The 2022 State of the Community Report

Every January, the Thurston Chamber hosts senior elected officials from Lacey, Olympia, Tumwater, Yelm and Thurston County at the State of the Community Address. We also develop in the Chamber VOICE Magazine, a State of the Community Report. The report is developed through the elected responses to a couple questions.

This year's State of the Community questions are: 1. Heading into 2022, what positive changes do you see for the local economy? 2. What exciting new public projects are on the horizon for your community?

You’ll find the answers to these questions, written by the elected officials, in the following pages. We encourage you to read their statements and then attend the State of the Community Address on Wednesday, January 12, 2022.

At the State of the Community Address, Olympia Mayor Cheryl Selby, Lacey Mayor Andy Ryder, Tumwater Mayor Debbie Sullivan, Yelm Mayor Joe DePinto, and Thurston County Commissioner Tye Menser will collectively present an address and then will take part in a question-and-answer session moderated by Thurston Chamber President/CEO, David Schaffert.

This is a unique opportunity to engage with our elected officials and be part of the conversations on important community issues. We look forward to seeing you there.

MAYOR Cheryl Selby Olympia

1. I believe the economy will start stabilizing due to the natural easing of the supply chain over the next year. There’s no question that recovery has been delayed due to the historic economic disruption of the pandemic and its attendant inflation.

For our local economy in 2022, economic equilibrium should translate into confidence for small business expansion, resulting in new investments in capital improvements and hiring of employees. As a regional center for arts and cultural organizations, Olympia is especially excited to welcome back patrons to our downtown theaters, galleries, shops and restaurants. West Olympia continues to be an employment powerhouse with expansion of the medical hub around Capital Medical Center. As well, our regional shopping destinations at the Capital Mall and the Capital Auto Mall, have re-emerged on strong footings, indicating that 2022 will be a year of continued growth. 2. We’re in the midst of taking a serious look at learning what public safety means to Olympia. A work group of diverse community members has been convened to help council re-imagine public safety. We want to understand the “what, why, and how” of current programs and departments, with the intention of creating an ecosystem where everyone feels safe. Recommendations will come forward to council by early summer so we can budget accordingly.

Another exciting effort is underway to develop a “creative campus” in the Armory building on Legion Way. The state surplused the historic building and the legislature donated it to Olympia at the end of last year. The creative campus’s intended purpose is to develop and magnify our unique arts, culture, history and science organizations. With 50,000 sf of space, we have an amazing opportunity to expand our reach as a regional hub for creative engagement. Up and forward to 2022!

MAYOR Andy Ryder Lacey

Photo by Nate Burgher

Based on continued economic growth, local spending, and rising vaccination rates, the City is cautiously optimistic about the local economy in 2022. Multi-family construction remains strong—2,600 units are in the planning pipeline and will be available within 3 to 5 years. On the commercial side, Lacey expects to see a new Coastal Farms retail store backfill Shopko, a new truck dealership (Tec-Equipment), and a heavy equipment retail and repair shop (NC Machinery). The City remains committed to creating a supportive environment so our business community can flourish and thrive.

For 2022, we are excited about a number of public projects including:

• Expanded Lacey Veterans Hub:

Lacey Veterans Service Hub doubled in size, offering key services such as financial assistance, housing, veterans benefits, education, training, mental health, and other key services to our region’s 32,000 veterans. The Veteran’s Hub served 5,182 client appointments last year.

• Enhanced Lacey Food Truck

Site: The City piloted a food truck site last year next to Lacey’s

Train Depot with great success.

Next year, we plan to make improvements to attract more vendors and create a community gathering place.

• New Public Safety Facility: Lacey’s current police station is 36 years old. City Council approved to explore a new site for the future facility but the $40 million costs will need the approval of the community. A community group will be formed to help guide this needed public investment.

• Market Rate Housing in Midtown: City Council efforts to attract market rate housing is beginning to show dividends. By way of a strategic plan, targeted multihousing policy, a 151-unit project by MJR is underway in Midtown. Housing is a missing element in this core area of Lacey and we are optimistic more housing projects will occur over time.

• Lacey MakerSpace Expansion:

This creative space was established in partnership with the City,

Saint Martin’s University, and the

Economic Development Council.

On-site members have access to 3-D printers, CNC machines, plasma cutters, and business and design support. This is an ideal resource for our business community and it is expanding in 2022!

Lacey continues to be an outstanding and classy community that I, for one, am humbled and extremely proud to be a part of and represent.

The COVID-19 pandemic triggered an economic shock to our economy, with a disproportionate, negative impact on small- and mid-size businesses. The hospitality industry severely impacted, and car sales dropped. Large retail sales for groceries and home improvement surged as buying patterns changed. And, residential construction reached levels not seen before.

Our Thurston Strong partnership helped mitigate some financial impacts on local businesses throughout the County. Heading into 2022, there are signs of a sustained recovery. Tumwater is ready for new businesses, residential development, and commercial properties with mixed-use, mixed-income housing.

What exciting new public projects are on the horizon for your community?

Rehabilitation and preservation of the Old Brewhouse Tower continue. Phase I work, construction of new roofs, brick replacement, and masonry restoration, is complete. Phase II, seismic stabilization, is now in design.

Tumwater’s Craft District, built around the South Puget Sound Community College Brewing & Distilling program, opened last June with Heritage Distilling Company and offers a unique visitor experience that blends education with industry. The outdoor amphitheater is slated to open in the summer, and the Market building with retail shops, cafés, and other craft producers is under development.

