New guidelines issued on Chelan-Douglas Port tax district proposal

The chart below was prepared by Chelan County and shows preliminary potential property tax increases over the 25-year lifespan of the Tax Increment Area (TIA).

The Chelan Douglas Regional Port Authority was informed by the Washington State Department of Revenue (DOR) that new policy guidance has been published concerning Tax Increment Areas.

The Port’s proposed Tax Increment Financing District in Malaga has been contentious. The Chelan County Commissioners have imposed a six month moratorium on creation of new tax districts, concerned that the Port plan would re-direct existing property tax revenues away from paying for county public services and support for fire districts and other junior taxing districts.

The Port reports that a TIA is a designated geography where the future increase in property tax revenue generated by future growth is used to finance prioritized public improvements. It is a way to generate necessary funding from the companies moving into the TIA to support the growth.

A total of 3,326 acres is Malaga have been designated as a TIA, with funding generated to allow for $220M to support residential and commercial infrastructure and safety investments through Tax Increment Financing (TIF). A TIF is supported by state law as a way for designated TIAs to fund infrastructure necessary for growth by using property taxes generated by that future growth. The new infrastructure attracts development, which then pays for the cost of the public improvements and infrastructure.

The Port writes that Malaga is growing and current infrastructure is not capable of meeting future demand. Existing funding to support growth is limited or non-existent in other budgets.

Projects designated to receive funding have been outlined with input from partners such as the Chelan County Commissioners and taken from the Chelan County Comprehensive Plan, the Malaga Vision Plan and Our Valley Our Future Action Plan.

The full proposed project list includes:

 • Stemilt Creek Bridge improvements

• Alcoa Highway safety improvements

• Malaga Alcoa Highway overlay & repairs

• Malaga -Alcoa/ Stemilt Creek intersection improvements

• W. Malaga Rd safety improvements

• Malaga-Alcoa Highway capacity improvements

• General Road Improvement projects

• Saturday Ave pedestrian improvements Access Projects (3):

• Malaga Columbia River Crossing (Third Bridge)- location and size study

• Malaga Columbia River Crossing (Third Bridge)- land acquisition and right of ways

• Malaga to Wenatchee bike/pedestrian pathway Economic Development

• Water utility systems

• Rehabilitate existing rail lines

• Electrical improvements to serve data centers & other large-load electrical utility customers

• Electrical improvements to serve data centers & large-load electrical utility customers

• Upgrade existing natural gas lines

Community Development projects:

• Malaga Columbia River Park

• Malaga to Wenatchee bike/pedestrian pathway

• Renovation /expansion of existing Wenatchee Valley Fire Department station in Malaga

• Malaga daycare facility

• Law Enforcement shooting range/training facility.