Council Roundup: Housing exemption program eyed for further adjustments, special meeting held

Published May 22 2026

Plus, letter to Sound Transit, park project to honor Bellevue's Japanese history and Arts Commission appointment

At its meeting Tuesday, the Bellevue City Council discussed making temporary updates to the city's Multifamily Tax Exemption (MFTE) program to align with and support land use code amendments designed to accelerate mixed-use and mixed-income housing development in the near term.

Bellevue's MFTE program provides significant, time-limited property tax exemptions to new multifamily residential developments that provide a certain amount of on-site affordable housing. After evaluating several options, the council directed staff to draft legislation establishing a four-year MFTE catalyst program in mixed-use areas, which includes a progress review in two years.
Staff will return to a future council meeting with draft MTFE code amendments. More information is available in the meeting materials. And the full council discussion can be viewed on replay.

Council approves another letter to Sound Transit

The council unanimously voted to draft a letter to Sound Transit Board leadership ahead of revisions being made to their Enterprise Initiative plan. The agency is required to revise its plans when subarea costs outspend revenue by more than 5% and that is the case in every subarea for remaining work towards the ST3, or Sound Transit 3, transportation system initiative.

The Enterprise Initiative plan addresses a projected $35 billion funding gap for ST3 work. The Bellevue City Council is reviewing potential impacts, especially to the future South Kirkland-Issaquah 4 Line, which may face delays and cost reductions. At the meeting, councilmembers reaffirmed the guiding principles and priority considerations for Bellevue in Sound Transit's work, emphasizing subarea equity, transparency, the importance of high-capacity transit for Eastside growth, and maintaining access to regional bus service and parking.

The draft letter will be reviewed by mayor and sent to Sound Transit. This will be the seventh letter Bellevue has authored or participated in to share ST3 input with Sound Transit since the ST3 plan was developed in 2015. This week's discussion can be viewed on Bellevue Television replay.

Park project to honor Bellevue's Japanese history

In other business, Isan Bellevue, a community-based organization dedicated to commemorating Japanese American heritage in Bellevue, is leading an effort to advance a Legacy Project honoring the historical contributions of local Japanese Americans and acknowledging the impacts of World War II incarceration. The organization has worked with the City of Bellevue to evaluate potential commemoration sites, ultimately identifying the new park at Main Street and 112th Avenue SE as the preferred location. In 2023, the city allocated $250,000 to support planning, conceptual design and site feasibility work.

In December 2025, Isan Bellevue and city staff finalized a concept design for the project. The proposed design features a plaza with a large-scale inlay map depicting Bellevue's historic Japanese American farms, along with opportunities for a heritage display that could include artistic elements and a distinctive shelter structure. The project is intended to foster education and reflection while preserving the pathways, open space and gathering areas. More details are in the meeting materials.

Arts commissioner appointed

Councilmember Claire Sumadiwirya, as liaison to the Arts Commission, recommended Brenden Fripp to serve in Position 3 on the Arts Commission, serving a full term ending May 31, 2028. The council unanimously approved the appointment.

Special meeting on tax increment financing

In a special meeting Wednesday, the council unanimously approved the creation of a Tax Increment Financing district to help fund the Grand Connection Crossing.

The Crossing is a nearly half-mile pedestrian and bicycle bridge that will link downtown and Wilburton and improve access to transit and trails. The Crossing is a major component of the broader Grand Connection initiative to enhance mobility, support housing, and create safer, more connected travel options in Bellevue. The TIF district will use a portion of future property tax revenue from new development, without creating a new tax, to advance the project and support redevelopment in Wilburton.

The next phase for the project includes completing design, permitting, and environmental reviews, with construction targeted for early 2028, and opening planned by 2031.