City May Purchase Blighted Griswold Building

City May Purchase Blighted Griswold Building

renewal  

Above: The City of Olympia has entered into an agreement to possibly purchase the former Griswold’s office supply store at 308 and 310 East Fourth Avenue in downtown Olympia for $300,000. Built in 1928, it also served, in its heyday, as the Avalon Theater.

By Janine Gates

www.janineslittlehollywood.blogspot.com

Yep, it's a fixer-upper, but if it checks out, it's all ours.

The City of Olympia has entered into an agreement to possibly purchase the former Griswold’s office supply building at 308 and 310 East Fourth Avenue for $300,000. 

The agreement was on the city council consent calendar and was passed, without comment, along with other agenda items Tuesday night. 

The purchase is contingent on a structural evaluation, title report, an environmental review, and more. Based on those reports, the city has until May 25 to decide whether or not to go ahead with the purchase.

The building is located between Dumpster Values and an alley, and across the street from Jake’s on 4th. 

Built in 1928, it is noted in the city's historic inventory, but is not on any historic register. In its heyday, it was the site of the former Avalon Theater.

The current owners, Clifford and Sean Lee, bought the property in 2007. It was gutted in a fire in 2004 and lost its roof over the main section that backs to Dumpster Values and Old School Pizzeria on Franklin Street. The eastern portion still has a roof, however, it is deteriorated and not usable. 

The Lee's were unable to transform the 7,200 square foot space into something - anything - thus creating a section of blight on a main street of downtown Olympia.

A façade featuring a rainbow mural reading, “Respect and Love Olympia,” currently fronts the space, and makes the street a bit brighter.

City manager Steve Hall said the papers were signed with Cliff Lee on Wednesday.

“If it all checks out, we hope to close by the end of June,” said Hall.

Financing for the possible purchase is from Community Development Block Grant (CDBG) money and General Fund year end savings, roughly $150,000 from each source.

“There are a number of different activities that are eligible for use of the federal governments CDBG funds including economic development, affordable housing and clearance of slum and blight. We are characterizing this project, at least at this time as removal of slum and blight. In the end it may end up being affordable housing or economic development depending on the nature of how the property is ultimately redeveloped,” said City of Olympia community planning and development director Keith Stahley.

According to county assessor information, the Lee’s bought the property from Billy Griswold in January of 2007 for $257,500. The 2016 assessed land value for the property is $344,950, plus $3,600 structure value, for a total assessed valuation of $348,550.

Under the purchase agreement, the city will pay the seller’s real property excise taxes on the property. Taxes for 2015 are delinquent. With interest and penalties, $5,025.20 is owed. The first half of the 2016 tax principal amount is $2,113.43. 

As to what happens if the city purchases the property, and then can't unload it in a timely manner to a private developer, is undetermined, Stahley said. 

Asked about the role the new Community Renewal Area (CRA), a planning tool used to eliminate blight and encourage economic development, played in potentially making this purchase, Stahley said the CRA may be valuable going forward when the city is ready to sell the property. 

While the city has established the downtown boundary for the CRA, it still needs to put in place a community renewal plan to put the powers of the CRA into effect. The city anticipates doing that between now and the end of the year. 

The plan focuses on specific parcels and projects, like the Water Street Redevelopment Area. An agreement for urban design and planning services for that area was also passed by council at Tuesday night's meeting.

Asked why the city opted to buy it instead of taking the property via eminent domain, Stahley agreed that eminent domain would have been another way of acquiring the property. 

“.…The city would have still paid fair market value. After several rounds of discussion and negotiations we were able to arrive at a mutually agreeable price between the assessed and appraised value,” said Stahley. 

The negotiations took several months.

For more information about the Community Renewal Area, the Downtown Strategy planning efforts, blight, and other issues about downtown Olympia, go to Little Hollywood, www.janineslittlehollywood.blogspot.com, and type key words into the search button.

Above: A close up of the former Griswold's office supply store on Fourth Avenue in downtown Olympia.

Downtown Olympia Development, Views Survey Available

Downtown Olympia Development, Views Survey Available

zoning  

Above: This view of Mt. Rainier across downtown Olympia from the Fourth Avenue Bridge becomes obscured by the nine-story Capital Center Building as one travels into downtown. A new survey by the City of Olympia asks questions regarding downtown development, pedestrian improvements, types of preferred bicycle lanes, viewsheds, and more.

