A mention in the House budget keeps hope alive for additional Local Revitalization Financing (LRF) funding from the state.
In the House supplemental budget released last week, the House listed HB 2804 in the bill summary. This is a good sign for HB 2804 as it helps cement its connection to the budget and exempts it from the typical bill deadlines. AWC continues to work with legislators to ensure this important funding source for economic development projects in cities remains a budget priority.
HB 2804 reopens the program to new project applications and additional funding to support those new applications.
We encourage you to contact your Representatives and Senators to encourage them to support economic development in Washington’s cities by passing HB 2804.
Below we have included talking points you can use in communicating with your legislators:
- Starting January 1, 2021, HB 2804 provides up to $15 million annually in state contribution for LRF projects for no more than 20 years.
- HB 2804 allows for environmental remediation and site stabilization projects in addition to other public infrastructure needs to be included in proposed LRF projects.
- Starting in 2009, the state provided $6.66 million in LRF funding for 17 different local governments received funding for 18 revitalization areas. Additionally, the state provides up to $6.66 million annually in sales tax credits to these jurisdictions.
- Thirteen projects have reported a total state benefit of over $633 million. The state benefit includes the increase in state property tax and the increase in state excise tax received since the approval of the revitalized area.
- Benefiting cities report that an estimated 2,564 new businesses have located in the revitalized areas creating an estimated 19,458 permanent jobs.
- According to the Council of Economic Advisors, every dollar invested in infrastructure results in $1.50 in economic output.
HB 2804 awaits a vote of the House of Representatives.