Title
Olympia 2045 - Land Use and Urban Design Chapter of the Comprehensive Plan Update
Recommended Action
Committee Recommendation:
The Land Use and Environment Committee reviewed the draft Olympia 2045- Land Use and Urban Design Chapter of the Comprehensive Plan and suggested minor revisions. The Committee recommended the chapter be forwarded to the full City Council for discussion at a Study Session.
City Manager Recommendation:
Review and discuss the draft Land Use and Urban Design Chapter of the Comprehensive Plan.
Report
Issue:
Whether to review and discuss the draft Land Use and Urban Design chapter of the Comprehensive Plan.
Staff Contact:
Susan McLaughlin, Director, Community Planning & Economic Development, 360.753.8206
Tim Smith, Deputy Director, Community Planning & Economic Development, 360.570.3915
Joyce Phillips, Planning Manager, Community Planning & Economic Development, 360.570.3722
David Ginther, Senior Planner, Community Planning & Economic Development
360.753.8335
Presenter(s):
David Ginther, Senior Planner
Background and Analysis:
The City is currently conducting a major Periodic Update of its Comprehensive Plan. The last significant update involved a full rewrite of the Plan, developed through a planning process that spanned from 2009 to 2014, and ultimately adopted in December 2014. Since then, a few targeted amendments, primarily to the Land Use and Urban Design chapter, have been made through the City's annual amendment process.
Under the Washington State Growth Management Act (GMA), fully planning cities and counties are required to complete a Periodic Update at least once every 10 years. This update ensures that comprehensive plans continue to reflect current conditions, meet new state planning requirements adopted since the last update, extend the planning horizon to at least 20 years, and incorporate updated population projections.
Survey Results for Land Use and Urban Design Chapter
In March of 2025, a survey was provided to the community to gather information on updating the Land Use and Urban Design chapter. Thirty-five people participated in the online survey; recognizing the low response rate, staff was still able to glean respondent preferences:
* 45.7% of the participants indicated that they would like to see more emphasis on land use designs that provide for social interactions.
o 25.7% were unsure and 28.6% said they did not feel more emphasis was needed.
* 48.6% of the participants said that the current amount of the City designated as Low Density Residential is not consistent with their vision for the future of Olympia.
o 37.1% indicated the amount was in line with their vision for Olympia and 14.3% were unsure.
* When asked if they felt that neighborhood retail should be allowed City-wide (but with controls to assure compatibility) 60% said yes, 34.3% said no, and 5.7% were unsure.
* The last question in the survey provided an opportunity for any comments the participants wanted to share. Most participants took advantage of this opportunity. The survey results are posted on the chapter webpage (see Attachment 7).
Environmental Impact Statement Scoping Comments
When the scoping notice for the Environmental Impact Statement (EIS) was issued in February, it indicated that the Alternatives to be analyzed would explore different combinations of factors such as the mix of residential, commercial, and industrial zoning and land uses; employment growth scenarios; and the types, density, and location of housing.
The notice also made clear that the City does not intend to propose an expansion of the Urban Growth Boundary (UGB) under any of the Alternatives. This decision is based on a land capacity analysis conducted by the Thurston Regional Planning Council, which concluded that the City has sufficient land within the existing UGB to accommodate projected population growth.
Early City Council Input
The City Council identified several areas of interest to be addressed in the Comprehensive Plan update, a few of which are summarized below:
* Plum Street Corridor: The area along Plum Street between the I-5 Interchange and State Avenue or Olympic Avenue currently includes several different land use designations and zoning districts. The City Council suggested consolidating these to reduce complexity.
o A new policy (PL17.9) has been added to support this effort.
* Neighborhood Centers and Small-Scale Commercial Uses: The Council expressed interest in exploring the potential for more small-scale commercial uses within residential neighborhoods, as well as further development of Neighborhood Centers.
o For more detail, see the sections of this staff report titled "Neighborhood Centers" and "Small-Scale Neighborhood Commercial Uses."
* Unified Development Code (Title 18) Review: The Council supported the inclusion of policy language directing future updates to Title 18, the Unified Development Code. These updates would aim to reduce the number of zoning districts, simplify code language, and identify other opportunities to make the code easier to understand and implement.
o A new policy (PL1.19).was added to address this issue.
Future Land Use Map
One of the cornerstones of the Comprehensive Plan is the Future Land Use Map, which outlines where various land use types and intensities will occur. These land use designations are implemented through zoning districts and other development regulations. They guide the preparation of master plans for urban governmental services, including drinking water, sanitary sewer, stormwater and surface water management, parks, and transportation infrastructure.
While the majority of the City and its urban growth area (~70%) are currently designated for "Low Density Neighborhoods", there are three areas designated with the "High Density Neighborhoods Overlay". The three High Density Neighborhoods overlay areas are where the majority of new growth is expected to occur. This overlay enables development in the form of a mix of urban commercial and high density residential.
Three of the Neighborhood Centers shown on the existing map are proposed to be removed. This was recommended in the Neighborhood Centers Strategy Report due to these locations being very unlikely to develop into the visioned neighborhood centers. The points (stars) on the map that represent Neighborhood Center locations were changed to one-half mile diameter circles to indicate the approximate "walkshed" for these locations.
The three lowest-density land use designations (Low Density Neighborhoods, Medium Density Neighborhoods, and Mixed Residential) have been consolidated into a new designation called Urban Residential. A new description for this designation is provided in Appendix A of the chapter.
Councilmembers supported this change, noting that the original names, particularly "Low Density Neighborhoods", did not accurately reflect the urban residential densities permitted in these areas and could be misleading to the public. For example, some zoning districts within the former Low Density Neighborhoods designation allow up to 12 dwellings per acre, which may not be perceived as "low density" by many.
The zoning districts that implement this new Urban Residential designation will remain unchanged, and no rezones are proposed as part of this update.
Changes to the Chapter
Several structural and content changes are being made to the Land Use and Urban Design Chapter as part of the Comprehensive Plan update:
* Housing Policies: Goals and policies related to housing are being relocated to the newly created Housing Chapter.
* Content Reorganization: Topics such as annexation, moratoriums, and transfer of development rights, previously found in the Public Participation and Partners chapter, have been moved into the Land Use and Urban Design Chapter.
* Climate Policies: Land use-related climate goals and policies will be incorporated into this chapter after the public review process for the Climate Action & Resilience Chapter is completed.
* Incorporated Recommendations: The chapter update reflects input and recommendations from various sources, including the Olympia Farmland Workgroup, the Neighborhood Centers Strategy report, and the Capital Mall Triangle Subarea Plan.
* Additional Amendments: Other updates to the chapter address a broad range of topics, including:
o Land use near airports
o Revisions to values and vision statements based on community input
o Residential infill and housing diversity
o Neighborhood centers and small-scale commercial uses in neighborhoods
o Mobility and accessibility
o Land use designs that support social interaction
o Environmental justice
o Housing affordability and adaptive reuse of buildings
o Equitable access to green space
o Evaluation of zoning code simplification and potential reduction in the number of zoning districts implementing the Comprehensive Plan
Neighborhood Centers
Based on direction from the Land Use and Environment Committee and recommendations in the Neighborhood Centers Strategy Report, several updates have been made to the Neighborhood Centers section of the chapter:
* Policy Updates on Siting: Revised policies (PL20.1, PL20.2, PL20.3) provide updated guidance on the siting and development of Neighborhood Centers.
* Increased Flexibility in Land Uses: The narrative and associated policies have been updated to allow greater flexibility in determining the appropriate mix of land uses within Neighborhood Centers,
* Future Land Use Map Revisions: Three Neighborhood Centers with the lowest potential for success have been removed from the Future Land Use Map.
* Designation Description Update: The description of the Neighborhood Centers land use designation has been updated to reflect changes in typical size (reduced from 10 acres to 3 acres) and to clarify siting considerations.
