[{"_1":2,"_99":-5,"_100":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6169239,"mediaKeyId","5404868-5eae65053ccb8ef115ea34f523be1337","parentId",5404868,"title","Council reopens multifamily tax‑exemption discussion; staff to refine map, program options and costs","audioSeconds",430,"startMs",6807000,"endMs",7237000,"viewUrl","/Search/View?dp=1&key=5404868-5eae65053ccb8ef115ea34f523be1337&start=6807&end=7237","thumbnailUrl","https://assets.pipeline.soar.com/5404868-5eae65053ccb8ef115ea34f523be1337/thumbnail_6807000.jpg","articleUrl","/articles/6169239/Port-Orchard/Kitsap-County/Washington/Council-reopens-multifamily-taxexemption-discussion-staff-to-refine-map-program-options-and-costs","mediaUrl","https://secure.pipeline.soar.com/6169239-e76e43d57c7f594864436c19a58ab49c/orig.mp4?Expires=1775118563&Signature=SBGXP6Z~-lHnTxdY-qhdpS7UPDUTxEqDGGgwLNnMjjxBWqq4Lip4dUoTLOI4rJqU0V5XJnuoX9VHjGap5HPku5mRm-aZue9bBZd6JCzUiHgzF~7FyaV04iZaIVgejHOKtJKIP-L06gptqtCr2qpajXuWuKUo-QxlAn5-qpi4yot35KwwmmIuMjZxaK8XXr6-P6oFv2zM5K7xTwdldC71pFvRtdWX4Ex50DqWnjDLV7j5f6aszWW2TdKmtlN1gAqtCT4EEt0jKIV6EQ4cvHj-bDaFW4R6nRzcZKWDlUdBflse9hONYagTu2gkg4vo7Rgl1j~LnrYEZlnvFRSffNc1Fw__&Key-Pair-Id=KUT5TJCACFTXG","author","City of Port Orchard, WA","date","2025-07-16T19:52:55.41Z","article","City staff led a detailed discussion of the multifamily tax exemption (MFTE) program and how an updated policy might be used to encourage specific types of housing in Port Orchard. Staff reviewed how MFTE works: a certificate exempts property tax on the added assessed value of qualifying residential units for a fixed period (8, 12 or 20 years), and county assessors commonly administer those exemptions by shifting the tax benefit across the local tax base rather than permanently reducing tax receipts for taxing districts.

Why it matters: MFTE can be a targeted tool to encourage dense mixed‑use or structured‑parking projects that otherwise might not be financially viable, but it also shifts tax burden during the exemption period to existing taxpayers and requires ongoing contract administration and auditing. Council members asked for targeted program design to avoid subsidizing garden‑apartment projects that market forces are already producing.

What staff presented: planning staff (Nick) reviewed past and current local projects and MFTE outcomes. He reported that 656 units were approved under MFTE rules previously and that 889 units had been built without MFTE; he used two local projects for illustration: the Overlook Apartments (39 units, earlier MFT approval) and the Payno Apartments (57 units, no MFT). Using assessor data pulled for the meeting, staff said the Payno property’s total tax bill across taxing districts was about $126,000 in the most recent year and that the Overlook’s assessed‑value tax payment reflected the predevelopment base (about $2,000 in the same statement), illustrating how a certificate shifts tax on new value. Staff estimated the owner savings and tenant rent relief from a recent MFTE structure but cautioned that exact amounts vary by assessor practice and the program’s administrative rules.

Council discussion and concerns: council members raised equity and fiscal questions — whether existing residents should shoulder short‑term tax shifts and whether MFTE primarily subsidizes building owners rather than producing substantial tenant benefits. Staff and council discussed refining eligibility so the program incentivizes mixed‑use, taller buildings, projects with structured parking, small infill redevelopments and ownership‑opportunity projects (condos/townhomes) that are not otherwise emerging in the local market. Council also flagged administrative capacity; the 12‑year MFTE requires annual reporting and auditing that would increase staff workload.

