Olympia Planning Commission Meeting - September 18, 2025

The Olympia Planning Commission met on September 18, 2025, to deliberate on several major items including the preliminary 2026-2031 Capital Facilities Plan, code amendments for the Olympia 2045 Comprehensive Plan, middle housing code amendments, and the housing chapter of the comprehensive plan update. The commission received staff presentations, held a public hearing with no speakers, and voted on recommendations to City Council. Key themes included removing barriers to housing, addressing design review requirements, and emphasizing urgency to meet housing production targets.

Consent Calendar

• Approval of the agenda was moved by Commissioner Nejati, seconded by Commissioner Raphael Garcia, and passed unanimously.
• Approval of the August 18, 2025, meeting minutes was moved by Commissioner Taellious, seconded by Commissioner Grubb. The transcript indicates three abstentions (Commissioners Raphael Garcia, Nejati, and Sauerhoff), but the minutes state the minutes were approved without noting abstentions. This discrepancy is noted.

Public Comments & Testimony

• No public comments were offered during the public comment period or during the public hearing for the Capital Facilities Plan.

Discussion Items

• Preliminary 2026-2031 Capital Facilities Plan (CFP): Staff presented the preliminary CFP, noting $77.9 million in projects for 2026 and over $344 million for the six-year plan. No public testimony was received. The Finance Subcommittee will draft a comment letter for commission consideration at the October 6 meeting. Vice Chair Garcia noted inconsistency in level-of-service detail across chapters and advocated for more specific measurable outcomes.
• Code Amendments for Olympia 2045 Comprehensive Plan: Long Range Planning Manager Joyce Phillips briefed the commission on development regulation updates required to align with state law and the draft comprehensive plan. The amendments are split into two parts: state-mandated changes (e.g., notice requirements, essential public facilities definition) and consistency updates (neighborhood retail zone size, urban residential designation table). A public hearing is scheduled for October 6, with adoption expected by end of 2025.
• Middle Housing Code Amendments: The commission removed the item from the table and continued deliberations. Staff requested adding a reference to a new state unit lot subdivision bill (2025). The commission discussed three proposed revisions:
  1. Strike expansion of design review to include neighborhood character and scale outside design review districts. Commissioners debated whether design review is a barrier to housing. Commissioner Nejati expressed concern about removing oversight, but after discussion the majority supported the strike. The final letter included a recommendation to evaluate removing middle housing design review entirely in the future.
  2. Increase maximum building height from 35 to 40 feet in lower-density zones. Commissioner Nejati opposed the combination of 40 feet with a 5-foot rear setback. Commissioner Sauerhoff proposed a compromise: 5-foot setback for ADUs, 10-foot for other structures. The commission agreed to include that as a revision.
  3. Reduce minimum site size for manufactured/mobile home parks from 5 acres to 1.5 acres or eliminate the requirement. Supported by Commissioners Grubb and Garcia as a way to add affordable housing quickly. The revision was included. Commissioner Taellious also proposed updating the Engineering Design and Development Standards to extend exemptions for middle housing (e.g., frontage improvements for projects with 6 or fewer units). The commission recommended approval with these revisions by a vote of 7-1 (Commissioner Nejati dissenting).
• Olympia 2045 Housing Chapter: The commission removed the item from the table. Discussion focused on a revision to policy PH 2.2, which originally read "Partner with BIPOC-led organizations to acquire, preserve, and rehabilitate affordable homes..." Commissioner Nejati argued the language could exclude non-BIPOC organizations and suggested broadening to "Partner with organizations, with an emphasis on BIPOC-led organizations." Staff provided context that partnering with community-based groups is more effective in reducing racial disparities. The commission approved the revised language as an amendment to the motion. Additionally, staff shared building permit data from 2017-2025 showing the city typically issues under 400 permits annually, while the housing needs assessment projects 14,295 new units by 2045 (about 715 per year). Commissioners expressed urgency to reduce barriers, citing the risk of displacing younger generations. The housing chapter was recommended to City Council with revisions unanimously.

Key Outcomes

• The Preliminary 2026-2031 Capital Facilities Plan public hearing was closed; the Finance Subcommittee will draft a comment letter for the October 6 meeting.
• The Middle Housing Code Amendments were recommended for approval with revisions (7-1). Revisions include: removing design review for single-family and middle housing outside design review districts; increasing height to 40 feet in some zones with a 10-foot rear setback (5-foot for ADUs); reducing the minimum site size for manufactured/mobile home parks to 1.5 acres or eliminating it; and updating the Engineering Design and Development Standards to extend exemptions for middle housing.
• The Housing Chapter of the Olympia 2045 Comprehensive Plan was recommended for approval with revisions (unanimous). Revisions include modifying policy PH 2.2 to broaden the partner organizations language, and adding a paragraph emphasizing the urgent need to reduce barriers to meet housing targets, informed by building permit data showing production well below the 715-unit annual goal.
• Staff announced that Commissioner Adams was excused; the city is recruiting for advisory committees including the Planning Commission; and Leanne Wells was welcomed as the new urban forester.