City reports stronger permitting and redevelopment activity; opportunity zone and NMTC projects advance

Economic Development and Development Services presented consolidated updates on opportunity zone nominations, New Markets Tax Credit (NMTC) outreach, and permitting activity.

Steve McDonald reported that the city submitted nine Opportunity Zone tract nominations and has been coordinating with Spokane Valley and Airway Heights; staff expect the governor’s office to submit recommendations to the U.S. Treasury by late September. Steve also said three projects are actively being marketed for NMTC investors, including Frontier Behavioral Health and two housing‑related projects, and that lenders/investors such as US Bank and Craft Three are engaged in some deals.

Tammy delivered permit metrics for May: $67.5 million in job value for the month, 50 permits for new housing units in May (bringing the year‑to‑date total to 464), and a robust multifamily pipeline (50 projects in review representing about 810 units). Staff noted some category-specific declines (electrical permits down) but overall stronger pull‑through of projects into construction.

Tammy and other staff also described an upcoming code modernization outreach schedule (City Council briefings, planning commission, steering committee sessions) and a focused presentation on barriers to building tied to the code update process. Separately, the boiler inspection program will transition to Eleni (with an MOU to ensure inspections continue) and staff will bring emergency code changes later in July.

What’s next: staff will continue monthly/quarterly permitting updates, finalize NMTC investor outreach, and advance code modernization outreach and scheduled presentations to the council and planning commission.