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Downtown Revitalization

This page provides information about downtown revitalization strategies and resources for local governments in Washington State, including planning frameworks, financing tools, and examples of local programs.

Overview

Downtowns play important roles in Washington communities, including serving as:

  • Community activity centers, or "gathering places" for community members to celebrate special events or activities.
  • Urban neighborhoods, where residents and businesses coexist and support each other.
  • Economic centers for business, employment, and economic activity for communities and sometimes regions.
  • Community identity areas, or neighborhoods primarily identified with the community's culture and heritage and the destination for most visitors.

While downtowns have historically served the roles listed above, recent economic shifts such as an increase in online shopping and remote work have led to a decline in downtown retail, office, and residential activity in some central business districts. A Federal Reserve analysis (2024) found that about 37% of Washington workers do remote work at least one day per week, contributing to reduced downtown foot traffic and spending.

Beyond their traditional roles, downtowns are essential to achieving Washington's Growth Management Act (GMA) goals. By concentrating development in established centers with existing infrastructure, downtowns help communities serve several purposes, including:

  • Accommodating housing and employment growth,
  • Reducing sprawl through infill development,
  • Supporting climate action by reducing vehicle miles traveled,
  • Expanding transportation options, and
  • Preserving historic character.

For more information, see MRSC's pages on Growth Management Act Basics, Comprehensive Planning, Infill Development, Transit-Oriented Development, and Greenhouse Gas Reduction Strategies.

These trends have led many communities to emphasize downtown revitalization efforts. This page will provide information about downtown revitalization strategies, programs, and resources for Washington local governments.

Downtown Plans

Downtown plans help communities reimagine and revitalize their central business districts. Typically developed through a community engagement process, these plans include goals, policies, and actions around topics like jobs, housing, mobility, urban design, public spaces, and safety.

In 2023, MRSC and the Washington Department of Commerce began a partnership to examine specific downtown revitalization tools and identify successful examples in communities across the state. These examples are featured in a series of blogs that describe various techniques and approaches communities have used to successfully support vibrant downtowns.

Key revitalization strategies commonly found in downtown plans include:

  • Diversifying land uses
  • Making public spaces inviting and active
  • Creatively using public and underutilized spaces 
  • Supporting increased transportation options
  • Fostering safety and security
  • Updating zoning to allow a wider variety of uses
  • Developing adaptive reuse plans for existing buildings

Examples of Downtown Plans

  • Bothell Downtown Subarea Plan – Emphasizes new housing within a half mile of the downtown core as a strategy to support businesses and activate streets.
  • Marysville Downtown Master Plan – Addresses bicycle and pedestrian infrastructure, transit coordination, active ground-floor design standards, and reduced parking requirements.
  • Pasco Downtown Master Plan (2023) – Includes a festival street concept with parklets and flexibility to close streets to vehicles for events.
  • Pullman Downtown Master Plan (2020) – Recommends public-private partnerships for temporary art installations and direct connections between potential tenants and landlords.
  • Spokane Downtown Plan – Addresses surface parking reduction, adaptive reuse, safety, and alley stewardship.
  • Stevenson Downtown Plan – Focuses on entrepreneurial commercial and residential uses and incremental infill development.

Financing

Several state and federal financing tools are available to help Washington local governments fund the infrastructure and other improvements needed for downtown revitalization.

Additional financing strategies to support downtown housing are included in the “Housing” section of this page.

Tax Increment Financing (TIF)

TIF allows cities, counties, and port districts to fund public infrastructure in a designated “increment area” using property tax revenues generated by increases in assessed value within that area. As of 2026, 27 local governments have submitted TIF Project Analysis to the Office of the Washington State Treasurer.

See MRSC’s Tax Increment Financing (TIF) page for more information.

Examples of Tax Increment Financing

Rural Counties Public Facilities Sales Tax (.09 Funds)

Rural counties with a population of less than 100 people per square mile (or smaller than 225 square miles) may impose a 0.09% sales tax (RCW 82.14.370) to fund public facilities serving economic development purposes. Counties often award these funds as grants to cities.

Examples of .09 Fund Awards

Community Economic Revitalization Board (CERB)

The CERB provides loans and grants to help finance public infrastructure construction in support of private business development. Grants may cover up to 80% of a project.

