Port picks East Bay developer

olympia: Specific plan for 6.3-acre site expected in 4 to 6 months

MATT BATCHELDOR; The Olympian | • Published June 23, 2009

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OLYMPIA – The Port of Olympia Commissioners on Monday evening chose Tarragon of Seattle as the developer for 6.3 acres of East Bay. Residential, office, retail and convention space could sprout on the land as it’s developed in the next 10 to 20 years.

Monday’s action means the port will enter exclusive negotiations with Tarragon, and could come up with a firm proposal of what to do with the land in 120 to 180 days, said Kari Qvigstad, the port’s marketing and business development director.

It’s all part of a larger redevelopment of more than 13 acres along and near East Bay. Projects already in the works are a Hands-On Children’s Museum, public plaza and LOTT sewer partnership’s headquarters/education center.

Port staff recommended Tarragon over two other developers who submitted proposals – Lorig of Seattle and MJR Development of Kirkland – in part because the port would shoulder less financial risk under the Tarragon proposal. Also, staff liked that Tarragon proposed commercial, nonresidential uses closest to the port’s industrial activity.

Tarragon’s proposal includes new residential units on the block that includes the Shell station that now stands at State Avenue and Plum Street. It proposes putting office and retail space to the west of the residential units, and a restaurant could go on the lot to the northwest. A hotel is proposed north of the new site of the Hands-On Children’s Museum, and retail or convention space is proposed north of the hotel.

But Monday’s action doesn’t mean Tarragon’s development concept is approved; it could all change during the negotiations with the port. The actual development will take place over the next 10 to 20 years, Mike Reid, the port’s property-development manager, has said. It all depends on the free market, said Tarragon representative Kristen Jensen.

“We’re excited about moving to that next step,” she said.

Richard Wolf, president of the East Bay Drive Neighborhood Association, said he was OK with development, but was concerned that traffic would worsen at East Bay and Marine drives.

Commissioner Paul Telford said “we’re all concerned about the traffic too.”

The port is spending $3.9 million to develop new streets, sewers, sidewalks and lights to access the new development. Jefferson Street will be extended north three blocks from its end at State Avenue. And a new road will connect Thurston Avenue at Jefferson Street to Marine Drive. Qvigstad has said the new roads are scheduled to be done by the end of the year.

“This project will provide alternate routes into that area,” Telford said.

The new roads will access several publicly funded projects, which should develop much sooner than the private projects.

• A four-story, $18.25 million LOTT Alliance headquarters/education center, is set to be complete next year.

• An $18 million, three-story Hands-On Children’s Museum, is set for construction in spring 2010 and completion by fall 2011, according to the museum. The City of Olympia is buying the land for it.

• A public plaza – which will have more than 30,000 square feet and a water feature, landscaping and open space – is scheduled to open at the same time as the museum. It will be developed through an interlocal agreement among the Port of Olympia, the LOTT Alliance and the City of Olympia.