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File #: 25-0863    Version: 1
Type: resolution Status: Passed
File created: 9/28/2025 In control: City Council
Agenda date: 11/3/2025 Final action: 11/3/2025
Title: Approval of Resolutions Authorizing Two 8-Year Multifamily Housing Property Tax Exemption Agreements Between the City Of Olympia and Fourth Street's Cottages, LLC for Cottage Apartments
Attachments: 1. Resolution M-2663 Signed 11-03-2025, 2. Resolution M-2664 Signed 11-03-2025, 3. 414 Franz Anderson Resolution, 4. 422 Franz Anderson Resolution, 5. 414 Franz Anderson Agreement, 6. 422 Franz Anderson Agreement
Title
Approval of Resolutions Authorizing Two 8-Year Multifamily Housing Property Tax Exemption Agreements Between the City Of Olympia and Fourth Street's Cottages, LLC for Cottage Apartments

Recommended Action
Committee Recommendation:
Not referred to a committee.

City Manager Recommendation:
Move to approve resolutions authorizing two 8-Year multifamily housing property tax exemption agreements between the City Of Olympia and Fourth Street's Cottages, LLC for Cottage Apartments

Report
Issue:
Whether to approve resolutions authorizing two 8-Year multifamily housing property tax exemption agreements between the City Of Olympia and Fourth Street's Cottages, LLC for Cottage Apartments

Staff Contact:
Jacinda Steltjes, Housing Division Manager, Community Planning & Economic Development, 360.753.8482

Presenter(s):
None - Consent Calendar Item.

Background and Analysis:
Project Summary
Fourth Street's Cottages, LLC is requesting an 8-year multi-family property tax exemption (MFTE) for a market-rate housing project being constructed at 414 Franz Anderson Rd. SE, parcel number 41700600100, and 422 Franz Anderson Rd. SE, parcel number 41700700000, in Olympia's Eastside residential target area. The project will produce 50,447 square feet of residential space and 12,777 square feet of parking for the project's residents. The project, known as Cottage Apartments, will produce 58 market-rate housing units which are anticipated to become available beginning February 2027.

8-Year Multi-Family Tax Exemption Program
The City's 8-Year Multi-Family Tax Exemption (MFTE) program, which permits market-rate housing units, was revised in January 2024 to reposition the program as a tool intended to increase affordable housing. Olympia Municipal Code 3.57, formerly OMC 5.86, now requires all applicants for the 8-Year MFTE program to pay a fee in lieu of producing affordable housing units- defined as units that cost low-income households whose annual gross income does not exceed ...

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