• The Multifamily Tax Exemption Program (VMC 3.22) is designed as an incentive for developers to build new private multi-family development in targeted areas of the City.
• The applicant is requesting an 8-year exemption for a 180-unit apartment building where 36 units (20% of the total units) will be restricted to households at or below 100% of the area Median Family Income.
• Over the 20-year period following construction, the project (with the exemption) will generate nearly $17.65 million in taxes benefiting all taxing districts (ports, schools, county, city, etc.). A total of $3.27 million in taxes benefits the City of Vancouver. Total estimated foregone tax revenue for all districts would be $2.7 million, with the portion specific to the City of Vancouver at $909,000. Construction sales taxes and utility taxes will still be collected during the exemption.
• When the tax exemption period ends, the project will return to the property tax rolls as if it were new construction.
• This project was considered by Council on January 9, 2023. At that time, the Council rejected the request, in part, due to a lack of specificity and assurance regarding the mix of income restricted unit types in the approval documents and agreements. This has been addressed in the updated materials accompanying this agenda item.

Goal 8, Objective 8.1: Make downtown Vancouver a vibrant destination for the community and the region

Goal 8, Objective 8.2: Strengthen neighborhood business districts

The project is located at 1110 W. Columbia Way, block 19 on the Vancouver waterfront. The applicant is requesting a Multi-Family Housing Limited Property Tax Exemption for a seven-story, 180-unit apartment building with 183 associated surface parking spaces. The proposed development will include studio, 1-bedroom, and two-bedroom units. The total estimated development cost is $74 million.

Over 20 years (with the exemption) the project is estimated to generate $17.65 million in taxes benefitting all taxing districts (ports, county, city, etc.) including $3.27 million specifically generated for the City of Vancouver. Potentially foregone revenue during the exemption is estimated at $2.7 million for all taxing districts and $909,000 specifically for Vancouver. The development will still generate construction sales tax revenue and utility tax revenue during the exemption period.

Although the project does not fall under the City Council interim climate action policy as there is no negotiated development agreement with this project, the applicant noted that the project is seeking a Green Globes building certification. EV infrastructure availability will be installed on 20% of the stalls (36 stalls), with charging stations installed on an additional 18 stalls in the lot. The apartment units will be all electric. Natural gas will be used for overall building water heating and small communal fire pits. The building air handling units will have high quality air filters. The project roof, paving, and walls will have solar reflective coatings to meet Green Globes standards. Lighting controls will have occupancy shut off sensors to aid in reduction energy use.

Based on direction from Council at their January 9 meeting, the approval documents have been updated to incorporate the requirement to designate the income-based unit types with the same percentage as the overall project unit type distribution of the whole building.

The property must have the following mix of income-based units at all times during the exemption period:

• 9 studio units (20% of studio units)
• 22 1-bedroom units (20% of 1-bedroom units)
• 5 2-bedroom units (20% of 2-bedroom units)

In addition, the property owner will include information about the availability of designated income-based units in any advertising or marketing for the property. 

1. Adds 180 new multi-family units in the Vancouver City Center Vision residential target area.
2. Adds 36 income restricted units for households earning 100% or less of the area median income for the next 8 years.