CERTIFICATION OF ENROLLMENT

 

                   SUBSTITUTE HOUSE BILL 2437

 

 

                    Chapter 79, Laws of 2002

 

 

                        57th Legislature

                      2002 Regular Session

 

 

DOWNTOWN AND NEIGHBORHOOD COMMERCIAL DISTRICTS

 

 

 

                    EFFECTIVE DATE:  6/13/02

Passed by the House February 12, 2002

  Yeas 90   Nays 7

 

 

              FRANK CHOPP

Speaker of the House of Representatives

     

 

 

 

 

 

Passed by the Senate March 6, 2002

  Yeas 42   Nays 0

             CERTIFICATE

 

I, Cynthia Zehnder, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is SUBSTITUTE HOUSE BILL 2437 as passed by the House of Representatives and the Senate on the dates hereon set forth.

 

 

 

           CYNTHIA ZEHNDER

                          Chief Clerk

 

 

 

 

               BRAD OWEN

President of the Senate

 

 

 

Approved March 21, 2002 Place Style On Codes above, and Style Off Codes below.                

                                FILED                

 

           March 21, 2002 - 2:45 p.m.

 

              GARY LOCKE

Governor of the State of Washington

                 Secretary of State

                 State of Washington


          _______________________________________________

 

                    SUBSTITUTE HOUSE BILL 2437

          _______________________________________________

 

             Passed Legislature - 2002 Regular Session

 

State of Washington      57th Legislature     2002 Regular Session

 

By House Committee on Trade & Economic Development (originally sponsored by Representatives Veloria, Talcott, Conway, Darneille, Dunn, Lovick, Chase, Wood, Jackley and Ogden)

 

Read first time 02/05/2002.  Referred to Committee on .

Promoting economic revitalization. 


    AN ACT Relating to downtown and neighborhood commercial districts; and adding a new chapter to Title 35 RCW.

 

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

 

    NEW SECTION.  Sec. 1.  (1) The legislature finds:

    (a) The continued economic vitality of downtown and neighborhood commercial districts in our state's cities is essential to community preservation, social cohesion, and economic growth;

    (b) In recent years there has been a deterioration of downtown and neighborhood commercial districts in both rural and urban communities due to a shifting population base, changes in the marketplace, and greater competition from suburban shopping malls, discount centers, and through the internet;

    (c) This decline has eroded the ability of businesses and property owners to renovate and enhance their commercial and residential properties;

    (d) In many areas of the state, downtown and neighborhood commercial areas are burdened further by deteriorating buildings, vacant building that cannot be legally occupied, and vacant brownfield infill sites which pose significant health and safety problems to tenants and pedestrians, and constitute a significant blight and detrimental impact on the health, safety, and welfare of the community, as well as its economic health;

    (e) Business owners in these districts need to maintain their local economies in order to provide goods and services to adjacent residents, to provide employment opportunities, to restore blighted properties, and to avoid disinvestment and economic dislocations, and have developed downtown and neighborhood commercial district revitalization programs to address these problems; and

    (f) It is in the best interest of the state of Washington to stop the decay of community areas and to promote and facilitate the orderly redevelopment of these areas.

    (2) It is the intent of the legislature to establish a program to:

    (a) Provide for the allocation of a portion of locally imposed excise taxes to assist local governments in the financing of needed health and safety improvements, public improvements, and other public investments, to encourage private development and to enhance and revitalize neighborhood business districts and downtown areas; and

    (b) Provide technical assistance and training to local governments, business organizations, downtown and neighborhood commercial district organizations, and business and property owners to accomplish community and economic revitalization and development of business districts.

 

    NEW SECTION.  Sec. 2.  The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

    (1) "Local retail sales and use tax" means the tax levied by a city or town under RCW 82.14.030, excluding that portion which a county is entitled to receive under RCW 82.14.030.

    (2) "Local retail sales and use tax increment revenue" means that portion of the local retail sales and use tax collected in each year upon any retail sale or any use of an article of tangible personal property within a downtown or neighborhood commercial district that is in excess of the amount of local retail sales and use tax collected on sales or uses within the downtown or neighborhood commercial district in the year preceding.

    (3) "Downtown or neighborhood commercial district" means (a) an area or areas designated by the legislative authority of a city or town with a population over one hundred thousand and that are typically limited to the pedestrian core area or the central commercial district and compact business districts that serve specific neighborhoods within the city or town; or (b) commercial areas designated as main street areas by the office of trade and economic development.

    (4) "Community revitalization project" means:

    (a) Health and safety improvements authorized to be publicly financed under chapter 35.80 or 35.81 RCW;

    (b) Publicly owned or leased facilities within the jurisdiction of a local government which the sponsor has authority to provide; and

    (c) Expenditure for any of the following purposes:

    (i) Providing environmental analysis, professional management, planning, and promotion within a downtown or neighborhood commercial district including the management and promotion of retail trade activities in the district;

    (ii) Providing maintenance and security for common or public areas in the downtown or neighborhood commercial district;

    (iii) Historic preservation activities authorized under RCW 35.21.395; or

    (iv) Project design and planning, land acquisition, site preparation, construction, reconstruction, rehabilitation, improvement, operation, and installation of a public facility; the costs of financing, including interest during construction, legal and other professional services, taxes, and insurance; the costs of complying with this chapter and other applicable law; and the administrative costs reasonably necessary and related to these costs.

 

    NEW SECTION.  Sec. 3.  Local retail sales and use tax increment revenue, or any portion thereof, may be applied as follows:

    (1) To pay downtown or neighborhood commercial district community revitalization costs;

    (2) To pay into bond redemption funds established to pay the principal and interest on general obligation or revenue bonds issued to finance a downtown or neighborhood commercial district community revitalization project;

    (3) In combination with any other public or private funds available to the city or town for the purposes provided in this section; or

    (4) To pay any combination of costs under subsection (1), (2), or (3) of this section.

 

    NEW SECTION.  Sec. 4.  (1) The legislative authority of a city or town may authorize the use of local sales and use tax increment revenue for any purpose authorized in this chapter within the boundaries of a downtown or one or more neighborhood commercial districts.

    (2) Prior to authorizing the use of local sales and use tax increment revenue, the legislative authority must designate the boundaries of each downtown or neighborhood commercial district.

    (3) The legislative authority of a city or town may choose to pool the local sales and use tax increment revenue collected in the various downtown and neighborhood commercial districts within the city or town for the purposes authorized in this chapter.

 

    NEW SECTION.  Sec. 5.  A city or town shall determine at its own cost the amount of local sales and use tax increment revenue that may be generated in the downtown and neighborhood commercial districts it designates.  The department of revenue may, at its discretion, provide advice or other assistance to cities and towns to assist in determining local sales and use tax increment revenue.

 

    NEW SECTION.  Sec. 6.  If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

 

    NEW SECTION.  Sec. 7.  Sections 1 through 6 of this act constitute a new chapter in Title 35 RCW.


    Passed the House February 12, 2002.

    Passed the Senate March 6, 2002.

Approved by the Governor March 21, 2002.

    Filed in Office of Secretary of State March 21, 2002.