Title
Approval of a Resolution Authorizing the Sale of City Owned Real Property Located at 900 Plum Street SE to Island Enterprises, Inc., a Wholly Owned Enterprise of the Squaxin Island Tribe, a Federally Recognized Indian Tribe
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve a Resolution of the City Council of the City of Olympia, Washington, authorizing the sale of city owned real property located at 900 Plum Street SE to Island Enterprises, Inc., a wholly owned enterprise of the Squaxin Island Tribe, a federally recognized Indian Tribe, for future redevelopment and authorize the City Manager to sign the Purchase and Sale Agreement.
Report
Issue:
Whether to approve a Resolution of the City Council of the City of Olympia, Washington, authorizing the sale of city owned real property located at 900 Plum Street SE to Island Enterprises, Inc., a wholly owned enterprise of the Squaxin Island Tribe, a federally recognized Indian Tribe, for future redevelopment and authorize the City Manager to sign the Purchase and Sale Agreement.
Staff Contact:
Jay Burney, City Manager, CMO, 360.753.8740
Mark Barber, City Attorney, 360.753.8223
Presenter(s):
Jay Burney, City Manager
Kris Peters, Chair, Squaxin Island Tribe
Background and Analysis:
On October 7, 2023, the Squaxin Island Tribe and the City of Olympia renewed their long-standing Accord agreement. The Accord commits both the Squaxin Island Tribe and the City of Olympia to work together on several long-term initiatives. These initiatives include supporting economic and infrastructure opportunities, addressing climate change, and promoting cultural exchange through public art and community service. The Accord underscores the mutual dedication to fostering economic development, highlighting the commitment to purse joint opportunities that benefit the community.
On or about March 10, 2025, the City received an offer from Island Enterprises, Inc., a wholly owned enterprise of the Squaxin Island Tribe, a federally recognized Indian Tribe, duly signed by its Chief Executive Officer, David Burnett, pursuant to Tribal Council Resolution No. 25-18, offering to purchase City owned property located at 900 Plum Street SE (commonly known as the Lee Creighton Justice Center) for $8,200,000.
The City’s property is generally described as Thurston County Tax Parcel No. 78202500100, totaling approximately 10.47 acres of land, more or less, on one Assessor’s parcel. The prospective buyer has expressed interest in redevelopment of the property.
Built in 1966, the property served as Olympia’s City Hall until 2011. Repurposed as the Lee Creighton Justice Center, the campus has served as the location of the City of Olympia’s Municipal Court, jail, the Yashiro Japanese Garden, Plum Street Village Tiny Home Village, and Saturday Waste Drop-off site.
The City has determined by inspection and analysis that the property has reached the end of its useful life for municipal purposes, including housing the Olympia Municipal Court and associated offices for court staff, prosecutors, probation, and public defense, and that the City’s cost to maintain the facilities in functioning order is no longer economically feasible. Similar concerns around building condition prompted the closure of the City’s jail in 2023.
The discussions and offer from the Squaxin Island Tribe to acquire the property has come at an opportune moment as the City is facing both a difficult budget environment and a replacement price tag of tens of millions of dollars to either renovate, relocate, or construct a new municipal court facility.
Under the agreement being considered by the Council, the City will have 18 months of free use of the property. The City will use that time, and the proceeds from the sale, to find an alternative for its municipal court. Alternatives being explored include relocation to the City-owned property at 108 State Avenue, or contracting with Thurston County, who provides regional municipal justice programs and services for most other communities in Thurston County.
Climate Analysis:
The redevelopment of the property by the Squaxin Island Tribe along transportation corridors that contain public transit routes is entirely consistent with, and a priority within, the Thurston Climate Mitigation Plan. Such redevelopment is necessary to reduce greenhouse gas emissions and reducing the need to continue urban sprawl. Further, the 65+ year old structure comprising the Justice Center is beyond its useful life and inefficient with regard to the existing heating, ventilation, air conditioning (HVAC), and roof systems.
Equity Analysis:
The offer presented to the City is an opportunity to partner with the Squaxin Island Tribe in redevelopment of lands historically occupied by ancestral tribal members before the arrival of settlers in the South Puget Sound region. The Squaxin Island Tribe, through the Steh-Chass people, has since time immemorial occupied the lands and water in and around what is now known as the City of Olympia. This partnership aligns with the commitments outlined in the Accord between the City of Olympia and the Squaxin Island Tribe, which formalizes collaboration on economic development, infrastructure, and cultural initiatives. This effort, in alignment with the Accord, is mutually beneficial, providing an opportunity for economic growth for the Tribe, the City, and the surrounding area in a major transportation corridor of the City.
Neighborhood/Community Interests (if known):
The property is located on a primary commercial transportation corridor off Interstate 5 in the City. Redevelopment of the site will promote future commercial growth in the area.
Financial Impact:
The City’s property was most recently appraised on April 24, 2024, with a market value of the fee simple interest in the property as of the date of inspection on April 10, 2024, estimated at $9,020,000. The negotiated purchase price of $8,200,000 is within ten percent (10%) of the appraiser’s estimated value of the Property and is a reasonable counteroffer.
The Purchase and Sale Agreement provides that the City has the right to leaseback the property, without payment of rent but only a maintenance obligation, for a period of 18 months. The Purchase and Sale Agreement does not make any additional financial obligations on behalf of the City of Olympia.
Options:
1. Move to approve a Resolution of the City Council of the City of Olympia, Washington, authorizing the sale of city owned real property located at 900 Plum Street SE to Island Enterprises, Inc., a wholly owned enterprise of the Squaxin Island Tribe, a federally recognized Indian Tribe, for future redevelopment and authorize the City Manager to sign the Purchase and Sale Agreement
2. Do not approve the Resolution authorizing the sale of the City owned property at 900 Plum Street SE to Island Enterprises, Inc.
3. Direct staff to make alterations to the Purchase and Sale Agreement and return to Council for action at a future date.
Attachments:
Resolution
Agreement