Puyallup City Council reviews Urban Olympia's 38-unit mixed-use development proposal

The City of Puyallup is moving forward with an ambitious mixed-use development project on the city-owned AOB property located at 330 Third Street Southwest. During the City Council meeting on March 11, 2025, City Manager Steve Kirkley presented the proposal, emphasizing its alignment with the city’s long-term goal of revitalizing downtown and enhancing community living.

The proposed development, spearheaded by Urban Olympia, includes a 38-unit building that will feature both residential apartments and commercial retail space. The ground floor is designed to accommodate retail, while the upper floors will consist of residential units, including a mix of studios and one- and two-bedroom apartments. The project aims to support local businesses and increase foot traffic in the downtown area, which has been a focus of city planning for over two decades.

Kirkley highlighted the importance of this project in the context of Puyallup's comprehensive plan, which seeks to create a more vibrant and walkable downtown. The AOB site, previously home to city administrative offices, has been identified as a key location for development that can contribute to the city’s economic growth and community engagement.

The development agreement stipulates that Urban Olympia will pay the city the appraised market value of $1.9 million for the property. Additionally, to address parking concerns, particularly for the nearby senior activity center, the developer will provide 29 angled parking stalls on Third Street, with a commitment to reserve 20 of those for senior center patrons during weekdays.

Council members expressed their support for the project while also voicing concerns about the need for a balance between rental units and homeownership opportunities. Some council members suggested exploring options for incorporating ownership units, such as condominiums, into the development. However, the developers noted the challenges associated with condominium construction, including legal liabilities and insurance costs.

The meeting concluded with a consensus to continue discussions and refine the proposal, with plans for a more formal presentation and potential voting in the future. The council's engagement reflects a commitment to ensuring that the development meets community needs while fostering growth in downtown Puyallup. As the project progresses, stakeholders will be encouraged to collaborate and address any concerns that arise, particularly regarding parking and community integration.