Tacoma's Hilltop neighborhood considers forming Business Improvement District

Since 2022, a dedicated group of businesses, property owners, community leaders, non-profits, and residents has been collaborating to create a comprehensive plan for the Hilltop BIA. Together, they’ve developed a budget, identified essential services, and defined a boundary to ensure the Hilltop community remains vibrant, thriving, and well-supported.
Uncommon Bridges has been convening stakeholders and offering technical assistance to the City of Tacoma and the City Council.
What is a BIA?
Business Improvement Areas (BIAs), authorized under RCW Chapter 35.87A, are critical tools for revitalizing business districts. They provide a locally controlled, sustained funding mechanism for community enhancements and business development. As Hilltop continues to grow, the BIA could offer a cohesive approach to address challenges and capitalize on new opportunities for the neighborhood.
Proposed Function of the Hilltop BIA
If passed, the Hilltop BIA is structured to support diverse communities through direct, immediate services and investments. The program will respond to direct stakeholder feedback, tackling the most urgent needs, including:
- Clean & Beautification Services: Litter pickup, graffiti removal, pressure washing, hospitality ambassadors, partnerships with local service providers
- Hospitality & Outreach Services: District promotion, business outreach, wayfinding to local businesses
- Marketing Services: District promotion, business outreach, wayfinding to local businesses
- Administration Support: Partnership coordination, contract management, and collaboration with the City of Tacoma
- Activation Services: Street fairs, public space improvements, coordinated public art, park activations
- Business Support Services: Technical assistance, legacy business grants, retail recruitment, policy advocacy, data analysis
- Legacy Business Grant Fund
Through these efforts, the Hilltop BIA will advocate for the community, collaborating with the City of Tacoma to ensure Hilltop remains clean, safe, and welcoming. The Hilltop BIA will also serve as a voice for residents and businesses on key policy issues, including transit, transportation, public safety, and development.
Petition to Establish the Hilltop BIA
The Hilltop community is petitioning the City of Tacoma to establish a six-year Parking and Business Improvement Area within the defined Hilltop boundaries. If approved, this proposal will create Tacoma’s second BIA. The petition includes:
- Boundary Definition – outlining the Hilltop BIA service area
- Assessment Formula – detailing how fees will be calculated and applied to property owners
- Business Plan – specifying services, programs, and budget

Assessment Formula: How the Hilltop BIA Will Be Funded
The Hilltop Business Improvement Area will be funded through special assessments on properties within the BIA boundary. These assessments ensure a fair contribution from those who benefit directly from BIA services, including improvements in safety, cleanliness, business support, marketing, and activation programs.
Assessments will apply to:
- Commercial properties
- Multifamily residential properties with four or more units
- Mixed-use properties (both residential and commercial)
- Nonprofit-owned properties

Least Value Assessment (LVA): Where applicable, ensures the lowest possible assessment based on the standard formula or applicable ceilings
Non-Profit Rate: A 25% reduction to the standard rate is applied when Total Appraised Value and Total Taxable Value are not equal, and Total Taxable Value = 0
For each subsequent year of the Hilltop Improvement Area assessment (2026 -2032), the following may be factored in, per the board’s request:
- An increase to each property’s annual assessment by the local Consumer Price Index, no more than 6%
- A recalculation of the assessment based on the current Pierce County Assessor’s data is needed to determine if net building square footage changes from one year to the next.
Oversight
The Hilltop BIA Ratepayer Board will oversee assessments and all operations. The first board of directors will undergo an application process managed by City Council. The board could includes representatives from:
- North and South-end property owners
- Property owners within the City-defined business district
- Hospital and community groups
- Hilltop Neighborhood Business District Association
- Four at-large property owners (residential or commercial)
This governance ensures transparency, accountability, and equitable use of all BIA funds.
Proposed Use of BIA Funds
The Hilltop BIA budget totals $604,777.19, allocated to key services:

The Hilltop BIA is committed to hiring locally for up to 70% of contracted services, prioritizing BIPOC and WMBE providers within Hilltop and the Greater Tacoma Area.
Next Steps: What Happens Now?
The Hilltop BIA is a structured, locally driven funding mechanism designed to ensure a thriving business district, stronger community connections, and a brighter economic future.
Here’s what to expect in the coming months:
Petition Circulation
Petitions are circulated to over 200 property owners within the proposed BIA boundaries. Once property owners representing 60% of the assessed value return signed petitions, they will be submitted to the City of Tacoma for consideration.
City Review and Ordinance Process
After receiving the petitions, the City will:
- Review the submitted petitions
- Introduce an ordinance to formally create the Hilltop BIA
- Present the ordinance to the Economic Development Committee for consideration, followed by review by the full Tacoma City Council
- Hold a public meeting and provide opportunities for public comment.
Grounding Period and First Board Nominations
If the ordinance is approved, the City will open the application process for the first Hilltop BIA Board of Directors application period, which will remain open for one month. Key steps include:
- The Economic Development Committee will review board applications
- Selected candidates will be referred to the full City Council for appointment
- This process applies only to the first BIA board.
The City of Tacoma has committed to a 6-month community grounding period to ensure a strong foundation for the Hilltop BIA. During this period:
- Ratepayer board member applications and selections will be finalized
- A nonprofit organization will be selected or established to administer BIA operations
- Year-one services and programs will be developed
- Bylaws for the BIA Ratepayer Board will be created.
This structured approach ensures that the Hilltop BIA begins operations with strong governance, clear priorities, and a framework for effectively serving the community. For more information, please visit our shared drive or email us at HilltopBIA@gmail.com. The shared drive has been publicly available and updated throughout the duration of this effort.