For instance, Palouse used a $50,000 CERB grant to study the feasibility of renovating the historic St. Elmo Hotel, with the goal of bringing a long-vacant downtown landmark back into productive use.

Local B&O Tax Credits

Some cities offer local B&O tax credits to attract businesses to downtowns. For example, Bellingham offers graduated tax credits of 90% in the first year, 75% in the second year, and 50% in the third year for businesses locating to one of five eligible downtown areas.

Main Street Tax Credit Program

Operated under the Washington Trust for Historic Preservation, the Main Street Tax Credit Program allows private businesses to donate funds to eligible Washington Main Street Community organizations and receive a 75% credit against their state B&O or Public Utility taxes, redirecting private funds directly into downtown revitalization. Donations may also qualify for a federal tax deduction.

Examples of Washington Main Street Communities

  • Downtown Camas Association (DCA) – Founded in 2009 to revitalize a struggling historic downtown, the DCA has reduced vacancy rates from 60% to less than 1% and built partnerships with the city, schools, and local organizations. In 2015, the DCA became an accredited Washington State Main Street Community, giving it access to the Main Street Tax Credit Incentive Program.
  • Mount Vernon Downtown Association – As a designated Washington Main Street community, MVDA receives business donations through the Main Street Tax Credit Incentive Program to fund its downtown revitalization work. Since joining the program, the organization has seen a 65% reduction in street-level vacancies and the restoration of nine historic buildings in the district.

U.S. Department of Housing and Urban Development’s Community Development Block Grant Program

The Community Development Block Grant (CDBG) Program provides annual formula-based grants to states, cities, and counties to improve housing, infrastructure, and economic opportunities primarily for low- and moderate-income residents. Eligible activities include property acquisition, rehabilitation of structures, public facility construction, and/or economic development. Each activity must meet at least one national objective: benefiting low- and moderate-income people, eliminating blight, or addressing urgent community development needs.

Public Space and Transportation

Parks, plazas, and well-designed streets are tools for drawing people downtown and creating a sense of place. Public spaces work best when they feel safe, comfortable, and offer things to do. Parklets, or seating and retail areas built in curbside parking spaces, streateries, and privately owned public spaces open to the public can also help activate downtown streets.

Streets designed for people, not just vehicles, support stronger downtown economies. Investments in sidewalks, bike lanes, and transit access expand who can reach downtown and how long they stay. The federal Safe Streets and Roads for All (SS4A) grant program provides funding to help communities improve street safety.

Examples of Downtown Public Spaces

  • Mt. Vernon Skagit Riverwalk Park – A heavily used public space with minimal vegetation that also functions as a flood barrier during high water.
  • Redmond Downtown Park – Strategically links historic and newly developed sections of downtown; hosts programmed events and recreational equipment.
  • Spokane Riverfront Park – A major downtown park with extensive amenities and year-round programming.
  • Vancouver Esther Short Park – A classic example of a downtown park with interactive water features and events.
  • Washougal Reflection Plaza – A publicly owned plaza designed to activate the city’s downtown; city is also working on outdoor recreation facilities to draw community members to the town center.

Examples of Streets as Places and Transportation Initiatives

  • Marysville Downtown Master Plan (2021) – Improves bicycle and pedestrian infrastructure, coordinates with the local transit agency on a new downtown station, and encourages transportation demand management programs like rideshare and bikeshare.
  • Pasco Downtown Master Plan (2022) – Includes a festival street with parklets and the flexibility to close streets to vehicles for larger events, with longer-term plans for paving, lighting, landscaping, and seating.
  • Spokane Downtown Plan (2021) – Proposes prohibiting new surface parking lots in certain areas, redeveloping surface lots with mixed uses, and implementing parking management strategies to improve walkability.

Vacant and Underutilized Properties

Vacant storefronts and brownfields represent two of the most common challenges facing downtowns. Even a small number of empty storefronts can affect perceptions of a downtown’s vitality, while also reducing sales tax revenues and local jobs. Brownfields, defined as abandoned or underutilized properties with actual or suspected environmental contamination, can also depress property values and hurt economic development. Addressing both types of vacancies can help restore activity, improve safety, and attract private investment.

