Proposed expansion of Shoreline’s Multifamily Property Tax Exemption program
Tuesday, December 6, 2011
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| Proposed PTE areas in Ballinger Neighborhood Map courtesy City of Shoreline |
By Dan Eernissee, City of Shoreline Economic Development Manager
Improving economic development opportunities in Shoreline has been a Council goal for several years.
One of the most significant incentives for investments is providing infrastructure and frontage improvements, such as along Aurora and in North City. However, another tool that can be used to attract investment in the multifamily housing market is the Property Tax Exemption (PTE) program.
Shoreline currently offers a PTE program in the North City and Ridgecrest neighborhoods. PTE is a statewide program that helps make new apartment or condominium projects economically feasible by reducing expenses in the first few difficult years of a new project.
The City Council is currently studying whether to expand the PTE program in Shoreline to include the entire Aurora corridor along with the smaller commercial areas of Ballinger, Hillwood, Richmond Beach, and the SE neighborhoods.
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| Hillwood - Richmond Highlands proposed PTE areas Map courtesy City of Shoreline |
Expansion of the PTE program in these areas will provide another incentive to attract new development in a highly competitive and limited investment market.
The PTE program provides an incentive for the multifamily investor without increasing Shoreline property owners’ taxes.
City staff worked closely with the King County Assessor’s office to clarify how PTE actually works and to be assured that a new development’s assessed value is not added to Shoreline’s overall assessed value for taxing purposes until the end of the exemption period. As a result, there is no tax shift to other property owners because the overall assessed value remains the same.
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| Proposed PTE areas in the SE Neighborhoods / Briarcrest Map courtesy City of Shoreline |
In putting together the PTE program proposal, City staff talked with the development community to better understand their concerns.
The City wants to achieve the ideal tipping point in the length of tax exemption. It needs to be long enough to be effective for the investors, but as short as possible for the City.
After financial analysis and several conversations, City staff has proposed that the expanded areas would be exempt for only 5 years rather than the 12 year maximum that the City currently offers in North City and Ridgecrest.
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| Proposed PTE area of Richmond Beach Map courtesy City of Shoreline |
The public hearing and Council discussion will be held at 7:30 p.m. on December 12, 2011. To learn more about the proposed PTE program visit the City’s website.
Further information on this topic is available below:
Shoreline’s Vision 2029 download in pdf
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1 comments:
Typical:
"City staff talked with the development community to better understand their concerns."
Anyone interested in the concerns of the actual community? You know, the people who live here.
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