Puyallup City Council approves 12-year tax exemption for Bradley Heights apartment project

The City of Puyallup Council convened on April 29, 2025, to discuss a significant resolution regarding a 12-year limited multifamily property tax exemption (MFTE) for the Bradley Heights apartment project. The meeting began with a presentation by Rachel Brown from the planning division, who outlined the details of the MFTE program and its implications for local housing development.

Brown explained that the MFTE program is designed to encourage the construction of multifamily housing in designated residential target areas by offering tax exemptions to qualifying developments. The program is voluntary for both the city and developers, and properties must meet specific criteria to be eligible. Currently, Puyallup offers either an 8-year or 12-year tax exemption, with the latter requiring a commitment to include affordable housing units.

The Bradley Heights project, located on 20 Seventh Avenue Southeast, is set to transform the former Meridian Mobile Home Park site into a complex featuring eight apartment buildings and one amenity building, totaling 236 units. Of these, 88 units will be rented at market rates, while 48 will be designated as affordable housing. This includes 20 units for low-income households and 28 for those with moderate incomes, ensuring compliance with the 12-year tax exemption requirements.

Brown detailed the financial mechanics of the MFTE, noting that during the exemption period, property taxes on residential improvements would not be collected, although taxes on commercial improvements and land would still apply. The city anticipates a net cost during the exemption period, estimated to start at $22,000 annually and increase to $42,000 by the end of the 12 years. However, once the exemption concludes, the city expects to receive over $97,000 in taxes annually, with projections indicating significant revenue growth as property values increase.

Council Member Johnson raised questions about the history of the MFTE program, noting that it originated approximately 25 years ago at the state level. He expressed confidence in the program's value, suggesting that ongoing state support indicates its effectiveness in addressing housing needs.

The council ultimately voted to approve the MFTE contract for the Bradley Heights project, following the planning department's confirmation that the proposal met all eligibility criteria. This decision marks a step forward in Puyallup's efforts to enhance its housing landscape while promoting affordable living options for residents.