Chelan County Slam Port Over Tax Plan; CEO Pushes Back

Chelan County and the regional port are locked in a fight over who controls more than $100 million in future tax revenue - county services or Port-backed development.

READ MORE: Chelan County Pushes Back on Port's $154 Million TIF Plan

Chelan County Questions Port’s $103M TIF Proposal

Chelan County Commissioners are criticizing the Chelan-Douglas Regional Port Authority for pushing forward a Tax Increment Financing (TIF) proposal it says will divert over $103.6 million in tax revenue from county services over the next 25 years.

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In a statement, the Board of Commissioners say Port CEO Jim Kunz made "disingenuous statements" that he wished to work with Chelan County, calling the comments a "smoke screen."

Port Authority Defends Malaga Redevelopment Investment

Kunz said he would not comment on that characterization of him, but pointed out the Port submitted a memorandum of understanding to the county to review Aug. 19.

"We respectfully disagree with the Chelan County Board of Commissioners and how they've characterized a proposed Malaga TIF District," Kunz said. "It's a worthy investment."

Commissioners Claim Concerns Were Ignored

Chelan County Commissioner Kevin Overbay said the County would not be able to review the Memorandum of Understanding until after the Labor Day holiday, and added the Port submitted its project analysis to form the TIF to the State Treasurer's Office Aug. 22.

"It's basically just a smack in the face to the County," Overbay said. "We have mandated services; they do not, so at the end of the day, those mandated services still need to be paid for, and this funding will then come out for [the Port's] use."

$103.6 Million Figure Still Uncertain

Kunz called the $103.6 million diversion from the County over 25 years highly uncertain, saying it assumes full redevelopment of the Alcoa site.

"Our initial estimate was around $50 million in contributions over 25 years, and that's based on projects we think will likely happen within the Malaga area that will create value," Kunz said. "It's very highly theoretical if all of the Alcoa plant was transformed into economic development projects and businesses, it's very theoretical how much money then could be contributed by the County under that speculative development analysis."

Overbay said the County hoped to form a Joint TIF so they could have a seat at the table in the decisions impacting the county's finances, but the Port has been "stonewalling" the County. Kunz echoed that sentiment, citing the Port's submission to the County of a memorandum of understanding.

"They basically just dismissed our concerns and went ahead and moved forward anyway," Overbay said. "We'll do what is necessary to try to protect those dollars."

Kunz said the Port has full authority to form a TIF under Washington State law.

Public Hearing Scheduled for TIF Moratorium

The County is holding a public hearing on its moratorium on the TIF at 11 a.m. Sept. 23 in the Chelan County Board of Commissioners Chambers.