HomeMy WebLinkAboutResolution No. 2023-008 A Resolution of the City of Arlington Authorizing Staff to Proceed with Establishing a Tax Increment Area in Smokey Point and the Creation of a Mandatory Affordable Housing Requiremen RESOLUTION NO. 2023-008
A RESOLUTION OF THE CITY OF ARLINGTON AUTHORIZING STAFF TO PROCEED WITH
ESTABLISHING A TAX INCREMENT AREA IN SMOKEY POINT AND THE CREATION OF A
MANDATORY AFFORDABLE HOUSING REQUIREMENT FOR ALL NEW MULTI-FAMILY HOUSING
DEVELOPMENTS WITHIN THE TAX INCREMENT AREA RELATED TO ELEMENTS OF ITS HOUSING
ACTION PLAN IMPLEMENTATION (HAPI) TO INCREASE AFFORDABLE HOUSING CAPACITY,
WITHIN THE CITY
WHEREAS, the City of Arlington adopted a Housing Action Plan in 2021 to address
elements of E2SHB 1923, related to residential building capacity, including affordability; and
WHEREAS, the Department of Commerce awarded a Housing Action Plan
Implementation (HAPI) grant in the amount of$100,000.00 to the City of Arlington to adopt
and implement certain elements of the city's Housing Action Plan, as specified in the contract;
and
WHEREAS, the city chose to implement action items 3.2—create incentives to develop
affordable housing and 1.3 -use value capture to generate and reinvest in neighborhoods
experiencing increased private investment, from its Housing Action Plan and used the grant
funds to complete planning efforts to implement the work produced through these planning
efforts; and
WHEREAS, during the 2021 session, the Washington State Legislature passed HB 1189,
which authorizes a financing tool for local governments known as tax increment financing (TIF);
and
WHEREAS, TIF allows local governments to finance public infrastructure in targeted
areas, with the goal that these improvements will encourage additional private investment and
development and increase the assessed value of the developed properties; and
WHEREAS, since the city has invested funding towards the infrastructure, without
burdening the developer, the city sees opportunity to require the development community to
build affordable housing units, addressing several income bands, in concert with market rate
units, with the monetary savings realized by not having to invest in the primary infrastructure;
and
WHEREAS, the City of Arlington considers it in the best public interest to establish a tax
increment area, require a mandatory affordable housing element within the tax increment
area, and implement action items contained in our Housing Action Plan towards efforts to
address housing affordability within the city; and
RESOLUTION NO. 2023-008 1
NOW, THEREFORE, the City Council of the City of Arlington Washington do hereby
resolve as follows:
1. That the City of Arlington approves the creation of a tax increment area and directs staff
to proceed forward with the processes to do so.
2. That the City of Arlington approves the requirement for mandatory affordable housing
to address several income bands in all new multi-family housing developments within
the tax increment area and directs staff to create a housing affordability program to
address the mandatory requirement.
APPROVED by the Mayor and City Council of the City of Arlington this 12th day of
June, 2023.
CITY OF ARLINGTON
Barbara Tolbert, Mayor
ATTEST:
Ace /GAL lw' '
Wendy Van Wpr Meersche, City Clerk
APPROVED AS TO FORM:
Stev J ei e, City Attorney
RESOLUTION NO. 2023-008 2