Chelan County sets Sep 23 hearing on Port’s proposed TIA; commissioners issue critical statement

WENATCHEE — Chelan County’s three commissioners issued a sharply-worded statement Wednesday criticizing the Chelan–Douglas Regional Port Authority (CDRPA) for submitting a project analysis to create a Tax Increment Area (TIA) to the Washington State Treasurer’s Office, and set a public hearing for 11 a.m. Sep 23 in the commissioners’ chambers at 400 Douglas Street, Suite 201.

In Ward Media’s last article on this subject, there was a primer on what a TIF (Tax Increment Financing is; it’s a financial tool created to fund projects by capturing future tax increase money). The term TIA is simply the area that the TIF is used in.

In a statement signed by Commissioners Kevin Overbay, Shon Smith and Brad Hawkins, the board said it is “deeply disappointed” in the Regional Port’s recent actions and argued the submission shows “community partnerships and collaborations are not its priority.” The statement further accuses the Port of “a history of… selfish behavior, targeting already prospering areas to divert tax dollars from the community.”

The commissioners also took aim at Port CEO Jim Kuntz, calling prior outreach “disingenuous” and “a smokescreen and a delay tactic” that foreclosed “the possibility of an equal partnership application between the regional port and the county.”

Ward Media reached out to Kuntz for a response, but was informed the CDRPA will be issuing a press release of their own. In the interim, Kuntz sent what he called “context” for the situation, saying “We have offered them a seat at the table.”

Attached to Kuntz’s message was a Memorandum of Understanding (MOU) with all of the necessary legal language to create a non-binding agreement between the County and the Port to work together toward a future Interlocal Agreement (ILA) that would coordinate and administer the tax revenue collected in the TIF district.

Somewhat at odds with the idea of a “seat at the table,” however, the MOU includes language that would, in the end, make the CDRPA the sole arbiter of what happens with the money. In the MOU, there are stipulations that both parties will try to come to agreements on the distribution of funds, but the Port would retain the right to make final determinations.

On projected finances, the County’s statement says the Port’s latest analysis points to “more than $103.6 million — not $50.3 million as we were originally told — being diverted from Chelan County government over the next 25 years.” Indeed, since the moratorium was issued, the number has more than doubled from the initial estimate.

While acknowledging the port “may have legislative authority to form a TIA,” the commissioners said they’re using their own legislative authority “to put a moratorium in place to ensure due diligence,” citing potential impacts to transportation, law enforcement, veterans services and other county functions. The board previously enacted a six-month moratorium on creating new TIF/TIA districts in unincorporated areas on July 29. That would have been in effect until January 29 of next year.

The commissioners encouraged residents to speak at the Sept. 23 hearing and consider several questions, including: “What does the Chelan-Douglas Regional Port Authority do for you?” and “Are you willing to pay more taxes to make up the shortfall the county will face… so you don’t have to give up those services?”

The statement concludes: “Tax dollars should not be diverted to one entity whose only intent is to speculatively invest in an area that is already prospering. It’s short-sighted, selfish and downright wrong.”

The County Administration Building at 400 Douglas Street is directly across Washington Street from the Chelan County Jail. Public comment periods for meetings of this sort generally occur at the beginning of the meeting.

Andrew Simpson: 509-433-7626 or andrew@ward.media