Council may move forward on Eaton Park after renewed tax break discussion

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After more than a year of delays, the Battle Ground City Council is taking its first steps toward reconsidering tax exemptions for the Eaton Park apartment complex, a project that could bring 95 new housing units to the city.

At a meeting on July 21, the council directed city staff to initiate the process of modifying its Multi-Family Tax Exemption (MFTE) code. The move would allow the Eaton Park project to qualify for a 12-year property tax exemption in exchange for setting aside 20% of its units for affordable housing.

Affordable housing units will be rented by people whose monthly housing costs do not exceed 30% of the household’s monthly income, at 80% of the area’s adjusted median income.

Councilors acknowledged that for the Eaton Park project to move forward, the city would first need to amend its municipal code to include the parcel in a Residential Target Area (RTA), a designation required to access the MFTE program.

The council signaled support for proceeding on a limited basis, specifically to allow staff to prepare ordinance changes related only to Eaton Park. No final vote was taken, but councilors gave a “thumbs up” to both expanding the RTA and allowing the longer tax exemption.

The Eaton Park proposal has come before the council multiple times since 2023. In October of that year, the council rejected a request for an eight-year tax exemption due to concerns that it would reduce funding for essential services, such as police and fire. Although the developer, Principal Properties LLC, committed to covering Fire District 3 levies in full, council members remained divided.

In April 2024, the project returned, this time in partnership with Vancouver Housing Authority (VHA), but was again voted down. The developer is currently pursuing this project without VHA.

Councilor Shane Bowman said this week that the issue could be addressed through an agreement between the developer and Fire District 3, currently in development.

“As long as fire is being made whole, I think … it’s a good win for the city,” Bowman said. “To move this forward, probably at the 12-year mark.”

Bowman spoke to the broader need for affordable options as housing prices continue to rise, saying the lack of options are causing the children of homeowners to move halfway across the country.
“Affordable housing for a first-time home is … 4 times what I paid for my house,” Bowman said.
Councilmember Cherish DesRochers said the project’s location near other apartment buildings and commercial businesses made sense.

“I know a lot of people don’t want apartments, you know, I hear that all the time we’re growing too fast, but I feel like where this is placed, it’s right next to other apartments,” DesRochers said. “It’s in a commercial area, so it seems like a pretty reasonable place.”

Still, others on the council remained cautious. Councilor Tricia Davis expressed frustration over the timing of materials sent to the council and ongoing pressure from the state to offer exemptions.

“I don’t understand,” Davis said. “This playing together and giving them a break on property tax now for 12 years … it might not be that much money, but the point is. It is a hit at some point. I think that the problem is we’re being hammered by Olympia, and we’re taking the brunt. And it’s just really hard to swallow by saying we just got to work with them because we need these houses.”

A council majority directed staff to begin that process. A public hearing and final vote will be required before any changes take effect.