Development costs are continuing to rise. Fortunately, there are incentives in place to help reduce some of the costs associated with developing in downtown.
Property Tax Exemption/Deferral and Fee Waivers
In an effort to encourage redevelopment of underutilized, deteriorated properties, and to encourage economic development in downtown, the Municipality implemented a series of incentives for developers to help defray new construction costs, including:
- Partial or total exemption from real and personal property taxation on “economic development property” for up to five years (AMC 12.35.040) to improve the feasibility or long-term viability of an operation, program or project;
- Partial or total exemption from real and personal property taxation on “deteriorated property” for up to ten years (AMC 12.35.050) with boundaries that have been determined by the municipality after a public hearing; and,
- Partial waiver or total exemption from municipal fees for development of deteriorated property (AMC 12.35.055).
Public-Private Partnerships for Parking
Developers building in downtown Anchorage (zoning districts B-2A, B-2B and B-2C) are not required to provide on-site parking for their tenants. However, providing parking for employees, clients and customers is a priority for most major tenants and business owners. Fortunately, Anchorage Community Development Authority (ACDA) is ready to work with and assist developers in identifying parking needs and providing parking solutions. ACDA can assist in achieving economically sound projects for proposed private development by lowering parking construction costs and/or creating a potential positive revenue source for the project.