City Center tax-increment finance study shows potential $24M TIG investment to support $66M of infrastructure; council briefed on schedule and homeowner impact

City Council heard an update April 7 on a feasibility study for using tax increment financing (TIF) to help fund public infrastructure in Lynnwood’s City Center.

Economic development staff and consultant Bob Stowe (CoDevelopment Strategies) described a draft analysis submitted to the state showing the tool could help finance part of three priority projects — improvements near 190th/4th and 30th/8th, a new 40th Avenue extension (Phase 1), and a roughly $10 million City Center park — by capturing property tax revenues generated by new private development inside a defined TIF area.

Why it matters: TIF can accelerate infrastructure needed to spur private development, but state law constrains the tool — including limits on overlapping areas and a cap on assessed valuation — and the revenues are generated only if private development occurs. The city’s draft study estimates the TIF would support about $24 million of the roughly $66 million in identified infrastructure cost under the moderate scenario. The analysis also modeled baseline and conservative development scenarios and accounted for interactions with Washington’s multifamily…