The major TC-3 development in Federal Way’s city center one step closer to becoming reality.

At the April 2 meeting of the Federal Way City Council, Community Development Director Keith Niven delivered a presentation about the proposed Town Center 3 Development Agreement. A public hearing was held. The council heard the first reading of the related ordinance (Council Bill #876) and passed it forward to a second reading in two weeks.

TC-3 is part of an ambitious plan to transform the city’s informal downtown area — generally agreed to cover the area around South 320th Street that includes the Commons mall, Performing Arts and Event Center (PAEC) and upcoming light rail extension. City leaders seek a mixed-use blend of housing (including townhouses), commerce, event space and public space.

Proclamations

The council issued a proclamation related to Financial Literacy and Capability Month for April.

The council celebrated that 38 individuals have “learned how to manage their lives financially maybe better than they had” during the city’s free financial literacy classes that the city is continuing to expand.

“Financial literacy education can help citizens become more knowledgeable about finances including savings and credit development, and build skills and strategies to personal finance management; and the City of Federal Way encourages public and private institutions, regional agencies, and community organizations to provide instruction, activities, and initiatives that contribute to developing and enhancing financial literacy knowledge and skills to ensure economic success,” according to the proclamation

Another proclamation was dedicated to sexual assault awareness and presented to Haley Lampman, legal advocate from the Kign County Sexual Assault Resource Center. While she doesn’t live in Federal Way, she said, “I’ve served many of your community members,” and thanked the city for “being part of the solution to sexual violence” because “we can’t change what we can’t talk about.”

A certificate of recognition was presented to 11-year-old Federal Way resident Jace Johnson in recognition for his “outstanding performance” in his Seattle Opera debut as young Malcolm X in “X: The Life and Times of Malcolm X,” held at McCaw Hall in February and March 2024.

Jace performed a hip-hop dance routine for the council and audience.

Tax increment financing

The council also heard a first reading of Council Bill #877, which focused on tax increment financing.

This is a proposal for the city to borrow against the extra property taxes it expects to get from development projects within a specific area of the city. All the current property taxes will keep funding what they are already funding. The extra money that the city is borrowing against comes from two places. The first is a slight raise on property taxes for everyone already paying them in that area. The second part, and core of the plan, is to then pay back the loan with all the money they will get from more expensive properties that they will build, according to the city.

While the option to utilize this strategy for city development is relatively new within Washington state, according to city officials, many other areas of the country use it successfully and frequently, including Oregon.

Ultimately council discussion concluded that the risk of betting on increased development and property tax returns is worthwhile, especially if engagements in loans through the program are taken with care and not too early in the process.

Council members voted to move the bill forward to a second reading.

Susan Honda and Haley Lampman of the King County Sexual Assault Resource Center after she received the proclamation for Sexual Assault Awareness Month.

Jace Johnson performed a dance at the Federal Way City Council meeting after receiving an award of recognition for his role in “X: The Life and Times of Malcolm X” show at McCaw Hall by Seattle Opera.

Ron Walker shared an alternative proposal for the development of TC3 during public comment at the public hearing on the development contract. Photos by Keelin Everly-Lang / The Mirror