Direction: council agreed there is value in targeted incentives and asked staff to return with focused options. Staff recommended pursuing an 8‑year targeted MFTE for specific building types now (mixed‑use shopfront, structured parking, small infill) and to compile a more detailed analysis for a potential 12‑year option that carries affordability requirements (higher tenant discount and income‑limit design). Council asked staff to refer the issue to Economic Development and Land Use committees for mapping eligible areas and to return to full council with refined program language and a cost estimate, including an estimate of likely tax‑shift impacts per household in Port Orchard.","mediaType","Video","parentTitle","July 15, 2025, City Council Work Study Session","oneSentenceSummary","Council and staff reviewed how the city’s previous multifamily tax exemption (MFTE) performed, examined examples and tax‑shift impacts, and directed staff to continue work. Council asked staff to pursue targeted 8‑year MFTE options now and to refer a fuller 12‑year affordability analysis to committee and future council sessions.","taxTitle","Port Orchard, Kitsap County, Washington","taxId",54315,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6169244,"Lobbyist outlines 2025 legislative outcomes; Forest City staff to finalize 2026 agenda this fall",85,4104000,4189000,"/Search/View?dp=1&key=5404868-5eae65053ccb8ef115ea34f523be1337&start=4104&end=4189","https://assets.pipeline.soar.com/5404868-5eae65053ccb8ef115ea34f523be1337/thumbnail_4104000.jpg","/articles/6169244/Port-Orchard/Kitsap-County/Washington/Lobbyist-outlines-2025-legislative-outcomes-Forest-City-staff-to-finalize-2026-agenda-this-fall","https://secure.pipeline.soar.com/6169244-9baef7b3ee6408a823c3691973fe8690/orig.mp4?Expires=1775118563&Signature=AbaNRe2-GHCf8gkF4w38ZnrP2rVtxxHoT0C-F7yQqZsX9zDE800-wsXgNlpO8I9aslHu9zLpTEIGNQ3zs78hys7TWRvr-U6x3VM5M8gQrlRvJxdizDiJiSru9vkHeyynxwymxZ5blHXdZSVz~9USeuUK0j6cD2dgAuq~Q5cW7-V77XDE5vz7rSSr8ZDn-bdaVDVeNQxeEAYrfnyqGca2ukSQejM7lLfDKaLNTYLYicKzt-Ci-Ut6gKZWzPvt9K8Rs954bITt4ztzGVzh~Pl4I9eWdhmrRbaNN~he5YYiNOFUwDm0iwAez2emRhBNymCKgcG4ias91pIX00JVf8VJFA__&Key-Pair-Id=KUT5TJCACFTXG","Shelley Helders, the city’s lobbyist with Gordon Thomas Honeywell, briefed the Forest City Council on the outcomes of the 2025 Washington State legislative session and next steps for the city’s 2026 legislative agenda. Helders summarized the budgets passed in 2025, said the session considered 2,387 bills and passed 433, and flagged constrained capital and transportation funding that will shape the second‑year supplemental session in 2026. She urged council to identify the top two or three priorities this fall and to coordinate those with the city’s legislative delegation ahead of the 2026 short session.

Why it matters: the city received $1 million in the new capital budget toward downtown reconstruction, but the capital budget overall was smaller than the previous biennium, and transportation funding remains constrained. Helders said projects already in the pipeline are being delayed statewide and that the city should continue to press for inclusion in any future transportation package while recognizing the limited bonding capacity available in a supplemental year.

Key budget points: Helders said the 2025 operating budget is approximately $77.8 billion with $2.3 billion in reserves; the capital (construction) budget for the biennium is about $7.5 billion with roughly $349 million remaining in bond capacity for supplemental requests; and the transportation budget is about $15.5 billion with a newly adopted 6¢ per gallon gas tax that took effect July 1 and yields some city/county allocation. For local projects, Helders noted the capital budget allocated about $2.001 billion for local and community projects and that Forest City’s $1 million appropriation should be considered a success in a constrained year.

Priorities and next steps: Helders asked council to prioritize a short list of requests for the 2026 supplemental cycle. City staff suggested continuing to press for SR‑16/160 intersection improvements (compact roundabouts were discussed), funding to complete the community event center or the intertie water project, and to keep water‑supply issues visible to legislators. Staff said they will coordinate with Association of Washington Cities (AWC) priorities and meet with the delegation in October; staff recommended a September work session to draft a final legislative agenda for council adoption before the end of the year.

Water and permitting: Helders and council members discussed the city’s water‑rights challenges and the ongoing Foster Pilot Project negotiations; representatives said securing water rights remains time‑consuming and affected by litigation and tribal negotiations, so the city should continue interim outreach and expert briefings to legislators. Helders recommended connecting legislators with technical experts in the interim so session‑time decisions proceed from established background knowledge.

