Community Preservation and Development Authorities.
Community Preservation and Development Authorities are entities created 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. The formation of a Community Preservation and Development Authority (CPDA) must be authorized by statute. The two CPDAs are the Pioneer Square-International District CPDA and the Central District CPDA, both in the City of Seattle.
A CPDA is required to have one or more of the following purposes:
Among other duties, a CPDA has a duty to develop a strategic preservation and development plan to restore and promote the health, safety, and economic well-being of the impacted community and to restore and preserve its cultural and historical identity. The strategic plan must include a prioritized list of projects. The CPDA is required to establish funding mechanisms to support projects and programs identified and supported in the strategic plan such as grants and loans. Each CPDA is required to report to the Legislature every biennium on its strategic plan, activities, accomplishments, and recommendations for statutory changes.
The CPDA Account in the state treasury has two subaccounts. The first is for appropriations for operating purposes, and the second is for appropriations for capital purposes. Operating purposes are administrative and service functions, while capital purposes are acquisition, construction, or improvement of fixed assets such as land and buildings.
Sales and Use Tax.
Retail sales taxes are imposed on retail sales of most articles of tangible personal property, digital products, and some services. A retail sale is a sale to the final consumer or end user of the property, digital product, or service. If retail sales taxes are not collected when the user acquires the property, digital products, or services, then use taxes apply to the value of property, digital products, or services when used in this state. The state, most cities, and all counties levy retail sales and use taxes. The state sales and use tax rate is 6.5 percent.
Joint Legislative Audit and Review Committee.
The Joint Legislative Audit and Review Committee (JLARC) is a statutorily created committee of eight senators and eight representatives, equally divided between the two major political parties. The JLARC staff conduct performance audits, program evaluations, sunset reviews, and other policy and fiscal studies.
The Joint Legislative Audit and Review Committee is directed to review the funding for Community Preservation and Development Authorities (CPDAs) by December 1, 2034. If the review makes certain findings, the January 1, 2037, expiration date of the revenue from certain retail sales may be extended. Those findings include:
Each CPDA is required to submit biennial reports to the Legislature on its strategic plan, use of funding, and impacts on the community beginning November 1, 2027.
Beginning January 1, 2026, 30 percent of the estimated retail sales tax revenue from qualified facilities is required to be deposited into the CPDA Account no later than three months after the end of the calendar quarter in which the taxes were collected. Beginning January 1, 2027, 30 percent of the revenue of the retail sales tax must be deposited equally in the operating and capital subaccounts no later than three months after the end of the calendar quarter in which the taxes were collected. A "qualified facility" is a stadium located in a county with a CPDA that has either 68,000 seats with an event space, or 47,000 seats and a retractable roof.
The same process for retail sales applies to the state's use tax.
The act expires on January 1, 2037.
The Senate amendment:
(In support) The Community Preservation and Development Authority (CPDA) was created in 2007 to address the impacts of both human and vehicular traffic in the International District, where large-scale publicly-funded projects destabilize the local neighborhoods. The CPDAs are also impacted by the old viaduct, Interstate 5, and the new Highway 99. Seattle's Chinatown International District was named as one of the 11 most endangered historic places in America. The promise to fund the CPDAs has not been fulfilled and no funding mechanism was included in the original legislation. Leveraging taxpayer dollars to create sustainable funding will help small businesses, the creative economy, unreinforced masonry retrofits, and available housing come online more quickly without raising taxes. For example, municipal and nonprofit partners are preparing a public safety asset map. Investing in historic neighborhoods is key to maintaining those neighborhoods for generations to come, adds character not seen in most modern buildings, creates steady work for bricklayers, and improves safety in the event of an earthquake. It will also create opportunities for artists, small businesses, and entrepreneurs to thrive, which strengthens the cultural and economic fabric of the city.
(Opposed) None.
(In support) Pioneer Square is a place of dignity and economic independence with over a century of history. Large-scale publicly funded projects regularly disrupt downtown Seattle. The state created the first community preservation and development authority in 2007. These authorities have the mission to preserve, restore, and promote the history and future of Pioneer Square and the Chinatown International District. These authorities develop affordable housing, preserve cultural and economic vitality, stabilize neighborhoods, and collaborate with community organizations and city and state partners.
Buildings with aging, unreinforced masonry are serious risks during earthquakes. Modern construction methods allow bricklayers to retrofit these structures to make them safer while preserving character. Reinforced buildings are critical for preparing communities for seismic events. This bill will bring 10 years of sustainable funding to help small businesses, reinforce masonry, and build housing. This bill preserves historic buildings and addresses public safety concerns. This bill supports family wage jobs and local business districts while protecting the places that people call home. This bill reinvests in the region and revitalizes neighborhoods for residents. This bill will not raise taxes and was developed with the Department of Revenue and the two impacted stadiums.
(Opposed) None.
Representative Sharon Tomiko Santos, prime sponsor; Kathleen Barry Johnson, Historic South Downtown; Armando Garzon, Kolors Studios; and Christopher Ellis, Bricklayers & Allied Craftworkers Local 1.
Kathleen Barry Johnson, Historic South Downtown; Christopher Ellis, Bricklayers and Allied Craftworkers; Rino Hamanishi, Historic South Downtown and SCIDpda; Amy Chen Lozano, Historic South Downtown; and Robert Rodriguez, Yellow Butterfly Coffee.