Condos by Flour Mill get property tax break

A proposal to build 32 units of upscale condominiums next to the upper falls on the Spokane River has won a substantial property tax break from the City Council.

The owner, Upper Falls LLC, has qualified for a full property tax exemption for 10 years because the project is located in an area targeted previously by the council for multifamily housing projects. Council members voted unanimously on Monday to grant the tax exemption.

The estimated $10 million project is planned for a parking lot west of the Flour Mill on the North Bank of the river. Developers initially announced a 28-unit project in March, but expanded its size in their filing for the tax exemption.

Development hinges on approval of a shoreline conditional use permit, city staff said. An application has been submitted, but a hearing before the city hearing examiner has not been set.

The council has established a series of areas throughout the city in which developers can obtain 10-year property tax exemptions as an incentive to building multifamily housing. The city is seeking to concentrate development and residences in the downtown area, parts of Peaceful Valley and a series of designated urban centers and corridors throughout the city.

Prices for condominiums at Upper Falls will start at $400,000.