Council OKs

incentives for

city buildings

The Bonney Lake City Council approved to add a chapter to the municipal code for temporary incentives to encourage investing in commercial building.

Before the ordinance was passed, the council approved an amendment to the ordinance to change the language from commercial building to retail/commercial building.

“The intent is to increase the city’s sales tax base,” City Administrator Don Morrison said.

The ordinance creates a new section that would grant temporary commercial building stimulus incentives to sunset Dec. 31, 2011. It would waive the 50 percent of certain land use fees, waive 50 percent of building and plan review fees and grant a 75 percent rebate of construction sales tax up to $100,000.

The council hopes the ordinance will encourage businesses to locate or expand retail and commercial building within the city. Under the ordinance, to qualify for the incentive package, the applicant must construct within the downtown core, downtown mixed use or commercial zoning districts. For mixed-use building, 50 percent must be donated to commercial use.

Businesses would be entitled to a 75 percent rebate of the city’s portion of the sales and use taxes collected by the city for the city’s portion of construction including materials, fixed equipment or machinery installation up to a $100,000.

Six months after issuing the certificate of occupancy, the city will determine its portion of construction related to sales and use tax revenue.