Chelan Douglas Port Sues County Over Moratorium for TIF Plan
Chelan Douglas Regional Port Authority announces it will file a lawsuit against Chelan County.
What the Lawsuit Seeks to Resolve
The Port announced the Port of Chelan Commissioners authorized the filing, which seeks a preliminary injunction to restrain Chelan County from enforcing its moratorium on the implementation of a Tax Increment Financing District (TIF). The Port's proposed TIF would cover 3,326 acres in Malaga, encompassing the Microsoft data center, the old Alcoa plant, and the future site of the potential Helion fusion power plant.
READ MORE: Chelan County Slam Port Over Tax Plan; CEO Pushes Back
Chelan County Slam Port Over Tax Plan; CEO Pushes Back
The County imposed the moratorium on July 29, which prohibited the creation of any TIFs or projects in the County's unincorporated areas for six months.
“As an economic catalyst for the area, the Port promotes investments, develops infrastructure to support businesses, and facilitates initiatives that deliver measurable economic benefits," said Port CEO Jim Kunz. "Our Commission questions whether the County has authority to halt the Port from using a financing tool expressly provided by the Washington State Legislature in RCW 39.114. Ultimately, this is a legal question that will be resolved by the courts."
Why Chelan County Blocked the Tax District
The County claims the TIF will divert $103.6 million over the next 25 years from county programs and services and redirect property tax revenues from Microsoft and Helion, which are under construction.
Chelan County Commissioner Brad Hawkins said the TIF and the impending lawsuit strains a history of goodwill between local governments.
"It's arrogant, and it's dangerous," Hawkins said. "It's both disappointing and frustrating."
What’s Next in the TIF Legal Battle
The County claims the TIF will impact criminal justice services, transportation improvements, county-owned capital facilities, the Sheriff's Office, veteran's services, developmental disabilities and mental health services, and election administration.
The County hopes to form a joint TIF with the port, which would share revenues and decision-making.
Microsoft Open House For Malaga Data Center Site
Gallery Credit: Mark Rattner with KPQ Newsradio 560
Crazy Accurate Flight Over Longview Using Microsoft Flight Simulator
Gallery Credit: JoylessTunic738 via YouTube