Port of Douglas County Approves TIF Plan in East Wenatchee

The Port of Douglas County Commissioners approved a Tax Increment Financing District to fund improvements in the Pangborn Industrial Service Area.

Tax increment financing or "TIF" allows the Port to use the difference between property tax revenue generated before and after the designation for economic improvement projects.

Douglas County's Board of Commissioners have opposed the measure that redirects tax revenue the county or junior taxing districts would receive starting in June 2025

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Douglas County could see a shift of up to $20 million and as much as $28 million for roads over the 25 year life of the TIF, according to Port District projections.

County Commissioners also raised concerns last month when a consultant it hired said the Port was calculating private development and investment plans already moving forward in the Pangborn Industrial Service Area by Microsoft and others as part of the overall finacial benefit that will result from the investment in public resources.

The purpose of a TIF is that it will foster economic growth and public benefit that would otherwise not occur.

Chelan Douglas Port CEO Jim Kuntz says many parcels up Grant Road will require heavy investment in sewer and water extension projects to attract the next traunch of business development.

A law passed by the state legislature in 2021 allows the Port District to function as a municipality for this purpose. 

TIF involves the municipality issuing bonds to finance the project, and then using the increased property taxes generated by the project to pay off the bonds.