H-2297

AN ACT Relating to economic development; adding new sections to chapter 43.31 RCW; making an appropriation; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that economic growth is taking place unevenly across the state causing some areas to suffer negative impacts from too much growth while other areas experience difficulty in attracting adequate economic development. The state has an interest in reducing the negative impacts of growth in rapidly growing areas while assisting firms and industries located in these areas to relocate or expand into areas of the state in need of economic development.

The legislature finds that there is a need to:

(1) Limit negative impacts of growth in highly developed areas;

(2) Aid regional economies that show promise for economic development but lack adequately prepared industrial locations and have significant rates of poverty;

(3) Increase the number of industrial location alternatives available in local areas for companies considering expansion alternatives in low-growth, yet promising areas; and

(4) Provide job opportunities in metropolitan areas with sufficient population and service bases, but without adequate industrial infrastructure.

The legislature finds that Yakima county is an area that possesses the necessary population and potential for economic development but lacks the industrial parks and locations that are necessary to attract firms and industries from high-growth parts of the state.

NEW SECTION. Sec. 2. The department shall establish an industrial growth management demonstration pilot project to determine how effective an industrial development site is in achieving the goals under section 1 of this act. This project shall provide assistance to Yakima county, cities in Yakima county, or local public nonprofit development corporations in Yakima county in the development of an industrial park, including water, sanitary sewer, natural gas and electrical utilities, drainage, road networks, and lighting. Any funds distributed to assist in the project may not be used for the purchase of land or the construction of buildings. Any entity seeking assistance shall submit evidence that demonstrates their proposed project is economically feasible and is likely to succeed in attracting growth. Any industrial park developed under this section shall be owned and controlled by the city or county, or both. The department shall evaluate the pilot project and assess how successful the project is in accommodating growth from the Puget Sound region. The evaluation and assessment shall:

(1) Develop and apply criteria to judge the outcome of the pilot project;

(2) Establish, in consultation with the departments of community development and employment security, a list of regional economies that show promise for economic development but lack adequately prepared industrial locations and have significant rates of poverty;

(3) Identify, from the list in subsection (2) of this section, those regions with the greatest potential to benefit from the experiences of the pilot project; and

(4) Contact the economic development associations, and other local public agencies concerned with fostering economic growth in the regions with the greatest potential to benefit from the experiences of the pilot project, in order to provide information and technical assistance relevant to the development of an industrial park. The department shall report to the trade and economic development committee in the house of representatives and the economic development and labor committee in the senate and the fiscal committees in the legislature each January beginning in 1992.

NEW SECTION. Sec. 3. The sum of four million dollars, or as much thereof as may be necessary, is appropriated from the state building construction account for the biennium ending June 30, 1993, to the department of trade and economic development for the purposes of carrying out an industrial growth management demonstration pilot project under section 2 of this act in Yakima county. Any applicant for a loan or grant must submit a specific project plan to the department of trade and economic development before any grant or loan is made. The mix of grants and loans to be made from the funds shall be determined by the department of trade and economic development in consultation with the department of community development. The size of any loan or grant shall be determined by the department of trade and economic development in consultation with the department of community development and shall include consideration of: (1) The extent of the project's dependence on a loan or grant to be viable, and (2) the extent of local participation in the project. Any loan or grant requires twenty percent local participation, which may include land.

NEW SECTION. Sec. 4. Sections 1 and 2 of this act are each added to chapter 43.31 RCW.

NEW SECTION. Sec. 5. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.