Apartment plan pushes store owner to seek new location

By Matt Batcheldor | The Olympian • Published May 30, 2008

OLYMPIA – An owner of Ken Schoenfeld Furniture said he is looking to relocate his decades-old downtown store because much of his parking would be swallowed by a planned seven-story, 120-apartment complex.

Officials with the bank next door, Olympia Federal Savings, also are concerned.

The Olympia City Council voted May 13 to remove the alley between the furniture store and the bank so it could consolidate two lots it owns to sell to a developer to build the apartments.

The council agreed in January to sell the parking lot on Columbia Street between Fourth and Fifth avenues to Seattle-based Colpitts Development Co. for $270,000.

The 82-space lot has metered spots that the furniture store's customers use, as well as four free spots next to the store, said Kevin McHugh, a store owner.

"We've loved being part of the Olympia business community, and to be kind of forced out like this is a tragedy," he said.

McHugh said his family has owned the business for about 25 years, but it was a furniture store long before that.

He is considering moving it to Lacey.

Lori Drummond, senior vice president for Olympia Federal Savings, said she also is concerned about parking and access for her customers, who go through the city's lot.

"We would hope they would consider looking at mitigating any impact on existing businesses when it comes to parking," she said. She added that Olympia Federal, a locally owned bank, has been a downtown fixture for 102 years.

Tom Hill, city permitting and inspections manager, said it has been a luxury that adjacent property owners have been able to use the lot.

"Now we'd like to develop our property," he said.

McHugh said he relies on the four free spots in the lot for customers, allowing them back-door access to the store.

The city has tried to find leased replacement spots for surrounding businesses, said Steve Friddle, the city's community-services manager.

He said the city suggested leased parking spaces as a replacement, but those would require a walk "down the block and around the corner."

Customers "need to be able to pull up to a back door," he said.

Drummond said Olympia Federal owns customer parking behind its building but would lose 14 employee spots. She said the city had an option to relocate parking for her employees; her concern is losing access through the city lot.

Colpitts representatives could not be reached for comment.

Friddle said the Colpitts project is on track. The developer is waiting for the state Department of Ecology to approve its cleanup plan before submitting a land-use application to the city. Afterward, it could get necessary building permits and start construction.

The seven-story complex would have parking on two floors. Friddle said he wasn't sure how many parking spaces would be part of the complex.

Councilman Joe Hyer, who helped attract Colpitts to the project, said last year that the development was slated for 130 spots.

In a complex arrangement, Olympia agreed to sell the land to Colpitts for $270,000, but it agreed to spend that $270,000 for cleanup. Then, the city and Colpitts would spend up to an additional $233,000 each for cleanup, if necessary.

City Manager Steve Hall has said that's worth it because the city would gain market-rate housing, which it hasn't added much of downtown in 30 years.

Friddle said change is difficult but necessary downtown.

"Council remains committed to getting housing at this site and hopefully other sites in the downtown … but it does cause change," he said.