Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tdr Incentives topic
No spam. Unsubscribe anytime.
Consultants: incentive zoning unlikely to drive TDR uptake; MFTE-linked options may be viable
Summary
EcoNorthwest presented modeling showing incentive zoning alone may not yield enough developer participation to place TDR credits in Bothell; an MFTE-style tax-exemption tied to credit purchases (modeled at 50–70% value allocation) could create more uptake but requires careful calibration.
Consultants told the Planning Commission that conventional incentive zoning—granting extra height or density in exchange for purchased TDR credits—probably will not generate substantial participation under current Bothell market conditions.
"Under current market conditions, we found that incentive zoning is probably not the most effective opportunity for a Bothell TDR program," Mackenzie Visser of EcoNorthwest said, explaining that base entitlements and prevailing rents make developers unlikely to pay for small incremental capacity increases in many prototypes.
EcoNorthwest presented an alternative: tie TDR participation to a Multifamily Tax Exemption (MFTE)-style program so that a portion of the tax-exemption value is dedicated to buying TDR credits. The consultants modeled an 8-year MFTE without additional affordability requirements and then scenarios where 50% or 70% of the MFTE value is used to purchase credits. They cautioned that heavier credit-requirement percentages increase placed credits but can reduce program uptake if participation becomes uneconomic for developers.
Commissioners asked staff and consultants to return with sensitivity analyses and clearer examples showing how MFTE-linked requirements would affect project feasibility on specific parcels; consultants agreed to prepare those materials. No policy changes were adopted at the session.
