Council OKs 12‑year multifamily‑tax exemption for Bradley Heights project; staff cites modest near‑term cost

Puyallup — The City Council voted April 29 to approve a 12‑year multifamily‑tax‑exemption (MFTE) agreement with Bradley Heights SS LLC for a new multifamily project on Seventh Avenue Southeast.

Rachel Brown, senior planner, told council the project site — the former Meridian Mobile Home Park — is approximately 10.767 acres and proposes multiple apartment buildings and an amenity building with a pool. Brown said the project applied for the 12‑year MFTE conditional certificate and met the program’s eligibility criteria because it includes a mix of affordable units required by the 12‑year option.

How the program works: Brown outlined that during the exemption period the city does not collect the portion of property tax tied to residential improvements; land taxes and any taxes on commercial improvements continue to be collected. After the exemption period ends, regular property taxes resume. The MFTE is voluntary for both the city and the developer and is intended to incentivize multifamily housing in targeted areas.

Brown provided an estimate of fiscal effects to the city for planning purposes: an annual net cost to the city that she showed beginning at roughly $22,000 per year early in the exemption period and rising to about $42,000 by the end of the 12 years; once the exemption ends she estimated the city would begin receiving roughly $97,000 in the first post‑exemption year, with higher revenues projected in later years as property valuations grow. The council approved the contract between the city and Bradley Heights SS LLC.

Reporting inconsistencies: Brown’s transcript presentation included project totals and unit counts that do not sum clearly in the record. Brown said “the site is 10.767 acres, and it proposes 8 apartment buildings and 1 amenity building with a pool,” and later used figures that were not internally consistent in the transcript (for example a reference to 236 total units alongside a separate breakdown that sums differently). Staff confirmed the project met the MFTE eligibility criteria and issued the conditional certificate; final unit counts and the project’s final tax effect will be verified when the developer applies for final certificate after project completion and occupancy.

What comes next: The conditional certificate and contract are approved; the developer will have up to three years to complete construction and then apply for a final MFTE certificate. Staff will verify compliance with unit mix and affordability levels before the exemption is granted to the assessor/treasurer for implementation.