The city wants to establish a revenue development area around its proposed $250 million mixed-use project off Bridgeport Way West. UP foresees Town Center as the downtown the 13-year-old suburban city has never had.

The RDA designation would let the city take up to $1 million a year from a state program, established by the Legislature two years ago, and spend it on streets, sewers and other Town Center infrastructure.

The money is basically an up-front payment on state sales tax revenues that UP expects will be generated once Town Center’s retail stores open.

The city would have to match any money its collects from the state fund.

Local governments must apply for the right to redirect state sales tax dollars. University Place tried last year but didn’t make the cut.

It will hold a public meeting tonight on whether to submit another application this year.

In 2007, the city of 31,000 lost out to three other cities and their redevelopment projects: Federal Way, Everett and Bothell.

“The competition is definitely tougher this year,” said Eric Faison, the city’s community and government affairs manager.

Twenty jurisdictions have notified the state they will submit applications by the June 30 deadline. That includes Tacoma, which wants to create an international financial services district to attract and keep businesses such as Russell Investments.

The state has a total of $2.5 million to award among three projects this year.

Town Center is projected to generate $7 million a year in sales tax revenue. But after UP cut ties with three developers and pushed back the grand opening several times, some people have questioned whether those projections will ever be realized.

The city is now in negotiations with its fourth developer — F+F Development of Washington D.C., and California.

City Manager Bob Jean said his staff wants to get a draft development agreement with F+F by the end of this summer. If it doesn’t, the city likely will sell off Town Center’s lots in chunks to multiple developers.

UP has worked to keep its portion of Town Center on track. It finalized an agreement with the the Pierce County Library System last week to combine a library branch with City Hall.

There are also signs of new construction. Drivers off Bridgeport might notice the “shell” for the library-City Hall building that workers have erected.

That the city is applying for RDA funding shouldn’t be taken as a sign that the city is desperate for help paying for Town Center, Jean said.

“We’re going to apply for all the state and federal funds that are available to us,” he said.

Brent Champaco: 253-597-8653