The Battle Ground City Council has not taken any action on a move to allow development without paying tax on its properties.
But the council did entertain the idea of letting a market-price apartment complex near Wal-mart, however.
During its Sept.5 meeting, the Battle Ground City Council discussed where the planned development would be. It’s a 200-unit, two-phased development on the southwest side of the city, located on 10 acres to the west of the current Alder Point place.
The project has been in the works for years.
“We understand there’s real questions about how the funding is impacted,” Tirus “T.J.” Fontenette, the managing principal of Principal Properties LLC, said.
One of the main issues pertained to how the property tax exemption would affect existing taxes. Fontenette reiterated that the existing levy rates will not be impacted by any tax abatement.
Fontenette noted the property owners — Principal Properties LLC — would still be on the hook for $600,000 in land value outside of the exemption. He said the dip in funding would be less than a percentage point in the overall budget for the fire district.
Fontenette noted new construction is not capped in the state’s property tax-funding model. The $177 million in new construction in Battle Ground in 2022 equates to $237,000 annually for FD3, according to Fontenette’s documents.
“These projects are going to require a significant amount of infrastructure development,” Fontenette said.
Fontenette said having the utility infrastructure in place would lead to more commercial development in the area to the south of the planned apartment complex. From estimates he had done, more than 100 homes and 370,000 square feet of commercial development could take place near the intersection of state Route 503 and Eaton Boulevard.
Fontenette didn’t anticipate any more calls for service compared with Alder Pointe, which he said has the expected number.
He added the lack of housing was a cost of its own, given the homelessness crisis. He also noted the $1.1 million in sales tax from construction and the permitting and other fees at about $7.5 million that the project would generate.
There was a significant backlash from the city making no effort on the project, it seems. Mayor Philip Johnson felt that, in his three-term tenure, he’s never experienced the citizenry rising up against an item on the council’s table.
Fontenette’s main point is that if the housing development comes in, it means greater infrastructure for the city at large. He previously said the first phase featuring the southernmost five acres would involve extending Southwest 15th Avenue to connect to Eaton Boulevard. It will also feature building sewer infrastructure that will eventually serve beyond what is needed for the project.
“We’re developing this property, but it’s the infrastructure, really,” Fontenette said.