By Janine Gates

www.janineslittlehollywood.blogspot.com

The City of Olympia is encouraging everyone in Thurston County to take a survey to help shape downtown Olympia.  As noted in a recent Little Hollywood story on March 14, part of the survey includes weighing in on downtown views to area landmarks.

The survey, part of the city’s ongoing Downtown Strategy planning efforts, is online at www.olympiawa.gov/DTSthrough March 27. The city says it takes about 15-20 minutes to complete.

City of Olympia city planner Amy Buckler says the city has heard “loud and clear” from a previous survey that the city must address parking, sea level rise and homelessness issues. 

Based on this survey and other plans, the city’s next steps in the Downtown Strategy will focus on design, view protection, historic preservation, business and development standards and incentives, and more specific strategies related to housing, retail and economic development.

It took Little Hollywood about 35 minutes to read through the survey questions, much less answer them. 

When asked about the nature of the questions, and their tendency toward the need for significant zoning and code changes, Buckler responded that the survey reflects what the city has heard in the public process so far, and include the input of their consultant’s recommendations.

“It is likely the city will update some development standards, and perhaps zoning, if needed, to align with the guiding framework of the Downtown Strategy. We are waiting for a guiding framework to be vetted through the…process of public engagement and analysis and discussion with city council on May 10 before scoping what updates might be needed. The guiding framework will drive any needed updates….”

Questions about viewsheds are included about mid-way through the survey, after questions about development scenarios, shared streets for pedestrian and intersection improvements, festival streets, types of bicycle lanes, and more.

Some questions are hard to argue with:

1. In the waterfront area, improve upon existing attractions to create a vibrant, attractive, family-friendly destination, with emphasis on the surrounding natural environment and many landmark views. Maintain vibrant and visible gathering places for public activity and events; increase waterfront recreation opportunities; and create inviting pedestrian connections to the historic shopping district, marinas, Farmers Market, Hands on Children’s Museum, LOTT Wet Center, and Capitol Campus.

On a scale of 1-5, with (1) being very important and (5) being not important, how important is this overall concept to you?

This question specifically involves the Northeast area neighborhood:

3. In the "Artisans/Tech" area, improve upon Port and LOTT activities and existing warehouses to create a mixed-use, artisan, culinary arts, and tech hub that includes affordable commercial space, housing (especially for artists), studio/workshop, gallery, live/work, and retail space. Encourage the reuse of industrial buildings and diverse, eclectic, energy- and water-efficient architecture. Ensure that visitors of all ages feel safe and comfortable arriving by bus, foot, bike, or car to participate in exciting education and recreation opportunities. Spur mixed-income residential development to support car-free lifestyles near the Transit Center. A more active atmosphere, redevelopment of blighted or underused sites, good design and continued clean and safe efforts by the City and other partners generate a feeling of safety in this area.

On a scale of 1-5, with (1) being very important and (5) being not important, how important is this overall concept to you?

Regarding the future of the Southeast area neighborhood, this question provides the only “not sure/don’t care” option in the questionnaire, among other options:

13. This area has significant potential for growth as a residential neighborhood. We have heard a range of preferences for the style of residential development in this area, sometimes a preference for tall residential buildings and other times for smaller scale residential development like townhouses, small lot homes, and low-rise multifamily buildings.  Assuming the same number of units are added in both scenarios described, check the circle that best represents your preference.

Above: Now it's gone - the view of Mt. Rainier becomes obscured by the nine story Capital Center Building as one travels into downtown Olympia.

Survey Questions about Views

The viewsheds for potential analysis have changed since the city’s March 3 Land Use and Environment meeting and now includes a new viewshed: City Hall to the Capitol Dome. The photo used to illustrate this view is from the sidewalk outside city hall on Cherry Street.

Two potential viewsheds were removed from the list: Marathon Park to Mt. Rainier, because it does not exist, and the effect of the 1063 Building, currently under construction, on the view of the Capitol Dome from downtown.

The survey uses computer generated illustrations of two viewsheds under consideration. City staff is in need of a photo from the navigation channel into Olympia on Budd Inlet, and a photo of downtown Olympia from the beach area of Priest Point Park. 

City staff provided Little Hollywood a map that indicates that the desired viewshed from the navigation channel is from the coordinates of 47 03.960 N and 122 54.509 W, which is roughly the center of the channel across from Swantown Marina.

