Residents and businesses press Lakewood council over proposed multifamily tax-exemption expansion

Lakewood — Planning staff held a public hearing May 19 before the Lakewood City Council on a proposal to expand the city’s Multifamily Tax Exemption (MFTE) residential target area (RTA) so it aligns with the Central Business District, with formal consideration scheduled for the council’s June 2 meeting.

The issue drew a large turnout of residents and business owners who said the tax break — a 12‑year exemption available under state law — would encourage dense apartment development that threatens the character of Gravelly Lake Drive and nearby historic shops, reduce tax revenue and put mature Garry oak trees at risk.

The MFTE program is authorized under the Revised Code of Washington (RCW) and is intended to encourage housing production in close‑in areas. Planning staff member Jeff Remack summarized the staff proposal at the hearing as including an RTA expansion and code clarifications about application timing.

"Three primary items when we look at that: one is the expansion of the proposed RTA, the proposed extension for 12 year…