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Council holds first reading to terminate downtown Vertical Housing Development Zone
Summary
The council held a first reading of an ordinance to terminate Springfield’s downtown Vertical Housing Development Zone. Staff said the city previously used the Housing Diversity Tax Exemption (HDTE) as the preferred tool; one vertical housing tax exemption already approved (Rivet Building) will not be affected by termination.
At first reading the council considered an ordinance to terminate Springfield’s Vertical Housing Development Zone (VHDZ) in downtown.
Katie Carroll, housing analyst, said the VHDZ was designated at the city’s request in 2004 and allowed property owners to apply for a 10‑year vertical housing tax exemption. Carroll said only one property (the Royal Building) had previously received that exemption before state law changed in 2017 and the state created the Housing Diversity Tax Exemption (HDTE), which staff and the council have favored for downtown incentives. The Rivet Building later received an approved vertical housing tax exemption; Carroll said that approved exemption has been certified to the county assessor and would not be affected by terminating the zone.
This was a first reading only; no action was required. Carroll noted the city has approved its first HDTE application for a 35‑unit apartment building in the Q‑Street area.
Why this matters: Terminating the VHDZ aligns the code with the city’s current incentive strategy (the HDTE) and clarifies the city’s tax exemption tools in downtown.
