Lease of Port Property to Swire Land, Inc. DBA Swire Coca-Cola, USA
The Port of Olympia and Swire Land, Inc. DBA Swire Coca-Cola, USA, the local bottler across much of the Pacific Northwest, have entered into a ground lease for approximately 95 acres on property located on the southeast corner of the Olympia Airport. More specifically, it is the vacant land area on 88th Ave SE across from Washington State Correctional Industries. The land is not being sold. The Port will maintain ownership of the land and collect annual lease income of approximately $2M per year. The length of the lease is for up to seventy-five (75) years.
Frequently Asked Questions
Swire Land, Inc. DBA Swire Coca-Cola, USA seeks to lease the site for long-term manufacturing planning to meet possible future demand in the region. The potential development would include buildings for manufacturing, warehousing and distribution of products produced on site, and supporting operations.
Should the site be developed, it would primarily be a manufacturing facility with a variety of jobs for all skill levels. While there is warehousing on site, most of what would be warehoused here would first be manufactured at this location. In addition to manufacturing and warehousing, any development would include a variety of ancillary buildings to support operations.
Swire Coca-Cola, USA is the local bottler throughout most of the Pacific Northwest. It bottles and distributes Coca-Cola and other beverages in a total of 13 states including parts of Arizona, California, Colorado, Idaho, Kansas, Nebraska, Nevada, New Mexico, Oregon, South Dakota, Utah, Washington, and Wyoming. Headquartered in Draper, Utah, Swire Coca-Cola, USA was founded in 1978 and employs close to 7,400 associates. In Washington, Swire Coca-Cola employs 1,034 people across seven facilities, with an annual payroll of $79.3 MM. The Swire Coca-Cola team delivers approximately 700 products to more than 8,800 outlets.
Swire Coca-Cola, USA is committed to sustainable development. The company has ambitious goals and a strong track record in the areas of climate protection, packaging and recycling, and water stewardship.
Should Swire Coca-Cola proceed with development of the site, the project, when fully developed, would be an investment of approximately $500 million into the Thurston County community. A fully developed site would be a major local employer with the potential for 300-600 jobs.
The area leased for the project contains few trees. Any trees that are removed as part of the development would benefit flight operations at the airport. As a strong supporter of sustainable development, Swire Coca-Cola would invest in the planting of trees to mitigate the potential loss of trees on the site.
Any project in this development will be required to undergo a project level review under the State Environmental Policy Act (RCW 43.21C) prior to the issuance of land use or building approvals or permits. SEPA review will be led by the permitting authority, in this case, the City of Tumwater. SEPA review requires that the City of Tumwater evaluate the environmental impacts of the proposed development and determine whether the impacts will be significant and whether any significant impacts identified can be adequately mitigated. The SEPA review process is set in state law and adopted as a matter of local ordinance. For additional information about how project SEPA review works, please visit the Ecology SEPA website: https://ecology.wa.gov/regulations-permits/SEPA-environmental-review.
The Port is partnering with the City of Tumwater to complete the Bush Prairie Habitat Conservation Plan (HCP) for endangered species in Tumwater. Once complete and adopted, the HCP will balance growth and the preservation of endangered species within the City of Tumwater and its urban growth area. The HCP will conserve these species by providing long term habitat protection across a system of managed reserve areas. Development by Swire will help to fund implementation of this plan.
The Port will not fund infrastructure improvements required for private development of the property.
Swire Coca-Cola regularly reviews operations as part of its long-term planning process to ensure the company can meet current and future demand. If successful, this application gives the company additional opportunities to continue its growth. No final decisions have been made other than applying for the lease.
Below is a conceptual site plan for the development.
The Port’s real estate holdings include three separate lines of business – the Olympia Regional Airport which includes the NewMarket Industrial Campus, Peninsula Properties, and the Lacey Commerce Business Center. These three business lines directly support over 2,300 jobs and generate over $400 million in business revenue annually. As a public agency, the Port of Olympia is able to invest in infrastructure and development at lower financing costs which allows businesses to form and operate in the region when private developers may not otherwise be able. This type of investing and business supports economic development within Thurston County, one of the Port’s primary purposes. More information about the Port’s real estate holdings can be found at realestate.portolympia.com.