The Tacoma City Council will consider two items at its regular Tuesday meeting regarding a proposed $30 million retail and apartment building in the Proctor District.
One ordinance would vacate air rights in an alley to make room for the six-story, 154-unit building, located at 2718 N. Proctor St. The developer, The Rush Companies, would bury utility lines and pave the alleyway at its expense.
The building will include retail space on the ground floor and parking inside for residents. The site is currently split by the alleyway, and developers want to bridge the alley but still allow room for the public, firetrucks and garbage trucks.
A resolution would give the project an eight-year property tax exemption “for the development of 154 market-rate rental units.” The value of that exemption is about $78,500 per year in city taxes, according to a city memo.
The property tax exemption for multifamily developments has been in place for two decades. Projects that offer market-rate housing can qualify for an eight-year exemption on the value of the new structures, although they continue to pay taxes on the pre-improvement value of the property.
The project has met with opposition. Neighbors told the city hearing examiner in January that the “transient population” of the apartment building wouldn’t be as interested in keeping up the area, or that the tall building would cast shadows on its one- to two-story neighbors.
The Tacoma City Council meeting will be held at 5 p.m. Tuesday.