Chelan County Passes Moratorium on Creation of TIFs in Unincorporated Areas

The Chelan County Board of County Commissioners (BOCC) enacted a six-month moratorium on the creation of new tax increment financing (TIF) areas in unincorporated regions, effective immediately. This decision arises from concerns about a proposed TIF in Malaga that includes sites such as the new Microsoft location and could divert $50. 3 million in tax revenues over 25 years. Commissioner Shon Smith emphasized the necessity for due diligence, stating the board was only made aware of the TIF proposal less than 60 days prior. The board will hold a public hearing on September 23 to collect community feedback on the moratorium.

Concerns have been raised about how the TIF could affect county programs ranging from law enforcement to transportation services. This moratorium reflects the BOCC's intention to ensure comprehensive consideration of the TIF's implications for all county departments. The state law allows the BOCC to implement such a moratorium for up to six months, with potential extensions for valid reasons. This careful approach aims to address the needs of the community while fostering responsible development.