Vacant Storefronts and Underutilized Buildings

Strategies for vacant storefronts include registration programs with maintenance requirements, window display programs, pop-up shops, zoning updates for more diverse uses, and partnerships with local organizations. Some cities have expanded the types of land uses allowed downtown, including small-scale or “artisan” manufacturing (Mountlake Terrace) and micro distilleries and wineries (Port Townsend).

Examples of Vacant Storefront Programs

Brownfields

Local governments can play an active role in brownfield redevelopment by identifying priority sites, applying for cleanup grants, supporting property owners through the process, and in some cases acquiring and remediating sites for redevelopment. The Washington State Department of Ecology's Brownfields webpage summarizes available funding and assistance.

Examples of Brownfield Redevelopment Projects

  • Bellingham Georgia-Pacific West / Mercy Millworks – Port of Bellingham site redeveloped as affordable housing with Ecology cleanup funding through the Affordable Housing Cleanup Grant Program.
  • Olympia Brownfield Initiative – Received a $600,000 EPA Brownfield Assessment Grant, leading to assessment and cleanup of over 20 sites. Westman Mill, a mixed-use building on the historic site of sawmills, is one example of successful redevelopment.
  • Palouse Brownfield Cleanup – Former gas station and agricultural supply business site cleaned up and redeveloped as a veterinary clinic and brewery.
  • Port Orchard Soil Remediation Project – Port of Bremerton remediating a former gas station site to allow future downtown waterfront redevelopment.

Façade and Building Improvements

Many downtown organizations and local governments offer programs to support building façade and storefront improvements. These are typically funded through non-general fund sources such as the federal Community Development Block Grant (CDBG) funds or the state Main Street Tax Credit Program, due to the state constitutional prohibition on gifting public funds. See the Financing section of this page and MRSC’s Gift of Public Funds and Economic Development pages for more information.

Examples of Façade Improvement Programs

Housing

Encouraging people to live downtown is an important element of revitalization. More downtown residents increases demand for retail, restaurants, and services, and helps mitigate the “after 5 p.m. ghost town” effect.

Local governments can support downtown housing through long-range plan policies, zoning that encourages residential development, streamlined project review, and retention of housing stock.

Some options for encouraging downtown housing development include: 

  • Multifamily Tax Exemption (MFTE) (Chapter 84.14 RCW) – Cities with populations of 15,000 or more may offer an MFTE to stimulate multifamily housing construction in designated areas, with property tax exemptions typically for 8–12 years.
  • Commercial-to-residential conversions (RCW 35A.21.440) – Requires GMA-planning cities to remove barriers to converting existing commercial and mixed-use buildings to residential use.
  • Co-living housing (RCW 36.70A.535) – Requires cities and counties to allow co-living housing as a permitted use in any zone that allows six or more multifamily residential units, including mixed-use zones.

Examples of Downtown Housing Approaches

  • Bothell Downtown Subarea Plan – Encourages new housing in the central business district and within one-half mile of downtown; includes strategies for affordable housing such as shared parking and waived fees.
  • Covington Municipal Code Sec. 18.31.370 – Has development standards for ground-floor residential uses in downtown.
  • Olympia Municipal Code Sec. 18.06.020 – Zoning code explicitly encourages retention of existing and creation of new housing downtown.
  • Seattle Office-to-Residential Conversion Program – Uses a sales and use tax deferral (authorized under chapter 82.59 RCW) to encourage conversion of underutilized commercial properties to multifamily housing, with at least 10% of units designated as affordable.
  • Spokane Municipal Code Ch. 08.07 – Creates the Pavement to People Sales and Use Tax Deferral Program, a program that waives construction sales and use taxes to encourage developers to build housing on underused downtown surface parking lots. Surface parking lots currently make up roughly one-third of downtown Spokane's land area.

Arts and Culture

Arts and culture help bring people downtown and strengthen a community's identity. Cities can incorporate arts and culture through public art programs, state-designated creative districts, and organized events. Any county, city, town, or coalition may apply to the Washington State Arts Commission (ArtsWA) for creative district designation under RCW 43.46.100–.115. Washington currently has 18 designated creative districts.