Administration and outreach: Helders reported that AWC is developing its 2026 priorities and that the city’s mayor sits on AWC’s Legislative Priorities Committee. She advised the council to continue tracking bills that did not pass in 2025 — which may reappear in 2026 — and to be ready both to advocate for city priorities and to defend against statewide mandates that would impose new local costs. Staff scheduled follow‑up meetings in September and October to refine the city’s list and to meet the delegation.","City lobbyist Shelley Helders reviewed major 2025 state budget outcomes, including operating, capital and transportation budgets, and asked council to identify two to three near‑term priorities for a 2026 supplemental session; staff set a September–October timetable to finalize the city legislative agenda and meet the delegation.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6169249,"Forest City updates Community Event Center design, shoreline work; permits and grants driving schedule",1310,130000,1440000,"/Search/View?dp=1&key=5404868-5eae65053ccb8ef115ea34f523be1337&start=130&end=1440","https://assets.pipeline.soar.com/5404868-5eae65053ccb8ef115ea34f523be1337/thumbnail_130000.jpg","/articles/6169249/Port-Orchard/Kitsap-County/Washington/Forest-City-updates-Community-Event-Center-design-shoreline-work-permits-and-grants-driving-schedule","https://secure.pipeline.soar.com/6169249-dd4874010ebef08583dd797a4cce6e0c/orig.mp4?Expires=1775118563&Signature=UwDXTYO0VQO7~6Y7CapvTuqGrjUwgl6IV96Afx5zeXbDnjBIyJ6DO6VRWVITzKrO5WgFn6pFamb0llEkzUzIIotced3DeBU0JXaalHThlUVpcwZoqxEdCkcA-Y7YRlW~aGDAViBgoCBT~G1Jv0jhHPrnX6t8kQs7iUS71zvrCbEf07li6p5vEKYSRDeVf6y31bJk5-n2ZM2-9wJtC7QbR7iQWwKSaoCitD9jQ0dI20HMu3-sCCJ5fOMOeuhoq8Fr9l3sOfvomnd3ADVbdgOUIMuFZHuGrpt8ug7ueWms9UT1eEvIDwGeT9dYnVw4JTo1r9zQoET4m0yHixEpshIc0w__&Key-Pair-Id=KUT5TJCACFTXG","Architects from Rice Fergus Miller updated the Forest City Council on the Community Event Center project, Orchard Plaza and the adjacent shoreline restoration, saying designers are in the construction‑documents phase and are preparing permit submissions in the coming months. The city’s consultant team told council members the shoreline restoration permit review has been active since last year with the Army Corps of Engineers, Washington Department of Fish and Wildlife and the Department of Ecology and that “this month is the month” to conclude technical review or extend to August. The city also raised a timing issue: the overwater restoration portion carries grant conditions and deadlines that the project team said affect whether design changes are feasible without risking the funding.

Why it matters: the project combines a downtown plaza, a new library‑anchored community event center and an overwater deck intended to restore nearshore habitat while creating multi‑level public gathering space. Council members and designers discussed how permitting decisions (including Ecology’s shoreline calculator and minimum 50% graded exposure for some deck areas) will determine design details and how the city must balance design changes with grant deadlines and cost estimates.

Design and schedule: Rice Fergus Miller architects Laurie Cook and Dean Kelly said the project is largely designed and in the construction‑documents phase. Laurie Cook stated the team is preparing permit packages and expects to submit them “in the next few months,” while planning to move toward bidding with the goal of construction no later than 2027. Dean Kelly described the building as a two‑story, mass‑timber hybrid with a public plaza (Orchard Plaza) tying Bay Street to a waterfront deck and viewing piers; the building includes a ground‑floor Kitsap Regional Library branch and second‑floor banquet and meeting spaces.

Program and capacity: Dean Kelly described the event and library layout: the ground floor houses the library program areas, a tenant retail/café opportunity on Bay Street and back‑of‑house service access from Port Street. The second floor contains a divisible banquet/ballroom with a catering kitchen; Kelly said the banquet room seated for a sit‑down dinner is “about 110 to 130 people” and lecture‑style seating reaches about 160, with room for more if the folding glass doors open onto the deck. Designers said the building will use cross‑laminated timber (CLT) and glulam beams inside, with steel structure where exposed to the shoreline environment; solar arrays on the roof will partially offset the building’s energy use.

Shoreline and habitat tradeoffs: the team walked council through proposed shoreline sections and noted the existing bulkhead is failing and that pulling the wall landward and creating a more gradual intertidal slope produces habitat credits under Ecology’s rules. Designers said Ecology’s evolving rules and the shoreline calculator changed the credit assumptions while the permit was under review, requiring iterative responses from the project team. Architects pointed out piles supporting the overwater deck and said portions of the deck will be “graded” (designed to allow at least 50% sunlight exposure) to meet Ecology’s mitigation requirements.

Plaza, landscape and utilities: the Orchard Plaza schematic shows patterned concrete paving, planted bio‑swales, performance zones, and built‑in seating. Designers said they plan power hookups to reduce vendor generator use at farmer’s markets and are evaluating lighting that ties to the downtown design palette; rooftop solar will serve the building but will not cover all site electrical needs. Council members asked about fixture standardization and replacement lead times for custom streetlights; staff said PSE stock and replacement lead time had been a recurring issue.

Funding and next steps: staff and consultants said the city will update its cost estimate this fall or winter and that some grant conditions require the city to avoid major design reversals. Council members reiterated the need to avoid design delays that could jeopardize grants; staff noted one source for the overwater portion is an RCO grant with a deadline. Designers said they will return with refined cost estimates, design details and permit submittals and that the plaza and public‑art concepts (including a large topographic Sinclair Inlet wall installation) will be developed further for later review.

The meeting concluded with staff noting imminent bid activity on other downtown projects and with designers planning to bring refined permit drawings and cost updates back to council in follow‑up work sessions.","Architects presented updated designs for the Community Event Center, Orchard Plaza and shoreline restoration, reporting the project is in construction‑documents, shore‑permit reviews are ongoing with state and federal agencies, and grants with deadlines influence schedule toward construction in 2026–2027.","actionData","errors"]

Article not found

Council reopens multifamily tax‑exemption discussion; staff to refine map, program options and costs

Lobbyist outlines 2025 legislative outcomes; Forest City staff to finalize 2026 agenda this fall

Forest City updates Community Event Center design, shoreline work; permits and grants driving schedule