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Council approves 8‑year multifamily tax exemption for 24‑unit Second Street Apartments
Summary
The council authorized an 8‑year limited property tax exemption for the 24‑unit Second Street Apartments project near Grayland Park; the exemption applies only to residential improvements and requires construction within three years of contract execution.
The City of Puyallup on March 25 approved a resolution authorizing an eight‑year multifamily tax exemption (MFTE) for a project known as the Second Street Apartments, a three‑story, 24‑unit rental development located across from Grayland Park.
Chris Beal of the Planning Department told council the project contains 24 rental units — 12 one‑bedroom and 12 two‑bedroom apartments — and qualifies for the eight‑year MFTE under the city’s program for multifamily and mixed‑use housing in targeted areas. The MFTE applies only to the residential improvement portion of the assessed value (not to land or commercial improvements) for the term of the exemption.
Beal reviewed the program timeline: once the council authorizes the contract and the developer executes it, construction must begin within three years or the certificate can be voided. Staff’s financial model shows a modest net cost to the city during the exemption window because residential improvements attract city service costs; over a 50‑year horizon the model projects net positive tax receipts when the exemption expires.
Council member Johnson confirmed the building will contain 24 rental units and three stories. The council voted to approve the resolution authorizing the 8‑year limited property tax exemption; staff will execute the required contract and monitor deadlines tied to construction and certificate issuance.
