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Let's talk politics.
Wednesday, April 23rd, 2008
Posted by Jason Hagey @ 06:29:41 am

Point Ruston LLC, the developer planning to build a mix of residential and commercial buildings on the old Asarco smelter site, wants the City of Tacoma to find a way for it to qualify for the city's multi-family tax exemption.

Loren Cohen, legal affairs manager for the developer, sent a letter to Tacoma Mayor Bill Baarsma and Councilman Spiro Manthou earlier this month, asking city officials to consider making some changes in the city's code that would allow the project to qualify for the incentive.

Specifically, Cohen wants the city to add language making it clear that an area with existing "or previous" businesses would meet the definition of an "urban center." Although it's vacant now, the property has been the site of numerous businesses for over a century, Cohen wrote, including sawmills and the smelter. From the April 11 letter;

As the City moves through its modifications to the City's Tax Exemption it should surely contemplate adding these 2 words -- which at this point out right disallow the possibility of a tax exemption to the Point Ruston project. When such a code amendment has been adopted, Point Ruston would follow the given procedure to propose a Comprehensive Plan amendment to add the project site as a Mixed Use Center within the city.

At least one council member doesn't support the idea.

[More:]

Councilman Mike Lonergan sent Baarsma an e-mail saying in part:

It would appear to miss the whole point of our mixed-use center tax abatement, which has to do with encouraging (re)development density in transit oriented centers and neighborhood business districts, as a method of complying with Growth Management Act. ... The letter would appear to turn the whole policy on its head -- once a development well outside the designated areas is well on its way, we should grant the tax abatement as a way of rewarding the development.

But Manthou said Tuesday that he thinks Cohen makes a "pretty good case" and the city should consider the request. Manthou acknowledged that the Point Ruston project would mark the city's first use of the incentive for a specific project, and it may not be the best option for helping the development. "Is there another incentive we can grant?" he asked. Cohen is "sticking his neck out" to reclaim a Superfund site, Manthou said. "We need to look at what we can do to help. Maybe this isn't the right way to go."

Categories: Tacoma 3 comments

COMMENTS:

bambie1 @ 07:07 - Wednesday, April 23rd, 2008 Email
It is time to stop giving tax breaks of this type. We complain because our city streets are in poor condition and can't be repaired - and we even asked for a tax levy to improve them. Meanwhile, the city continually gives away tax money that could be used to repair our streets. When the tax breaks were initially given they were to encourage "urban dwelling" for the downtown Tacoma corridor. That has gone well but it is time to stop. I doubt that this high end development needs a tax break. If someone can afford to live there they can afford to pay their share of taxes. I have appraised real estate in Pierce County for 17 years and just because the market is slow now does not mean it won't recover. And, typically, the higher end market always survives - and this luxury development doesn't need the cities help.
gigatt @ 08:48 - Wednesday, April 23rd, 2008 Email
I am glad there is some common sense on the council. Mike Lonergan's position is right on. Whether Cohen is 'sticking his neck out' or not, he knew what he was getting into when he started the project.

Bambie1 - You're right, we certainly do not need to be offering additional tax breaks to high-end luxury condos that don't fit the stated purpose of the program. However, I think the program should remain in place to encourage some infill growth in areas in need of some help and to keep us on track with our Growth Management Act objectives. It may need to be re-evaluated and tweaked here and there, but I think the program still has merit.
Ebjornson @ 01:33 - Thursday, April 24th, 2008 Email
http://i.feedtacoma.com/Erik/
The entire purpose of the multi family tax incentive is to reduce sprawl by concentrating growth in urban areas where the 16 Washington cities that use the tax exemption wish to have high density growth occur.

The program is designed to save the loss of farmland, reduce traffic congestion and pollution. Tacoma is currently failing the pollution standard.

Better to have high density development concentrated in urban areas than losing huge amount of farm land to suburban development.

Plus, it is very expensive to try to serve remote developments with services such as police and and with gas prices continuing, yet further remote development is unsustainable.

However, the question for Point Ruston development is: does it make sense in a growth management perspective for the City of Tacoma to try concentrate growth at that location?

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