Ethan Berkowitz, the mayor of Anchorage, and members of his administration recently revealed a proposal that would give tax breaks to developers who agree to build housing in downtown Anchorage.
The tax relief would be for a period of 12 years, and would apply to redevelopments as well as new construction, provided four housing units at a minimum are added to the project.
According to Anchorage's economic development director, Chris Schutte, the city would like to increase the number of mixed-used and apartment projects in its heart, believing such construction could bring new energy to the downtown business district. He added that there is a lack of housing in the area, and those projects now in work add very few units—fewer than 100.
Developers say it is too expensive to build housing downtown, and also cite the lack of amenities, such as grocery stores, in the area as being reasons to avoid starting construction there. However, Schutte counters that if housing is built, the accompanying amenities, such as drugstores and markets, will follow.
According to the proposal, developers would have to apply for the tax relief before they began construction. Furthermore, the tax breaks would not be effective until after the developments were finished and certified. If the construction is a mixed-use project, only the housing section would be eligible for the tax breaks.
Further debate on the measure is forthcoming, and officials could use flyer printing to update residents on the process.