Wenatchee council approves two 12‑year multifamily tax exemptions with affordable-unit requirements

The Wenatchee City Council approved two conditional multifamily tax exemption agreements that require developers to reserve a portion of units for low‑ to moderate‑income households.

City planning staff presented the applications for 1021 Walla Walla Ave LLC and Fifth Street 20 LLC. The council adopted Resolution No. 2025‑20 authorizing a 12‑year exemption for a proposed 125‑unit project at 1021 Walla Walla Ave that the staff report says would provide 25 rental units to low‑ and moderate‑income households. The council adopted Resolution No. 2025‑19 authorizing a 12‑year exemption for a 20‑unit project at 1323 Fifth St that the application proposes to designate four rental units as affordable.

Planning staff said the city’s revised multifamily tax exemption code provides expanded incentives for projects that set aside at least 20% of units for low‑ and moderate‑income renters or buyers; both applications were filed with building permits that are under review. The staff presentation said qualifying applicants must satisfy reporting and verification steps before a final certificate of tax exemption is issued.

Public comment included support from Brian Campbell, who said he backs the program but urged safeguards after a prior project in 2023 was released from its affordable-unit commitments; Campbell asked the council to ensure there is no “backdoor exit” that would reduce promised affordable housing.

Both resolutions passed on council voice votes with no recorded dissents.