| The Port Orchard City Council is considering an ordinance that would assign the Kitsap County Housing Authority (KCCHA) as the city’s Public Development Authority (PDA). PDA’s have proven effective in helping revitalize smaller communities.
Under the proposed ordinance, the city council would assign the PDA public purpose projects not usually undertaken by small municipal governments. PDA’s usually have more flexibility and resources available than smaller cities in getting community projects done. One of the first tasks would be implementing the New Markets Tax Credit program in Port Orchard.
The PDA would be overseen and assigned tasks by the city council. PDA’s do not require city funding as they are funded independently. The city would not take any risk or debt incurred as a result of the PDA.
“KCCHA has been successful in revitalizing Poulsbo and downtown Bremerton,” says Council Member John Clauson. “The New Markets program offers a lot of incentive for new businesses and development.”
The New Markets program, which is already established in Bremerton, has been effective in attracting new businesses to downtown Bremerton. Dimension 4, originally a Seattle-based software engineering company, made the move to Bremerton in 2005 to take advantage of the tax credits. The tax credits not only brought new jobs to Bremerton but they also preserved existing jobs in downtown. Pacific Avenue Dental and AMI International used tax credits to renovate an old building to provide a new headquarters and offices to help expand their growing businesses.
The New Markets Tax Credits Program was established in 2000 by the US Department of Treasury to help cities attract and keep businesses downtown. In May 2004, Kitsap County NMTC Facilitators I, LLC received $40 million in the special federal tax incentives for lenders who back new business projects that locate in Bremerton. The tax incentives could be used in Port Orchard. | 