Community Preservation and Development Authorities. Community Preservation and Development Authorities (CPDAs) are entities formed to restore or enhance the health, safety, and economic wellbeing of communities adversely impacted by the construction of, or ongoing operation of, multiple major public facilities, public works, and capital projects with significant public funding or other land use decisions.
A CPDA is formed by residents, property owners, employees, or business owners of an impacted community by presenting a proposal in writing to the appropriate legislative committees in the state House of Representatives and Senate. The proposal must include proposed boundaries and provisions. Formation of the CPDA is subject to legislative authorization by statute.
A CPDA must have at least one of the following purposes:
The CPDA Account exists in the State Treasury and is composed of two subaccounts, one for operating purposes and one for capital purposes.
There are currently two approved CPDAs, both in Seattle: Pioneer Square-International District Community Preservation and Development Authority and Central District Community Preservation and Development Authority.
Lumen Field. The 325,000 square-foot Seahawks Stadium was established in 2002 with a seating capacity of 68,740 with 5000 additional seats available for special events. In 2004, Seahawks Stadium was renamed Qwest Field, later renamed CenturyLink Field, and in 2020, renamed Lumen Field. Lumen Field has a roof covering 70 percent of the seating area.
T-Mobile Park. In 1999, the 88,000 square-foot Safeco Field was established with a seating capacity of 47,000 and a retractable roof. In 2018, Safeco Field was renamed T-Mobile Park.
Joint Legislative Audit and Review Committee. The Joint Legislative Audit and Review Committee (JLARC) is a statutorily created body consisting of eight members from the Senate and eight members from the House of Representatives, with not more than four members from each house from the same political party. The nonpartisan staff of JLARC conduct performance audits, program evaluations, tax performance reviews, sunset reviews, and other analyses assigned by the Legislature and JLARC itself.
Beginning July1, 2025, through January 1, 2036, 30 percent of the state sales tax revenue from qualified facilities must be deposited into the CPDA account. The revenue must be split equally between the operating subaccount and the capital subaccount. The Department of Revenue (DOR) must determine the amount to be deposited by November 1st and May 1st of each year. DOR must notify the state treasurer of the amount to be deposited and the state treasurer must deposit those funds into the CPDA account by December 31st and June 30th each year. For fiscal year 2026, the maximum amount to be deposited to the account is $3,000,000. For each fiscal year thereafter, the maximum amount to be deposited in the account must be adjusted based on the consumer price index that is published by November 15th of the previous year for the most recent 12-month period.
A qualified facility is a facility located in a county in which a CPDA is established that:
JLARC must conduct a review of CPDA funding and provide its findings to the Legislature by December 1, 2033. The Legislature states its intent to extend the expiration of funding for CPDAs if the JLARC review finds the CPDA:
By November 1st of each odd-numbered year, each CPDA must submit a biennial report to the Legislature on the CPDA's strategic plan, use of funding, and impacts on the community.
PRO: The concept of CPDAs have been around since 2006 and was conceived as an antidisplacement approach. There was a plan to provide ongoing funding, but the recession occurred and funding was not provided. This bill will provide long-term permanent funding for CPDAs by carving off a percentage of the state portion of the retail sales tax in two facilities, Lumen Field, and T-Mobile Park. Both these CPDAs have been under incredible development pressure from outside development that was not respecting or understanding the communities as they currently exist.
Seattle Chinatown International District Preservation and Development Authority (SCIDPDA) works to revitalize and preserve Chinatown International District with affordable housing, commercial property management, real estate development, and community development. This bill would fund the work of SCIDPDA. This bill is needed to restore the economic vitality and much-needed housing in these districts. This bill will not raise taxes but will divert 30 percent of existing sales taxes at the stadiums to CPDAs.
The International District landmarks suffer hate crimes and businesses are vandalized. When the All-Star Baseball game happened last year, the organizers put the map together for visitors that completely ignored the International District. With World Cup coming to Seattle, these funds will be used for public safety so that the streets and the communities are welcome and safe places for everyone visiting for World Cup and everyone who lives and works in those communities.
The committee recommended a different version of the bill than what was heard. PRO: Historic South Downtown, as the state first Community Preservation and Development Authority, helps mitigate ongoing negative impacts of public work projects in Seattle's Pioneer Square and Chinatown International District. One issue to flag is that the fiscal note identified local sales tax as part of the revenue which is not the initial intent by the stakeholders. With an amendment to address that, the bill would help small businesses do better as there is funding for homeless on the street, new housing and cultural activities. The bill ensures everyone shares the potential benefits of the World Cup as a statewide event.
Community partners with Historic South Downtown save meaningful places, foster lively communities, and invest much needed funding resources to promote health and wellness, safety, livability and economic wellbeing. Support for this bill ensures that the organization remain a strong community to advocate and partner into the future.
The bill supports community-driven solutions to repair the damages neighborhoods and forge a future where prosperity is within reach for all. The resources are instrumental in preserving small businesses, supporting diverse residents, safeguarding historic buildings and ensuing that neighborhood remains the vibrant cultural and historical heart of the city.