Title
Approval of a Resolution Authorizing a Multifamily Housing Tax Agreement Between the City of Olympia and Westman Mill
Recommended Action
Committee Recommendation:
Not referred to a committee
City Manager Recommendation:
Move to approve the resolution authorizing the Multifamily Tax Exemption for Westman Mill and authorize the Interim City Manager to sign the agreement.
Report
Issue:
Whether to authorize the Eight-Year Multifamily Tax Exemption for Westman Mill.
Staff Contact:
Cary Retlin, Home Fund Manager, Community Planning and Development, 360.570.3956.
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
Westman Mill downtown at 510 State Ave will create 75 new units of multifamily residential housing in the Multifamily Tax Exemption (MFTE) 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. 3rd Gen Investment Group 2 LLC is seeking an eight-year tax exemption for those 75 market rate units. The tax exemption applies to all qualifying residential units for eight years.
Background on the Multi-Family Tax Exemption in Olympia
The primary purpose of the Eight-Year MFTE program is to promote construction of housing in key areas of the city where the City would like to incentivize housing development. State law authorizes the City of Olympia to adopt a MFTE 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 land or costs associated with any non-housing improvements. The units in this project meet all the requirements to be eligible for a tax exemption, including:
* The housing ...
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