Title
Approval of a Resolution to Set a Public Hearing on $0 PBIA Rate Extension
Recommended Action
Committee Recommendation:
Not referred to a committee
City Manager Recommendation:
Move
Move to approve the Resolution to set a Public Hearing on $0 PBIA rate extension.
Report
Issue:
Whether to approve the resolution to set a Public Hearing on $0 PBIA rate extension.
Staff Contact:
Jennica Machado, Economic Development Division Director, Community Planning and Economic Development, 360.480.9167
Presenter(s):
None - Consent Calendar Item
Background and Analysis:
RCW 35.87A authorizes cities to establish Parking and Business Improvement Areas (PBIAs) to support economic development and neighborhood vitality. The Olympia PBIA was formed in 2005 to fund downtown activities and projects such as, parking improvements, clean and safe services, beautification, public art, wayfinding, business recruitment and retention, and marketing. The PBIA has historically been funded through annual special assessments on businesses within its boundaries.
In 2024, the PBIA Advisory Board determined that a full program evaluation was needed and initiated that process in 2025, with completion expected in February 2026. To allow for evaluation and implementation of recommended changes, the Advisory Board reached a consensus that the PBIA assessment rate for 2026 should be set at $0 so the program can be restructured and relaunched without levying additional assessments during this transition year.
Under RCW 35.87A.140, any change to a PBIA assessment rate requires Council approval following adoption of a Resolution of Intent and a public hearing held at least 15 days later. The proposed Resolution sets a public hearing for December 16, 2025, at 6:00 p.m. or thereafter, for Council consideration of an ordinance establishing the 2026 PBIA assessment rate at $0.
Climate Analysis:
This item does not effect climate emissions.
Equity Analysis:
Setting the 2026 PBIA rate at $0 reduces financial burden on downtown businesses. The evaluation and implementation period provides an opportunity to assess and improve equity in the PBIA fee structure.
Neighborhood/Community Interests (if known):
The downtown Olympia neighborhood would be interested considering PBIA-funded programs directly impact cleanliness, safety, beautification, and overall economic vitality in the area. No public or neighborhood comments were received.
Financial Impact:
Setting the 2026 PBIA assessment rate to $0 means the City and the PBIA program will not collect any assessment revenue for that year.
Options:
1. Approve the Resolution to set a Public Hearing on $0 PBIA rate extension.
2. Modify the Resolution to set a Public Hearing on $0 PBIA rate extension.
3. Do not approve the Resolution to set a Public Hearing on $0 PBIA rate extension- If not approved, PBIA fees will resume at the 2024 rate level before potential changes are proposed in 2026.
Attachments:
Resolution