All they have to do to satisfy the "20%" that must be "affordable" units is to make 20% of them studio apartments. Studio apartments, maybe 300 - 400 square feet, are half or a third the size of most apartments, and rent for half as much. They don't have to discount the rent, just build small units.
And once they do that, all the units are tax-exempt for 12 years. For that period, other taxpayers in Tumwater will make up the difference in what the City loses, and other taxpayers in the Tumwater School District will make up the difference in what the school district loses.
These apartments, if built, will increase the number of dwelling units in Tumwater by about 8%. If they are valued at half the average value of a Tumwater dwelling unit, then the average household will pay a 4% increase in their property taxes (Tim Eyman's Initiative 747 1% limit does not affect individual properties and does not affect increased taxes due to the value of new construction, including new MFTE properties).
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