Skagit County .09 Funds

The Port of Skagit would serve as the applicant for a development project at the SWIFT Center; the Port has been successful in the past in securing .09 funds for development in Skagit County. No more than $500,000 will be awarded to a single entity through .09 funds per project or project phase.

For projects to receive funding consideration, the Skagit County Commissioners must receive a proposal based on their criteria and timelines.

Match: The County will prioritize projects that match distressed county fund dollars. Projects with a partnership will also be given a funding priority (like that between the Port and a private-sector developer), and priority will be given to projects where .09 funds “complete” the funding package.

Job Creation: Projects that result in immediate or near-term job creation or retention will receive priority. Jobs should be sustainable in the long-term that still exist after construction is complete.

Uses: .09 funds can only be used for construction, and not for planning, studies, etc.

Historic Tax Credits

The SWIFT Center is registered on the National Historic Registry as a District. Developers would receive a 20 percent federal income tax credit on the qualified amount of private investment spent on certified rehabilitation of a National Historic Registered building.

To qualify, the property must be income-producing and/or commercially depreciable for at least five years following rehabilitation. This may include but not be limited to uses such as hotel, restaurant or bar, retail, office, rental residential, industrial, or agricultural. Owner-occupied residences do not qualify.

The project must be substantial. This means the amount spent on “Qualified Rehabilitation Expenses” (QREs) must equal or be greater than the “Adjusted Basis” value of the property. The term “substantial” is relative to the building value, not the overall size of the project compared to other buildings or projects. Projects as outlined at the SWIFT Center would meet this qualification.

The rehabilitation work must be done according to the Secretary of the Interior’s Standards for Rehabilitation (Standards). After rehabilitation, the building must be occupied by the same owner and operated as an income-producing property for five years.

Learn more about Historic Tax Credits.

Heritage Capital Projects (HCP)

Available through the Washington State Historical Society, applicants may request between $10,000 and $1,000,000. For requests $100,000 or less, the match may be any ratio of in-kind-to-cash. For requests greater than $100,000, up to half the match may be in-kind.

Capital costs only: These funds can only be used toward direct costs related to facilities, including new construction, existing building rehabilitation, architectural/engineering design, and property acquisition.

Grant dollars are reimbursement only, meaning project work must be completed and properly documented before grant dollars are received.

Grant dollars can account for up to 33.3% of the overall project cost, meaning a 2:1 match is required. For each dollar you request, you must contribute two dollars either in cash or in-kind match to the project. (No state funding or other dollars used to match state funding will count toward this requirement).

Learn more about the Heritage Capital Projects grant.

CERB Grants and Loans

The Community Economic Revitalization Board (CERB) offers grants and very-low interest rate loans to qualifying projects. Here are some of their requirements for the “committed private partner program,” which would cover a developer working with the Port.

• CERB offers loans at $5 million maximum per project. Grants are available up to 25% of the total award, determined by the underwriting process and debt service coverage ratio (DSCR). Applicants must provide a cash match of 20% of the total project cost.
• Interest rates: 1-3%
• Term: Up to 20 years

Eligible activities:

• Planning, acquisition, construction, repair, reconstruction, replacement, rehabilitation, or improvement of eligible systems:
• Bridges/Roads/Transportation
• Buildings or Structures
• Domestic and Industrial Water
• Earth Stabilization
• Electricity/Natural Gas
• Port Facilities
• Rail
• Sanitary Sewer
• Stormwater
• Telecommunications
• Research, testing, training, and incubation facilities in designated Innovation Partnership Zones (IPZs) authorized under RCW 4.330.270.

Learn more about the CERB private partnership program.