HOUSE BILL REPORT

SHB 2012

As Amended by the Senate

BYHouse Committee on Local Government (originally sponsored by Representatives Haugen, Ferguson, Cantwell, Wolfe, Nealey and Phillips)

Regulating port district land improvement.

House Committe on Local Government

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (14)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Ferguson, Ranking Republican Member; Horn, Nealey, Nelson, Nutley, Phillips, Raiter, Rayburn, Todd, Wolfe, Wood and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS PASSED HOUSE MARCH 9, 1989

BACKGROUND:

One statute authorizes port districts to improve and develop their lands for sale or lease for industrial and commercial purposes.

A separate statute permits port districts to sell their property that is no longer needed for district purposes.  Another statute allows port districts to lease their real and personal property.

Port districts are allowed to create industrial development districts and improve property in such districts.

SUMMARY:

Statutory language is deleted limiting the ability of a port district to sell or lease its improved property for only commercial or industrial purposes.  Port districts are permitted expressly to lease port property for purposes which the port commission deems proper.

Port district real property located in industrial development districts may be sold without limiting the use of such property to industrial purposes if the port commission finds that: (1) the sale is in the interests of the port and people of the port district; (2) the property is not needed for harbor development or industrial development; and (3) the potential use of the property for industrial purposes is limited due to the construction of a road or the location of a utility line or other facility that divided the property into a narrow or otherwise unusable shape.

EFFECT OF SENATE AMENDMENTS:  A section was removed relating to the authority of a port district to sell its property that is located in an industrial development district.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Don White, Washington Public Ports Association; Steve Sewell and Dan Dingfield, Port of Seattle.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Bond counsels have raised the issue of whether a port district can lease property to be used for purposes other than industrial or commercial.  This clarifies the issue.  Property in industrial development districts can only be sold for industrial purposes.  This permits useless strips of property to be sold without limitation.

House Committee - Testimony Against:      None Presented.

VOTE ON FINAL PASSAGE:

      Yeas 90; Nays 2; Absent 1; Excused 5

Voting Nay: Representatives Nelson and Rasmussen

Absent:     Representative Rust

Excused:    Representatives Day, Dellwo, Hankins, Sayan and Wineberry