Title
Approval of a Resolution Authorizing a Right-Of-Way Use Agreement with Olympia Computer LLC
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve a resolution authorizing a Right-of-Way Use Agreement with Olympia Computer LLC.
Report
Issue:
Whether to approve a resolution authorizing a Right-of-Way Use Agreement with Olympia Computer LLC.
Staff Contact:
Andrew Curtis, Engineering Program Specialist, Community Development, 360.753.8181
Jennica Machado, Director of Economic Development, Community Development, 360.753.8591
Presenter(s):
None - Consent Calendar Item
Background and Analysis:
Olympia Computer LLC, an Arizona limited liability company, owns and operates a computer services and retail business located at 209 Washington Street NE. Olympia Computer has requested continued use of the eastern portion of the adjacent east-west alley for commercial outdoor activity, including an accessory food or coffee cart and related customer-serving space, with the potential for outdoor seating as desired.
This east-west alley is not used for solid waste collection or deliveries and is not suitable for vehicle traffic. A combined sewer and storm collector main and an associated access manhole run beneath this alley, and the City will retain full access rights for inspection, maintenance, repair, and emergency work as needed.
This request represents a continuation of the City’s broader effort to support active commercial stewardship in underutilized downtown alleys - an approach intended to improve safety, cleanliness, activation, and overall downtown vitality. Additional guidelines and policies developed in recent years emphasize pedestrian-friendly design, visual transparency for safety, and high-quality streetscape improvements consistent with OMC 18.120 Downtown Design Criteria. In alignment with these standards, the access andght-of-Way Use Agreement requires Olympia Computer to maintain the area in good condition, provide a visually transparent and attractively designed gate equipped with a KNOX Box for emergency access, and allow pedestrian through-access during designated City-supported downtown events such as Arts Walk.
The City seeks to incentivize well-managed commercial use - or “stewardship”- of applicable alleys by offering a Clean Alley Credit, which provides a rent offset in exchange for maintaining the space to a higher standard of cleanliness and safety. Staff believes that Olympia Computer’s proposed use meets the intent of this credit, subject to the conditions outlined in the Right-of-Way Use Agreement. The proposed term of the agreement is four years, with the City retaining the right to cancel the agreement at its convenience. Public and private utility access will be retained as required.
Additionally, Washington State law requires cities to collect and remit Leasehold Excise Tax (LET) on private uses of public property pursuant to RCW 82.29A. This agreement serves as the mechanism through which the City will remain compliant with these statutory requirements.
Climate Analysis:
The proposed Right-of-Way Use Agreement supports several objectives in the Olympia 2045 Climate Action & Resilience Element, particularly those related to reducing greenhouse gas emissions, supporting compact urban development, and improving walkability in the downtown core. The Comprehensive Plan emphasizes lowering vehicle miles traveled and enhancing pedestrian-oriented environments as key climate mitigation strategies, noting that land-use decisions should encourage non-vehicular mobility and efficient, infill-focused growth patterns.
Inviting, pedestrian-friendly amenities within the public right-of-way make effective use of limited urban space, promote low-carbon transportation choices, and help cultivate a more vibrant, walkable downtown environment. The proposed use aligns with the Plan’s integration of climate considerations across land use, transportation, and natural environment chapters, and supports long-term resilience by contributing to adaptable public spaces and a stable, economically active downtown. The action does not introduce conflicts with climate policies, critical areas, or environmental justice goals and overall provides a positive climate impact by reinforcing the City’s mitigation and resilience objectives while enhancing an accessible urban core.
Equity Analysis:
The proposed Right of Way Use Agreement will place two gates at each end of the alley, resulting in the alley being closed during non-business hours and generally closed during business hours, except when opened at Olympia Computer’s discretion or during downtown community events identified by Public Works. This creates a consistent barrier to mid-block pedestrian movement between Capitol Way North and Washington Street NE. The impact on pedestrians is limited by fully accessible, ADA compliant sidewalk routes that provide predictable alternatives with only modest additional walking distance. No demographic group is excluded from nearby destinations, and individuals with mobility challenges retain continuous access through established sidewalk corridors.
Despite the closure, the agreement includes several measures that support equitable outcomes. The alley will be actively managed and regularly maintained, improving cleanliness, predictability, and supervision - conditions that benefit all users, particularly those disproportionately affected by unmaintained public spaces. Requirements for visual transparency in both gates, routine maintenance, and prompt removal of obstructions contribute to a safer and more welcoming environment when the alley is open. Life safety and emergency access are fully preserved through KNOX Box emergency access features and City review ensuring compliance with safety and accessibility standards. The agreement also includes a nondiscrimination clause requiring adherence to all applicable civil rights laws. Overall, while the closure creates a trade off in direct pedestrian connectivity, the action incorporates strong mitigations that preserve accessibility, ensure emergency entry, and enhance safety and maintenance outcomes in the surrounding public realm.
Neighborhood/Community Interests (if known):
Adjacent businesses have expressed support for activating and stewarding this underutilized alley, noting that more consistent care and visibility will improve walkability, safety, and the overall customer and visitor experience. Their feedback reflects a desire for a cleaner and better maintained environment in this portion of the downtown core.
City stakeholder groups - including Olympia Police Department (OPD), Olympia Fire Department, Code Enforcement, and the City of Olympia Clean Team - have indicated strong support for the proposal. They recognize that adding structure, consistent oversight, and regular maintenance in this alleyway will help reduce nuisance conditions, improve visibility, and contribute positively to safety within the surrounding public realm. These stakeholders also note that the design’s inclusion of two visually transparent gates, KNOX Box emergency access features, and clearly defined maintenance standards will ensure predictable, reliable emergency access and uphold essential life safety requirements.
The Olympia Downtown Alliance has identified “support[ing] a clean, safe, and healthy downtown” and ensuring streets “remain vibrant” as core goals in their mission and initiatives. Activating publicly managed alley spaces to enhance cleanliness, lighting, and overall vitality is directly consistent with their stated vision.
Given that this alley is not suitable for vehicle use or solid waste collection, allowing adjacent businesses to take on stewardship of the space provides a practical benefit to the surrounding neighborhood. The agreement promotes a cleaner, safer, and more actively managed corridor, reinforcing broader community efforts to maintain a welcoming and accessible downtown environment.
Financial Impact:
While this Right of Way Use Agreement does not directly generate General Fund revenue, the City expects to achieve net savings through reduced public safety, code enforcement, and cleanup demands. Prior evaluations conducted by the City’s Economic Development staff have shown that similar alley stewardship agreements produce a positive fiscal impact, even when a Clean Alley Credit offsets the lease rent the City would normally collect. These arrangements reduce operational burdens that typically fall to OPD, Fire, Code Enforcement, and the Clean Team by shifting routine oversight, cleaning, and maintenance responsibilities to the adjacent business.
By ensuring the alley is regularly monitored, kept clear of debris, and maintained to agreed upon standards, the City avoids repeat expenditures associated with nuisance abatement, sanitation calls, and staff time responding to recurring complaints in unmanaged alleys. These cost avoidances exceed the value of forgone lease revenue credited back through the Clean Alley Credit program.
Overall, while the agreement does not create a new revenue source, it results in meaningful cost avoidance across multiple departments and provides a fiscally advantageous outcome for the City.
Options:
1. Move to approve a Resolution authorizing a Right-Of-Way Use Agreement with Olympia Computer.
2. Do not approve the Right-of-Way Use Agreement.
3. Take other action.
Attachments:
Resolution
Agreement
Site Plan