Local Revitalization Area Proposed for the University District
7/23/2009
The City of Spokane is proposing a Local Revitalization Area for the University District. The state’s Local Revitalization mechanism promotes economic development through the provision of needed infrastructure, streetscape improvements, environmental remediation, and other projects as allowed by legislation. You can review presentation materials from community meetings below. Check back later for updates.
July 14, 2009
Review previous comments presented at this meeting:
July 1, 2009
Review presentation materials from the first community meeting:
Local Revitalization Financing
In 2009, 2SSB 5045 created Local Revitalization Financing (LRF) districts, a new type of tax increment financing authorized by Washington state legislators. The bill identified the University District Revitalization Area (UDRA) as one of seven pilot areas in the state.
Under 2SSB 5045, cities may create "revitalization areas" and may use certain future tax revenues which increase within the area to finance local public improvements including roads, pedestrian bridges, landscaping, utilities, and sidewalks. Projects financed by tax increment financing must be expected to encourage private development and increase the fair market value of real property within the tax increment area.
Local revenue will be captured through a new financing tool similar to TIF and LIFT. TIF, Tax Increment Financing, captures a portion of future property tax revenue. LIFT, Local Infrastructure Financing, captures a portion of future sales tax revenue. The pilot designation for UDRA allows Spokane to receive $250,000 in state tax revenue as long as we can demonstrate a potential match of $250,000 in new local tax revenue. There is no increase in the tax rate paid by consumers. The bill, in effect, allows growth to pay for growth.
Although Spokane has previously designated TIF districts at Iron Bridge and West Quadrant (Kendall Yards area), Local Revitalization Financing (LRF) provides a stronger potential revenue source for University District projects within the boundaries of the UDRA. The formation of a local revitalization area is accomplished by an ordinance passed by City Council, which requires a public hearing.
More information about Local Revitalization Funding:
