Title
Approval of a Resolution Accepting the Olympia 2045 Land Use & Urban Design Chapter of the Comprehensive Plan
Recommended Action
Committee Recommendation:
The Land Use & Environment Committee recommends accepting the updated Land Use and Urban Design Chapter of the Olympia 2045 Comprehensive Plan.
City Manager Recommendation:
Move to approve a Resolution accepting the updated Land Use and Urban Design Chapter of the Olympia 2045 Comprehensive Plan.
Report
Issue:
Whether to approve the Land Use and Urban Design chapter of the Olympia 2045 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 major update occurred from 2009-2014, resulting in the adoption of the current plan in December 2014. Since then, only minor amendments to the Land Use and Urban Design chapter have been made through the City’s annual amendment process.
Under the Growth Management Act (GMA), fully planning cities and counties must complete a Periodic Update at least every 10 years. This process requires extending the planning horizon a minimum of 20 years, updating population projections, and incorporating any new state planning requirements adopted since the previous update.
Survey Results for Land Use and Urban Design Chapter
In March 2025, the City conducted a community survey to inform updates to the Land Use and Urban Design chapter. Although only 35 people participated, the responses still provided valuable insight into community 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 final survey question invited open comments, and most participants responded. Complete survey results are available on the chapter webpage (see Attachment 7).
Additional opportunities for public input were also provided throughout the chapter update process. These included public meetings and an open house for community members, as well as discussions with a small group from the Council of Neighborhood Associations that offered targeted feedback.
Environmental Impact Statement (EIS) Scoping Comments
When the EIS scoping notice was issued in February 2025, it identified that the alternatives analyzed would vary by factors such as the mix of residential, commercial, and industrial land uses; employment growth scenarios; and housing types, densities, and locations. The notice also clarified that the City does not plan to expand the Urban Growth Boundary (UGB) under any alternative, as a land capacity analysis by the Thurston Regional Planning Council found sufficient land within the existing UGB to accommodate projected population growth.
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 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. It was also suggested that a future planning effort for this area should be conducted.
o A policy has been added to address the designation and zone district issue (PL17.8)
o Plum Street has been added to the “Focus Areas” section of the chapter to facilitate future planning work for the area.
• Neighborhood Centers changes and allowing 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, which identifies where various land use types and intensities will occur. These designations guide zoning districts, development regulations, and master plans for public services such as water, sewer, stormwater, parks, and transportation.
Currently, about 70% of the City and its Urban Growth Area are designated as Low Density Neighborhoods. Three areas include a High Density Neighborhoods Overlay, where most new growth is expected. This overlay supports a mix of urban commercial and high-density residential development.
To better reflect actual development patterns, the three lowest-density designations-Low Density Neighborhoods, Medium Density Neighborhoods, and Mixed Residential-were consolidated into a new Urban Residential designation. A description of this new category is provided in Appendix A. The City Council supported this change, noting that previous terms, particularly Low Density Neighborhoods, did not accurately represent the densities allowed (up to 12 dwelling units per acre in some areas). The implementing zoning districts remain unchanged, and no rezones are proposed as part of this update.
Other Changes to the Chapter
The housing goals and policies previously included in this chapter have been moved to the new Housing Chapter. Sections on annexation, moratoriums, and transfer of development rights were relocated from the Public Participation and Partners Chapter to Land Use and Urban Design. Additionally, land use-related climate policies will be integrated after the public review process for the Climate Action & Resilience Chapter is completed.
The chapter update also incorporates recommendations from the Olympia Farmland Workgroup, the Neighborhood Centers Strategy Report, and the Capital Mall Triangle Subarea Plan. Other amendments address land uses near airports, updates to the values and vision statements based on community input, and new or expanded policies related to residential infill, mobility and accessibility, land use design that fosters social interaction, environmental justice, housing diversity and affordability, adaptive reuse of buildings, and equitable access to green space.
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, including PL20.3, 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 and were recommended for removal by the Neighborhood Centers Strategy report
• 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 must 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 policy PL19.6 has been added to allow for small scale commercial uses in neighborhoods. Policy PL19.2 has been modified to address home occupations and small-scale commercial uses. The amendments stress that there needs to be controls to minimize impacts on 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 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).
Land Use and Environment Committee
The committee received briefings on the draft chapter five times with the most recent 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 (PL1.20)
• 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). This was a recommendation from the Planning Commission also.
Note: The Planning Commission proposed adding a policy which would allow for increasing the zoning capacity for residential to handle five to ten times the 20-year growth projections. This was discussed by the Land Use and Environment Committee which suggested this topic be discussed with the full City Council at a study session. At the September 16, 2025, City Council Study Session this policy was removed from the draft chapter.
City Council Study Session
At the September 16, 2025, Study Session the City Council made a few changes to the chapter.
• It was decided to remove the policy which would have increased the City’s residential zoning capacity by five to ten times the amount necessary for the projected 20-year population. This was a policy recommended by the Planning Commission.
• The word “safe” was added to policies about pedestrian access (PL1.9, PL11.7, and PL12.8).
• The policies that deal with home occupations (PL19.2) and small-scale commercial uses in neighborhoods (PL19.6) were discussed. It was agreed that more work on the language in Policy PL19.2 would be done by Councilmember Gilman and Councilmember Madrone. The revised language is included in the draft chapter.
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 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. The Olympia Youth Council was briefed on August 20, 2025, and the Land Use and Environment Committee reviewed the draft chapter on August 28, 2025. The City Council reviewed the draft chapter at a Study Session on 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 separately from the chapter update.
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. Move to approve a Resolution accepting the updated Land Use and Urban Design Chapter of the Olympia 2045 Comprehensive Plan.
2. Move to approve a Resolution accepting the updated Land Use and Urban Design Chapter of the Olympia 2045 Comprehensive Plan with specific modifications.
3. Do not accept the Land Use and Urban Design Chapter of the Olympia 2045 Comprehensive Plan and direct staff to make specific changes to it for reconsideration at a future date.
Attachments:
Resolution
Land Use and Urban Design Chapter
Planning Commission Recommendation
Social Justice and Equity Commission Letter
Survey Results
Public Comment
Chapter Webpage
Presentation