May 19, 2025

“4. C©0149-25 Order/s/ Councilor Stephanie Martins, as President An order requesting consideration of a proposed Tax Increment Finance (TIF) agreement between the City of Everett and The Sofia 2"4 Street Owner, LLC pertaining to a mixed use redevelopment to be located at 380 Second Street The petitioners, Scott Brown and representatives from Fulcrum Global Investors, were invited to present on their TIF proposal for "The Sofia" development at 380 Second Street. Key points from their presentation and Q&A with the Council: - They increased on-site affordable units from 31 to 42, including 24 Veterans Affairs Supportive Housing (VASH) units at 30% AMI, 6 units at 60% AMI, and 12 units at 80% AMI, deed restricted in perpetuity. They increased the affordable housing linkage payment from $1M to $2M. - CRE Asset Advisors, hired by the City, confirmed the project is not financeable without the TIF as proposed. Without this development, the site could remain an industrial use or be developed at a much smaller scale with fewer benefits. - The project will create 1,342 union construction jobs and 52 permanent jobs, with a commitment to hire qualified Everett residents. - The $3.4M environmental cleanup and infrastructure improvements were reviewed, including contributions to transportation demand management. - Councilors asked about the VASH program, parking fees, property management training, pickleball court sound mitigation, and other details. - Councilors expressed concerns about overdevelopment burdening City services, and the need for overwhelming financial benefits to offset resident concerns. - Questions were raised about how the TIF affects the property assessment and tax rates for other taxpayers. The Mayor and CFO clarified the assessment is based on the TIF payment so there is no tax burden shifted to other taxpayers. - Procedural issues were discussed as the final TIF language was not yet available incorporating changes discussed at the meeting. The matter was postponed to the next Council meeting pending an updated draft TIF agreement incorporating specific changes requested related to the VASH units, directing the housing linkage payment to the Affordable Housing Trust Fund, and a letter from the Assessor confirming the TIF will not shift tax burdens to other taxpayers. MOTION: Postpone MOVER: Robert Van Campen SECONDER: Stephanie Smith RESULT: Passed [0 TO 0] AYES: NAYS: AWAY:.” (Motion: Robert Van Campen, second: Stephanie Smith)

Read it in the official minutes, page 2 (PDF)