Regional Traffic Solution: E Street Connection

Build a connection from Capitol Boulevard to Cleveland Avenue (Yelm Highway) at E Street to alleviate congestion near the brewery and provide access over the railroad tracks to the brewery warehouse. The conceptual design is complete and pending public input. The relocation of Tumwater Valley Drive from the E Street intersection is under construction in conjunction with the Craft District development. This is an ideal project for major funding from a State or Federal program. Engineering and the initial permitting cost is $3.4 million, the right-of-way is estimated at $3.2 million, and the total project cost is estimated at $54.2 million. The City is seeking funding for design, engineering, initial permitting, and right-of-way acquisition.

Economic Development on Bush Prairie - $4 million*

Significant parts of the Cities of Tumwater and Yelm have been removed from development for housing, employment, schools, State facilities, and utilities due to the listing of several prairie species (most notably the Mazama Pocket Gopher) as threatened under the Endangered Species Act. The City of Yelm is beginning to develop a Habit Conservation Plan that will require them to acquire land for a mitigation bank before development can happen in impacted areas. The Cities of Tumwater and Olympia, along with the Port of Olympia, are working to develop Habitat Conservation Plans (HCP) that identify the type and amount of mitigation land to be set aside for gopher mitigation banking. The bank allows private and public development to occur in areas within the cities where development has been halted because of habitat impacts.

The amount of land needed for Tumwater is estimated at 1,015 acres at a cost of over $55 million over 30 years, including establishing and maintaining the appropriate prairie land. Tumwater and the Port of Olympia are approximately 12 months away from completion of their HCP. Still, they need to demonstrate commitment to obtaining and developing mitigation before the HCP is completed. They also need to demonstrate a commitment to acquiring land and developing mitigation. We request $2.5 million in funding for Tumwater and $1.5 million for Yelm to initiate the mitigation bank. It would be used for the initial land purchase and improvement into the qualifying habitat. As other property is developed, which impacts the habitat, credits will be sold, and the proceeds reinvested in more property to be converted into mitigation. The objective in both Cities is to jump-start the creation of a sustaining mitigation bank.

Craft Brewing & Distilling Center Malt & Storage Systems

The emerging Craft District in Tumwater, with Phase 2 currently under construction, will be a regional hub for commerce, education, workforce training, and entrepreneurial support, the facility is an industry-wide catalyst and helps fill supply-chain gaps, expands markets, and directly connects regional farmers with end market users. An Integrated Malt System & Storage will further differentiate this unique and innovative district by facilitating the use of local grains for brewing and distilling purposes. The System also allows regional brewers and distillers access to malted grains creating competitive products and distinct local flavor. This System would also enable local brewers and distillers to access local grains instead of purchasing malted grains from Skagit Valley Malting. Currently, regional brewers and distillers must purchase and transport malted grains from malting companies located some distance from the region and, most often, out of state.

WSDOT Regional Offices Redevelopment

The State Department of Transportation vacated the Olympic Region offices in 2020. The 10-acre site was identified as the keystone to the Capitol Blvd. Corridor Plan. It provides opportunities to provide affordable and market-rate housing, retail, public, and potentially historic preservation. The City is asking the Legislature to make the State Department of Transportation whole for them to transfer the property to the City. The City would make one-third of the property available for affordable housing. Another third would be market-rate housing, and the remainder would be commercial and public. Although the City would initially hold the property, it would seek one or more private sector partners to develop it. The City is particularly interested in ensuring this property develops and does not sit vacant and blighted. The City is also seeking $300,000 to assist with site planning costs. The cost estimate will be updated when WSDOT completes an updated appraisal.