Title
Deschutes Estuary Restoration Project Update
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Receive an update on the Deschutes Estuary Restoration Project.
Report
Issue:
Whether to receive an update on the Deschutes Estuary Restoration Project.
Staff Contact:
Jay Burney, City Manager, 360.753.8740
Presenter(s):
Bobbak Talebi, Southwest Region Director, Washington State Department of Ecology
Lynn Turner, Deschutes Project Manager, Washington State Department of Ecology
Tessa Gardner-Brown, Consultant Team Project Manager
Scott Stainer, Consultant Team Deputy Project Manager and Design Lead
Nathan Anderson, Consultant Team Civil Design Lead
Background and Analysis:
The area now known as Capitol Lake was historically part of the Deschutes Estuary, where freshwater from the Deschutes River mixed with saltwater from Budd Inlet across expansive tidal flats. The estuary has deep cultural, spiritual, and historical significance to the Squaxin Island Tribe.
The estuary also has an important role in the region's more recent history. The waterfront supported residential communities, maritime industries, recreation, and commerce. The Port of Olympia, established in 1922, became an important center for trade.
Between 1949 and 1951, a dam was constructed at 5th Avenue, eliminating tidal exchange and transforming the estuary into Capitol Lake, which became part of the Washington State Capitol Campus. Over time, the lake experienced significant environmental challenges and by the 1970s, active measures were required to manage these conditions.
In 2016, the Legislature provided funding to the Department of Enterprise Services (DES) to make progress toward developing a long-term management plan. That work involves partnerships and working collaboratively with the Squaxin Island Tribe, the City of Olympia, City of Tumwater, Thurston County, Port of Olympia, and the community.
From 2018 - 2022, DES led an Environmental Impact Statement (EIS) process that evaluated long-term management alternatives, including continued management of the lake, restoration of the estuary, a hybrid approach, and no action. Following technical analysis and extensive public and stakeholder engagement, the Final EIS was issued in October 2022 and identified the “Estuary Alternative” as the preferred approach. This alternative would remove the 5th Avenue Dam and restore tidal exchange between the Deschutes River and Budd Inlet. This alternative is supported by the Olympia City Council.
Design and permitting for the Deschutes Estuary Restoration Project began in late 2023. The project would restore approximately 260 acres of estuarine and salt-marsh habitat, remove the 5th Avenue Dam and associated tide gate, and construct a new bridge accommodating vehicles, bicycles, and pedestrians. The restoration is intended to improve ecological conditions, water quality, climate resilience, fish and wildlife habitat, and recreational access.
Following the 2025 legislative session, the Washington State Legislature directed the Department of Ecology to serve as the lead state agency for managing the project. Ecology continues to work with the City of Olympia, the Squaxin Island Tribe, and other project partners on design, permitting, funding, and community engagement. The project is currently in the design and permitting phase, with construction anticipated to take approximately six years once the necessary funding, permits, and approvals are secured.
The purpose of this agenda item is to provide an update on the project and respond to any questions or concerns that the City Council may have.
Climate Analysis:
Restoring the Deschutes Estuary offers several climate and environmental benefits including carbon sequestration, flood mitigation, sea level rise mitigation, water quality improvement, biodiversity and habitat restoration and resilience to ocean acidification. Overall, restoring the Deschutes Estuary could contribute to regional climate resilience and provide ecosystem services that help buffer against the adverse effects of climate change and sea level rise.
Equity Analysis:
For the Squaxin Island tribe, the Deschutes Estuary has been a critical area for millennia. The Estuary, historically a place for fishing, hunting, and gathering formed the foundation of tribal livelihoods. Also, as a place of cultural and spiritual significance, the restoration of the Deschutes Estuary represents both a physical and cultural reclamation of tribal cultural heritage.
Neighborhood/Community Interests (if known):
Olympia and the surrounding community cares about environmental health and water quality in Budd Inlet and local waterways. The restoration of the Deschutes Estuary has been an important issue locally for many years with the restoration project supported by community members and local jurisdictions.
Financial Impact:
In 2025, the State appropriated approximately $32.5 million to advance the project.
Options:
1. Receive an update on the Deschutes Estuary Restoration Project.
2. Receive an update on the Deschutes Estuary Restoration Project at another time.
3. Take other action.
Attachments:
None