HomeMy WebLinkAboutCAP 2016-07-25 Item 2B - Handout Distributed at Meeting - Infrastructure Investment and Growth in TukwilaFORT&RRA CREATING GREAT COMMUNITIES
and CONSERVING GREAT LANDS
Infrastructure investment
and growth in Tukwila
FORT &RRA
LCLIP
• Overview:
— What is it?
—Why is city interested?
— How can it work?
— Scenarios for implementation
— Next steps
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What is LCLIP?
TDR ♦ TIF - LCLIP
Conserved Farms Revitalized
A Better Future
and Forests Communities :: for Our Families
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Transfer of Development Righis
Increase
square footage,
height or
number of
units
et4
g td
Graphic: King County
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Tax Increment Financing
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Why is city interested?
• Need for capital facilities funding
• Attract transit - oriented development to
Southcenter
• Flexibility in funding
Immediate and sustained revenue
• Minimal cost and low risk to city
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Feasibility Study Results
• Revenue projections:
— $5.4M conservative growth
— $1O.1M meet growth targets
— $18.2M exceed growth targets
• Commit to all 405 credits
• Timing — start soon to capture new projects
• Market -based transactions in Southcenter
• Risk: low growth. Consequences: end revenue
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How can LCLIP work?
• Key to success is market -based use of
TDR: private sector transfers credits
• Limited opportunity for incentive zoning
Connect TDR to multifamily tax exemption
(8 -year)
• City makes gap purchases to meet
program requirements if private market
doesn't meet goals
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Implementation
• City creates MFTE -TDR program
• City adopts LCLIP ordinance
• Negotiate ILA with county
• Amenity funding available immediately $200K
• Starting in year 2, city begins collecting revenue
City makes public improvements
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Next steps
Full council discussion, direction
• City notifies county of interest
(resolution or letter)
• City drafts implementing ordinance
(Forterra can provide technical
support)
• Schedule legislative process