News!! The City of Tacoma recently submitted our competitive LIFT program application to the Washington State Community Economic Revitalization Board. For more information, view the application and the appendix.
About LIFT
The State of Washington enacted LIFT legislation in July of 2006 (Chapter 39.102 RCW) and created a local infrastructure financing tool program. This legislation was extended in 2007, which established a competitive application process. The City of Tacoma hopes to enter into this competitive application process.
Purpose and Intent
LIFT was created to assist local governments in financing authorized public infrastructure projects designed to promote economic development in a jurisdiction. In order to allow a local government to obtain credit against 100 percent of future State sales and use taxes and an allocation (75 percent) of property tax revenue generated from new development, a local government must designate a Revenue Development Area (RDA).
It is believed that the state as a whole benefits from investment in public infrastructure because it promotes community and economic development.
LIFT Process
The Tacoma City Council held a public hearing on June 10 (as statute requires 30 days advance notice), to:
- Designate a RDA downtown, and
- Authorize the Tacoma City Manager to submit a LIFT competitive program application to the State of Washington, Community Economic Revitalization Board.
LIFT Requirements
- Taxable value of real property within the designated area (RDA) must be less than $1 billion, and the average assessed value per square foot must not exceed $70.
- The identified parcel must be contiguous.
- View a map of the proposed Tacoma Revenue Development Area.
Public Improvements
Up to $1 million a year in State funds over 25 years may be invested in infrastructure improvements in the RDA. LIFT does not increase local or State sales and use tax rates or property tax rates.
Eligible public improvements include:
- Parking structures
- Right-of-way and streetscape improvements such as streets, sidewalks, crosswalks, lighting, landscaping and traffic controls
- Utility infrastructure
- Sustainable storm drainage
- Transit Authority Park and Ride facitlities
- Terminal and dock facilities
- Affordable housing as defined in RCW 43.63A.510
Evaluation Criteria
- The project's potential to enhance the sponsoring local government???s regional and or international competitiveness.
- The project's ability to encourage mixed use and transit-oriented development and the redevelopment of a geographic area.
- Achieving an overall distribution of projects statewide that reflect geographic diversity.
- The estimated wages and benefits for the project is greater than the average labor market area.
- The estimated state and local net employment change over the life of the project.
Previous Funding
In 2006, three demonstration projects were identified and one was funded.
- Bellingham (funded)
- Spokane
- Vancouver
In 2007, the above two demonstration projects were funded, and three competitive projects received funding.
- Bothell
- Federal Way
- Everett
For more information, contact Elly Walkowiak at ellen.walkowiak@cityoftacoma.org or (253) 591-5209.