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Housing advisory committee weighs tax reimbursement models for a 240-unit proposal
Summary
The committee reviewed a developer (Cobalt) proposal for 240 rental units and debated models ranging from Hermistons front-loaded reimbursement to a proposed 25% reimbursement for five years; the committee will meet again in two weeks and return a formal memo in September.
Nathan Wildfire told the council the housing advisory committee reviewed a proposal from developer Cobalt for a 240-unit rental project and compared two incentive models: Hermiston's model with a 100% reimbursement of city taxes in years 1 and 2 followed by a declining schedule, and a Cobalt-proposed flat 25% reimbursement across ten years.
Wildfire said the committee is considering a compromise: a 25% reimbursement for five years with the possibility of a larger first-year incentive ("they were kinda debating between 50— 75% of year 1"), and noted two unresolved questions: (1) how the incentive should treat for-sale (homeownership) projects and whether the benefit would transfer to homeowners on sale; and (2) whether projects already underway could access the new incentive for unfinished phases. The committee will reconvene in two weeks and return a formal memo at the council's September meeting.
Councilmembers raised concerns that incentives could simply be captured by developers or passed to tenants via higher rents. One councilmember asked whether the city could require a rent or sale-price commitment tied to the incentive; Wildfire said the committee would explore tools used in enterprise-zone agreements and URA (urban renewal) interactions to ensure the community receives intended benefits.
No council action was taken; the report was informational and the committee will deliver recommendations after further review.