Tumwater Hill Trails - Crosby Connection will link the west side of Tumwater Hill to the existing park trail system. Residents will see new restrooms in neighborhood parks and a new park at The Preserve.

The City is making infrastructure investments to support economic development, including reconfiguring the Trosper Road and Capitol Boulevard intersection with construction scheduled for 2022.

Promoting Tumwater as the center for craft brewing, distilling, and cider-making is an economic driver for the City. These rapidly growing industries draw investment, foster innovation, create jobs, and attract visitors. The State designation of the Thurston Craft Brewing and Distilling Innovation Partnership Zone helps further our vision of economic vitality and thriving local businesses.

Businesses are expanding, new commercial buildings are being constructed, new neighborhoods are being built, and existing homes are being renovated—signaling economic stability and growth in retail sales.

The housing boom in Tumwater is still going strong. With 242 new single-family homes and 145 multi-family units permitted this year, there is an increase in inventory and more options for affordable housing. We are optimistic about continued growth in the real estate market and the direct connection between housing and economic vitality.

MAYOR Debbie Sullivan

Tumwater

MAYOR Joe DePinto

Photo by Michael DeLorme

Yelm

2022 should be an exciting year for the City of Yelm. The 2015 Foster vs Yelm Supreme Court Decision really stymied major economic growth in Yelm, mainly due to our limited water hook ups for new construction and policies surrounding the conservation of the finite number of connections. The good news is we should receive new water rights by January of 2022. I am anticipating significant economic and residential growth as a result, especially in the area near Walmart.

I am also excited to be the Mayor who will hopefully see the SR 510 Yelm Loop, aka the Yelm Bypass, come to fruition after decades of planning that started with Mayors, City Councils and other community leaders in the 90s. The Yelm Loop will run from one end of town to the other and is going to increase freight mobility in our region, reduce traffic congestion in our downtown core, and create new opportunities for economic development. This fully funded project is in the final phase 2 with construction of the last 3 miles starting in 2023 and completion estimated in early 2025.

There are also lots of other fun smaller projects we are looking forward to in Yelm, including the completion of our first dog park and the possibility of a fireworks show, military parade, and temporary ice skating rink which seems to be a huge success in Olympia. Folks are going to be excited with all the fun community projects and events that we hope will bring people from all over Thurston County and even the State to see how amazing our small but growing community really is.

I am very enthusiastic on the economic outlook for Yelm in 2022 and look forward to working with the Yelm City Council and regional leaders to create positive changes in Yelm and Thurston County.

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Rainier Serving All of Thurston County

ECONOMIC DEVELOPMENT SUPPORT THROUGHOUT THURSTON COUNTY

PORTOLYMPIA.COM 360.528.8000 Inquiries@PortOlympia.com

1. Provided $70,000 for the renovation of the Historic Oddfellows

Building. 2. Provided $75,000 to complete the Master plan for the SW

Washington Innovation & Business Park. 3. Provided $10,000 for the installation of wider sidewalks, bulb-outs and landscaping along Binghampton Street to build downtown character and enhance the setting for local and visiting shoppers. 4. Provided $20,000 to assist with the design and construction of the community center. 5. Provided $15,000 to support investment in the Lacey

MakerSpace project. 6. In partnership with the City of Tumwater and U.S. Fish and

Wildlife, developed a Habitat Conversation Plan to provide long-term preservation and management of protected and endangered species. 7. In partnership with the Frank Family, Squaxin Island Tribe and

Salmon Defense, developed and maintains the Billy Frank Jr.

Park and Trail to provide a historical and educational self-guided walking tour.

Photo by Michael DeLorme

COMMISSIONER Tye Menser Thurston County

2021 continued to throw curveballs at our community and local economy, as we navigated the ongoing impacts of the pandemic. Thurston County invested heavily in our local business community by directing federal relief dollars to Thurston Strong, a coalition that included the Thurston Chamber of Commerce and the Thurston Economic Development Council. Although we are projecting continued strong sales tax revenue in the near term, the Board took a conservative budgeting approach to account for whatever new challenges we may face in 2022. Growth and new construction in Thurston County has been strong, and we are tremendously excited about the positive economic impact of our forthcoming incidental take permit (ITP) from U.S. Fish & Wildlife Service, upon the final approval of the County’s Habitat Conservation Plan. Expected in early 2022, the ITP will allow citizens to develop their property without mitigation requirements, and is the culmination of nearly a decade of work by the County to navigate the federal Endangered Species Act on behalf of the community.

As we move forward, there are exciting projects on the horizon for Thurston County in 2022 which will benefit our residents in a variety of ways. We will continue to work with our municipal partners on regional strategies to create more affordable, supportive housing units. Partnerships are also key as we work on a project with the Nisqually Tribe to create broadband access to rural and marginalized areas of the county. We are investing in a variety of reforms to our criminal justice system, including expansion of our Law Enforcement Assisted Diversion (LEAD) program, opening a Resource Hub for justice-involved individuals, adding four behavioral health specialists to our Sheriff’s Office, and funding body and car cameras for our sheriff deputies.

As our county population increases, so does demand for services. To help alleviate pressing space needs, some offices and departments will move out of the courthouse campus to 3000 Pacific Avenue, allowing a remodel of the courthouse campus to provide additional space and upgraded facilities to the law and justice side of our business. Meanwhile, we will continue to fight this evolving pandemic with all our might. Please take care of yourself by masking, distancing, and getting vaccinated. We are all in this together!