SENATE BILL REPORT

SB 6145

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.

Background: Industrial development in counties and cities planning under the Growth Management Act (GMA) is generally only allowed in urban growth areas (UGAs). UGAs are areas within which urban growth is encouraged. Growth can occur outside a UGA only if the growth is not urban in nature. In limited circumstances, the GMA allows industrial development in areas outside UGAs.

A county may authorize the siting of a major industrial development (MID) outside UGAs. The designation, siting, and approval of a MID is done through amendment to the county comprehensive plan, provided certain statutory requirements are met.

In 1997 the Legislature created a process to expedite the development of industrial projects of statewide significance. Industrial projects of statewide significance are defined as either a border crossing project that involves both private and public investments or a private capital investment in manufacturing or research and development. The capital investment threshold is dependent on the size of the population of a county. The capital investment requirements range from $20 million for a project located in a county with a population of 20,000 or less to $1 billion for a project located in a county with a population greater than one million. The definition of industrial projects of statewide significance also includes projects with projected employment positions of 50 or greater in rural counties and 100 or greater in urban counties. The Director of the Department of Community, Trade and Economic Development may designate a project as one of statewide significance in special circumstances.

Summary of Bill: Certain qualified counties planning under the GMA may establish a process for designating a master planned location for major auctioneering activity outside an UGA regardless of any underlying land-use designation. The major auctioneering activity must be for industrial or agricultural equipment auctions with gross annual sales exceeding $10 million. Other conditions are specified, including the frequency of use, number of full-time on-site employees, minimum size of the parcel, and distance from the I-5 corridor.

Designation of a master planned location for major industrial activities is considered an amendment to the comprehensive plan of the county and does not require a comprehensive plan amendment.

A major auctioneering activity can qualify as an industrial project of statewide significance for purposes of expedited development and permitting assistance.

Staff Summary of Public Testimony: PRO: The proposed industrial development will provide for economic expansion in Lewis County, will create new jobs, and will increase sales tax revenues for state and local government. In these times of economic retraction, this is an opportunity for economic development. Ritchie Bros. Auctioneers is a global company with 37 locations worldwide and $3.2 billion annual sales.

CON: This legislation is an example of spot zoning at its worst. Instead of weakening the GMA, Lewis County should expand the UGA to accommodate this development.