8-Attachment H. Developer Incentives.pdf

City of Milwaukie: RFP for Design and Development of the Sparrow Site Attachment H

Attachment H

Development Incentives

City encourages prospective developers to consider forming mutually beneficial partnerships to achieve the goals of the property and to consider creative solutions to this site. City also anticipates that the redevelopment of the Sparrow Site may require a public-private partnership to achieve the goals.

While the City has limited resources available, outlined below is a preliminary list of possible funding tools and other resources. Please note that there is no definitive commitment or guarantee to these tools or forms of assistance. However, the City is committed to working with the selected developer to secure the funding necessary to create a development that aligns with the project goals.

1. Lease Write-Down: City will consider a full “write down” and transfer of the properties, as the City determines in its sole discretion, that the resulting development satisfies goals set forth in this solicitation.

2. Milwaukie Affordable Housing Construction Excise Tax Waiver: The Milwaukie Affordable Housing CET is a 1% tax on the permit value of new development and construction that results in additional square footage of an existing structure. Exemptions up to the full amount of the CET apply to residential housing that is guaranteed to be affordable, under HUD guidelines, to households that earn no more than 80 percent of the median household income (in proportion to the percentage of affordable units).

https://www.milwaukieoregon.gov/communitydevelopment/milwaukie-construction-excise-tax-cet

3. Milwaukie Affordable Housing CET Revenue Allocation (TBD): A qualifying project may be eligible to receive development incentives from revenues collected by the City’s CET Fund in the form of one or more of the following:

• Whole or partial fee waivers or reductions;

• Grant dollars;

• Finance-based incentives; and

• Full or partial exemption from property taxes.

4. State of Oregon LIFT Funding: Funding available for the construction of affordable housing. Funding is only available to nonprofit organizations. Funding is prioritized for communities of color and/or rural communities. In addition, funding is allocated to projects that can place housing units in service as quickly as possible. May be available for private/nonprofit partnerships.

https://www.oregon.gov/ohcs/Pages/multifamily-lift-housing-development-program.aspx

5. Support Letters: City will provide letters of support to developer seeking other potential financing sources for the project, including but not limited to conventional loans, HUD 221(d)(4) loans, and Low- Income Housing Tax Credits.

6. Brownfield Clean-Up Funding:

• HB 2518:

https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/HB2518/Introduced

• EPA Grant Cleanup Funding: Brownfields Program Grants | US EPA

• Business Oregon Cleanup Funding: Business Oregon : Brownfields : Brownfields : State of Oregon https://www.milwaukieoregon.gov/communitydevelopment/milwaukie-construction-excise-tax-cet https://www.oregon.gov/ohcs/Pages/multifamily-lift-housing-development-program.aspx https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/HB2518/Introduced https://www.epa.gov/resilient-investments/brownfields-program-grants https://www.oregon.gov/biz/programs/brownfields/pages/default.aspx