HOUSE BILL REPORT
HB 1992


This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by House Committee On:
Community & Economic Development & Trade

Title: An act relating to community preservation and development authorities.

Brief Description: Creating community preservation and development authorities.

Sponsors: Representatives Santos, Kenney and Hasegawa.

Brief History:

Community & Economic Development & Trade: 2/19/07, 2/27/07 [DPS].

Brief Summary of Substitute Bill
  • Creates community preservation and development authorities, and provides for their formation, powers, and duties.
  • Creates the Community Preservation and Development Account in the State Treasury.
  • Authorizes establishment of the Pioneer Square - International District Community Preservation and Development Authority.
  • Provides a sales and use tax exemption for sales related to projects in community preservation and development authority strategic plans.


HOUSE COMMITTEE ON COMMUNITY & ECONOMIC DEVELOPMENT & TRADE

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 5 members: Representatives Kenney, Chair; Pettigrew, Vice Chair; Chase, Darneille and P. Sullivan.

Minority Report: Do not pass. Signed by 3 members: Representatives Bailey, Ranking Minority Member; McDonald, Assistant Ranking Minority Member and Haler.

Staff: Meg Van Schoorl (786-7105).

Background:

Every year, federal, state and local governments undertake significant public facilities and infrastructure projects in communities around the state. While some of these projects only temporarily affect the surrounding community, others have a more lasting impact.


Summary of Substitute Bill:

Community preservation and development authorities are created to restore or enhance the health, safety, and well-being of communities adversely impacted by construction and operation of multiple major public facilities, public works, and capital projects with significant public funding. Their purposes include:

A community preservation and development authority's (Authority) formation requires the following sequential steps:

The bill directs that an Authority will be managed by a board of directors and provides board membership criteria, terms, and election processes. An Authority has the power to:

However, an Authority has no power of eminent domain nor power to levy taxes or special assessments.

An Authority has the duty to:

The Legislature finds that the Pioneer Square - International District of Seattle meets the definitions of "community" and "impacted community" and that its constituency has proposed formation of an Authority. The Legislature authorizes establishment of this specific Authority.

The Community Preservation and Development Account is created in the State Treasury, and includes a sub-account for operating project purposes and a sub-account for capital project purposes.       

State and local government agencies must consult fully with an Authority and impacted community before making siting, design, and construction decisions for future major public capital projects and must make every effort to minimize negative, cumulative effects of multiple projects.

Sales and use of tangible personal property, labor and services to an Authority in order to implement a project in its strategic plan are exempt from state and local sales and use taxes.

Substitute Bill Compared to Original Bill:

The appropriations sections and emergency clause are removed. A community proposing formation of an Authority after January 1, 2008, must identify in its proposal one or more stable revenue sources that: (1) have a nexus with the multiple publicly-funded facilities that have adversely impacted it; and (2) can be used to support operating or capital projects in the strategic plan. Before authorizing establishment of an Authority, the Legislature must find that a community has identified such a revenue source. The Authority shall use grants, gifts, and loans to contract and enter into partnerships with a broad range of organizations to carry out projects identified in the strategic plan. These include but are not limited to those that enhance public safety, reduce community blight, provide ongoing mitigation of the adverse effects, and address other purposes. The Legislature authorizes establishment of the Pioneer Square - International District Community Preservation and Development Authority in Seattle. The Community Preservation and Development Account in the State Treasury is divided into two sub-accounts, one for operating appropriations and the other for capital appropriations.


Appropriation: None.

Fiscal Note: Available on original bill.

Effective Date of Substitute Bill: The bill takes effect 90 days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony:

(In support) Two of the oldest neighborhoods in Seattle (Pioneer Square and the International District) were settled by workers from across the world and hold a special place in the history of the city and the state. These neighborhoods are in jeopardy today from adverse impacts of multiple capital projects built in the area, including two stadia that bring in crowds of 90,000 people per year to participate in over 90 games. Adverse impacts of these crowds include an overflow of garbage and litter and lack of parking close to retailers and restaurants. Neighborhood businesses pay the costs of sanitation crews, and access to small businesses is restricted. There are over 30 art galleries in Pioneer Square, but stadia clientele are more interested in the entertainment/bar scene than art. Our hair salon has been in the area for 20 years, and grew 20 to 25 percent in the first five years. However, since the stadia were built, it has been very difficult to maintain business given parking and traffic problems. Of 2,000 people in the International District, 60 percent are elderly with deep cultural roots in the area. They are concerned about public safety, gentrification, and environmental health. Traffic accidents and respiratory problems are much higher than in other neighborhoods. This bill is intended to enable these communities to be in charge of their destinies and revitalize their economies.

(With concerns) We support the bill, but if there are appropriations in the bill for capital projects, prevailing wage standards would apply.

(Opposed) None.

Persons Testifying: (In support) Representative Santos, prime sponsor; Tim Wang, Chinatown International District Business Improvement Association; Katie Comer, Pioneer Square Community Association; Kay Hirai, Studio 904, Inc.; and Justine Leyson, International District Housing Alliance.

(With concerns) Dave Johnson, Washington State Building Trades.

Persons Signed In To Testify But Not Testifying: None.