City lets building plan advance

Olympia takes first step in allowing Capitol Campus work to proceed

By Matt Batcheldor | The Olympian • Published February 19, 2008

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OLYMPIA – The Olympia City Council has begun clearing the way for a $260 million project that would add three new office buildings downtown.

In other action

The Olympia City Council had a public hearing Tuesday on a proposal to extend a moratorium on development in flood-prone Chambers Basin, but for a reduced area.

Senior Planner Todd Stamm said staff members recommend dropping hillside properties from the moratorium while keeping "lower, problematic" areas in for as long as six months.

Most residents who spoke at the hearing opposed dropping the moratorium. Others, mostly representatives of developers, said their developments wouldn't adversely affect their neighbors.

The council is scheduled for a further briefing Tuesday and could take action March 11.

The state Department of Information Services is looking to consolidate its operations in Olympia in what's called the Wheeler Project. On Tuesday night, the council gave preliminary approval to give up its interest over current utility lines on the Capitol Campus. It's a formality that would allow the state to relocate the utilities so it can begin building.

The council could take a final vote on the proposal next week.

The state plans to break ground this spring on a 115,000-square-foot headquarters, a 166,000-square-foot data center and a 175,000-square-foot general office building that would house the Washington State Patrol and smaller tenants. Offices are set to begin moving into the Wheeler Project in January 2010, project manager Sally Alhadeff said.

The state has a proposed floor plan for a new child-care center on Perry Street to replace one that would be displaced by the Wheeler Project. Amy Tousley, a representative of Puget Sound Energy, had concerns about accessing a power substation that is next to the planned development and the ability to expand the substation.

Alhadeff responded: "We fully contemplate making sure PSE has access to their substation" and acknowledged it would need plenty of power.

The city already has given up its rights to streets on the property that now is used to access parking areas on which the new buildings would be built. No residents would be displaced.

"Right now, DIS (the Department of Information Services) is in 10 different facilities and spread between Tumwater and Lacey," Alhadeff said.

The state is not paying for the project up front and won't initially own the buildings. Developer Wright Runstad & Co. of Seattle will build the structures, and the state will rent to own the buildings after 20 to 30 years, Alhadeff said.

Matt Batcheldor covers the city of Olympia for The Olympian. He can be reached at 360-704-6869 or mbatcheldor@theolympian.com.