“Library Square” project in Vancouver can move forward with Wylie’s bill.
The House of Representatives approved a measure (HB 1306) today to extend the expiration date of the Local Infrastructure Financing Tool Program (LIFT) from June 30, 2039 to June 30, 2044.
“This bill is necessary for the completion of LIFT projects around the state,” said State Rep. Sharon Wylie (D-Vancouver), the bill’s prime sponsor. “Library Square, an incredible asset to downtown Vancouver, is one of those projects. To carry out the original plan of this mixed-use project, which includes multi-story buildings, office and retail space, condos, a hotel and an underground garage for 400 cars, we have to extend the expiration date by at least five years.”
In 2006 the Legislature created the LIFT program to help cities and counties promote job creation and economic development. It allows local governments to capture a portion of sales, property and excise tax revenue coming into a designated area – such as money from increased commerce or construction to improve water lines, roads, affordable housing and other infrastructure necessary for development. With this modern financing idea, local governments and communities can draw in new businesses and help existing ones expand.
LIFT financing of approximately $15 million for Vancouver’s Library Square project will be used to purchase a portion of the underground-structure parking in the garage, which will be operated for public parking.
Alisa Pyszka, representing the City of Vancouver at the bill’s hearing, said that if the LIFT program is extended they will be able to build the public-private parking garage as envisioned, the mixed-use development would occur, and the revenues to the state would be $22 million. “This also translates, obviously, to the city of Vancouver as well, if the LIFT extension goes into place, we will get the garage and the city of Vancouver will realize $8 million in revenue,” Pyszka added.
Wylie’s bill will also allow local jurisdictions to receive a sales-and-use tax credit without beginning public improvement construction for seven instead of five years. It will also provide a pay-as-you go option for the length of the program, rather than requiring construction bonds to be issued within five years. Local jurisdiction must begin construction of a public improvement project by June 30, 2017 to impose the state shared local sales-and-use tax.
“These changes will not increase the bonding limit and will not raise any additional taxes,” explained Wylie. “But they will give the LIFT communities much needed extra time to get shovel-ready.”
HB 1306 is headed to the Senate for further consideration.