Title
Approval of a Resolution Authorizing Amendment No. 1 to the Option to Purchase Real Estate Agreement for the Real Property Located at 3126 Pacific Avenue SE (Also Known as the Jungle Encampment)
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve the Resolution Authorizing Amendment No. 1 to the option to purchase Real Estate agreement between the City of Olympia and JJP Group LLC for the real property located at 3126 Pacific Avenue SE, Olympia, Washington.
Report
Issue:
Whether to approve the Resolution Authorizing Amendment No. 1 to the option to purchase Real Estate agreement between the City of Olympia and JJP Group LLC for the real property located at 3126 Pacific Avenue SE, Olympia, Washington.
Staff Contact:
Stacey Ray, Assistant City Manager, 360.753.8046
Presenter(s):
Consent Calendar Item
Background and Analysis:
The City of Olympia and JJP Group, LLC signed an Option to Purchase Real Estate Agreement (Option Agreement) on June 20, 2024, giving the City the option to buy real property located at 3126 Pacific Avenue SE. This property is commonly referred to as The Jungle encampment and contains the largest unhoused homeless encampment in Thurston County.
Staff have determined that the Property could support future uses such as temporary shelter, affordable housing, roadway access, wetlands protection, and open space - all of which benefit the entire Olympia community.
The Option Agreement currently expires on June 30, 2026. Both the City and JJP Group, LLC, wish to extend the option to purchase term for three years and amend the agreement, as allowed under Section 15.3 of the Option Agreement. Terms of the proposed Amendment No. 1 are:
• Option term is extended for three years to June 30, 2029.
• City will pay $80,000 per year for the extension.
• Option payments from 2024 and 2025 will not count toward the future purchase. price if the City exercises its right to purchase.
• Future Option payments made for 2026, 2027, and 2028, will count toward the purchase price if the City buys the Property. If the City chooses not to purchase, all payments are non-refundable.
• JJP Group, LLC gives the City full authority to allow homeless outreach workers onsite and to allow vehicles to access, drive on, and park on the Property to provide homeless outreach activities during the option period.
• JJP Group, LLC also gives the City the right to restrict access to the Property and trespass people from the Property during the option period.
The City of Olympia is working with the City of Lacey, Thurston County, Intercity Transition and regional service providers on a phased approach to reducing the population at The Jungle encampment with the goal of safety and compassionately closing it. A final timeline has not been set, and the current expectation is that the transition will happen in phases over time. Extending the option gives the group time to develop a transition plan, access the site to perform outreach, and trespass people if necessary.
Climate Analysis:
Developing the Property (like building a new road or housing) could increase carbon emissions, since the site is currently undeveloped. However, any future project will follow the Thurston Climate Mitigation Plan and include measures to offset emissions.
A new collector road will increase the efficiency of transportation by improving access to medical services, including Providence St. Peter Hospital, and by improving connections to the Martin Way transit corridor.
Moving people out of the encampment will allow cleanup and help protect the surrounding wetlands, which sequester carbon and provide natural cooling. Any construction near wetlands will include buffers to protect them.
Equity Analysis:
Olympia’s housing crisis disproportionately affects Black, Indigenous, and people of color due to past and current discriminatory policies.
The 2022 Assessment of Fair Housing shows that people using Housing Choice Vouchers or on the waitlist for housing assistance are more likely to be BIPOC, people with disabilities, and members of other protected classes.
Staff are committed to finding uses for this site that support people most impacted by the housing crisis and create opportunities for low-income residents, including pathways to homeownership.
Neighborhood/Community Interests (if known):
There is strong community concern about the safety and well-being of residents living in The Jungle encampment, as well as concerns about environmental damage and neighborhood impacts related to the unmanaged site.
Financial Impact:
The current purchase price is $3 million (subject to appraisal). Extending the option will cost $80,000 per year for three years, paid with Economic Development Reserve Funds. Option payments from 2026-2028 will apply to the purchase price if the City buys the Property. If the City does not, the payments are nonrefundable.
Options:
1. Move to approve the Resolution Authorizing Amendment No. 1 to the Option to Purchase Real Estate Agreement between the City of Olympia and JJP Group LLC for the purchase of real property located at 3126 Pacific Avenue SE, Olympia WA.
2. Move to approve the Resolution with Council-directed modifications.
3. Take no action. This may limit the City’s ability to address and mitigate The Jungle encampment.
Attachments:
Resolution
Amendment No. 1