Council approves first reading to expand Mill Plain MFTE target area; staff to return with cost comparison

The Vancouver City Council on Jan. 27 approved first reading of an ordinance to expand the Mill Plain Multifamily Tax Exemption (MFTE) target area to include a 10-acre site at the northwest corner of Southeast Fifteenth and 190 Second Avenue, moving the item toward a second reading next week and scheduling a workshop for additional financial detail.

Brian (planning staff) told the council the change is possible because the property was rezoned to allow multifamily R‑22 this past fall; adding the site to the MFTE boundary would create an opportunity for the developer to seek the income‑based MFTE option that requires 20% of units at 80% area median income (AMI) for 12 years. Under an existing development agreement tied to the rezoning, 5% of units are already committed to 80% AMI for 25 years. Staff said that if the project pursues the income‑based MFTE, the total number of income‑restricted units would rise from 11 (5% for 25 years) to 45 for the MFTE 12‑year period, and that the original 11 units would remain affordable for the remainder of the 25 years.

The council heard questions about why the parcel had not been included originally in the MFTE overlay and requested clearer financials. Councilor Kelsey Fults said she wanted a side‑by‑side comparison of the cost to the city between the developer's voluntary 5% for 25 years and the MFTE income option (12‑year tax deferral) before the final vote; other councilors supported the expansion but asked staff to provide more detail.

Developer representatives said the on‑site design includes 17 three‑bedroom units and 104 two‑bedroom units to accommodate families, and that adding MFTE eligibility would affect project feasibility in the current financing environment. The applicant, Gary Vance of Vance Development, said investor interest and financing conditions made MFTE eligibility important to move the project in 2025.

Councilor Paulson moved to approve first reading of the ordinance, the motion was seconded, and the council voted in favor. Council direction to staff included providing a spreadsheet comparison of the 5% development agreement benefit versus the MFTE exemption value, legislative records and the development agreement, and scheduling a workshop before the council's next action. The ordinance language introduced references amendments to Vancouver Municipal Code section 3.22.030 and sets an immediate effective date if enacted on second reading.