Port of Olympia commission weighs purchase of former coffee roastery near farmers market
The Port of Olympia commission on Monday weighed a proposal to purchase the former Dancing Goats coffee roastery building, getting input from the executive director and area residents.
The longtime roastery and port tenant recently closed after the West Coast assets of Dancing Goats were acquired by Dillanos Coffee Roasters in Pierce County. Dillanos have no use for the building because they already roast coffee in the Sumner area.
The building, constructed in 1998, is located between the Olympia Farmers Market and the entrance to the port’s marine terminal.
Port staff are recommending the acquisition so the structure could be used as the port’s new headquarters and commission space, executive director Alex Smith said.
Although the cost to purchase the building is $2.15 million, Smith said there are benefits to owning it.
“It is directly adjacent to one of our most visible assets as a port, our marine terminal,” she said. “It is closer than our current office space to our boat works and (Swantown) Marina. The cost also is far more cost-effective than, honestly, our long-term lease is currently.”
The port spends roughly $300,000 a year to rent its current administrative space on Columbia Street, just a block or so away, she said.
Smith made other cost comparisons: the $2 million price tag works out to $147 per square foot, lower than the cost to build new ($700 per square foot) and much lower than the cost to build a proposed Waterfront Center near Swantown Marina ($900 per square foot).
Commissioners were supportive of the proposal.
“I think it’s great that we can be nimble and flexible and realize an opportunity and be able to take advantage of that,” Commissioner Bob Iyall said. “It’s a great position to be in.”
“I’m excited about bringing more of our team together in one building, rather than having things broken into different places,” Commissioner Amy Evans Harding said.
Commissioner Jasmine Vasavada asked about costs: Does the price per square foot include the cost of renovations to the building? Those additional costs push the price per square foot to $235, Smith said.
Residents also asked questions during public comment.
“Why should the port be paying a couple of million dollars for property abandoned by a tenant who is breaking a lease early?” resident Jim Lazar asked.
Smith said the building has over 22 years of useful life left in it.
“And so what the port is essentially purchasing here is the fair market value of the remaining useful life of the building,” she said.
In addition to the former roastery, Smith said the port commission needs to have a future discussion about the proposed Waterfront Center, which was once identified for possible administrative space.
“We still need to have marine offices,” she said. “That has not changed, and the commission did approve a contract for architects to do a market analysis for a Waterfront Center.”
That analysis is complete, Smith said, adding “we want to bring that to the commission for presentation and discuss next steps.”
The commission vote on whether to buy the former roastery is set for Feb. 10.
This story was originally published January 28, 2025 at 5:00 AM.
