Tukwila City Council to hold public hearing on multi-family, property-tax exemption

The Tukwila City Council will hold a public hearing Monday (Nov. 24) on a proposed property-tax exemption on multi-family housing in Southcenter.

The Tukwila City Council will hold a public hearing Monday (Nov. 24) on a proposed property-tax exemption on multi-family housing in the Southcenter area.

The hearing is part of the council’s Committee of the Whole meeting at 7 p.m. in council chambers, City Hall, 6200 Southcenter Blvd., Tukwila.

The boundary for the residential targeted area is in the part of the Southcenter Tukwila Urban Center zoned for transit-oriented development that’s west of the Green River.

The idea behind the property-tax exemption is to encourage multi-family housing in urban centers near a transit center.

“The purpose of the incentive is to ‘prime the pump’ and get new construction of multi-family started – not to provide an ongoing subsidy,” Derek Speck, Tukwila’s economic development, wrote in the staff report.

Because of that, the city would accept applications only through the end of 2016, he wrote.

The proposed ordinance has the 19-story Washington Place residential tower in mind, but Speck wrote the staff is not recommending the incentive program “strictly for Washington Place.”

Without Washington Place, staff still would have recommended the incentive, which is encouraged in the Southcenter Plan, he wrote.

“Because the Washington Place project has expressed a strong desire to apply for the incentive, staff has brought it forward at this time,” he writes.

Other properties could apply for the incentive, but city staff isn’t aware of other developments that meet the criteria.

In his memorandum, Speck wrote that the exemption won’t reduce or take away property taxes received by the city or other taxing districts.

“However, it does delay when the agencies would start receiving property tax on the new construction by eight or 12 years,” he wrote.

Five cities in King County have projects receiving such exemptions, Burien, Kirkland, Renton, Seattle and Shoreline.

The council also will hold a public hearing on the development agreement for a five-story hotel at 90 Andover Park East with approximately 90 guest rooms.


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