OLYMPIA — The Olympia City Council passed a plan Tuesday evening that outlines turning the Capital Mall neighborhood into a mixed-use urban space with housing, parks, workplaces and more.
The council passed the plan by a vote of 4-1, with council member Clark Gilman voting against it. Council members Lisa Parshley and Jim Cooper were absent from the meeting.
The Capital Mall Triangle subarea plan covers the area surrounding the mall, bounded by Cooper Point and Black Lake Boulevard and reaches north of Harrison Avenue to Capital High School. The city’s Comprehensive Plan identifies the area as a place that will gradually become urban neighborhoods with a mix of land use.
The mall and its surrounding stores are economic drivers for Olympia and they draw in people from outside the community, Senior Planner David Ginther said. But there isn’t much housing in the area, he said, and the city wants to change that.
Land use
Ginther said the city wants to make development regulation changes, including commercial parking rules. For example, he said there’s currently a limit on the number of parking spaces the mall can have, and the mall should have the flexibility to change its parking situation if needed.
He said building-height maximums in some areas will increase and an affordable housing bonus will be offered to developers of residential buildings.
The maximum height in the core of the subarea will change from 105 feet to 130 feet. And for a developer to receive the affordable housing bonus, 30 percent of units are required to be affordable. The units would be meant for those making 80 percent or less of the area median income.
The original plan was for all units to be affordable for a developer to receive the bonus, but council member Dani Madrone argued that goes against the mixed-income goal.
Ginther said staff will analyze existing city-owned properties as possible sites for more affordable housing. And the city will continue partnering with affordable housing developers and consider purchasing more land in the area for housing.
Ginther said the plan includes creating a half-acre public space that could be a park or plaza. He said smaller streetscape areas will be built, too, and more stormwater treatment and retention facilities will need to be constructed.
He said the city will conduct a corridor study of Harrison Avenue, an area Ginther said is unique with lots of small businesses and lots of transportation-related needs.
Crosswalk enhancements are included in the plan, as well as a low-stress bike network. Ginther said the city has met with Intercity Transit, which has the goal of improving its transit hub at the mall.
More street connections will be built as new developments are constructed, and roadways may be outfitted with roundabouts. Ginther said block sizes will be adjusted for more flexibility, too.
The city also may consider a facade-improvement program for businesses in the area.
The money
Ginther said the city should consider tax increment financing to fund some of these projects. It’s a concept that helps fund public infrastructure in targeted areas to encourage private development and investment.
Tax increment financing works by borrowing against future increases in property tax revenue to pay for improvements, which are intended to increase the value of existing properties and encourage new development.
Ginther said property tax increases within the Capital Mall Triangle subarea would go toward public improvements including streets; sidewalks; utilities such as water, sewer and stormwater; transit facilities; parks and recreation facilities; and more affordable housing.
However, Madrone said the city shouldn’t only rely on tax increment financing for catalyst sites, but should also seek funding opportunities including an in-depth assessment of available economic-development tools.
