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Negotiations are continuing between the City of Chelan and Chelan Fire and Rescue regarding mitigation due to the Tax Increment Financing, or TIF, plan the city is considering. Last month the fire district sent the city a mitigation proposal that would have the city pay the fire district 1,570-dollars for all calls within the Tax Increment Area that exceed the previous three-year average of 35 calls. City Planning Director John Ajax spoke about that proposal to the City Council Tuesday night:

Ajax says the city has drafted an alternative proposal aimed at aligning mitigation more closely with population growth within the TIA resulting from new construction:

Ajax says they are waiting to hear back from the fire district, but the city has a short window to get an agreement done; the council approved going forward with the TIF if an agreement on mitigation could get done by the end of the year. The city is also seeking legislative appropriations for alternative funding for the water tower and proposed public improvements in the TIF, so there is a possibility the TIA may not be needed at all. More on this to come.

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