Buckler confirmed that a photo of the viewshed from the East Bay pocket park to the Capitol Building featured in Little Hollywood’s March 14 article is one of ten proposed viewsheds slated for analysis. 

That view runs through Port of Olympia parcels 2 and 3 which are slated for development by local developer Walker John. Concept plans by architect Ron Thomas are not yet available to the public, Thomas said in an interview with Little Hollywood last month. If those parcels are developed as proposed, the public’s view of the Capitol Building from the park would be obscured.

If there are additional important viewsheds related to downtown that you think the city may have missed or if you have photos of your favorite views related to downtown that you want to share with the city, send them to dts@ci.olympia.wa.us.

Submitted photos will become part of the public record and may be used for public engagement purposes, so the city asks that you indicate who should receive credit for the photo. Views must be from public observation points within downtown or looking through downtown to landmark views, such as Mt. Rainer, the Black Hills, Puget Sound, Olympic Mountains, Capitol Dome, says the city.

For more information, contact Amy Buckler, Senior Planner, City of Olympia, at (360) 570-5847 or abuckler@ci.olympia.wa.us.

Olympia Grapples with Flood Management, Sea Level Rise

Olympia Grapples with Flood Management, Sea Level Rise

water  

Above: Under a surly afternoon sky, City of Olympia and Washington State Department of Enterprise Services staff were on flood watch and ready with sandbags at Capitol Lake in the late afternoon of December 10, 2015. “It’s a bit of a dance,” said Andy Haub, City of Olympia director of water resources, of the flood management process and roles played by the city and state.

City Staff Clarify Statement That Dam is Needed to Control Downtown Flooding

By Janine Gates

www.janineslittlehollywood.blogspot.com

The stunningly frank sea level rise report delivered by city public works staff to Olympia councilmembers earlier this week was loud and clear: develop a vision and a plan to begin adapting to sea level rise. Like, now.

But even without the extra burden of sea level rise, the protocol for managing current flood events in downtown Olympia requires a highly managed rapid response involving state and local agency coordination.

Above: When the lake gets too high, the city stormwater system backs up. A valve, located under Water Street, is shut off, preventing lake water from flowing “up” the stormwater outlet to the lake and discharging to the catch basin in the streets at Columbia and Water Street. A pump takes the stormwater and puts it into the lake.

The Department of Enterprise Services (DES), the state agency responsible for managing the 260 acre lake, regularly releases as much water through the 5th Avenue dam as each low tide allows.

DES closely monitors weather forecasts, streamflow on the Deschutes River, tide tables and more to determine when to lower the lake below the normal winter level in advance of major storms.

On December 10, 2015, a combination of record-setting rainfall, flooding on the Deschutes River and high tides in Puget Sound caused flooding around Capitol Lake and Heritage Park. So, when DES staff determined that the lake was going to flood, the department notified the City of Olympia and closed a section of Water Street and 7th Avenue.

The city implemented its flood response plan which includes pumping excess stormwater directly into Capitol Lake and placing sandbags in the area to protect nearby businesses.

By their own admission, city staff underestimated the rate at which the lake was rising and were later than usual in closing a valve, resulting in lake water flooding the streets and coming to within inches of the doors of Olympia Supply and other local businesses.

On December 11, 2015, the day after the somewhat minor flooding incident, Little Hollywood interviewed Andy Haub, City of Olympia director of water resources, who was onsite with staff during the emergency.

LH: Tell me about this valve...the water got to within four inches of Olympia Supply's doors. 

 

Haub: We close the valve in order to prevent lake water from flowing “up” the stormwater outlet to the lake and discharging to the catch basin in the streets at Columbia and Water. The pools of water in the streets are lake/Budd Inlet water.   Usually we close the valve before the lake starts backing up. Then, the only water we pump is precipitation from the Columbia and Water Street area. In other words, once we shut the valve in the stormwater pipe, we have to pump the upstream stormwater.

Yesterday (December 10, 2015), we underestimated the rate at which the lake was rising and so were later than usual in closing the valve. Once we started the pump, the water in the streets declined very quickly - 15 minutes….

LH: I was told that the Capitol Lake area is the lowest catch basin in downtown.

