Chelan County's New Moratorium On Tax Increment Financing

Chelan County Commissioners have imposed a six-month moratorium on the creation of any new tax increment financing, or "TIF," districts in unincorporated areas of the county.

Chelan Douglas Regional Port Authority (CDRPA) wants to create a TIF district on about 3,300+ acres in Malaga, where Microsoft data centers are located and a fusion power plant is proposed.

Commissioner Shon Smith says the board of commissioners felt the Port District's plans were progressing too quickly and could significantly reduce the county's overall revenue by an estimated $50 million over twenty-five years.

“This board was not brought into the conversation about the regional port’s proposed TIF until less than 60 days ago. We need time to do our due diligence, to determine how a TIF would impact essential county programs and how the regional port and county can partner on a TIF. The projected diversion of revenues from the county would impact all our departments, from criminal justice services and law enforcement to transportation and veterans services – and that greatly concerns us.” -- Shon Smith

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TIF districts are economic tools used by governmental jurisdictions to fund projects, accommodate growth, and spur economic and community development.

Chelan Douglas Regional Port Authority CEO Jim Kuntz says the CDRPA disputes the Chelan County Commission position

"The Regional Port respectfully disagrees with Chelan County’s TIF moratorium. The Regional Port will continue to perform the necessary due diligence on the potential formation of a TIF District in Malaga. The Regional Port has direct statutory authority granted by the state under RCW 39.114 to form a TIF District." -- Jim Kuntz, CEO, CDRPA

Chelan County Commissioner Kevin Overbay, who represents the Malaga area, felt the establishment of a TIF is not appropriate at this time

“Chelan County and the regional port have very different directives. We are mandated to provide essential services to residents throughout Chelan County,” Overbay said. “While we support the regional port’s mission and will work to maintain our relationship with the port, we need a clear, concise plan that prioritizes our residents, and that means giving the county an equal voice in the establishment of a TIF.” -- Kevin Overbay

The CDRPA measure could be proposed in December, with the TIF materializing with the county assessor in June 2026. January 2027 would be the first year of tax allocation revenue.

Proposed projects the port's TIF district could fund include a child care facility, a bike and pedestrian pathway, a mercado, the Stemilt Creek Bridge rebuild, the Malaga Fire Station improvements, and other projects estimated to cost $154 million.