Chelan County and Port Authority consider new tax district for future economic development

Local governments are exploring alternative revenue sources to keep up with the cost of offering public services and to assist with growing the economy.

The city of Chelan is now receiving added funds from a portion of the sales tax for transportation projects. Chelan County is considering the same Transportation Benefit District, which could levy a tax with voter approval, in unincorporated areas.

The county commissioners attended a workshop with the Chelan-Douglas Regional Port Authority (CDRPA) board of directors on Tuesday to explore the creation of a Tax Investment Financing (TIF) District to raise money to pay for necessary infrastructure in support of future large development projects.

"The entire intention here is to get faster growth, more revenue for all of us," said CDRPA board member Richard DeRock.

The Port supports the concept, with a representative saying, "We're taking the opportunity we have today and we're investing it in the future hoping to stimulate additional development. We don't have a mechanism at this time to dress ourselves up and make ourselves attractive to potential businesses. These business leads that come, they want immediate results and if we have to spend 4, 5, 6 years trying to put in infrastructure, that lead is gone, it just evaporates."

"Maybe we can finds ways where our economic development projects might overlap," County Commissioner Brad Hawkins said.

"Why would we not, for the best interest of the people that reside in Chelan County come together as a joint team and accentuate what we do best, together," said Commissioner Kevin Overbay.

The proposed tax district is 3,326 acres in size along the Columbia River in Malaga.

The Wenatchee World reported Wednesday that proposed projects the TIF district could fund include a child care facility, a bike and pedestrian pathway, the Stemilt Creek Bridge rebuild, the Malaga Fire Station expansion, and 12 other projects estimated to cost $154 million.

The Port of Douglas County previously established a TIF district near Pangborn Memorial Airport that the port estimates will generate $94 million in tax revenue over 25 years.