Haub: The two block area around Columbia and Water Street is the only real area that is at risk from flooding due to the lake backing up. At some point, the lake can't hold it all, so that's why DES folks were standing around (in the afternoon) waiting to see if the tide would rise too high, plus the water in the lake would make it all overflow like a bathtub. When the Deschutes is flowing very high, the State lowers the lake by opening the 5th Avenue dam during the low tide preceding the high tide. Then they close the dam when the tides turn to a high tide, thereby keeping the high tide out of the lake and providing room for the river flows. It’s a bit of a dance….

LH: Is that portable pump station always going to be down there with chain link fencing around it if it seems like this is a permanent problem area? 

Haub: We keep one of the pumps there during the peak of the winter.

Haub explained that other factors such as barometric measure, wind direction and speed, temperature, low pressure systems and the effect they have on high tides also dictate Olympia’s flooding risk.

“It’s very interesting to think about and understand. Our high tide was 1.95 feet higher than predicted, simply due to low barometric pressure. You and your audience would find this dynamic interesting….” said Haub.

LH: If this whole area reverted back to an estuary, would we even we worrying about all this?

Haub: Same dynamic.

At that point, Little Hollywood had taken up enough of Haub’s time.

Above: The valve near Capitol Lake that saves a portion of downtown from flooding. 

Fast Forward: Capitol Lake, The Dam and Flood Clarification

Along with Haub, Eric Christiansen, City of Olympia water resources planning and engineer manager, provided the staff report at last Tuesday night’s council study session on sea level rise issues.

Councilmember Jessica Bateman asked how its reverting back to an estuary would impact downtown and Christiansen responded that without the dam, downtown would flood more frequently.

This short response confused and alarmed community members active with lake management conversations.

On Thursday, Little Hollywood asked Christiansen to clarify his response to Bateman, which was in conflict with the Capitol Lake Adaptive Management Plan’s (CLAMP) final Deschutes Estuary Feasibility Study report of 2007.

The report says, in part:

“...The City of Olympia may require a FEMA-approved floodplain study as part of the permitting requirements for the proposed restoration project. However, it can be concluded that flooding in the restored estuary will be similar to current (managed lake) conditions at worst. A decided advantage of the restored estuary is that flood management will no longer depend on the correct functioning of a mechanical system – flooding under current conditions can be considerably exacerbated if the tide gate controls should fail.”

Christiansen responded:

“I maybe partially misspoke. There are a few blocks of downtown between Water and Columbia and 5th and 7th streets that are at a very low elevation, approximately two feet below the flood elevation. There are about 19 storm drain pipes that connect that area and the park with Capitol Lake. Only two of those pipes that I am aware of have valves to prevent water from flowing backward into the streets. The State manipulates the dam to keep lake levels low when tides are high, thus for the most part keeping water out of the streets. The last six to twelve inches of lake elevation make a big difference. We had about a dozen tides this winter that could have caused flooding.

“Without the dam, the drainage systems will need to be modified by adding additional valves and probably consolidating pipes. It will also help if the ground in key parts of Heritage Park is elevated. The railroad tracks pose an additional challenge,” said Christensen.

Above: The 5th Avenue dam on December 18, 2015.

In conflict with information city staff and local environmental advocates have been providing the city for years, multiple downtown development projects are underway in precisely the area destined to be first impacted by sea level rise. 

These vulnerable areas, built on fill, are well within the historic shoreline of Budd Inlet.

Next: Community Response to Sea Level Rise Report

For more information about community efforts and issues in Olympia regarding Capitol Lake, the Community and Economic Revitalization Committee, sea level rise, high tide events, CLAMP, Percival Landing, Moxlie Creek, LOTT Clean Water Alliance and more, go to Little Hollywood, www.janineslittlehollywood.blogspot.com, and type key words into the search button.

Going…Going…Gone! The Olympia Brewery Sold to….

Going…Going…Gone! The Olympia Brewery Sold to….

winery  

Above: The auction sign as seen at the “modern” brewery on Sunday.

Auction Time for “Modern” Tumwater Brewery

By Janine Gates

www.janineslittlehollywood.blogspot.com

It’s a diamond in the rough and the outcome of Tumwater’s land use future is in someone’s hands.

The sprawling “modern” brewery is hard to miss from any direction and it’s now up for auction. Dull beige buildings with broken windows boarded up with plywood, the vacant eyesore is taking up vast acreage in the heart of the City of Tumwater.

Four separate parcels are for sale with three buildings on 7.2 acres with frontage on the Deschutes River, two industrial warehouses on 22.2 acres with rail service via Union Pacific and two vacant lots are zoned multi family. The buildings were built anywhere from 1930 – 1973.