Small scale neighborhood commercial uses
Commercial uses are currently prohibited within residential areas of the City of Olympia, with few exceptions, such as home occupations, childcare centers, plant nurseries, and hospice care. These exceptions must meet specific requirements to minimize impacts on surrounding residential areas. However, many of these uses are not the type of businesses that directly serve neighborhood needs.
The ability to allow small-scale neighborhood commercial uses in residential zones could allow for the organic growth of small-scale neighborhood-oriented businesses which could foster social cohesion and be easily accessible for residents to meet basic needs and amenities.
To support this shift, the chapter narrative has been updated, and a new policy (PL19.6) has been added to allow for these uses. The amendments emphasize the importance of implementing appropriate controls, such as conditional use permits or design standards, to ensure compatibility with surrounding residential areas. These controls are not intended to be barriers, but rather tools to support thoughtful integration of commercial uses while protecting neighborhood character and minimizing potential impacts.
Social Justice and Equity Commission
The Social Justice and Equity Commission expressed support for the adjustments made throughout the chapter to strengthen the focus on equity, inclusion, and accessibility. Notable changes include:
* Adding equity as a key consideration in the evaluation of annexation proposals.
* Replacing or supplementing the term "walkable" with more inclusive language such as "accessible" and "walk, bike, or roll", to better reflect the mobility needs of all community members.
* Updating language to emphasize that future housing should provide a diverse range of housing types to meet the needs of people with different income levels, lifestyles, and household sizes.
Planning Commission
The Commission was pleased with the updates to the chapter. The Commission's letter of recommendation specifically mentions their support for the new Urban Residential Future Land Use Designation, allowing small-scale commercial uses in residential neighborhoods, and a new policy regarding environmental justice. The Commission had several recommendations for additional amendments including support for "shared streets", increasing density allowances in the development code, and expansion of the Urban Corridor Future Land Use Designation. Please refer to the attached Planning Commission letter of recommendation for additional details (Attachment 3).
The Planning Commission was pleased with the updates to the chapter and highlighted several key elements in their letter of recommendation. Specifically, the Commission supports:
* The creation of the new Urban Residential Future Land Use Designation
* Allowing small-scale commercial uses in residential neighborhoods
* The addition of a new policy focused on environmental justice
In addition to their support, the Commission offered several recommendations for further consideration, including:
* Promoting "shared streets" to enhance multimodal access and neighborhood livability
* Increasing density allowances in the development code
* Expanding the Urban Corridor Future Land Use Designation
Please refer to the attached Planning Commission letter of recommendation for additional details (Attachment 3).
Land Use and Environment Committee
The committee received briefings on draft chapter five times with the latest meeting on August 28, 2025. The following are the main changes the committee made to the chapter:
* Allowing for small scale commercial uses in neighborhoods (PL19.6)
* Merging of the Future Land Use designations of Low Density, Medium Density, and Mixed Residential into a new one called Urban Residential (Appendix A)
* Added the Plum Street area as a new Focus Area for a future planning effort
* New policy to address new drive-through uses city-wide (PL1.21)
* New policy for developing a Food System Plan (PL24.16)
* New policy to develop a Cultural Resource Management Plan (PL3.9)
* New policy to evaluate expanding the Urban Corridor designation (PL13.9)
Note: The Commission introduced Policy PL1.20, which supports increasing residential zoning capacity to accommodate five to ten times the 20-year growth projections. This proposal was reviewed by the Land Use and Environment Committee, which recommended further discussion with the full City Council during an upcoming study session.
Climate Analysis:
The Land Use and Urban Design Chapter supports goals and policies to reduce greenhouse gas emissions. One of the primary ways this is done is by accommodating projected population growth within the existing urban growth area boundary. This will help our community become a more compact and urban city and will also prevent the city from sprawling into the adjacent rural and resource lands of Thurston County.
As the City continues to grow, the community will expand multimodal transportation options (sidewalks, bicycle lanes, public transit), provide for schools and parks in proximity to residents, work to locate schools and small scale commercial uses near residences, and work to balance issues like increasing urban tree canopy while also increasing opportunities for rooftop solar photovoltaic systems.
Compact urban growth also allows for efficient provision of services, such as drinking water and sanitary sewer, as well as police and fire protection.
Neighborhood Centers provide goods and services near where people live which allows for less dependence on vehicles which, in turn, also helps to reduce climate impacts. The Land Use and Urban Design chapter envisions that most residents will live within a quarter-mile of a Neighborhood Center. This is approximately the distance that most people are willing to travel without a car and is part of the goal of having a walkable and accessible "15-minute city".
Equity Analysis:
The Land Use and Urban Design Chapter contains goals and policies in support of planning for space for the businesses that provide goods and services in proximity to where people live and work. This will allow people to more easily meet their daily mobility needs without the use of a car. This will be a benefit for both existing and future residents, including lower income people that may not be able to afford a vehicle. Business owners could benefit from having more potential customers living in proximity to their businesses, however, increases in traffic congestion could impact businesses.
Policies encouraging infill will help with the creation of a variety of additional housing overall. This will provide more choices and options for those looking for housing. A larger supply of housing could help to mitigate some of the cost of housing which would be a benefit for both those looking to purchase or rent.
Both existing and future residents could be impacted as infill occurs and neighborhoods become increasingly dense. Impacts could include traffic, noise, and potential changes in the character of neighborhoods as they evolve over time. As infill occurs and areas become more desirable, rents and property values could increase. This could impact businesses and existing/future residents, especially those with low incomes.
Properties that have development potential could benefit landowners if they choose to invest in their properties to build new housing or commercial uses.
In the past there has been a lack of investment opportunities in marginalized communities due to historic inequities associated with redlining and other discriminatory practices. Marginalized communities often have to commute extremely long distances to find employment. By enabling small scale businesses, it provides ownership opportunities for entrepreneurs to bring investment to their neighborhood but also employment for local residents.
Neighborhood Centers also provide opportunities for social interactions which helps to prevent social isolation and loneliness.
Neighborhood/Community Interests (if known):
Staff have made a concerted effort to provide multiple opportunities for community input throughout the Comprehensive Plan update process. Public engagement has included opportunities to comment on draft amendments, participate in public meetings, and provide feedback through various forums. These efforts were designed to ensure transparency and broad community participation in shaping the Land Use and Urban Design Chapter
Key outreach and engagement activities have included:
* 10 public briefings for City commissions and committees
* A public survey and a community open house
* Two meetings with a special sounding board group composed of neighborhood association representatives
* A briefing at the Council of Neighborhood Associations meeting
* Two community public meetings held in June and July 2025
* A public hearing before the Planning Commission on July 21, 2025
* A briefing for the Olympia Youth Council on August 20, 2025
* A review of the draft chapter by the Land Use and Environment Committee on August 28, 2025
Throughout the update process, staff received a wide range of diverse opinions and comments from community members. Several topics generated significant public interest and discussion, including:
* The proposal to allow small-scale commercial uses in residential neighborhoods
* The consolidation of the three lowest-density Future Land Use Designations into a new designation called Urban Residential
* Concerns about the conversion of single-family homes to lobbyist uses in the South Capitol Neighborhood
While the issue related to lobbyist use of homes in South Capitol is being actively reviewed, it is not included as part of the current chapter updates.
Financial Impact:
The Comprehensive Plan Periodic Update is being funded, in part, by a $175,000 grant from the Washington State Department of Commerce.
Options:
1. Review and discuss the draft Land Use and Urban Design Chapter of the Comprehensive Plan.
2. Review and discuss the draft Land Use and Urban Design Chapter of the Comprehensive Plan at another time.
3. Do not review and discuss the draft Land Use and Urban Design Chapter of the Comprehensive Plan.
Attachments:
Draft Chapter
Annotated Draft Chapter
Planning Commission Recommendation
Social Justice and Equity Commission Letter
Survey Results
Public Comment
Director's Interpretation for Lobbyist Use of Residences
Project Webpage