Title
Parking Business Improvement Area 2025 Program Evaluation Process
Recommended Action
No action requested.
Report
Issue:
Discussion on the scope, timeline and support needed for a 2025 Parking Business Improvement Area program evaluation process
Staff Contact:
Stacey Ray, Assistant City Manager, 360.753.8046
Tim Smith, Interim Community Planning & Economic Development Director, 360.753.3915
Presenter(s):
Stacey Ray, Assistant City Manager
Tim Smith, Interim Community Planning & Economic Development Director
Background and Analysis:
On December 10, 2024, the Olympia City Council held a public hearing on the matter to reduce the Parking Business Improvement Area rates to zero dollars ($0) for all business types and locations in the district. The existing rates are codified in Olympia Municipal Code (OMC) 3.62.030.
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 recommended 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, 2024, 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 rate change was finalized by Council’s adoption of the 2025 Operating Budget on December 17.
The intent of conducting a program evaluation in 2025 is to engage stakeholders in addressing questions regarding the PBIA’s structure, funding, and goals to determine the optimal approach to supporting downtown needs.
The proposed program 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 purpose of this agenda item is to discuss with PBIA a draft scope of work for the program evaluation process, including confirming the scope and questions to be addressed, what type of consultant support is needed, and a timeline and key milestones.
Climate Analysis:
There is no anticipated climate impact from conducting a PBIA program evaluation in 2025.
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 have been concerns that the rate structure for PBIA up until this year 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. PBIA will not collect fees in 2025. Instead, using fund balance, which is currently at approximately $85,000, to fund the planting of flower baskets for 2025 and consultant support as needed for the program evaluation process.
Attachments:
None