Title
Approval of an Ordinance Amending Olympia Municipal Code Titles 14 And 18 and Establishing a Planned Action for the Capital Mall Triangle Subarea
Recommended Action
Land Use & Environment Committee recommends approval of an Ordinance amending Olympia Municipal Code Titles 14 And 18 and establishing a Planned Action for the Capital Mall Triangle Subarea.
City Manager Recommendation:
Move to approve on first reading, and forward to second reading, an Ordinance amending Olympia Municipal Code Titles 14 and 18 and establishing a Planned Action for the Capital Mall Triangle Subarea.
Report
Issue:
Whether to approve on first reading, and forward to second reading, an Ordinance amending Olympia Municipal Code Titles 14 and 18 and establishing a Planned Action for the Capital Mall Triangle Subarea.
Staff Contact:
Susan McLaughlin, Director, Community Planning & Economic Development, 360.753.8206
Tim Smith, Deputy Director, Community Planning & Economic Development, 360.570.3915
David Ginther, Senior Planner, Community Planning & Economic Development, 360.753.8335
Presenter(s):
David Ginther, Senior Planner
Michelle Swanson, Senior Planner
Background and Analysis:
In July 2024, the Capital Mall Triangle Subarea Plan was adopted following significant public outreach and public participation opportunities. The adopted plan contains a vision for the Capital Mall area to:
1. Eventually transition to a high-density mixed-use neighborhood where people can walk, roll, or take the bus to obtain goods, services, and entertainment.
2. Keep the subarea a regional draw for the retailers and other businesses.
The subarea plan, and the environmental impact statement completed for the project, contain recommendations for changes to development regulations to encourage the envisioned type of development. The proposed development regulation changes in the Planned Action Ordinance only apply within the Capital Mall Triangle Subarea. The proposed changes include establishing an Affordable Housing Height Bonus Overlay in the core of the subarea, increasing building heights in the High-Density Corridor zones within the subarea, moving building setbacks higher in some instances, and making parking requirements more flexible for retail, restaurants, offices, shopping centers, and daycares. The Planned Action Ordinance also includes transportation mitigation identified in the environmental impact statement.
The environmental impact statement provided up-front environmental review for future development which allows proposed development consistent with the Capital Mall Triangle Subarea plan to move forward with a streamlined project-level environmental review process. The ordinance establishes a limit, called a trip cap, on the cumulative number of vehicle trips generated by new development. Development that occurs prior to the trip cap being reached is allowed a streamlined environmental review process. When development is proposed, it would exceed the trip cap it is to be required to conduct full environmental review. All development is still subject to all applicable standards and development regulations.
The Land Use and Environment Committee reviewed the Planned Action Ordinance on February 20, 2025, and again on March 27, 2025, and has forwarded the ordinance to the full City Council with a recommendation for approval.
Climate Analysis:
The planning project will result in long-term reduction of greenhouse gas emissions. It will facilitate the development of high-density residential housing in a core urban area that is designated in the City’s comprehensive plan for high-density housing mixed with commercial and other services. Development of high density housing in this area will result in a number of benefits in regards to climate impacts including the following: reducing sprawl; providing needed housing in close proximity to goods, services, and jobs; providing more efficient housing that consumes less energy, less drinking water, and produces less wastewater; construction of a more efficient transportation network with more connections and more opportunities for active forms of travel; and a reduction in vehicle miles traveled.
Equity Analysis:
The community will benefit from additional housing being developed. There is significant nationwide data which shows that increasing the housing supply has a positive impact on the cost of renting or buying housing. The additional inventory of housing will help to address the high demand and provide much needed housing for the additional residents expected in the next 20 years. Both those seeking affordable housing as well as market rate housing will benefit from additional housing options.
The proposed Affordable Housing Height Bonus Overlay allows additional building height if at least 30% of the dwelling units are affordable for those making 80% of the area median income or less. Using the 30% threshold will allow for a mix of affordable and market rate housing in the same development.
The ordinance proposes to increase building heights in the High Density Corridor zones which would allow for more residential units to be contained in a building. Businesses in general will benefit from additional residents (potential customers) living near their establishments. Smaller businesses could be impacted by rising property values and higher commercial rents within the subarea. This could occur as the area develops and becomes a more desirable location in which to live and conduct business. The subarea plan provides several recommendations on methods to mitigate potential impacts to the business community including economic displacement.
Neighborhood/Community Interests (if known):
This Planned Action Ordinance is implementing the Capital Mall Triangle Subarea Plan that was written using community input over a two-year period. Extensive outreach was conducted for the subarea planning project using multiple methods and a variety of participation opportunities were offered. A public hearing on the ordinance was held by the Planning Commission on January 6, 2025.
Financial Impact:
There is no specific cost related to this item.
Options:
1. Move to approve on first reading, and forward to second reading, an Ordinance amending Olympia Municipal Code Titles 14 and 18 and establishing a Planned Action for the Capital Mall Triangle Subarea.
2. Amend the Capital Mall Triangle Subarea Planned Action Ordinance and approve with amendments.
3. Don’t approve the Capital Mall Triangle Subarea Planned Action Ordinance
Attachments:
Ordinance
Planning Commission Recommendation
Public Comment
Project Webpage