Title
Discussion on next steps for PBIA Phase 2 Project
Recommended Action
Information only. No action requested
Report
Issue:
Discussion on the next steps for Phase 2 of the PBIA Reconfiguration Project
Staff Contact:
Jennica Machado, Economic Development Director, 360.480.9167
Presenter(s):
Jennica Machado, Economic Development Director
Background and Analysis:
The PBIA Board was established to develop an annual recommendation to the City Council about how to invest the PBIA Fund. In recent years, concerns have emerged around the equity of the assessment structure, program sustainability, and administrative complexity.
In 2024, the PBIA Advisory Board discussed potential next steps, including the possibility of dissolving the district. After extensive discussion, however, the Advisory Board determined that further evaluation was needed to assess current conditions and identify potential paths forward for the PBIA. City Council similarly indicated that a comprehensive evaluation would be beneficial.
In late 2025, the evaluation project was initiated, and the PBIA Advisory Board selected Uncommon Bridges as the project consultant. The evaluation examined the PBIA structure, operations, fee, and administrated processes and identified potential recommendations for improvement based on best practices from comparable downtowns. Uncommon Bridges has now completed the evaluation and will present its final findings and recommendations.
The PBIA Advisory Board received the final recommendations at their monthly meeting on March 4, 2026. The Board voted to recommend that City Council approve implementation of the report’s roadmap actions by advancing to Phase Two. The recommendation included a contingency requesting that the City match the Advisory Board’s use of PBIA funds to support the Phase Two scope of work.
On March 25, 2026, the PBIA Evaluation was presented to the Community Livability and Public Safety (CLPS) Committee. The Committee recommended that Council approve the Evaluation recommendations, meaning to proceed with the roadmap implementation plan or “Phase Two”.
On April 14, 2026, the PBIA Evaluation was presented to City Council. City Council approved Phase Two. However, any vote to change the rate and administrative structure will be brought forward for Council approval at the conclusion of Phase Two, after additional proposal development and stakeholder outreach is conducted.
Climate Analysis:
The PBIA evaluation does not directly affect climate mitigation sectors. The project is focused on evaluating the PBIA’s fees, structure, governance, and administrative processes to determine whether and how the district could be restructured to continue operating.
Advancing the project to Phase Two would support planning and stakeholder engagement to determine the PBIA’s future structure and operations. While the evaluation itself does not result in direct climate impacts, future PBIA activities could potentially support sustainability initiatives for downtown businesses depending on future priorities and work plans.
Equity Analysis:
Business and property owners within the PBIA district may benefit from the evaluation by gaining a clearer understanding of how the program operates and identifying opportunities to improve fairness, transparency, and effectiveness of the district. Advancing to Phase Two would also provide an opportunity for broader stakeholder engagement to ensure the perspectives of affected businesses are incorporated into potential changes.
The evaluation itself does not impose new financial burdens; however, the existing PBIA assessment structure has raised concerns about equity among assessed businesses. Phase Two planning and engagement would allow stakeholders to explore these concerns and identify potential changes that could create a more equitable fee structure.
Neighborhood/Community Interests (if known):
The downtown Olympia neighborhood, specifically the business community, may be interested in the evaluation considering PBIA funded programs directly impact cleanliness, safety, beautification, and overall economic vitality in the area. Additionally, any future change in rates may directly impact downtown business owners within the PBIA ratepayer zones.
Options:
Discussion Only- No Action Required
Financial Impact:
Phase Two is funded through up to $25,000 of PBIA funds and is matched by the City Economic Development Reserve Fund.
Attachments: