The Bainbridge Island City Council made two decisions Aug. 13 to advance affordable housing developments, voting for a tax exemption for one and a preferred developer for another.
The council agreed to expand the city’s multi-family tax exemption to the affordable housing project at Bethany Lutheran Church, known as the Finch Green development, which was just outside the previous boundary. It will provide tax relief for households for 20 years.
Three people spoke during a public hearing.
Phedra Elliott, executive director of Housing Resources Bainbridge, said the move will lower costs $600,000, which will have a ripple effect in savings and help with getting other funding, such as grants. She said Finch Green will have 22 permanent affordable housing homes, and the tax relief will incentivize developers.
David Swartling, Finch Green board president, said the savings will help the project because costs have escalated on BI. He said the council said five years ago it wanted to use an affordable housing lens on projects, so he’s glad to see this step finally taken.
Peter Stiepleman of the HRB board said Finch Green aligns perfectly with the community’s housing needs, which include more affordable multifamily homes.
The council also agreed on a partner for the city’s affordable housing project at the site of the former police station.
The city leaders authorized city manager Blair King to negotiate exclusively for six months with Low Income Housing Institute for development and operation of affordable housing at 625 Winslow Way.
Since construction of the new police station on Madison Avenue, the city has been looking at the old site for a public-private partnership for affordable housing to provide homes for workers in the community and seniors.
The city anticipates a 100-unit mixed-use development using tax-exempt bond financing and the Federal 4% Low Income Housing Tax Credit. Six firms responded. LIHI was selected and is expected to finance, construct and operate the development for no less than 50 years as an affordable housing property.
King said during the six months the city and LIHI will work together on a schedule of development, conceptual design and more. He said funding will be complicated, coming from different sources. He also expects them to come back to the council on issues such as parking.
Councilmember Clarence Moriwaki said so many BI workers live off-island, so he’s excited that this project will help more of them live here. “I really hope this happens.”
LIHI executive director Sharon Lee praised the city for using its land for a long-term lease to provide affordable housing. She said their process includes a lot of community outreach. She also said it is a prime location and will be aesthetically pleasing. “People, we hope, will embrace affordable housing that can be attractive and can be an asset in the community.”
In a related matter, the council voted to use eminent domain to acquire the “notch” property at 180 Olympic Drive that is surrounded by the city property. The parcel is .11 of an acre, and the city property .89 of an acre. Fair-market value is $825,000. Owners of the investment property have not responded to city offers. Eminent domain allows the acquisition of property for public good. The property is southeast of the former police station.
