Lakewood council approves 12-year multifamily tax break for Alliance Residential project at Town Center

The Lakewood City Council on July 21 conditionally approved Resolution 2025‑11 to authorize a 12‑year multifamily tax exemption (MFTE) for the Alliance Residential project at Lakewood Town Center, a 309‑unit rental development with an estimated $90 million total investment. The motion was made by Council member Bokey and seconded by Council member Pearson and carried by voice vote.

The developer’s application and the conditional certificate reference the 12‑year MFTE under state law, which requires a minimum 20% affordability set‑aside to qualify for the 12‑year exemption. Becky Newton, the city’s economic development manager, told council staff will correct scrivener errors in the agreement and the conditional certificate and said the application itself obligates the applicant to the 20% minimum. Council discussed whether to spell the 20% (62 units on a 309‑unit project) into the local agreement for clarity.

Council members pressed two practical points for transparency: (1) show the 20%/62‑unit affordable requirement directly in the locally executed documents, and (2) clarify parking, EV provisions and the timing of exemption. Newton said the packet will be revised to correct a parking/EV charger table (46 in‑place chargers rather than 119) and to standardize agreement language. Interim city attorney Wachter confirmed the conditional certificate cites RCW 84.14.020, which specifies the 20% requirement for a 12‑year exemption; she said the RCW language is incorporated by reference.

Council member Brandstetter said he supported the project but urged clearer, more prominent contractual language so ordinary residents need not look up the state statute to confirm the affordable unit commitment. Council consented by voice vote to authorize the city manager to sign the corrected agreement once staff makes housekeeping edits for clarity.

Staff clarified several program details during the discussion: the MFTE 12‑year countdown begins the year after the building receives certificate of occupancy and the final certificate of tax exemption is filed with Pierce County; during construction the owner pays property taxes on any improvements until the certificate is issued. Staff also said the project received credit in the trip‑mitigation fee analysis for the existing Barnes & Noble use, producing a $0 trip mitigation fee for this application.

The approval authorizes the city manager to sign the agreement and to execute a conditional certificate of tax exemption, subject to the corrected exhibits and standard closing steps. The council did not take separate action on the underlying project approvals (land use, building permits) during the meeting.

Council and staff said they will post the corrected agreement and conditional certificate online and return corrected documents to the public record.