|At work sessions on September 18 and November 7, 2018, the Council considered a development proposal for a 184-unit workforce apartment project on a site currently owned by Gaughan Companies near 94th Avenue and Springbrook Drive. All units in the proposed building would be affordable to households earning 60% of area median income. In 2018, 60% of median income for a family of four was $56,580. To be considered affordable, monthly rents could not exceed $991 for an efficiency unit; $1,273 for a 2 bedroom unit; or $1,471 for a 3 bedroom unit.
The site is located in an area guided by the Port Evergreen Master Plan as High-Density Residential and multi-family residential is a permitted use in the Port Evergreen zoning district. While Real Estate Equities has not yet submitted land use applications for the project, the developer has committed to providing several specific amenities and finish levels, including an outdoor patio with fire pit, bocce ball court, fitness center, tot lot, dog run, underground parking, solid surface countertops, stainless steel appliances, and in-unit laundry. These amenities and finishes are outlined in a term sheet that the Council will consider at Tuesday's meeting. A conceptual site plan and architectural renderings for the proposed building are attached. The developer intends to submit a site plan application in the coming weeks that would be considered by the Planning Commission and Council. A neighborhood open house for the project is scheduled for February 6.
The developer, Real Estate Equities, will seek tax credits from the state and TIF from the City to provide gap financing for this affordable housing project. On November 20, 2018, the Council approved Resolution 18-113 calling for a public hearing to establish TIF District 1-33 for the potential project. Staff has completed an anaylsis of the TIF request and has determined that the need for gap financing is justified. Staff has negotated a maximum of $1.4 million in TIF, which amounts to approximately 15 years of the 26-year maximum district length. This amounts to just over $7,600 in assistance per unit and 3.7% of total development cost. Both of these figures are at the lower end of the spectrum of TIF assistance for recent apartment projects.
The project would be structured as a pay-as-you-go TIF note, meaning that the incremental taxes would be used to reimburse the developer for their eligible expenses. The city, county and school district would continue to collect the base taxes. This is the same deal structure the city has used on other recent housing type TIF projects (River North, Riverdale TOD). The EDA is asked to adopt a resolution establishing TIF District 1-33 and adopting the TIF Plan, as well as a resolution approving an Interfund Loan, which allows the City to be reimbursed for administrative expenses related to the TIF District from tax increment. Provided the TIF Plan is approved, the EDA will consider a development agreement for the project at a later date that will formally establish the terms of the financial assistance and other project details.