Incentives

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The City of SeaTac has identified a series of possible incentives to be made available for qualified investment projects. Incentives potentially available are divided into two categories—city-specific and supplemental resources.

 
INDUSTRY VOICE
“One of the reasons I chose SeaTac is obviously proximity to my home and four other employees of my company. Another reason is to continue the benefits of having no BNO tax, and obviously to support and bring the revenue through taxation through the County that comes through my company, back to the City of SeaTac. If you can keep it at home, it’s a good place to keep your dollars.”

Mark Siegel, President, Advanced Broadcast Solutions

 

City-Specific Resources

Tax Exemption

Multi Family Tax Exemption- Developers can qualify for an 8-12 year tax exemption for new development in residential targeted areas. Eligible projects must meet the following requirements:

  • Housing units must be located within the designated boundaries of the South 154th Street Station Area.
  • Projects must include at least 20 dwelling units.
  • Construction must be completed within three years of application approval.
  • Other eligibility requirements and application instructions are included in the ordinance.

Supplemental Resources

A variety of other resources may be appropriate for consideration on a case-by-case basis. Most, though not all of these resources, are not directly subject to control by the City but require authorization from other regional, state or federal agencies. As determined to be mutually beneficial, the City may provide technical assistance or advocacy for resources deemed applicable to the project being proposed.

A summary of the supplemental incentives that may be considered is as follows:

Public-Private Partnership

Strategic Investments—Includes potential consideration of City purchase, assemblage and permitting of large parcels or assemblages of property. May also include joint development around the SeaTac City Center/Airport light rail station, located at International Boulevard and approximately S. 176th Street.

Outside the Box Funding—Predicated on unique or “one-of-a-kind” opportunities that may be available through the state’s Pacific Gateways Competitiveness Initiative, tribal land exchange or designation as a project of statewide significance.

Community Renewal

Community Renewal Agency—Recent legislation provides broad powers for the City to improve a specific area through a wide range of financing mechanisms. This mechanism requires designation of a specified geographic portion of a City as a Community Renewal Area. Also available for discussion is potential future applicability of federal New Markets Tax Credits.

LID / PBIA—Local Improvement District (LID) and Parking and Business Improvement Area (PBIA) provide two options for addressing the parking situation through business or land owner assessments.

TIF / PDA / PFD—Tax Increment (or Community Redevelopment) Financing and Public Development Authorities (PDAs) allow municipalities to re-invest a portion of tax revenues into a carefully defined geographic area or individual project. Public Facilities Districts (PFDs) represent another vehicle with tax revenue authority for some economic development activities.

State and Federal Programs

High Tech—The state of Washington offers numerous tax exemptions for high-tech companies. Because these programs are oriented to distressed areas of the state, applicability to SeaTac may be limited.

Transportation—Transportation-related grants and loans may offer some strategic advantages, especially for larger project applications.

Warehouse / Aerospace—The state of Washington has created a variety of tax incentives with direct benefits for the aerospace industry and warehousing.

Public Use and Purpose

Examples of applications of local government funds in conjunction with public-private development from other projects in the state of Washington include:

  • On- and off-site infrastructure
  • Public parking facilities (including arrangements such as City ownership, long-term City lease with option to purchase and City turnkey purchase with private repurchase option)
  • Dedicated park, plaza, event and open space uses
  • Site acquisition and preparation (for the public use portion of the property), with sales and lease-back provisions
  • Air rights development

For a more detailed description of these incentives, contact City of SeaTac’s Economic Development Program at 206.973.4812 or jrobinson@CityofSeaTac.com.