A Falls Terrace update, a hotel might become housing and tenants line up for Craft District

Rolf Boone
·4 min read

Falls Terrace, the iconic Tumwater restaurant that sits next to Tumwater Falls, appears to be taking steps toward reopening after it closed during the COVID-19 pandemic, Tumwater and Thurston County officials say.

The Olympian looked into the status of the restaurant because it’s one of the questions readers most frequently ask: When is it going to reopen?

The Olympian was unable to reach restaurant owner Daniel Vavrinec, but he has sought building permits from the city, city of Tumwater spokeswoman Ann Cook said.

One of those permits, to replace siding on the building, has been issued by the city, she said. They also have two more that are still pending: a remodel/right of way permit, which would allow the repairing of floor joists and pilings, and a permit to remodel a restroom to be compliant with the American with Disabilities Act.

Those permits have not been issued because the city has asked for additional information, Cook said. All three permits were sought at the end of 2022.

Meanwhile, Sammy Berg, a Thurston County senior environmental health specialist who works closely with restaurants, said he first heard from the owner during the pandemic. In the early days of the pandemic, restaurants were forced to close, prompting many owners to take advantage of the closures to make upgrades.

Berg said the restaurant was planning to open in February, but ran into problems that all businesses have dealt with since the pandemic: a lack of building materials and challenges finding a contractor.

Berg described their situation as “two steps forward, two steps back.”

Other business happenings

The owners of Olympia Hotel at Capitol Lake, the west Olympia hotel that has been known under many names including Hotel RL and the Red Lion, are exploring a plan to convert the complex into apartments, according to city of Olympia information and Philip Stewart, a Portland architect who recently represented the hotel owner, California Investment LLC, at a site plan review committee meeting.

Site plan review committee meetings provide feedback on what will be required of developers if they move forward with their projects in Olympia.

Stewart said Thursday he suspects the owner wants to move forward with the conversion because “the apartment market is booming, more so than the hospitality market.”

If the project moves forward, Stewart said the conversion would result in a range of apartment sizes, although the total number of them would be less than the current 193 rooms offered by the hotel. But the proposal does have its hurdles, he said.

The hotel falls within an area known as the Evergreen planned urban development, a zone that has been in place since the early 1970s. It does not allow multi-family housing, Stewart said, so to make the change, they need a text amendment to the PUD, which will have to come before the hearings examiner and Olympia City Council.

Olympia Hotel at Capitol Lake…May 10, 2023
Olympia Hotel at Capitol Lake…May 10, 2023

Elsewhere, Marie Gaze has opened Emerald Corner LLC, an interior plantscape company that specializes in the design, installation, and ongoing care of living plants in commercial/corporate spaces, she said in an email to The Olympian.

“I have mostly privately owned businesses as clients as of now, but my goal is to work more within government contracting,” she writes. “Especially in our post-pandemic world, plants serve more purpose than just something beautiful to look at — plants clean the air, boost employee morale, increase serotonin levels, create a natural divide in space, reduce noise pollution, and are widely reported to increase overall happiness. As humans, we need connection with nature, especially inside buildings such as these.”

An example of the Emerald Corner plantscape design at Ember Goods, a coffee shop and retailer in downtown Olympia.
An example of the Emerald Corner plantscape design at Ember Goods, a coffee shop and retailer in downtown Olympia.

More tenants appear to be headed to the second building at the Tumwater Craft District on Capitol Boulevard, according to the craft district website. The first building at the site houses Heritage Distilling and South Puget Sound Community College’s craft brewing and distilling program.

The website shows the following tenants are coming to the second building: Left Bank patisserie, Olympia Seafood Co., SweetLee’s Ice Cream, Percival Creek Tasting Room, Finn River Cidery and Ember Goods Coffee Roasting.

And now the Craft District owners are exploring a plan to bring food trucks to the site. A representative is set to meet with Tumwater’s Development Review Committee next week, according to city information.

Real estate

A Kirkland developer has submitted plans to Thurston County for two, tilt-up concrete industrial buildings with accessory office space in a new industrial park at 8714 Blomberg St. SW, between Littlerock Road and Interstate 5. One of those buildings will be 970,000 square feet, according to the county information.

The first comment period ends at 4 p.m. May 25. Send your thoughts to senior planner Kraig Chalem at kraig.chalem@co.thurston.wa.us.

A map showing the area of a development proposal in Thurston County that would bring two, tilt-up concrete industrial buildings with accessory office space in a new industrial park at 8714 Blomberg St. SW.
A map showing the area of a development proposal in Thurston County that would bring two, tilt-up concrete industrial buildings with accessory office space in a new industrial park at 8714 Blomberg St. SW.

If you know of a retailer, restaurant, coffee shop or other business that is opening, closing, expanding, remodeling, or changing its focus, send an email to reporter Rolf Boone at rboone@theolympian.com.