Over 300 brewing tanks are located throughout the buildings. The main brew house contains the former brewing operation, fermenting vat storage and cellaring. In the six story “M” Cellar building, each floor is devoted to large stainless fermenting vessel storage with the majority of vats still in place.

Real estate agent Troy Dana has been marketing the location for years as a possible mixed-use combination of brew pub, contract brewery, winery, distillery, office, restaurant, and retail space.

The auction will be held Wednesday, October 28, 11:00 a.m., at the Red Lion Hotel, 2300 Evergreen Park Drive, Olympia.

Details are at http://www.hudsonmarshall.com/upcoming-auctions/item/brewery-commercial-washington-tumwater.html

Above: The back of the RST Cellars building on Custer Way as seen from Tumwater Falls Park last week. The fence delineates the park and the thin, one lane road down to the Old Brewhouse. The widening of this road, required to meet current standards for transportation and emergency vehicles, would result in the loss of trees along Tumwater Falls Park.

Public Comment for Draft Old Brewery Plans Due October 30

Meanwhile, the historic Old Brewhouse is not readily visible unless you’re on top of it. It too is old and vacant except for occasional trespassers and sits like a medieval castle, deteriorating on the shores of the ever changing Deschutes River. 

Visible from Tumwater Historical Park, peek-a-boo views of the six story tower can also be seen from Tumwater Falls Park. 

Owner George Heidgerken has made public his desire to fully develop this property to the maximum intensity possible. 

The Old Brewhouse would never be allowed to be built at its current location today, according to current shoreline management and environmental regulations, and yet two out of three draft planning options presented by the City of Tumwater are to explore significant mixed-use redevelopment of the area.  

A deadline for the public to comment on these scenarios is October 30.

The first scenario, a “do-nothing” approach, assumes the development would occur within the site consistent with existing zoning and development regulations. Any development that occurred would require the repair of existing structures.

The second scenario, one that the Old Brewhouse Foundation prefers, is still an impressively built out design, and includes a parking garage for 600 vehicles.

The third scenario, preferred by property owner George Heidgerken, and his development company, Falls Development LLC, is a full build out.

At an informational public meeting last week hosted by Tumwater city staff, former Olympia Mayor Bob Jacobs suggested a fourth scenario, which is not in the city’s plan: move the historic, six story Old Brewery tower, brick by brick, and rebuild it in a different location altogether.

“All three of the alternatives they're considering all seem impractical to me…Another possibility would be where the newer brewery stands now. That building could be torn down and replaced by new development with the old tower as a centerpiece and visibility from the freeway would be excellent…other possibilities exist too, of course.  A public process would produce lots of ideas for evaluation. Even the airport area or the city center area,” says Jacobs.

City of Tumwater's permit manager Chris Carlson said that in the 25 years he has been at the city, he has never heard that approach suggested. As for the end-of-the-year limitations for the state Department of Ecology grant that funded the city’s planning action, Carlson said he did not think there was time to assess such a possibility.

Above: Tumwater Falls Park, owned by the Olympia-Tumwater Foundation. This view could change dramatically if a planned action proposal by the City of Tumwater is approved.

At the time the Old Brewery was built in 1906, Model T cars were popular. Today, the creation of any access to a proposed parking garage by the Old Brewhouse would require that the narrow road, currently about 15 feet wide, be widened to 32 to 36 feet. 

In a conceptual cross-section of the proposed road leading down to the old brewhouse, a sidewalk is also shown as being a minimum of six foot wide, but the preferred width is eight feet wide, with four foot planters on the other side, said city staff.  This will require a lot of trees to be cut down.

Nancy Partlow, a Tumwater resident, also attended the city meeting, and sees problems with many aspects of the scenarios presented by the city.

“For years I've heard Tumwater city staff and elected officials say that the Old Brewhouse would never be allowed to be built at its current location today due to the environmentally sensitive nature of the site....

“The combined footprints for a parking garage, residential units, and access roads to the Old Brewhouse site constitute an excessive amount of forest destruction in Tumwater's most environmentally and historically important area.

 

“The access road to the Old Brewhouse appears to be nearly a third of a mile long.  For about two thirds of that length, the road parallels the Deschutes River and the Tumwater Falls Park fence line. Some of the trees seen above the river from inside the park aren't actually in the park itself, but on the Falls Development LLC property next door.  A great number of those would have to be cut down to widen the road.

