evaluation is expected to include collaboration between the City and the PBIA Advisory Board to conduct a series of stakeholder engagements and listening sessions, exploring key questions and issues such as:
• Is the existing PBIA an effective model for supporting downtown needs?
• What changes would make the PBIA a more effective program?
• What is the role and structure of the Advisory Board?
• Should the rates and ratepayer structure be changed?
• Should the program be a business assessed model or a property owner assessed model?
• How should the program administration, invoicing, and fee collection process function?
• What are the program priorities?
• How and who will execute projects utilizing program funding?
The proposal would drop all rates, regardless of Zone, business type, or business size down to zero dollars ($0) for 2025.
The current rate structure, as published in Olympia Municipal Code 3.62, has not been amended or updated since its original passage in 2005.
Climate Analysis:
This resolution does not have a specific impact on climate.
Equity Analysis:
The PBIA’s mission to improve downtown Olympia aligns with broader city goals of fostering a safe, accessible, and attractive environment for all residents and businesses. The evaluation process will consider diverse community needs, ensuring equity remains a central priority in any potential restructuring or realignment of PBIA programs. There are concerns that the current rate structure for PBIA does not effectively take into account business size, structure, and industry segment.
Neighborhood/Community Interests (if known):
Downtown businesses and community members are likely to be interested in the future direction of the PBIA. The evaluation process will offer a platform for their input, addressing issues such as safety, aesthetics, and economic vitality.
Financial Impact:
The PBIA assessment typically generates around $90,000 through the process of invoicing and collecting a fee from approximately 450 businesses that are identified downtown. Those fees range between $150-750 per business. The fund balance is currently at approximately $85,000 so there is no immediate financial impact should the program stay with approved 2025 budget.
Options:
1. Hold a public hearing, and move to change the PBIA rate to zero dollars for 2025 consistent with the Council Resolution M-2580.
2. Do not hold a public hearing or move to change the PBIA rate to zero dollars for 2025 consistent with the Council Resolution M-2580.
3. Take other action.
Attachments:
Resolution M-2580
Olympia Municipal Code Chapter 3.62