Title
Approval of a Resolution Accepting the Economic Chapter of the Olympia 2045 Comprehensive Plan
Recommended Action
Committee Recommendation:
The Finance Committee recommends approving a resolution accepting the Economic Chapter of the Olympia 2045 Comprehensive Plan.
City Manager Recommendation:
Move to approve a resolution accepting the Economic Chapter of the Olympia 2045 Comprehensive Plan.
Report
Issue:
Whether to approve a resolution accepting the Economic Chapter of the Olympia 2045 Comprehensive Plan.
Staff Contact:
Jennica Machado, Economic Development Director, Community Planning & Economic Development, 360.480.9167
Presenter(s):
Jennica Machado, Economic Development Division Director
Background and Analysis:
Every ten years, the City is required by State law to review and update its Comprehensive Plan and implement development regulations. This update will look out to year 2045 to show, among other things, how the City will accommodate new population and employment growth. It is also an opportunity to make sure the Plan and Development Regulations meet current state requirements that have changed since the last major update of the Plan, and to ensure that the plan reflects our community values.
Each chapter is being updated separately, although staff is working diligently to ensure chapters are supportive of each other and consistent. Because chapters are being reviewed on different timelines, staff is requesting that the City Council “accept” each chapter but to refrain from adopting until all chapters are complete and any final adjustments can be made. For example, there will likely be modifications or additions to some goals and policies in this chapter as a result of the proposed Climate Action and Resilience chapter, which has not yet gone through the public hearing process or been reviewed by Council. Staff intends to bring all “accepted” chapters back to City Council in one full document for review and final action. The deadline to complete this periodic update of the Comprehensive Plan is December 31, 2025.
Summary of Changes to Chapter
Key revisions were made to strengthen the chapter’s focus on economic inclusion, flexibility, and place-based strategies. The updated chapter includes language that affirms the value of all workers across career paths and highlights the importance of “third place” spaces that foster social connection throughout the city. New content also addresses the local affordability gap as a factor influencing economic stability. To better support evolving economic patterns, the chapter was revised to promote flexibility in commercial infill through mixed-use zoning and to encourage development of “complete blocks”. Language was added for greater adaptability in storefront sizes and to explore flexible configurations for both living and commercial spaces.
Additional revisions were made to improve clarity and refine policy direction. Updates include expanding the discussion of supply chains, workforce dynamics, and industry transformation; increasing an emphasis on entrepreneurship and small business support; and integrating references to the Downtown Community Renewal Plan. The revised chapter also adds guidance on evaluating the use of public financing tools, promoting adaptive reuse as a revitalization strategy, and supporting year-round tourism through enhanced wayfinding and visitor infrastructure.
Summary of Public Process
The Economy chapter was designed to build on the Olympia Strong process. It focused on how to support economic strength and opportunities for residents, business, the Olympia community, and the city organization. Economic Development staff talked to hundreds of people in the Olympia community to understand needs and priorities. Through surveys, interviews, and listening sessions they sought to meet people where they were . They made a concerted effort to reach underrepresented and marginalized populations for their input.
Social Justice and Equity Commission
Staff had the opportunity to present the draft chapter at a Social Justice and Equity Commission meeting on May 20, 2024. The Social Justice and Equity Commission did not request any changes to the chapter.
Planning Commission Recommendation
The Planning Commission received briefings on the draft chapter at its meetings on June 5, 2023, and January 22, 2024. The public hearing was held on February 26, 2024. One person testified at the public hearing. The Planning Commission completed its deliberations and issued its recommendation letter on March 18, 2024. The Planning Commission made seven recommendations to help strengthen the chapter (see attached). The recommendations address expanding the definition of arts, clarifying that broadband is included in telecommunications infrastructure, addressing emerging technologies such as Artificial Intelligence, ensuring consistency with the Convention Bureau’s Destination Master Plan, promoting infill along Urban Corridor designated streets, supporting transit connections between the Capitol Campus and the Downtown with the intent of connecting people to jobs and services, and adding a new policy to note that public rights-of-way are a form of public infrastructure that can be used for economic and social benefits, such as street fairs, parklets, or other similar uses.
Council Committee Summary
The Economic chapter was brought to the Finance Committee on December 9, 2024 and again on June 16, 2025. The Finance Committee did not have recommendations for changes after the June 16th meeting.
Council Study Session Summary
During the council study session on the draft Economic chapter, council members emphasized the importance of recognizing the value of all workers, regardless of their career path. They expressed interest in incorporating “third place” spaces throughout the city to foster community connection and highlighted the need to address the local affordability gap. Collaboration with the Port of Olympia was identified as a priority to support both current and future needs of the Port. Council also encouraged ensuring flexibility in commercial infill through mixed zoning and promoting partnerships to create “complete blocks.” Lastly, they supported increasing flexibility in storefront sizes and encouraged exploration of adaptable living and commercial space configurations. The council decided to send the chapter back to the Finance Committee for another review, which took place on June 16, 2025.
Climate Analysis:
While the chapter itself will have no direct effect on greenhouse gas emissions, some proposed actions could advance climate and clean energy goals. For example, the career hub could provide job training opportunities in the clean energy sector; housing retrofit programs could promote long-term energy savings; business recruitment and retention efforts would focus on emerging sectors that align with Olympia values, including the clean energy sector; and initiatives that create unique and welcoming places and spaces in Olympia with ongoing focus in high density neighborhoods will benefit climate mitigation by increasing urban density and reducing urban sprawl, supporting use of public transit, and increasing walking/rolling and biking. Likewise, the plan indicates that developing a climate adaptation and preparedness plan can help build preemptive economic resiliency for all. As implementation occurs, actions will be further assessed for climate gains.
Equity Analysis:
Advancing economic equity was a central focus of this work. Thus, the planning process and resulting strategies aimed to reduce economic barriers and expand opportunities for all community members, ensuring that those who face higher barriers including historic discrimination were proactively engaged in the process so that their needs and ideas would be reflected in the proposals.
Neighborhood/Community Interests (if known):
The Olympia Strong plan and the Economy chapter’s proposed updates are the culmination of months of public engagement. Online survey reports are available at the Olympia Strong webpage. Additional written public comments received to date are attached.
Financial Impact:
A grant from the Washington State Department of Commerce, in the amount of $175,000 is helping to fund this work. Annual department budgets cover staff time, public outreach and engagement, and the majority of this work.
Options:
1. Accept the Economic Chapter of the Olympia 2045 Comprehensive Plan.
2. Accept the Economic Chapter of the Olympia 2045 Comprehensive Plan, with specific modifications.
3. Do not accept the Economic Chapter of the Olympia 2045 Comprehensive Plan and direct staff to make specific changes to it for reconsideration at a future date.
Attachments:
Resolution
Draft Chapter Track Changes
Draft Chapter Clean Copy
Planning Commission Letter
Social Justice and Equity Commission Letter
Public Comments