Lynnwood council could vote May 27 on a new property-tax funding model for city projects

Lynnwood City Council will vote on May 27 to consider an ordinance allowing tax increment financing (TIF) for city projects, aimed at funding significant infrastructure upgrades. TIF enables jurisdictions to capture increased property tax revenue from new developments within designated areas, directing those funds toward public improvements. The proposed 68-acre tax increment area includes key properties such as the Lynnwood Event Center, currently valued at $177 million. Stowe Development has been engaged to evaluate the feasibility of TIF, and the Washington Office of the State Treasurer confirmed that the city’s project analysis meets state requirements. The treasurer provided recommendations to minimize risks, such as coordinating with affected tax districts and updating cost estimates.

Ben Wolters, the city's Economic Development Manager, emphasized that TIF does not directly increase tax rates but may lead to slight tax adjustments for properties outside the TIF area. The council's action could significantly impact local economic development and public funding mechanisms. City officials have conducted outreach to junior taxing districts to inform them about potential changes to revenue allocation.