Study: Brewery development a challenge

Tumwater: Consultants cite financial roadblocks as significant impediments

NATE HULINGS; Staff writer • Published September 14, 2011

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Redevelopment of the former Olympia Brewery site could include a combination of mixed-use and public space, but the path forward has significant financial roadblocks, according to a report delivered Tuesday to the Tumwater City Council.

During a two-hour presentation, consultants laid out their findings and recommendations for the 175-acre site. Their report stemmed from a six-month process that included several public meetings and input from more than 700 comments.

The study found Tumwater residents want the city to be proactive and are highly interested in seeing the site revitalized, but it doesn’t appear to be the time to develop.

“Almost every use … is possible in terms of technical and regulatory (requirements), but nearly every use has significant impediments on a financial basis,” said Tom Fitzsimmons, visioning project manager and chief operating officer of consulting firm Lorig Associates.

Along with a weak market demand, the availability of alternate locations, rental rates, construction costs and the site sitting on a flood plain pose “significant financial impediments to future private development of the site,” according to the findings.

With regards to the brewery buildings above the Deschutes River, Steve Johnson, consultant of Johnson Architecture and Planning, said developers could carve out 30-50 percent of the buildings to support density needed for apartments or hotels.

Cost is a problem with redeveloping the property.

Johnson said millions would be needed, which is “not something that is carrying an economic benefit.”

“These buildings present a puzzle and unless you demystify the puzzle, you’re not going to get a lot of traction in finding a partner,” Johnson said. “This building as it stands doesn’t fit any known use (other) than aging beer.”

Portions of the valley section of the property, which includes industrial/technical buildings and a 320,000-square-foot warehouse, are being eyed by LOTT for a future facility, Fitzsimmons said. The warehouse could be redeveloped for recreational purposes, but the area is in a floodplain and has access issues.

The bluff, which is a 2-acre piece of land, is on the market now and the consultant felt an apartment complex would work well in the area.

There is some good news about the structures on the sites.

The study found “most of the buildings and structures can be adapted to many future uses, including most of those embodied in the community vision for the site.”

The study also looked at the economics of the area and how the market would react to certain types of development. Consultants concluded that the region already has ample office and warehouse space, as well as retail outlet potential.

However, the study did find that most of those issues can be overcome through public-private partnerships and an involved community. Fitzsimmons said when residents were polled about how the city should approach redeveloping sections of the site, a majority wanted a moderate or aggressive plan from the city.

An aggressive plan could include finding tax incentives for developers, heavy investment in infrastructure or creating a taxing authority for public assistance.

Other recommendations from the firm include: clarifying and simplifying the ownership structure of the land; creating a public task force to act as an advocate for the project and keeping the community involved.

Now that the consultants have done their job, it’s up to the City Council to move the visioning forward.

City Administrator John Doan said the council will be asked to accept the findings of the study during a meeting next month. An action plan will then be developed integrating the community values and ideas with the consultant’s recommendations.

Doan said he’d like to have a plan ready to go out to the public with short- and long-term goals by the beginning of next year. Changes to zoning, code or the comprehensive plan wouldn’t happen until after that process.

“This is going to lay out here’s how we’re moving forward and capture some of that energy people have had during the process,” Doan said.

Nate Hulings: 360-754-5476 nhulings@theolympian.com www.theolypian.com/outsideoly

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