Laserfiche WebLink
EVERETT CITY COUNCIL AGENDA ITEM COVER SHEET 2 <br /> PROJECT TITLE: <br /> A Resolution Concerning Consent COUNCIL BILL# <br /> Deployment of City of 8/1/12 Action Originating Dept. Public Works/Legal <br /> Everett CDE LLC New First Reading Contact Person Dave Davis/Tim Benedict <br /> Markets Tax Credit Second Reading Phone Number 425-257-8913/8669 <br /> Allocation Third Reading FOR AGENDA OF 7/25/12; 8/1/12 <br /> 7/25/12 Briefing Initialed by: <br /> Department Head <br /> CAA <br /> Council President <br /> Location Preceding Action Attachments Department(s)Approval <br /> (2.24.09)Resolution Re:New Markets Tax Credits Resolution Public Works,Legal,Admin <br /> (11.18.09)Authorize Mayor to Sign Allocation <br /> Agreement <br /> Amount Budgeted -0- <br /> Expenditure Required -0- <br /> Budget Remaining -0- <br /> Additional Required -0- <br /> DETAILED SUMMARY STATEMENT: <br /> In November 2009, the City received $25 million in New Markets Tax Credits from the U.S. Treasury to foster <br /> private development. Use of the credits is limited by their complexity and by requirements that they be used in <br /> specific low-income census tracts. Further,credits must be used by September 2012. If not used by the deadline,most <br /> of them will revert to the U.S.Treasury,and it will be difficult for the City to apply for more credits in the future. <br /> The City was planning to use the credits for the Riverfront project. With the delay of the Riverfront project,City <br /> staff searched without success for alternative Everett projects that could use the credits. Touchstone(developer of the <br /> hotel project), attempted to detnine a way of using them, but could not. The City also advertised an RFP for <br /> development near Everett Station using the credits,but got no response. The City also reached out to local developers <br /> through Lathe McMullin. The City advertised, but with limited success. There may be one or two local projects that <br /> have an interest,but cannot qualify for this round,but possibly for future allocations. <br /> Because of the upcoming deadline, the search has been expanded on an exploratory basis to determine whether <br /> there are such projects outside of Everett. We have learned that there are a limited number of projects in Puget Sound <br /> and Eastern Washington that are shovel-ready and could use the credits now. If the City provided credits to these <br /> projects,the City would preserve its ability to apply in the future for more credits for the Riverfront and other projects <br /> within Everett. Accordingly, City staff recommends that Council adopt the attached Resolution that essentially <br /> provides the following: <br /> 1. Council authorize the Mayor to take all actions necessary to apply to the U.S. Treasury for permission to use <br /> the credits anywhere in Washington state. <br /> 2. Council appoint Rick Friedhoff(of Seattle, Washington), and Tim Henkel (of Spokane, Washington), to the <br /> City's New Markets Tax Credits Advisory Board to show the U.S. Treasury that its advisory board contains <br /> persons from statewide. These persons have experience with New Markets Tax Credits. <br /> 3. Council authorize the Mayor to take all appropriate actions necessary to deliver the tax credits to projects in <br /> Washington State that can use them. <br /> RECOMMENDATION(Exact action requested of Council): <br /> Adopt A Resolution Concerning Deployment of City of Everett CDE LLC New Markets Tax Credit <br /> Allocation. <br /> 21 <br />