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Where is Town Center and what is the Town Center Project? The Town Center District is a mixed-use zone that generally encompasses properties along Bridgeport, between 35PthP Street and 44PthP Street. The Town Center Project is a proposed $250 million mixed-use development east and west of Bridgeport, between 35PthP Street and Homestead Park.
Why did the City terminate its agreement with UPtown Development LLC? Although the Project has achieved significant progress during the past year, it became evident in discussions with the developer that the effects of the sub-prime market collapse were affecting the development. The City was particularly concerned that potential construction delays might interfere with the City’s commitments to deliver a new Library to the Pierce County Library System and a new University Building for Washington State University. All parties agreed that termination of the agreement now would still allow the City to meet those obligations, while also allowing for the selection of a strategy that would enable the community to move forward in a timely manner on the long-standing community goals of creating a broader, sustainable tax base and developing a true downtown that serves as the focal point for civic life.
How much did the City pay for the Town Center properties and how much is it worth today? The City purchased the Town Center properties for $17.1 million, and the land’s current estimated value is $20 to 21 million.
Will the size or nature of the Town Center Project change and when will it open to the public? The mixed-use, pedestrian-oriented character of the Project will not change. The Project will be built in phases. The first phase is the University Building. The second and third phases will include a new City Hall and Library; a mix of national, regional and local retailers and restaurants; a movie theater or significant anchor; office space; and a parking garage/transit facility. The third phase will also include a hotel with conference center. Subsequent phases include additional retail and housing.
Who will be the new tenants in the Town Center Project? The Town Center developer, not the City, will be responsible for leasing. For competitive reasons, developers usually do not release the names of tenants until closer to the opening date.
What will happen to the UP Library and City Hall? The City, not the developer, will construct the Library/Civic Building as a public project on Market Square at the center of the Project site. The ground floor will be the Library, which will be expanded from 12,000 square feet to 15,000 square feet, and City Hall will be on the upper floors.
The Plan identifies a “University Building.” Will there be a University at Town Center? The City has a tentative agreement with Washington State University to provide continuing education courses in Town Center. The City will be seeking a new development partner to build and own the “University Building” as a private project as part of Town Center.
Why is the City involved? Couldn’t the private sector have done this? The City has cut staff and services to deal with various statewide initiatives that have cost the City 25% of its budget and limited property tax revenue growth to 1%, a rate less than inflation. The City has focused on broadening its tax base by developing alternative sources of revenue to pay for essential services without raising taxes. The Town Center Project will act as a catalyst for redevelopment throughout the Town Center District. The private sector might have accomplished similar results on its own, but the time involved in consolidating previously developed property held by multiple landowners discouraged redevelopment. In a suburban setting, we might have had to wait decades to see this type of redevelopment resulting from traditional market forces.
The City has been making budget cuts over the past several years as its revenue has been reduced. Given the City’s financial difficulties, where did the City get the money to do this? The City has taken advantage of historically low interest rates in obtaining a low-interest loan to buy the Town Center properties. The City has made interest-only payments on the loan over the past several years and will now use the proceeds from the sale of the property to the Town Center developer to repay the loan. The Project will generate millions of dollars in new tax revenue for the City and other governmental entities. The City will invest a portion of these new revenues, along with grant funds from the State and Federal governments, in infrastructure improvements (such as new roads, sidewalks, a public plaza and the parking garage) in order to bring this Project to University Place and to support anticipated spin-off redevelopment. Project costs are to be paid from project revenues, not tax dollars.
Where can I get additional information? For additional information, please contact Eric Faison, Governmental Affairs Manager, in the City Manager’s Office at (253) 460-5443 or by email at efaison@cityofup.com.
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