Title
Off-Street Parking Development Code Update
Recommended Action
Committee Recommendation:
The Planning Commission recommends adoption of the proposed amendments to Olympia Municipal Code Chapter 18.38 - Parking and Loading and forward to City Council for consideration.
City Manager Recommendation:
Move to recommend adoption of the proposed amendments to Olympia Municipal Code Chapter 18.38 - Parking and Loading and forward to City Council for consideration.
Report
Issue:
Whether to recommend adoption of the proposed amendments to Olympia Municipal Code Chapter 18.38 - Parking and Loading and forward to City Council for consideration.
Staff Contact:
Casey Schaufler, Associate Planner, Community Development, 360.753.8254
Presenter(s):
Casey Schaufler, Associate Planner
Background and Analysis:
In May 2025, Washington State passed SB 5184 to limit the on-site parking spaces that cities with more than 30,000 people may require for commercial and residential uses. Cities with a population of over 50,000 must implement the requirements of SB 5184 by January 27, 2027.
The Washington State Legislature found that parking requirements increase housing costs, discourage walking, biking, and transit use, and promote reliance on automobiles. The legislature found that the number of parking spaces that a project or use provides on site should be based on actual market conditions rather than blanket parking regulations. The regulations under SB 5184 do not set limitations on the maximum number of parking spaces an applicant can provide; rather, they limit the number of parking spaces that cities may require an applicant to provide (i.e., sets a cap on local parking minimums).
Olympia’s existing parking regulations set a minimum number of parking spaces required to be provided on a new proposed uses or changes of use at a site based on the underlying use of land, the number of units, or the square footage of the space, as outlined in Table 38.01, OMC 18.38.100 Vehicular and Bicycle Parking Standards. The underlying uses set a wide range of minimums and in some cases maximums, and permissible land use is dependent upon the zoning district.
In 2023, Olympia City Council adopted OMC Chapter 18.38 revisions to the motor vehicle parking requirements for new residential development, as follows:
• Retain current exemptions in the Downtown and for Accessory Dwelling Units;
• Remove parking minimums for residential units in the Capital Mall Triangle subarea;
• Remove parking minimums within a half mile of frequent transit service (transit service at least four times per hour for at least 12 hours a day);
• Require all other residential units in the city to have a minimum of 0.5 parking spaces per unit;
• Require at least one ADA space for multifamily projects 5-units or more; and,
• Retain the current maximum of 1.5 spaces per unit for residential developments with 3 or more units.
In the Downtown, where new residential developments are not required to provide automobile parking, parking is typically provided at a rate of 0.7-0.8 parking spaces per residential unit. Additionally, provisions in the parking code would still allow a developer to propose a parking modification to increase the number of parking spaces provided. The parking modification language, while proposed to be modified in this set of amendments, is currently allowed but rarely requested.
Following the 2023 amendments, ongoing discussion regarding parking minimums has continued at Council and various advisory commissions, notably the Planning Commission. These continued parking discussions were prominent during the Capital Mall Triangle Subarea planning and the Olympia 2045 Comprehensive Plan update.
Downtown parking capacity was highlighted in the Downtown Vacancy & Vitality Study, noting that while parking and the perception that parking is a challenge that can negatively impact visitor activity, it is not a significant driver of downtown vacancy. As illustrated in the Vacancy Study, downtown parking during peak hours approaches 90% capacity. Residential and commercial uses are already exempt from off-street parking standards in the Downtown Exempt Parking Area.
The proposed draft amendments address new state requirements while also continuing to reduce barriers to development of housing and commercial opportunities by eliminating mandated minimums for off-street parking. Certain off-street parking maximums still exist, but do not apply if a parking structure is provided. Amendments also continue toward meeting the City of Olympia’s land use, transportation and climate goals outlined in the Comprehensive Plan.
Amendments as proposed accomplish the following:
• Complies with changes to state laws and regulations, as outlined in the attached Washington Department of Commerce Residential Parking Checklist;
• Eliminates all parking minimums; parking minimums may be established for specific projects that require a conditional use permit;
• Significantly reduces parking use types found in table OMC 18.38 to only four categories: residential, commercial, industrial, and institutional/public facilities;
• Eliminates table 38.01;
• Standardizes bicycle parking requirements for each of the four new categories; in general, requires a minimum of at least two short-term spaces, with additional spaces required based on floor area;
• Reduces square footage threshold required of commercial space to require long-term bicycle parking; standardizes requirements for long-term bicycle parking in each newly established category (residential, commercial, etc.)
