The developer is Vision One LLC of Auburn, WA. The projects are slated for the 1500 block of Tacoma and Fawcett avenues south, five blocks south of the city courthouse.
The first project would involve 190 new units. Total construction costs would be approximately $31.5 million and the annual tax exemption is estimated at $539,000. The second project would involve 260 new units. The property taxes exempted are estimated at $744,600 per year. Total construction costs would be approximately $43.5 million.
The housing development supervisor in the city's economic development department, Ric Teasley tells GlobeSt.com Tacoma fought for about 10 years to get the state legislature to allow the tax break. Since it happened in 1995, 47 projects totaling 3,300 units have been approved for the exemption, says Teasley.
Teasley says the program, which freezes the land improvement value for 10 years, is not keyed to low income. Indeed, he says 90% of the units developed to date have been market rate, and 20% of those have been upscale.
"It is one of the most successful economic development tools the city has, says Teasley."It is key to the 14 mixed-use centers we have throughout the city--areas we have identified for additional housing growth to support the service and business and retail sectors located therein."
At the same time the Vision One projects were approved, the city also granted Sun Ranch Partners LLC of Bellevue, WA a 10-year property tax break for a 32-unit project in the 200 block of Tacoma Avenue South. Total cost of construction is estimated at $1.85 million. The property taxes to be exempted are estimated at $31,600 per year.
"We draw a lot of developers from all points north because the cost of the land up there is pricing them out of those markets," says Teasley. "Even though there's more of a perceived risk, because we're not where those other cities are at, by giving this tax incentive we mitigate that risk, which allows lenders to finance those projects."
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