Tacoma Projects Get CRD Awards

Several projects in Tacoma got a boost recently in the form of Commercial Revitalization Deductions (CRDs). These deductions total about $12 million and all went to office projects. The press release explained the importance and significance of these awards:

Tacoma is the only place in Puget Sound – and one of only 28 urban communities around the country – to maintain a U.S. Department of Housing and Urban Development (HUD) Renewal Community (RC) designation. With the designation, Tacoma businesses and developers within the RC area became eligible for a variety of federal tax credits and deductions through 2009. One of those is the Commercial Revitalization Deduction (CRD) allocation which allows property owners to use an accelerated depreciation schedule on their projects.

The benefits to these projects include a reduced federal tax bill and an increased ability to make their projects “pencil” by giving owners financial relief early in the projects when they incur the most expenses.

The recipients of the awards were:

• Fred Roberson, for an office building (S.13th and Tacoma), $900,000
• Carrera GT, LLC, for an office building (new Rainier Connect HQ), $2,600,000
• Pacific Plaza Development, LLC, for an office building (Park Plaza South redevelopment), $8,500,000

Every little bit helps.