The Olympia Planning Commission received a briefing on the proposed amendments on October 5, 2026. It subsequently held a public hearing on October 19, 2026, with no members of the public providing testimony. Commissioners voted unanimously to recommend the proposed amendments with the following revisions:
• Remove upper limit of 12 required bicycle spaces for commercial uses (see 18.38.100 D3, E3, F3). As part of this suggestion the Planning Commission discussed ways for commercial space to share bicycle parking or get credit for nearby bicycle parking in the public realm.
• Exempt all bicycle parking requirements for change of use in existing commercial spaces less than 3,000 square feet for the Downton Exemption Area. Commissioners discussed that providing this flexibility will support conversion and occupancy of older buildings in the downtown exemption area.
• Maximum parking exemptions only apply to “multi-story parking structures” when the structure is a primary use. Intent is to avoid single-story garages built to exceed surface parking limits.
These proposed revisions from the Planning Commission are reflected in the attached draft proposed amendments.
Climate Analysis:
Proposed amendments would support a long-term reduction in greenhouse gas emissions. However, changes to parking requirements only impact new developments or substantial redevelopment projects. While the impact of these amendments may be incremental and slow to accumulate, staff believes the amendments would support the Thurston Climate Mitigation Plan mitigation strategies as follows:
T1. Set land use policies that increase urban density and reduce urban sprawl: By reducing the amount of land that must be dedicated to automobile parking, that land could be used for additional housing units (or other things like open space, vegetation/gardens). Accommodating population growth within the City limits and Urban Growth Area (UGA) will reduce sprawl outside of the UGA in rural and resource lands.
T2. Increase the efficiency of the transportation system: As our community becomes more compact and urban over time, more goods and services (and schools and parks) will be available within walking or bicycling distances to a greater number of residences. Trips that are taken by car may be a shorter distance and those shorter trips will reduce fuel consumption. Many of the zoning districts that accommodate the most multifamily housing units are zones that also allow for a mix of commercial land uses within the development or in close proximity.
T4. Increase the use of public transit: More compact and urban neighborhoods provide densities that support transit. As demand for transit increases, the frequency of transit service is likely to increase as well.
T5. Increase the use of active forms of travel, such as walking and biking: See T2 above.
Furthermore, proposed amendments meet the following Olympia 2045 Comprehensive Plan and Climate Element Implementation Plan goals:
PT21.4 Continue implementing policies to eliminate minimum parking requirements along urban corridors.
PT31.5. Limit parking spaces near transit-oriented development to encourage use of transit and decrease single-occupancy vehicle travel. (Climate)
PL1.12 Require new and encourage existing businesses to provide secure bicycle parking. (Climate)
PL16.5 Encourage the efficient use and design of commercial parking areas; reduce parking space requirements (but avoid significant overflow into residential areas); support parking structures, especially Downtown and in urban corridors; and designate streets for on-street parking where safe.
Equity Analysis:
Rents are generally designed to cover the development and maintenance costs of the site. If less parking is required to be built and more livable or rentable space is provided, the rent per unit could be lower than it otherwise would be. In some cases, property owners charge a rate for rent and a separate rate for per parking space, which would benefit those who do not own a car. With less space dedicated to motor vehicle use, there is potential for additional housing units.
Neighborhood/Community Interests (if known):
Interest in parking issues vary by neighborhood and housing types. Some neighborhoods have wide streets with long and/or wide driveways serving one, two, or three car garages. Some have ample on-street parking. Others have narrower streets with or without sidewalks. Most apartment complexes have ample parking lots to accommodate tenants and guests, but some do not.
Options:
1. Move to recommend adoption of the proposed amendments to Olympia Municipal Code Chapter Olympia Municipal Code Chapter 18.38 - Parking and Loading and forward to City Council for consideration.
2. Move to recommend adoption of the proposed amendments to Olympia Municipal Code Chapter Olympia Municipal Code Chapter 18.38 - Parking and Loading and forward to City Council for consideration with changes.
3. Do not recommend the proposed amendments.
Financial Impact:
The processing of these amendments is covered by the Community Development annual budget.
Attachments:
Draft Parking Chapter Amendments with Planning Commission Amendments
Olympia Planning Commission Comment Letter
Washington State Department of Commerce Residential Parking Checklist
Parking Update Information Sheet