TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
Planning and Community Development
Carol Helland
425-556-2107
DEPARTMENT STAFF:
Planning and Community Development
Seraphie Allen
Deputy Director
Planning and Community Development
Jeff Churchill
Long Range Planning Manager
Planning and Community Development
Ian Lefcourte
Senior Planner
TITLE:
title
Redmond 2050: Multifamily Housing Property Tax Exemption (Downtown, Marymoor, and Mixed-Use) Public Hearing
OVERVIEW STATEMENT:
recommendation
Staff recommends that the City Council hold a public hearing on May 6, 2025, concerning a proposal to:
1. Expand the existing Downtown Residential Targeted Area, and
2. Expand the existing Marymoor Residential Targeted Area, and
3. Create a new Mixed-Use Residential Targeted Area.
The public hearing fulfills the commitment created by Resolution No. 1602, which was adopted by City Council at the Apr. 15, 2025, business meeting.
The Multifamily Housing Property Tax Exemption (MFTE) is a tax incentive program that is authorized by the state of Washington. It is intended to help increase multifamily market housing and affordable housing by exempting the residential portions of new multifamily or mixed-use construction from property taxes. Multifamily and mixed-use developments can only qualify for MFTE if they are within certain designated areas, called "residential targeted areas" (RTAs).
In order to establish an MFTE program the City must designate one or more RTAs that are consistent with the criteria in the Revised Code of Washington (RCW) 84.14.040. Developments within RTAs may be considered for tax exemptions.
When jurisdictions want to establish or amend RTAs, RCW 84.14.040 requires that:
1. The governing authority adopt a resolution of intent to designate one or more areas.
2. The resolution include the time and place of a public hearing.
3. The public hearing be held to consider the area designation.
4. A notice for the pu...
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