The developer of a 21.7-acre apartment complex in Tumwater is set to secure an exemption from property taxes for a dozen years.
The Tumwater City Council authorized Mayor Debbie Sullivan on Tuesday, April 1, to accept a conditional contract that would exempt Grandview Yorkshire LLC, the developer of Yorkshire Apartments, from property tax for 12 years.
The contract is only for one of the eight residential buildings planned for the development between Israel Road and Tumwater Boulevard. According to the site plan, the five-story building would feature 240 residential units.
The contract requires the developer to complete the building within three years, and only upon completion would the city grant a final contract for the tax exemption.
The exemption is granted through a statewide program that incentivizes multifamily housing developers. To qualify for the program, a developer must commit to renting or selling 20% of the units as affordable housing for low- and moderate-income households.
According to the developer’s application form, 48 units would be income-restricted for low-income households, or those households earning at or below 80% of the area’s median income. The rest of the units would be priced at market-rate.
The apartment complex necessitates the extension of Tyee Road towards Tumwater Boulevard. Once the entire project is complete, it would create 1,153 residential units through seven five-story residential buildings and a mixed-use four-story building.
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Southsoundguy
Because there’s no money in building crappy dormitories. This is what they think of the community, dorms. “We need more housing, here’s some communist style dorms.”
Wednesday, April 2 Report this
JulesJames
Horrible program. Offer tax breaks for child-family-caregiver-shared housing floorplans. Twelve years of calculating and monitoring "affordable" subsidized rent is just bureaucratic machinating. Floorplans that support "affordable" housing lifestyles are forever for all.
Wednesday, April 2 Report this
OlyBlues
I really wish the JOLT would engage in more investigative reporting. Once again, there is a total lack of details here. How much is the yearly tax exemption going to cost the city and the rest of the taxpayers who will be subsidizing this? Is this tax exemption for an entire building worth it for 48 units? How did the state come up with a TWELVE year tax exemption period? That must be nice! Apartment complexes are the wave of the future. They will be built regardless. Rewarding these developers for 12 years like this is just lining their pockets. Tumwater should be doing everything they can to protect every property tax dollar they can.
Thursday, April 3 Report this
MrCommonSense
Agree with OlyBlues that as taxpayers, all of us are subsidizing this project with OUR property tax dollars. Also agree that the coverage by the JOLT is totally lacking in detail. This is very common with the articles here. It would be better to simply have fewer, more in-depth articles so readers can understand the issues involved. Folks can't form opinions with only a small bit of information.
Thursday, April 3 Report this
BobJacobs
Hmmm. Only 20% of the units have to be for lower-income people and only for 12 years. How much, in actual dollars, is 80% of the area median income? Not very low, I'm guessing. And what happens when a renter's income increases to where it exceeds this limit? Eviction?
Bob Jacobs
Thursday, April 3 Report this
Yeti1981
And it will still barely pencil. These projects don't get built without these types of programs. And the developer still barely makes anything off of it. The homebuilding industry is the 6th lowest gross profit margins of any industry.
Thursday, April 3 Report this
HappyOlympian
The scam continues. If you need a tax-break to build, move along. Every new apartment complex in Thurston fills instantly. 1153 units is a big addition to the area and will require apt resources and all those already here will cover the cost.
Thursday, April 3 Report this
mawoltjer
I would like more information so that I can understand the issues better. Since The Jolt (and any other newspaper) should be filling the blanks so that readers can make sense of its reporting, I hope that some followups will follow. I have the same questions that other readers have mentioned, and I also agree that we need affordable housing. But I (and no doubt all of my neighbors) have been shouldering huge property tax increases the last many years as the population of Thurston County explodes. So please explain the logic of developers getting a dozen years of property tax forgiveness. My husband and I are retired and on fixed incomes, and no one is offering us any tax relief, but apparently are expected to pave the way for those moving into the small percentage of lower cost units. It is hard for me to believe Yeti's claim (earlier comment) that "the developer still barely makes anything off of it. The homebuilding industry is the 6th lowest gross profit margins of any industry" (what is your source?) Could the reporting please answer these, and many other, questions necessary so your readers can have informed opinions? Thank you.
Saturday, April 5 Report this
S2345S23456
This is ridiculous. 20% only for what they call "affordable"? That's nothing, it does not meet the needs of the community, and certainly does not merit being rewarded a 12-year tax cut. And their definition on "affordable" will not be affordable for those who most need the help. I know how "affordable" housing goes - the applications require people to have all their ducks in a row in such a way that they don't qualify. Again, those who need it most won't qualify. This situation is obviously a gross and pitiful example of big money taking advantage. The rich get a leg up to get richer, and the poor get squashed out without a chance for getting out of the hole.
Saturday, April 5 Report this