The MFTE is an abomination. It subsidizes millionaire developers at the expense of every person who owns a home or rents an house or apartment. A classic case of "they get the gold mine, and we get the shaft."
This development then increases congestion on our streets, requires additional police and fire services, and otherwise increases the cost of government. But it pays no property tax towards that for eight years.
Building market rate housing is something that markets do. If it's more expensive to build downtown, that is offset by the proximity to workplaces, and access to transit. People are willing to, and do, pay a premium to live downtown already. Even if 100% of this tax subsidy flowed through to the renters of these apartments, that would only take $100/month off of a $2,000/month apartment rent (rents at 123 4th Avenue range from $1,375/month for a 434 square foot studio up to $2,200/month for a 927 square foot unit).
More likely, however, this $100 mostly flows directly to the bottom line of the investor, real estate investment trust, or corporate apartment investor.
This subsidy works out to about $50/year for every person in Olympia. Why should we be raising property taxes on working families and retirees on limited incomes to subsidize the millionaire investors?
Clark Gilman seems to be the only member of the City Council with an understanding of this issue. The other Council members should defer to him.
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