Spokane Municipal Code

Title 04 Administrative Agencies and Procedures

Chapter 04.31C East Sprague Parking and Business Improvement Area

Section 04.31C.040 Levy of Special Assessments

To finance the programs set forth in SMC 4.31C.030, there shall be levied and collected an annual special assessment upon the “businesses” and “multifamily residential or mixed-use” projects, as defined in RCW 35.87A.020(3) (including real property improvements thereon) as set forth on the special assessment formula for the PBIA which shall be adopted annually by ordinance and incorporated by this reference as if fully set forth herein.

1. Special assessments shall be levied based on the classification of the businesses, multifamily residential and mixed-use projects (multi-family residential and commercial within the East Sprague Parking and Business Improvement Area detailed below, using the Spokane County Assessor’s property information (including but not limited to assessed value, taxable value, lot size, and present use) upon Ratepayers within this area.

Properties classified by the Spokane County Tax Assessor’s Office as residential properties with three units or less shall not be assessed. Properties that are located in “Residential Single Family” zoning or “Residential Two Family” zoning and that are also classified by the Spokane County Tax Assessor’s Office as “Residential Undivided” shall not be assessed.

2. Ratepayers will be assessed by the City of Spokane annually, beginning with the base year of the authorization (2016). Beginning in July 2016 for the initial year, the assessment will be as follows:

1. 1. For properties in Zone 1, the assessment will be 2.5¢ per Lot Square Foot (LSF) plus 60¢ per $1,000 Total Assessed Value (TAV) based on the 2015 Spokane County records, with a minimum of $250 per property parcel and a maximum of $1,200 per property parcel.

1. 2. For properties within Zone 2, the assessment will be 1.3¢ per LSF plus 30¢ per $1,000 of TAV based on the 2015 Spokane County records, with a minimum of $125 per property parcel and a maximum of $600 per property parcel.

1. 3. For properties within Zone 3, the assessment will be 0.6¢ per LSF plus 15¢ per $1,000 TAV based on the 2015 Spokane County records, with a minimum of $65 per property parcel and a maximum of $300 per property parcel.

3. After the first assessment year, the assessments will be applied for the full calendar year beginning in January and the assessment amount shall be adjusted subject to the following conditions:

1. 1. Assessments in the second and third assessment years, as adjusted pursuant to this subsection, shall be based upon the first assessment year.
      1. For the second assessment year (2017), the assessments will equal the first year assessments multiplied by a consumer price index (CPI) Factor that is the lesser of 3% or the percentage change in CPI for All Urban Consumers (CPI-U): West Region between June 2015 and June 2016.

1. 1. 2. For the third assessment year (2018), the assessments will equal the first year assessments multiplied by a CPI Factor that is the lesser of 6% or the percentage change in CPI for All Urban Consumers (CPI-U): West Region between June 2015 and June 2017.

1. 2. Assessments in the subsequent years will be recalculated using current records of LSF and TAV as maintained by the Spokane County Assessor’s 2018 property information and the rates described in SMC 4.31C.040 B.

1. 1. 1. For the sixth assessment year (2021), the assessments will equal the fourth year assessments multiplied by a CPI Factor that is the lesser of 6% or the percentage change in CPI for All Urban Consumers (CPI-U): West Region between June 2018 and June 2020.

1. 1. 2. For the fifth assessment year (2020), the assessments will equal the fourth year assessments multiplied by a CPI Factor that is the lesser of 3% or the percentage change in CPI for All Urban Consumers (CPI-U): West Region between June 2018 and June 2019.

1. 1. 3. For the fourth assessment year, to account for inflation and maintain the equivalent buying power, the assessment rate on LSF will be increased by an Inflationary Factor, which is equal to the percentage change in CPI for All Urban Consumers (CPI-U): West Region since the first assessment year. The TAV rate will remain the same.

1. 3. For subsequent years, the assessment will continue on this three-year cycle with updates to the value and LSF rate every three years after the first assessment year.

4. Annual Improvement Area assessments will be determined by the CPI Factor as set forth in SMC 4.31C.040 C., except in the case of new construction, as follows:

1. 1. Once a year, current Spokane County Assessor’s property data will be compared to Spokane County Assessor’s property data from the previous year.

1. 2. If there is an increase in Net Lot Square Footage for a parcel, then the East Sprague Business Improvement Area assessment will be calculated using the new Spokane County Assessor’s values. No Inflationary Factor shall be assessed on the parcel in the year the change was made. In each subsequent assessment year, the Inflationary Factor shall be limited to the lesser of:

1. 1. 1. 3% per year from the year of the change; or

1. 1. 2. The CPI for All Urban Consumers (CPI-U): West Region from June of the year prior to the change to June of the year prior to the assessment year.

New assessments will be invoiced during the next billing cycle.

1. 3. If there is no increase in Net Lot Square Footage for a parcel, then assessments in the East Sprague Parking and Business Improvement Area will be calculated as described in SMC 4.31C.040 B and C above. New assessments will be invoiced during the next billing cycle.

5. Adjustment to the minimum and maximum assessment rates set forth in SMC 4.31C.040 B. shall be made on an annual basis in the same percentage and manner as determined by the CPI Factor as set forth in SMC 4.31C.040 C.

Date Passed: Monday, September 19, 2022

Effective Date: Wednesday, November 2, 2022

ORD C36255 Section 1