Olympia council approves sale of 900 Plum St. to Squaxin Island tribal enterprise

The Olympia City Council unanimously approved a resolution on April 8 authorizing the sale of city‑owned property at 900 Plum Street Southeast to Island Enterprises, the business arm of the Squaxin Island Tribe.

City Manager Jay Birney told the council the roughly 10.47‑acre property, built in 1966 and long used as city hall and later as the Lee Creighton Justice Center, “has reached the end of its useful life.” Birney said the city received a signed purchase offer dated March 10, 2025, and that the negotiated purchase price of $8,200,000 is within 10% of a recent appraisal of $9,100,000. The purchase and sale agreement includes an 18‑month no‑cost leaseback to allow the city time to relocate municipal programs now on the site.

The nut of the council’s discussion centered on the transaction’s redevelopment prospects and the near‑term logistics for city services on the campus. David Burnett, chief executive officer of Island Enterprises, said the tribe is exploring a hotel and meeting space and a “landmark style restaurant” as concepts that would serve the city and region. Squaxin Island Tribal Chairman Chris Peters emphasized the tribe’s intent to be “good partners” and stated directly, “We’re not building a casino.”

Council members noted the site’s long municipal history and the need to relocate several uses now on the campus. Birney said staff are evaluating relocation options for the municipal court and related programs, the Yashiro Japanese Garden, Plum Street Village tiny home residents, Saturday waste drop‑off operations and long‑term evidence storage for the police department. He said discussions with Thurston County about potential contracting for court services are underway and that staff expect to bring recommendations to the council within the leaseback period.

The purchase agreement sets a closing date on or before June 4, 2025, subject to a 90‑day buyer contingency; Birney told the council that the buyer had largely completed items in the contingency period and that both sides expected to meet the closing date. Chairman Peters and Burnett told the council they plan to continue community engagement as plans for the site develop.

Mayor Pro Tem Nguyen moved the resolution authorizing the sale and the motion was seconded. The council voted to approve the resolution; the motion passed unanimously.

City staff stressed that the council’s action was limited to approving the sale and that separate decisions remain to be made about the future location and structure of court services and other municipal functions that currently occupy the Plum Street campus. Birney said the city will use the 18‑month leaseback window to finalize relocation plans and to negotiate a memorandum of understanding with the tribe for provision of city services, particularly public safety, during and after the transition.

The council and tribal leaders both described the transaction as part of a longer government‑to‑government relationship. Council members who spoke cited the city’s 2023 Accord with the Squaxin Island Tribe and framed the sale as an economic development opportunity that could bring jobs and meeting and lodging capacity to the capital region.

The sale resolution and purchase and sale agreement set in motion the 18‑month transition period; no final site plans or development permits were presented to the council at the April 8 meeting.