The City of Tacoma and the Tacoma Community Redevelopment Authority recommended five commercial building projects in Tacoma received $12 million in federal tax incentives this year-a recommendation accepted by the Washington State Department of Community, Trade and Economic Development. The Albers Mill building, Marriott Courtyard hotel, Rainier Pacific Bank building, Ted Brown Music building and Fraternity Hall projects will all receive a portion of a $12 million tax credit allocation.
Tacoma is the only place in Puget Sound-and one of only 28 urban communities around the country-to receive a Department of Housing and Urban Development (HUD) Renewal Community (RC) designation in 2002. With the designation, Tacoma businesses and developers within the RC area became eligible for a variety of federal tax credits and deductions. One of those is the Commercial Revitalization Deduction (CRD) allocation which allows property owners to use an accelerated depreciation schedule on their project.
Each year Tacoma projects compete for $12 million in CRD allocations. This year, six projects applied for a piece of that $12 million pie-submissions totaling $26.7 million. The State of Washington awarded the allocation to:
– Albers Mill building (Albers Mill LLC): $3.9 million;
– Courtyard Marriott Hotel (Hollander Investments, Tacoma Hospitality LLC): $3.2 million;
– Rainier Pacific Bank Building (Rainier Pacific Bank): $3.1 million;
– Ted Brown Music Building (Broadway Center Investors LLC) $1.3 million; and
– Fraternity Hall (Roberson Building Co.): $.5 million.
The benefits to these projects include a reduced federal tax bill and an increased ability to make their projects pencil by giving owners financial relief early in the projects when they incur the most expenses.
This CRD allocation is another way we can encourage density and development in Tacoma, said Juli Wilkerson, Tacoma Economic Development Department director. I congratulate the developers of these projects and welcome their investment in our community.
For more information, check out HUDs Website at: www.hud.com.