Incentives - Property Development & Redevelopment

Overview

Whether you're a business or a municipality, making the most use of your property is an important part of achieving a healthy bottom line. A range of incentives are available to encourage and support new development and redevelopment. Incentives in the Centers and Corridors are designed to entice businesses to these areas by offering reduced requirements and expanded options. Tax credits for disability barrier removal, brownfield assessment grants, and tax increment financing help reduce the financial costs of redeveloping property. And green incentives such as energy rebates, waste reduction and water conservation can help to save on development and operating costs. When combined together, these incentives can significantly improve the profitability of a project or business.

ADA Barrier Removal Tax Deduction & Disabled Access Tax Credit

Businesses can take advantage of two Federal tax incentives available to help cover costs of making access improvements for customers with disabilities:

  • A tax credit for small businesses who remove access barriers from their facilities, provide accessible services, or take other steps to improve accessibility for customers with disabilities, and
  • A tax deduction for businesses of all sizes that remove access barriers in their facilities or vehicles.

These two incentives can be used together by eligible businesses if the expenditures qualify.

These incentives can also be used on mixed use projects that combine housing with commercial or office space. It's a great way to bring more customers into your business! http://www.ada.gov/taxincent.htm

Center and Corridor Incentives

The City of Spokane's Comprehensive Plan contains a fundamental strategy for Spokane's physical, economic, and social growth. The plan's "Centers and Corridors" growth strategy directs growth to specific mixed-use centers (neighborhood, district, and employment) and corridors in the City. http://www.spokaneplanning.org/Documents/C&C%20handout.pdf The Central Business District (downtown) is also a center. These areas are intended to:

  • Bring employment, shopping, and residential activities into shared locations,
  • encourage economic activity through new development and rehabilitation, and
  • make Spokane a dynamic and healthy urban center.
  • Development incentives to encourage growth in center areas include:
  • Mixed-use and higher density development
  • Broadest range of housing options
  • Reduced parking requirements
  • Increased floor area, building heights, and lot coverage
  • Reduced setback requirements
  • Credits for shade trees, and
  • Lower transportation LOS requirements

More information is available here.

Tax Increment Financing (TIF)

Tax increment financing (TIF) or community redevelopment financing is a method of redistributing property tax collections within designated areas to finance infrastructure improvements within these designated areas.

Tax-Increment Financing is an economic development tool established by the State of Washington . TIF is used to pay for publicly owned streets, sewers, sidewalks, parks, and other improvements.

TIF is considered when local government and a developer define a project with significant public infrastructure requirements that cost more than either party can pay alone. Bonds sold by local government or private financing pay for public improvements, and then a portion of the increased property taxes generated within the district is used to pay back the debt. Seventy-five percent of the increased property taxes is used to repay public infrastructure costs, and 25 percent of the increased value goes to government to pay for public services. Once the debt is paid, all the increased property taxes go to government.

More information is available here and here.

Brownfield Assessment Grants

The City of Spokane's brownfield reclamation site at the 80 acre Kendall Yards site www.kendallyards.com is the largest in the country. Potential brownfield locations are indicated on the Development Incentives map

Currently, our brownfield assessment grants are focused on encouraging redevelopment in the University District. More information on that brownfields program can be found here.