A 478-apartment development on Olympia's waterfront cleared its biggest local obstacle on July 24, when the city's hearing examiner denied an environmental appeal and approved shoreline permits for West Bay Yards.
The decision means the mixed-use project on the former Hardel Plywood site can advance to state review.
The Thurston County Chamber of Commerce, which testified in support, has called it a $100 million private-sector investment. West Bay Development Group, LLC, which bought the property in 2021, plans five buildings with apartments, cafes, restaurants, 823 parking stalls, an elevated public plaza, and a new waterfront trail along Budd Inlet.
The site has been vacant since a fire destroyed the plywood mill in 1996.
Who opposed it
Oly Ecosystems, a local environmental nonprofit that says it owns 12 to 15 properties on the west side of West Bay Drive, filed the appeal. The group challenged the city's determination that the project did not require a full environmental impact statement under the State Environmental Policy Act.
Dan Einstein, Oly Ecosystems' land conservation director, testified at the Monday, June 8 hearing that the group's properties function collectively as "West Bay Woods" and that the development would diminish their ecological value and sever their connection to the shoreline.
The hearing examiner rejected that argument, writing that "an objective view would be that these are unrelated properties, some of which have undergone environmental restoration, some have not, and almost all of which are not adjacent to [West Bay Yards], and with no present collective identity."
Board president Sarah Hamman said in an email Friday, July 25, that the group is "working with our legal team to determine next steps" but acknowledged Oly Ecosystems lacks the resources to continue alone.
Public hearing and conditions
Most public testimony at the June 8 hearing opposed the project. Residents raised concerns about traffic at the Harrison Avenue/West Bay Drive roundabout, sea level rise, stormwater, and impacts to shellfish, salmon, and birds.
The hearing examiner found no traffic problem, noting three independent analyses all concluded that nearby intersections would remain at acceptable service levels even if a separate project to the north, West Bayview Landing, is also built.
One condition of approval requires the developer to erect a fence, vegetative buffer, or other barrier along the project's south boundary to prevent public access to the neighboring former Reliable Steel property.
The Squaxin Island Tribe testified in support. Tribal Council Chairman Kris Peters said the project "will provide positive environmental benefit to Budd Inlet and the Southern Salish Sea."
Contamination and cleanup
The site still requires environmental remediation. West Bay Development Group discovered metals, petroleum hydrocarbons, and volatile organic compounds not found during an earlier 2010 cleanup, according to Department of Ecology records.
Ecology rated the site "Critical" in a March 2025 hazard assessment and finalized a formal cleanup agreement with the developer on Wednesday, July 23, 2025.
What's next
The hearing examiner's written decision is dated Wednesday, July 23. Requests for SEPA reconsideration must be submitted to the city within 10 days of that date.
After that window closes, the city will forward the project to the Department of Ecology for review of the shoreline conditional use permit. Both shoreline permits can also be appealed to the state Shorelines Hearings Board.
West Bay Development Group did not provide comment.
According to project filings, construction would proceed in three phases, beginning with two mixed-use buildings. No start date has been announced.
