2015/02/18 Council Agenda Packet

PROPOSED NORTH BROADWAYMULTIPLE-LFAMI!Y PROPERTY TAXEXEMPTIONAREA THE PROPOSAL The City of Everett has been asked to establish an area in the vicinity of Everett Community College for the multiple-family property tax exemption,as allowed under State law,to encourage development of housing. The intent of the State law is to provide an incentive that cities can use to encourage the development of housing in certain areas. The intent of the entity that made the request is to develop student housing on privately owned property where multi-family housing is already allowed by the City's existing zoning. THE DISTRICT. The area proposed to be included in the multiple-family property tax exemption is shown on the map on the following page. It includes just the areas zoned for commercial and multiple-family uses that either front on Broadway,or which are included in the Everett Community College master plan. The district extends from 13th Street on the south up to the north end of the Broadway Mixed Use (BMU) zone in the 600 block of Broadway. it would not change any existing zoning or development standards such as off-street parking requirements or permitted building height. THE INCENTIVE. The multiple-family property tax exemption creates a financial incentive for housing by providing an exemption on property taxes for building improvements made to create new multiple . family housing. The exemption would be either 12 years for developments that provide a minimum of 20%of dwelling units that meet standards for'affordable housing,"or 8 years for developments that do not. The tax exemption does not apply to the land, commercial development,or the non-residential portions of mixed use buildings. After the exemption expires, property taxes would resume for the residential improvements. CI T Y'S COMPREHENISVE PLAN. Everett's comprehensive plan encourages the continued growth of higher education on the Everett Community College property. Since college properties owned by the State are already exempt from property taxes,this proposed change would not affect college properties. The multiple-family property tax exemption would potentially benefit privately owned properties that are redeveloped with multiple family housing. The City anticipates that many of the privately owned properties fronting on Broadway will redevelop in the future. The property tax exemption would create an incentive that may encourage housing to be included in property owners' redevelopment plans,and it may encourage redevelopment to occur sooner than would he expected without the exemption. PROCESS. In order to establish the multiple-family property tax exemption area,the City Council must adopt an ordinance defining the boundaries of the area for which it wishes to apply the property tax exemption in order to encourage housing development. COMMUNITY BENEFIT. The City proposes the North Broadway multiple-family property tax exemption area in order to encourage the development of student housing and the redevelopment of privately ovan_+d prc erties in this commercials; _ ied corridor sooner than is likely without the tax exemption. __en _bed a La:: _ . met _ l ie_. .. ��_.dl _��.:`ilH 1993, i e_uf_d in the d_`. . !TM:: 18