Tax breaks for some new construction draws mixed comments

After talking to civic leaders in Bellingham, the city administration here is proposing an ordinance that would, in effect, temporarily reduce property taxes for new residential units built in the central business district. The ordinance is designed to get more people living in the downtown area, says city Planning Director Ryan Larsen.

A representative of the County Assessor’s office, Kelly Briggs, outlined how the tax breaks would work, but seemed a bit unsure. “This would be the first time this has been done in Skagit County.”

Briggs said “Everybody in the city is going to pay a few cents more in property tax” if the ordinance is approved and a developer took advantage of it. The ordinance would remove property tax liability for 8 or 12 years, depending on the program, for new residential construction or residential rehab work done in an existing building in the downtown area.

Sources at City Hall indicate that at least 2 property owners are interested.

The public hearing drew one opponent. Al Johnson opposed giving a tax break for a developer at the expense of other property tax payers in the city. And, he suggested that more discussion take place on terms, specifically adding a requirement for affordable housing.

However, Mitch Everton said the Chamber of Commerce board endorses the proposal, saying it could revitalize the downtown area.

Susan Rooks urged the Council to take care not to encourage the demolition of older buildings. “We have already lost too many,” she said. And, Rooks said simple design standards should be applied.

Tom Griffin said he supports the move and what he called the “forward thinking” of the city.

Mayor Dean Maxwell said the city will continue to seek out public comment on the proposal.