Port of Olympia commission votes 2-1 to approve option agreement for land near airport
The Port of Olympia commission voted 2-1 Monday evening to approve an agreement with a commercial real estate company that could lead to development and long-term ground leases near the Olympia Regional Airport.
Commissioners Joe Downing and Amy Evans voted in favor of the lease option agreement, while Bob Iyall voted against it.
The agreement gives commercial real estate company CRG the right to explore development of a 130-acre site for a period of 10 years. The property is in Tumwater, southeast of Olympia Regional Airport and west of Old Highway 99.
Allowed uses on the parcel include business park, light industrial and commercial, but not distribution warehouses, unlike a 200-acre parcel in the port’s New Market Industrial Campus. There, the port has a similar agreement with a company called Panattoni.
The 130-acre site still needs development approval from the Federal Aviation Administration and a Habitat Conservation Plan. Any future development must be consistent with city of Tumwater code.
There’s one more element to the CRG deal: The port has structured it in such a way that should another opportunity arise, the port has retained the right to do business with the other party and not CRG.
Allyn Roe, the port’s real estate and business development director, previously said a “large employer” also has expressed interest in the airport land. On Monday, he described that other party as an “owner user.”
Commissioner Evans said CRG’s interest in the land speaks to a robust real estate market.
“It’s exciting that there’s interest in our land and utilizing it to bring jobs to our area,” she said.
She also said that the real estate market presents a “window of opportunity” and that the port should seize the day because that opportunity might not be there in five years.
Commissioner Downing agreed, saying the vacant land was set to create jobs and create economic opportunity within Tumwater.
“I feel it’s a good use,” he said.
But Commissioner Iyall, while appreciative of the work to get the agreement done, said the port still needs to update its airport master plan, plus the agreement is dependent on FAA and HCP approval. There’s also another opportunity for the land that doesn’t involve CRG.
“We’re handcuffing ourselves,” he said. “I’m afraid that if we get into a long-term lease (option), we’re going to be missing out on something.”
This story was originally published May 10, 2022 at 5:30 AM.