“An additional access road down to the proposed parking garage is being suggested from the north end of a parking lot owned by the Olympia-Tumwater Foundation. This road would also be built through a forested area, and next to the Union Pacific rail line,” says Partlow.

Above: Another required access road for a proposed parking garage in the area of the Schmidt House would be located here, next to the Union Pacific railway. The parking lot drops off steeply to the railway and through the trees, the Old Brewery. 

The Olympia Tumwater Foundation has almost no comment on the Tumwater’s brewery planned action draft environmental impact statement or Heidgerken’s plans, says the Foundation’s executive director John Freedman.

The Foundation owns Tumwater Falls Park and the Schmidt House and related property. Heidgerken will need the Foundation’s cooperation to access a proposed residential area and parking garage through the Schmidt House’s back parking lot.

A heavily treed, steep ravine and the Union Pacific Railway is in that area of the property.  No conversations about access have taken place between the Foundation and Heidgerken’s company, said Freedman.

“We have not seen anything concrete that requires action on our part. We have no objections to any progress…we’d like to see it historically developed,” he said on Friday. 

As the Foundation expands its history program, Freedman has said that they would want to become involved in the proposed craft brewing and distilling center project in the area of the Old Brewhouse.

To comment on the Draft Environmental Impact Statement for the Tumwater Brewery Planned Action, contact Chris Carlson, Permit Manager, City of Tumwater, 555 Israel Road SW, Tumwater, Washington 98501, ccarlson@ci.tumwater.wa.us, (360) 754-4180.

For more information about Tumwater, brewery district planning, the Old Brewery, George Heidgerken, go to www.janineslittlehollywood.blogspot.com and type in key words into the search button.

Tumwater's Old Brewery Stop Work Order Update

Tumwater's Old Brewery Stop Work Order Update

wells  

Above: Aerial of the Old Brewhouse property in Tumwater, after cleanup and straw waddle remediation. Property owner George Heidgerken of Falls Development LLC received a stop work order last year from the City of Tumwater for unpermitted construction activities in this area. Heidgerken recently received a permit to fill a hole, visible here in the southeast corner of the property, upper right, where the road curves. Photo taken on December 18, 2014.

By Janine Gates

www.janineslittlehollywood.blogspot.com

After a stop work order was placed by the City of Tumwater at the historic Old Brewery exactly a year ago this month, the property may soon see some progress.

Chris Carlson, permit manager for the City of Tumwater, said that a permit was issued last month to Falls Development LLC on September 17 and the city approved a plan for the owner to fill a hole with 644 cubic yards of fill at the southeast corner of the Brewhouse building.

The property is owned by George Heidgerken of Falls Development LLC.

Construction equipment and maintenance debris was witnessed by Little Hollywood around the Old Brewhouse building on October 8 and October 18, 2014, indicating a dramatic difference in road construction and water diversion efforts between those two dates.

Multiple areas with black tubing were seen in place, diverting water which was streaming from the nearby hillside. The illegal, unpermitted activities were reported by Little Hollywood to authorities and a stop work order was placed on the property on October 28.

The city said this week that filling the hole is necessary to install groundwater monitoring wells, required as a part of soil remediation work associated with a paint shop that was formerly in that area. Groundwater monitoring results need to be reported to the state Department of Ecology.

Jon Potter, project manager for Falls Development LLC, said he and city representatives had a pre-construction meeting on site late last week and are ready to get started as soon as possible. He said he is working with engineering companies MC Squared Inc. and Associated Environmental Group, both of Olympia.

As for mitigation for the damage done last year to wetlands on the property, the city is waiting for the owner to submit a Joint Aquatic Resource Permits application and a SEPA checklist, which should be in shortly, said Carlson yesterday.

For more information and photos about the stop work order and the Old Brewery in Tumwater, go to Little Hollywood, www.janineslittlehollywood.blogspot.com and type key words into the search button.

Above: The Old Brewhouse tower, built in 1906, as seen this week in Tumwater.

Tanasse Ends Olympia Mixed Use Project

Tanasse Ends Olympia Mixed Use Project

urban  

Above: Citing cash constraints, John and Tiffany Tanasse have ended their effort to build their mixed use building on State Street near downtown Olympia. 

By Janine Unsoeld

www.janineslittlehollywood.blogspot.com

After years of planning and personal sacrifice, John and Tiffany Tanasse have ended their effort to build their mixed use building near downtown Olympia. 

