A resolution approved Tuesday by Tacoma City Council could give the Tacoma Housing Authority (THA) more leverage in its plan to purchase the downtown Rhodes Center from the State of Washington, according to the affordable housing agency’s executive director.
The action taken this week allows THA to add a public development authority to its existing scope of services. It also gives the agency an opportunity to pursue Federal tax incentives that in the past the city has failed to receive on its own.
“I feel like we have unused development capacity,” said THA executive director Michael Mirra. He spoke during City Council’s noon study session, hours before councilmembers voted to approve the resolution. “We are good at building communities, and very good at raising money. We have a track record of work with a wide variety of investors. The development authority would make us much more competitive.”
On April 7, Mirra outlined to members of the city council neighborhoods and housing committee his agency’s desire to purchase the 103-year-old Rhodes Center Building, located at 950 Broadway. Mirra said the purchase would include the Rhodes Center, its 530-stall parking garage, and a building on Market Street. State law currently limits Washington State from leasing no more than 20 percent of the building to the private sector. That law would not apply to THA. If THA purchases the building, said Mirra, it would market available office and retail space to increase revenue for more affordable housing development city-wide.
According to the State of Washington, the estimated value of the properties is $22 million.
During Tuesday’s study session, councilmembers generally supported the plan. But some were concerned over the level of power afforded, and what control it had if THA pursued development projects that conflicted with City Hall.
Mirra reminded councilmembers the additional authority carries its own caveats.
Any future development would require some level of assistance from City Hall, such as permitting and comprehensive plan compliance. Also, the mayor appoints THA’s board members, who guide the agency’s direction. And City Council could pass a separate resolution to rescind the authority.
“It’s a resolution that can be undone,” added Mirra.
City Manager Eric Anderson, who supported the resolution, agreed. “If they stray or wander, council can withdraw the powers in the same manner,” said Anderson.