Business Community Government

City adopts two measures in step toward aligning with state housing mandates

The Gig Harbor City Council unanimously approved a staff-proposed target area for a new development incentive program called the multifamily tax exemption. At the same Oct. 12 meeting, the council also unanimously approved recommended updates with amendments to the city’s housing code. 

The city adopted the multifamily tax exemption program to help meet housing requirements that the state announced in 2023. The target area for the multifamily tax exemption program is the entirety of Gig Harbor. 

Community Development Director Eric Baker confirmed that the program does not require the city to change zoning beyond what the city is already adjusting to meet state-mandated housing requirements.

“This program does not allow multifamily any place that multifamily is not currently allowed, but if a project is allowed and is going through the permitting process, they are allowed to apply to the multifamily tax exemption program,” he said.

More changes ahead

The adjustments approved Monday are just the first in a series of changes the city needs to make. These particular adjustments to the code concerned housing diversity and density and dimension standards.

Councilmember Le Rodenberg, serving as mayor pro tem while Mayor Mary Barber was out of town, noted the city received extensive public comment previously on the updates to the housing code.

Staff originally submitted suggestions to the Planning Commission for recommendations and adjustments, before sending the proposed changes on to council. The Planning Commission suggested a few key changes, including more flexible standards for different kinds of housing, reduced setbacks and reduced minimum lot dimensions, and increased building heights in certain zones.

Amendments

With the exception of three amendments, the council adopted the commission’s full set of suggestions.

The council did not adopt a Planning Commission recommendation to change the lot size threshold at which a developer could claim a multifamily tax exemption from 6,000 square feet to 8,000 square feet. Staff previously voiced concern that this could lead to more McMansions, and told city council members at an Oct. 1 study session that 6,000 square feet is the historic platting pattern of Gig Harbor’s downtown area.

After learning of staff’s concern at that study session, city council members appeared reluctant to adopt the commission’s recommendation. Rodenberg wondered whether the city could find a middle ground and whether staff could offer exceptions. Baker confirmed that they could offer what are known as variances, under certain criteria.

At its Oct. 12 meeting, the council adopted a threshold of 6,125 square feet, which the staff recommended after the Oct. 1 study session.

The council also adopted two other amendments. One was a small footnote fix, while the other clarified that more restrictive setback requirements also governed mobile and manufactured homes parks.