Citing financial constraints, local chiropractor John Tanasse warns others in a similar situation to be prepared to bring a whole lot of cash to the table.

The project involved designers, architects, construction companies, city planning officials, and banking representatives. The Tanasse’s also surmounted the objections of the nearby historic Bigelow neighborhood association last October by prevailing in a hearing examiner case, which allowed the couple to build their modern design, urban living combination of home and business.

Bigelow neighborhood residents were upset with the building’s proposed design on the long vacant lot at 924 State Avenue, saying it was not in keeping with standards or the historic nature of the area.

State Street, however, is not part of the historic Bigelow neighborhood boundary. It is considered to be a high density corridor by both the City of Olympia and the Thurston Regional Planning Council.

On Saturday, the couple issued an open letter, reprinted below:

Hello Friends, Neighbors, and Community Members,

We are writing to let others know that we have decided not to build the Tanasse Mixed Use Building at 924 State Ave. 

We arrived at this decision with great difficulty given all of the challenges that we had previously overcome and all of the community support we have received. Ultimately, we embarked on this journey to simplify our lives and make a difference along the way. We have come to a point where the cost of the project makes simplifying very complex. Unfortunately, with all of the delays, we entered the perfect storm of a hot commercial construction market that has moved our project beyond our comfort zone, which was a moderate stretch from the outset.

We apologize that we were unable to finish what we started but hope we have sparked and added to the ongoing interest and conversation regarding a new way forward in Olympia.

We want to personally thank Gretchen Van Dusen, for her friendship and splendid design, Mike Swarthout of Kaufman Construction for his professionalism, Garner Miller of MSGS architects, Paul Strawn of Riley Jackson Real Estate, Catherine McCoy and entire team at the City of Olympia, Karen Messmer for her tireless quest to make Olympia a livable city for all, Duane Edwards, landscape architect, Kevin Ekar of Heritage Bank, Chuck Hoeschen of South Sound Bank, Nick Benzschawel of Washington Business Bank, and for all community members, for and against, who engaged in vigorous debate over this and city direction.

The road ahead has a positive plan B that will allow us to continue to thrive and provide excellent expanded chiropractic services in a new location, as we have long since outgrown our current location.

Thank you for understanding.

Sincerely,

John and Tiffany Tanasse

In an interview with Little Hollywood, John Tanasse described the frustrating experience and their final breaking point.

“Of course, we started the process with many conversations with our bank to explore our readiness as a business and as a borrower. We got the go ahead and commenced on a long journey of check boxes, some easy, and others quite difficult.

“Part of the puzzle included selling our personal residence, then selling a condo we had acquired for our parents, and then, finally, the sale of our office. And while the appeal delayed us a building season, to be fair, so did the sale of our office that did not sell until this past June.

“Meanwhile the building clock was ticking with the final details of the project and financial package coming together as expected, except for a moving budget target related to an increasingly tight commercial building market that saw enormous increases in materials and labor costs regionally.

“This squeezed us into a corner for a commitment that was ultimately beyond our break point. We were positioned to handle the increase, but it changed all available financing formulas for an odd ball building in terms of finding comparison sales to reasonably meet appraisal value, as no matches existed from here to Seattle.

“In other words, our building, having both owner occupied residential and business, failed to conform to the typical loan products available, leaving us in a position of needing to cash roll a much larger portion than we were prepared or willing to, compared to when we started….”

Tanasse said it was this need for cash that ultimately led them to reluctantly shut the project down. A bulldozer has been seen in recent weeks leveling the site, work which was dependent upon the dry season.

“….We were unable to see this coming. This should serve as a heads up to others interested in this…and for the city that hasto incorporate more mixed use projects as a part of its comprehensive plan….There are severely limited bank products available to assist with this type of project,” said Tanasse.

Former Olympia city councilmember Karen Messmer, who stays active with city land use issues, is mentioned as a supporter in Tanasse’s letter.

“This project had the right elements for new development - housing above a business, on a transit corridor, close to downtown.  And, this is a well-respected locally owned business and a wonderful family. I am sad that the circumstances did not work out for this project to move forward,” said Messmer.

For more information about the Tanasse’s project, go to Little Hollywood, www.janineslittlehollywood.blogspot.com, and type key words into the search engine.

Above: The Tanasse property at 924 State Street today.