Distribution warehouses cannot be built on 130 acres near Olympia airport, port official says
Distribution warehouses cannot be developed under current zoning on a 130-acre parcel of Port of Olympia land near the airport — land that is now under consideration for a potential option agreement, a port official told the commission this week.
Allyn Roe, the port’s business development and real estate director, walked the commission through the potential new deal for the port on Monday.
If the commission votes to approve the agreement, which is expected to take place May 9, it will give commercial real estate company CRG the right to explore development of the site for a period of 10 years. The property is southeast of Olympia Regional Airport and not far from Old Highway 99.
If all of this sounds familiar, it’s because the port has a similar arrangement with a company called Panattoni for a 200-acre parcel west of the airport.
But there are some notable differences. Distribution warehouses are not allowed on the 130-acre parcel, but they are allowed on the 200-acre site because of different zoning overlays, Roe said.
Allowed uses on the smaller parcel include business park, light industrial and commercial, he said. Roe added that CRG is currently developing a distribution warehouse for Costco off 93rd Avenue Southwest.
Some other details of the potential agreement:
▪ A business, described only as a “large employer” during the meeting, has an interest in the same 130-acre parcel. As a result, the port has structured the deal to give them the right to first work with them should they follow through.
▪ The 130-acre parcel falls within Federal Aviation Administration jurisdiction, so the port will have to work with the FAA to get the property designated as non-direct airport development. Any future development on the site must be consistent with city of Tumwater code as well, Roe said.
▪ The port will receive $232,000 a year over the 10-year period of the option agreement until CRG has signed ground leases for 40 acres. That payment then goes away and is replaced by lease revenue. A 10-acre lease, the minimum acreage that CRG can lease, has a value of about $210,000 a year, Roe said.
The other outstanding hurdle for the port and Tumwater is completion of a Habitat Conservaton Plan to address endangered gopher and bird habitat on those port properties.
“The (option) agreement is contingent on getting that plan finalized in the next few years,” Roe said.
Commissioner Amy Evans pointed out that without a habitat conservation plan, the port can’t use the property for a community amenity or commercial uses.
“If we don’t have an HCP, we’re not going to be able to do anything at all,” she said. “I see that as being a really high priority.”
This story was originally published April 27, 2022 at 5:45 AM.
