City of Chelan Hold Public Hearings on Proposed TIF District
The City of Chelan held a public hearing on potentially creating their own Tax Increment Financing (TIF) district Tuesday.
The state passed the “TIF Act” back in 2021, allowing local governments to use tax increment financing of public improvements within an area in order to fund private economic development projects.
Essentially, the city would borrow against revenue generated from increasing property taxes, and funnel it towards public infrastructure projects within the district. The TIF district would sunset after 25 years.
The City of Wenatchee approved their own TIF district back in February.
Projects within Chelan's proposed TIF district include the East Chelan Reservoir and Booster Pump Station project, the East Chelan Reservoir to Bradley St. Water Main Extension project, the Bradley St. to No See Um Rd. Water Main Extension project, and the Isenhart Rd. Water Main Extension project.
This district would fund $16 million out of the approximately $18.36 million total expenses for these projects.
City Administrator Wade Farris emphasizes that this new district would not raise property taxes, but would capitalize on increased investment within that area.
The city will hold a second public hearing on April 18.