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Council authorizes two 8‑year multifamily tax exemptions for downtown projects totaling 240 units
Summary
The council approved two separate resolutions authorizing conditional 8‑year multifamily tax exemptions (MFTE) for BellPlace (100 units) and AOB (140 units). Staff said approvals initiate the conditional-certificate process; final exemptions are issued after construction and certificate-of-occupancy.
The Puyallup City Council voted to authorize two separate 8‑year multifamily tax‑exemption contracts for downtown projects, BellPlace (100 market‑rate units) and AOB (140 market‑rate units), which together total 240 units.
Senior planner Chris Beal told the council these MFTEs temporarily exempt residential improvements from property taxation for eight years; land and commercial portions remain taxable. Both projects must complete construction within three years of contract execution to qualify. Beal said the council is at the beginning of the conditional-certificate approval process: staff will negotiate the MFTE contract with the developer, projects must finish construction within the three‑year window, and the final MFTE certificate will be issued by the city once units are complete and the tax assessor is notified.
Council member Smallco asked about recapture or penalty provisions if developers fail to meet contract terms; Beal did not have contract specifics at the meeting and said he would confirm details with the city attorney. The city attorney indicated failure to meet contract terms typically affects eligibility for tax relief, but staff and counsel will confirm specific recapture language in the contract.
Council members moved and separately approved the resolutions for 6A and 6B.
Next steps: staff will finalize contract language with the developer, complete permitting and construction milestones, and issue final MFTE certificates upon project completion.
