Ahead of its public hearing on Sept. 23, the Board of County Commissioners is taking comments on a six-month moratorium that prevents the creation of any tax increment areas (TIA) in the unincorporated areas of Chelan County.
Commissioners passed the moratorium in July out of concerns that any TIAs in unincorporated Chelan County may be implemented without considering the full impacts on county taxpayers, state-mandated services and programs, land use zoning, transportation infrastructure and comprehensive planning.
Tax increment financing, or a TIF, is the reallocation of existing tax levies on the incremental growth in assessed value of real property located in a specified area, or a TIA. The money is diverted from one entity or more to a separate and single entity for up to 25 years.
People can submit their comments on the moratorium one of three ways:
Mail your comments to: Board of County Commissioners, 400 Douglas St., Suite 201, Wenatchee, WA, 98801
In addition, the public is invited to a hearing at 11 a.m. on Tuesday, Sept. 23, when the board will present its reasons for why the six-month moratorium should remain in effect. People can attend the meeting in person at the BOCC chambers at 400 Douglas St. in Wenatchee or online via Zoom. Comments also will be taken at the hearing.
State law requires the public to be given an opportunity to comment on the moratorium within 60 days of its adoption. The moratorium is effective for up to six months but may be effective for up to a year if a work plan is developed for related studies providing for such a longer period (RCW 36.70A.390).
“As a board, it is rare for us to institute a moratorium; we do not take this action lightly,” said Commissioner Shon Smith. “But we are concerned that not enough research has been done to determine the impacts of a TIA on county taxing districts. What public services will have to be reduced or cut because of a TIA? Are people willing to pay more taxes to make up the shortfall the county will face with the loss of revenue created by a TIA?”
Commissioners have voiced their concerns that the establishment of a TIA is not appropriate at this time for three reasons:
Chelan County has hired a consultant to help establish an urban growth area for Malaga. The new UGA may establish new commercial and industrial zones or rezone areas. It also may impact housing densities in the Malaga area. The UGA study, which is being done in conjunction with the ongoing update to the Chelan County Comprehensive Plan, will be completed late next year.
Also underway is the updating of the Transportation Element, a chapter in the Comprehensive Plan. The Transportation Element, in part, will determine necessary infrastructure upgrades to roads that are essential for future residential and commercial growth in unincorporated Chelan County. It is premature to determine what road projects may be needed in a TIA until the Transportation Element is completed, which will be late next year.
The Malaga UGA study, in determining future growth, also may look at wastewater infrastructure needs. It has not yet been determined if Chelan County will need to partner with an existing wastewater provider or create a new facility to serve the Malaga area.
“We continue to be open to a partnership with any entity proposing a TIA; however, we also need to move forward on the moratorium while we work toward completing our comprehensive plan,” Smith said.
Last Updated: 09/17/2025 03:59 PM
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