Developers eyeing projects in Tacoma can apply for the Commercial Revitalization Deduction (CRD) program. The $12 million allocation of federal tax deductions will be distributed among projects located in the Renewal Community Zone an area that covers most of Tacomas downtown core, the Port area, Upper Tacoma and a portion of the Citys East Side.
Projects in Tacoma that have already been awarded CRD allocations are:
– Theas Landing (on the Thea Foss Waterway): $10 million in 2002;
– Ted Brown Music Building (Broadway & 11th Street): $3.3 million in 2002 & 2003;
– Albers Mill (on the Thea Foss Waterway): $3.9 million in 2003;
– The Courtyard Marriott Hotel (Pacific Avenue & 15th Street): $3.2 million in 2003;
– Fraternity Hall (Tacoma Avenue South & 11th Street): $500,000 in 2003;
– Rainier Pacific (Pacific Avenue & 15th Street): $10 million in 2003 & 2004; and
– Shuffleboard Building (Tacoma Avenue South & 11th Street): $450,000 in 2004.
To qualify, projects must be new construction or a substantially rehabilitated structure and must create space conducive to creating new jobs. The maximum allocation per project is $10 million.
Winning projects are allowed an accelerated depreciation schedule, resulting in a reduced federal tax bill and an increased ability to make a project pencil by giving owners financial relief early in the project when they incur the most expenses.
Tacoma receives a CRD allocation annually from the U.S. Department of Housing and Urban Development, after being named one of 28 national Renewal Communities in 2002. Earlier this year, two projects were awarded CRD allocations totaling $7.35 million, leaving $4.65 million in CRD allocations allowed for the remainder of this year.
Applications are available at the Tacoma Economic Development Department, Municipal Building, 747 Market St., Room 900, from 8 a.m. to 5 p.m. Applications can also be requested by e-mailing Shari Hart at shart@cityoftacoma.org or by calling 253/591-5208. Applications are due Sept. 27 by 5 p.m.
The state of Washington is expected to announce Tacomas winning projects in early December.
