Council OKs moving forward with development agreement for AOB lot; developer proposes 38-unit mixed-use building

Mayor Jim Kastema and the Puyallup City Council on March 11 authorized staff to finalize a development agreement and return to the council for approval for a proposed mixed‑use project on the city‑owned AOB lot at 330 Third Street Southwest.

The developer, Urban Olympia (doing business as Urban Puyallup Mixed Use LLC), presented concept designs for a four‑to‑five‑story building with 38 residential units above street‑level commercial space, parking integrated on the ground floor and an amenity deck facing south. City Manager Steve Kirkley said the city recently appraised the site at $1,900,000 and that the developer would pay that market value as part of the agreement.

Why it matters: The AOB site sits west of the library in downtown Puyallup and has been identified in the citys comprehensive downtown strategy as a priority redevelopment parcel. City leaders said putting people and retail downtown supports local businesses and the citys long‑term downtown revitalization goals.

"Urban Olympia is proposing a 38‑unit mixed‑use building," City Manager Steve Kirkley told the council during a presentation that outlined key agreement terms. "Urban Olympia would pay the city that market value. Urban Olympia will put in 29 angled parking stalls on Third Street, and city staff will work with the senior activity center to ensure that 20 of those stalls are used for active senior activity center patrons." (Transcript excerpt: Steve Kirkley.)

Architect Ron Thomas of Thomas Architecture Studios walked the council through concept renderings showing brick and articulated facades, retail along Pioneer and Third streets, a raised sidewalk area for safer pedestrian crossings and an internal alley/easement that would preserve equipment access. "We are very committed to a building that looks like it's been, and it's going to be a significant building for many, many decades to come," Thomas said.

Walker John, the Urban Olympia principal, said the firm builds, manages and operates the projects it develops and favors high‑quality materials. He also told council that technical and insurance issues make for‑sale condominium development difficult in many markets: "Condominiums are... ripe with litigation," he said, explaining the developers focus on market‑rate rental apartments and studio units the team described as "attainable."

Council members asked about parking, senior‑center access and opportunities for homeownership. Councilmember Johnson said he welcomed the project but asked whether the developer would consider any for‑sale options such as penthouse condominiums; Urban Olympia replied that condos carry higher legal and insurance risk for developers and that the firm does not plan for sale units in this project. Councilmember Adler praised the projects design quality and thanked the developer for accommodating senior parking. Several members said they supported a neighborhood outreach meeting before final approvals.

The council voted to authorize staff to proceed with the development agreement and bring it back for formal approval. The motion carried without recorded opposition on the evenings roll call.

Next steps: City staff said they will work with the developer to finalize a formal development agreement and schedule a future council meeting for formal approvals, permit review and additional public outreach. The council did not take a construction or zoning vote at the March 11 meeting; it approved only staffs next step to return with a formal agreement.

Credits: Presentation and concept materials were shown by Ron Thomas (Thomas Architecture Studios) and Walker John (Urban Olympia). City Manager Steve Kirkley and Development and Permitting Services Director Meredith Neal took council questions and described the anticipated agreement terms.