AWC supports a bill that provides funding for new Local Revitalization Financing (LRF) projects.
HB 2804, sponsored by Rep. Davina Duerr (D–Bothell), increases the state’s annual contribution limit for LRF projects from $2.5 million to $15 million over the next 30 years. The proposal would make the new funding available on a competitive application process. This is one of AWC’s priorities to offer additional economic development funding tools.
Under the proposal, in 2021, the Department of Commerce will begin accepting new LRF applications and will use updated criteria to evaluate and select projects, including:
- The project's potential to enhance the sponsoring local government's regional or international competitiveness;
- The project's ability to encourage mixed-use or transit-oriented development and the redevelopment of a geographic area;
- Achieving an overall distribution of projects statewide that reflect geographic diversity;
- The estimated wages and benefits for the project are greater than the average labor market area;
- The estimated state and local net employment change over the life of the project;
- The estimated state and local net property tax change over the life of the project;
- The estimated state and local sales and use tax increase over the life of the project;
- The speed at which the project can begin construction;
- The extent to which the project leverages nonstate funds; and
- The likelihood that the project would proceed forward without the use of state funds.
Projects must begin by December 31, 2026, to receive funds.
Dates to remember
HB 2804 is scheduled for public hearing in the House Local Government Committee at 8 am on Wednesday, February 5. The bill is scheduled for a committee vote at 10 am on Friday, February 7.