Title
Land Use and Urban Design Chapter of the Comprehensive Plan Periodic Update
Recommended Action
Information only. No action requested.
Report
Issue:
Briefing on proposed amendments to the 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 underway with a major periodic update of the Comprehensive Plan. For the last Periodic Update, the City’s Comprehensive Plan underwent a major rewrite through a planning process that took place from 2009 through 2014. The Plan was adopted in December of 2014. There have been a few amendments to the Land Use and Urban Design chapter over the years through the “annual amendments” process. At least once every 10 years, cities and counties that are fully planning under the Growth Management Act (GMA), must update the plan through a process known as the Periodic Update. The Periodic Update requires that jurisdictions update the planning horizon to a minimum of 20 years, update the population projection it is planning for, and address all new state planning requirements that have been adopted since the previous update.
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 (EIS) Scoping Comments
When the scoping notice for the EIS was issued in February, it was noted that the Alternatives that would be considered in the analysis would be based on variations of elements such as the mix of residential, commercial, and industrial zoning and land uses, employment growth scenarios, and housing types, density, and location. The notice also clarified that the City does not intend to propose an expansion of the Urban Growth Boundary as part of this Plan update under any Alternative. This is because the land capacity analysis that was prepared by Thurston Regional Planning Council showed that the City has adequate land supply to accommodate the population growth within the existing urban growth boundary.
Early City Council Input
The City Council identified several areas of interest for the update, some of which are described here.
• The area along Plum Street, between the I-5 Interchange and State Ave or Olympic Ave currently has several different designations for land uses and multiple zone districts. The City Council suggested that the number of designations and zone districts could be reduced.
o A policy has been added to address this issue (PL17.9)
• Neighborhood Centers and the possibility of allowing more small-scale commercial uses in neighborhoods could be considered.
o For a description of the changes on these two subjects, see the sections of this staff report titled “Neighborhood Centers” and “Small scale neighborhood commercial uses”.
• Support for adding language directing staff to review and update Title 18, the Unified Development Code, in the future to reduce the overall number of zoning districts, simplifying the language used in the code, and to evaluate other opportunities to make it easier to understand and to implement
o A new policy was added to address this issue (PL1.19).
Future Land Use Map
One of the cornerstones of the Comprehensive Plan is the Future Land Use Map. This map identifies where different land use types and intensities will occur. These designations are implemented through the zoning districts and other development regulations. Master plans for the provision of urban governmental services such as drinking water, sanitary sewer, storm and surface water, parks, and transportation are completed based on these designations.
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 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) were combined into a new land use designation called “Urban Residential”. A new description for the Urban Residential Designation was also created and is in Appendix A of the chapter. Council members provided guidance on this change and mentioned that the original names of these designations, especially “Low Density Neighborhoods” do not accurately convey the urban residential densities allowed in these areas. For example, some of the zoning districts that currently implement the “Low Density Neighborhoods” designation allow up to 12 dwellings per acre, which may not be viewed as low density by some people. The implementing zoning districts for this new designation will remain the same and no rezones are proposed as a result of this change.
Changes to the Chapter
The goals and policies for housing are being moved out of this chapter and integrated into the new Housing Chapter. The sections on annexation, moratoriums, and transfer of development rights that were in the Public Participation and Partners Chapter have been moved into the Land Use and Urban Design Chapter. The goals and policies for climate that relate to land use will be integrated into the chapter after the public review process for the Climate Action & Resilience chapter has been completed.
Recommendations from several sources, such as the Olympia Farmland Workgroup, the Neighborhood Centers Strategy report, and the Capital Mall Triangle Subarea Plan have been incorporated into the update of the chapter. Other amendments include addressing land uses near airports, updates to the values and vision statements based on community input, residential infill, neighborhood centers, small scale commercial uses in neighborhoods, mobility and accessibility, land use design that provides for social interaction opportunities, environmental justice, housing types and affordability, adaptive reuse of buildings, equitable access to green spaces, and evaluating simplifying the zoning code and reducing the number of zoning districts that implement the Comprehensive Plan.
Neighborhood Centers
Based on the direction from the Land Use and Environment Committee and the recommendations in the Neighborhood Centers Strategy report there are several changes to the chapter for Neighborhood Centers.
• Updated policies regarding the siting of Neighborhood Centers. (PL20.1, PL20.2, PL20.3)
• Updated the narrative and the policies to allow more flexibility for determining appropriate types of land uses in Neighborhood Centers
• Updated the Future Land Use Map to remove the three Neighborhood Centers that have the least potential for success
• Updated the description for the Neighborhood Centers future land use designation regarding the size (changed from 10 acres to 3 acres) and siting of neighborhood centers
Small scale neighborhood commercial uses
Commercial uses are currently prohibited within residential areas of the City of Olympia, with few exceptions. There are special exceptions for uses such as home occupations, childcare centers, plant nurseries, and hospice care. These uses have to meet specific requirements to minimize impacts on the adjacent residential area. Most of these uses are not the type of business that would serve a neighborhood. 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.
The chapter narrative has been updated and a new policy (PL19.6) has been added to allow for small scale commercial uses in neighborhoods. The amendments stress that there needs to be controls to minimize impacts to the neighborhood and nearby residents. The intention of having controls, such as a conditional use permit or design standards, is not to serve as a barrier to such development, but to ensure that appropriate rules are in place for compatibility between commercial and residential uses near each other.
Social Justice and Equity Commission
The Commission was pleased to see adjustments throughout the chapter that address equity, inclusion, and accessibility. For example, equity was added as one of the issues to consider for evaluating annexations. The term “walkable” was either replaced with “accessible” or supplemented with “walk, bike, or roll” to be more inclusive regarding accessibility. Adjustments were made throughout the chapter to accentuate that future housing should include a variety of housing types for varying 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 the growth capacity of the urban growth area, 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).
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 areas infill and 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 worked to ensure that there have been multiple opportunities for community members to provide comments during the process, as draft amendments are proposed, and at public meetings. There have been 10 briefings at public meetings for city commissions and committees, a public survey, an open house, two meetings for a special sounding board group made of neighborhood association members, a briefing at a Council of Neighborhood Associations meeting, and two community public meetings in June and July of 2025. A public hearing before the Planning Commission was held on July 21, 2025. A City Council study session is scheduled for September 16, 2025.
There has been a wide variety of diverse opinions and comments throughout the update process. Some of the issues that have drawn the most interest include the proposal to allow small scale commercial uses in neighborhoods, the combining of the three lowest density Future Land Use Designations on the Future Land Use Map into a new one called Urban Residential, and the issue of the impacts of lobbyist use/conversion of single-family homes in the South Capitol Neighborhood. The lobbyist issue is being worked on but is not part of the chapter updates at this time.
Options:
1. Receive the briefing.
2. Receive the briefing and provide feedback.
3. Receive the briefing at another time.
Financial Impact:
The Comprehensive Plan Periodic Update is being funded, in part, by a $175,000 grant from the Washington State Department of Commerce.
Attachments:
Draft Chapter
Annotated Draft Chapter
Webpage