This major Capitol Lake project could cost $416 million. Here’s what’s next
The Washington State Department of Ecology took over the efforts to restore Capitol Lake to an estuary over the summer, with several new objectives and a goal of completing 60% design of the restored Deschutes Estuary by the end of 2025.
Ecology’s Southwest Region Director Bobbak Talebi told The Olympian that the project team’s consultants delivered the 60% design package to the department on Dec. 30.
The end goal of the estuary restoration project is to remove the 80-foot tide gate and 420-foot earth infill dam that connects west Olympia to downtown and restore tidal flow to the Deschutes River. The project also is designed to increase the city’s climate resiliency and reduce economic impacts from flooding.
In total, the project area is 260 acres and two miles of waterway. According to previous reporting, in 2024 numbers, the project in total is expected to cost more than $350 million and is one of the biggest urban restoration projects in the country. By the time construction starts, that number could look more like $416 million.
Just the design and permitting portion of the project costs roughly $26 million.
Talebi said it was an “incredible effort” by the state, the Squaxin Island Tribe, the City of Olympia, Tumwater, the Port of Olympia, Thurston County and LOTT Clean Water Alliance to meet the milestone.
“While there is more ahead, the strength of this project comes from the continued commitment of all the partners and from the community,” Talebi said. “I can’t express enough gratitude for everyone’s patience and ongoing support to help Ecology successfully step into the project leadership role in July.”
Talebi said Gov. Ferguson’s proposed supplemental budget presented on Dec. 23 included funding to complete the 100% design goal, which has a deadline of June 30, 2027. The budget has $7.2 million earmarked for the design goal and permitting.
He said officials will be reviewing the 60% design and evaluating it to make sure it meets the Legislature’s expectations.
“We take this responsibility seriously and want to make sure decision makers have accurate information,” Talebi said.
He said the department will be sharing more information on restoration, the new Fifth Avenue bridge design, habitat areas and shorelines in the coming weeks. And there will be opportunities for discussion on design plans with the public and stakeholders.
Talebi said the department will host a virtual meeting from 5 p.m. to 6:15 p.m. on Feb. 12 to give folks an update on the project and planned activities for 2026.
There will also be a tour of the project site on March 7. Talebi said the project team will share details about the existing conditions and how they’re affecting Capitol Lake, as well as the plans for how the restored estuary will fit into the urban landscape.
The tour will be ADA-accessible and will begin at the northern end of Heritage Park and will travel along the paved pathway along the lake. More details will be provided in the coming weeks in newsletters and the project website, Talebi said.
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