Olympia Planning Commission Briefing on Downtown Vacancy Study - June 16, 2026

The Olympia Planning Commission received a detailed briefing on the Downtown Commercial Vacancy Study, presented by Economic Development Director Jennica Machado and consultants from Leland Consulting Group. The study examined the extent, causes, and potential strategies for addressing commercial vacancy in downtown Olympia. Commissioners discussed key findings, questioned the methodology, and provided feedback on the study's recommendations.

Consent Calendar

• Agenda Approval: The agenda was approved as amended to move Staff Announcements after Business Items.
• Minutes Approval: The minutes from the May 4, 2026 meeting were approved, with Commissioners Taellious and Raphael Garcia abstaining.

Discussion Items

• Downtown Commercial Vacancy Study Presentation: Consultants Chris Zahas and Jennifer Shuch presented findings from fieldwork, stakeholder interviews, and data analysis conducted since November 2025. Key findings included: 16% of vacant retail space was built after 2016, two-thirds of vacant space by square footage is long-term vacant, and downtown Olympia's visitor recovery (down only 2% from 2019) outpaces peer cities like Salem (down 11%). Parking utilization analysis showed blocks near 85% occupancy in evenings when enforcement ends, but consultants noted parking was not a primary driver of vacancy. Recommendations included: evaluating the half-street improvement trigger for change-of-use permits, supporting community events, increasing transparency on city policies, exploring a low-interest loan program, considering live-work units on ground floors, prioritizing downtown sidewalk repairs, creating a facade improvement program, revisiting the streetery program with reduced bonding requirements, and conducting a comprehensive downtown plan update.
• Commissioner Questions and Concerns: Commissioners raised several points:
  • The stakeholder list (10 individuals) was seen as insufficient; commissioners questioned why business owners who recently moved out of downtown (e.g., Equal Latin) and residents (e.g., Downtown Neighborhood Association) were not interviewed.
  • The parking garage recommendation was debated: Commissioner Nejati noted that high utilization occurs when parking is free, suggesting extending enforcement hours as an alternative to an expensive garage. Consultants clarified a full parking study would be needed.
  • Commissioner Garcia asked about safety and crime perceptions; consultants reported mixed stakeholder feedback, with some downtown visitors from 50+ miles away feeling safer than locals.
  • Commissioner Sauerhoff suggested overlaying sidewalk condition data with vacancy maps; consultants agreed it was feasible.
  • Commissioner Taellious questioned the comparison of impact fees to cities like Edmonds and Bothell instead of direct competitors Lacey and Tumwater; consultants acknowledged the gap but argued the fees are not a primary barrier.
  • Commissioner Ibrahimovic asked about vacancy taxes; consultants noted they are rare for commercial space and recommended focusing on lower-hanging fruit.
  • Commissioner Nejati highlighted the Olympia Transit Center area as a potential redevelopment opportunity, noting that surface parking lots near the center feel vacant and the city owns some of them; consultants deferred this to a future downtown plan.
• Sidewalk Repair Policy Letter: Commissioners continued refining a draft letter to City Council on sidewalk repair. Key points included: sidewalks are public infrastructure and should be maintained like roads, prioritizing repair over expansion, addressing liability and public safety (including accessibility for wheelchair users), and considering a dedicated downtown plan for sidewalks as recommended in the vacancy study. The letter is informal and will be sent to a City Council study session.
• Other Topics:
  • Staff announced that following the 2045 Comp Plan update, city council is reviewing advisory committee structures; planning commission is a required body and unlikely to face major changes, but work plans may realign.
  • Upcoming topics for the commission include home-based business code amendments, small commercial use code amendments, subdivision chapter streamlining, parking requirement updates (including citywide minimums), critical area ordinance, and the 2027-2032 Capital Facilities Plan.
  • The commission agreed to cancel the July 6, 2026 meeting (after Independence Day) due to light agenda.
  • A planning commission retreat is scheduled for early to mid-September 2026; commissioners were reminded to respond to the scheduling survey.

Key Outcomes

• Information Received: The Downtown Commercial Vacancy Study presentation was received without a formal vote.
• Sidewalk Letter Direction: The chair will clean up the draft sidewalk repair policy letter and send it to the City Council study session.
• Meeting Canceled: The July 6, 2026 meeting will be canceled; next meeting is July 20, 2026.
• Retreat Planning: The retreat will likely occur in September; commissioners asked to start brainstorming topics.