Title
Approval of a Resolution Authorizing a Multifamily Housing Tax Agreement Between the City of Olympia and The Easterly LLC
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve the resolution authorizing the Multifamily Tax Exemption for The Easterly LLC and authorize the Interim City Manager to sign the agreement.
Report
Issue:
Whether to authorize the eight-Year Multifamily Tax Exemption for The Easterly, LLC.
Staff Contact:
Cary Retlin, Home Fund Manager, Community Planning and Development, 360.570.3956.
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
The Easterly Apartments downtown at 909 Eastside St. SE will create 21 new units of multifamily residential housing in the Multifamily Tax Exemption Downtown Residential Target Area. The project has been reviewed by the Site Plan Review Committee and land use, design and environmental review has been completed. The property is currently under construction. The Easterly LLC is seeking an eight-year tax exemption for 21 market rate units. The tax exemption applies to all qualifying residential units for eight years.
Staff discussed the 12-Year affordable program with the applicant prior to construction beginning, but they were unable to make that program work at this site.
Background on the MultiFamily Tax Exemption in Olympia
The primary purpose of this program is to promote construction of housing in key areas of the city where we would like to incentivize housing development. State law authorizes the City of Olympia to adopt a multifamily housing tax exemption program (RCW 84.14). The program provisions under Olympia Municipal Code under 5.86 were most recently amended in 2009 to create an eight- and 12-year program for market rate and affordable housing provisions.
The property tax exemption applies to only the increased value of building housing (new construction). The exemption does not apply to the ...
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