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Budget Note: If structured properly, the development over time will provide a return of additional tax to the city beyond <br /> the value of the fee reduction. <br /> 3. Market Rate Housing. The Metro Everett Plan includes a recommendation for financial incentives to create 1,000 units <br /> of market rate housing. Two actions could achieve this: <br /> a) Amend Multifamily Housing in Urban Centers Incentives. The Metro Everett Plan recommends expanding the boundaries <br /> to include all of Metro Everett. Additional review regarding affordable and workforce housing may also be done. See <br /> EMC 3.78. <br /> Budget Note: This incentive is provided only to new construction of multifamily. The incentive defers putting the <br /> improvements on the tax rolls for 8 or 12 years, depending on program used. The city and other public agencies must <br /> provide services without the corresponding increase in property taxes collected. <br /> In 2016, the Port of Everett had THG LLC complete an assessment of the tax impact and financial benefits of the <br /> incentive regarding the waterfront. The study showed that by the second year after the 8-year abatement period, the <br /> city would collect in total as much in property and leasehold tax revenue as it exempted, and would thereafter be net <br /> positive in total collections versus exemptions. <br /> b) Reduce Utility Hookup Fees. Some communities provide city (general) funds to pay utility hookup fees to encourage <br /> development the community wishes to accelerate. <br /> Budget Note: Any incentive to pay utility hookup fees would need to come from the city's general fund. Hookup fees <br /> are running at least $6,200 per residential unit. A fund of$250,000 would provide an incentive for maybe 40 units — <br /> more if only partial discount is offered (e.g. 50% reduction). The financial benefits to the city, similar to the multifamily <br /> housing in urban centers program, is that the new construction is added to the tax rolls and the secondary benefits of <br /> residential spending will be increased. <br /> 4. Impact Fees. Two amendments proposed: <br /> a) Transportation Impact Fee Reduction Area. Currently, projects in the B-3 zone get a 25% reduction in transportation <br /> impact fees. The Metro Everett Plan recommends that this automatic reduction be expanded to all of Metro Everett. <br /> See EMC 18.36.080 and 18.40.1 10. <br /> Appendix A,Implementation 4 August 29,2018 <br />