Examples of Public Art Programs

  • Bellingham Public Art Collections – Over 84 pieces of outdoor public artwork, a One Percent for the Arts Program, an online interactive sculpture tour, and downtown traffic box art. The Downtown Activation and Beautification Program funds alley murals and public events using lodging tax revenues.
  • Edmonds Public Art Program – Over 65 outdoor installations guided by the Edmonds Arts Commission, including the Flower Basket and Corner Park beautification program (May–September).
  • Port of Kennewick/Historic Downtown Kennewick Art – Projects including the Clover Island Gateway Arch and mural programming honoring the region’s cultural heritage.

Examples of Creative Districts

  • Bainbridge Creative District – The district, in downtown Winslow, includes an art museum, performing arts center, galleries, and regular events like First Friday Art Walk, Moonlight Market, and Asian Arts & Heritage Festival.
  • Edmonds Creative District – The state’s first certified creative district, centered on downtown; five-year plan addresses creative sector growth, public engagement, and jobs.
  • Port Townsend Creative District – Encompasses downtown, uptown, and Fort Worden; guided by a five-year Arts and Culture Plan.
  • South Columbia Creative District (Kennewick) – Encompasses the Historic Downtown Kennewick business core and at least 24 public art pieces; approximately half of the 140 businesses are in creative industries.

Examples of Local Arts Events

Alley Activation

Activating alleys has become an increasingly important revitalization strategy. Traditionally utilitarian spaces, alleys can be transformed into vibrant, people-friendly focal points that strengthen community, increase tourism, and enhance safety. Successful alley projects typically combine art or programming, infrastructure improvements, and ongoing stewardship by adjacent property and business owners.

Examples of Alley Art and Event Programs

  • Bellingham Downtown Activation and Beautification Program – Funds mural projects including Gallery Alley (painted doors auctioned to support the Downtown Bellingham Partnership) and Sunset Alley (led by nonprofit Paper Whale). The Whatcom Museum’s Nocturnal Lanterns installation activates a pedestrian alley between the Bellingham Public Library and the museum with illuminated metal sculptures.
  • Alliance for Pioneer Square Alley Network Project (Seattle) – In partnership with the Seattle Department of Transportation and the International Sustainability Institute (ISI), uses alley parties, art exhibits, and performances to revitalize alleys in Pioneer Square. Recognized by HUD as a model community innovation.

Examples of Alley Infrastructure and Activation Programs

  • Olympia Pedestrian Interference Program – Businesses can “adopt” alleys not used for garbage pickup under the Pedestrian Interference Permit program, reducing public maintenance costs while activating the space.
  • Spokane Innovation Alleyways Program – Launched in 2019 with a community-informed toolkit covering permitting requirements and best practices for lighting, greenery, café seating, arts, and programming.
  • Sumner Hopps Alley – Funded by Sound Transit and Pierce County lodging tax; planned upgrades include pavers, lighting, seating, and a new garbage enclosure as part of the Heritage Park development project.

Safety

Downtown safety, including alternatives to homeless, changing land use patterns, and crime prevention, is an important part of revitalization. Both passive strategies (urban design, diverse land uses, active public spaces) and active strategies (maintenance, ambassadors, additional responders) can boost activity and create a more welcoming environment. No single approach works alone; utilizing multiple strategies concurrently is most effective.

Examples of Crime Prevention Through Environmental Design (CPTED) and Urban Design Approaches

Examples of Ambassador and Safety Programs

  • Bellingham Downtown Safety and Community Support Services – Includes bicycle police patrols, private security through the Downtown Bellingham Association, an ambassadors program trained in de-escalation, and parking facility monitoring teams that can connect people with social services.
  • Downtown Tacoma Partnership – Offers a safety team addressing nuisance behaviors (including on-call security escorts) and a clean team for streets and graffiti removal.
  • Olympia Downtown Alliance – Includes a Downtown Clean Team for maintenance and a Downtown Guide Program.
  • Spokane C.O.R.E. Program – Crisis Outreach, Response and Engagement program (launched late 2024) coordinates police, fire, and outreach specialists to respond to individuals experiencing crisis downtown.

Recommended Resources

 

Last Modified: June 04, 2026