Gig Harbor Council discusses new multifamily housing tax incentives for community growth

The Gig Harbor City Council convened on March 13, 2025, for a study session focused on affordable housing initiatives and tax implications related to recent developments. The meeting addressed several key topics, including the impact of tax exemptions for seniors and disabled residents, the purchase of conservation properties, and the potential establishment of a multifamily development program.

The session began with a discussion on tax exemptions, highlighting that while more residents in Gig Harbor are signing up for these programs, it results in a tax burden shift to other taxpayers. Council members noted that the purchase of conservation land has also contributed to this shift, as the city does not pay taxes on these properties, thus affecting the overall taxable value in the area.

Council members expressed interest in exploring the multifamily development program (MFG) in the Gate Harbor North village area. They emphasized the need for specific data on how this initiative would affect citizens who do not have voting rights on such matters. Staff was tasked with estimating the number of units and the associated costs for residents.

The council discussed the procedural steps necessary to implement the MFG program, which includes establishing a geographic area for the program and adopting specific tax incentives for residential units. Members expressed support for the initiative, citing its potential to spur development and provide affordable housing options for local workers, including teachers and first responders.

Further discussions highlighted the importance of balancing the needs of developers with the community's demand for affordable housing. Council members acknowledged that while developers would benefit from tax incentives, the broader community would also gain from increased housing availability, which could alleviate traffic congestion and support local businesses.

The meeting concluded with a consensus among council members on the necessity of moving forward with the MFG program, viewing it as a critical tool to meet the city's growth goals and enhance housing affordability. The council plans to continue discussions and gather more information to ensure informed decision-making in future sessions.