SENATE BILL REPORT

SB 5733

BYSenators Tanner, Bailey, Smitherman, Garrett and DeJarnatt

Authorizing the department of transportation to participate with owners of real estate in financing improvement projects.

Senate Committee on Transportation

Senate Hearing Date(s):March 4, 1987

Majority Report:  Do pass.

      Signed by Senators Peterson, Chairman; Hansen, Vice Chairman; Tanner, Vice Chairman; Bailey, Barr, Bender, Conner, DeJarnatt, Garrett, Halsan, Patterson, Smitherman, von Reichbauer, West

Senate Staff:Gene Baxstrom (786-7303)

                  March 6, 1987

AS REPORTED BY COMMITTEE ON TRANSPORTATION, MARCH 4, 1987

BACKGROUND:

Since 1983 local governments have been able to contract with the owners of proposed developments for the developer to construct road and street improvements necessitated by growth attributed to the development.  If it is anticipated that other land in the area will undergo similar development in the future, the local government can require that the improvements be sized to accommodate the anticipated future development as well.  Under the contract between the local government and the original developer, the owners of lands which develop within fifteen years--the "latecomers"--are required to reimburse the original developer for a pro rata share of the improvements.

Under 1986 legislation, the local government itself is authorized to participate in the cost of road and street improvements associated with a development, and, along with the original developer, to be reimbursed by "latecomers" for a pro rata share of its expenditure.

The State Department of Transportation often deals with developers who are willing to pay a portion or all of the cost of improvements which would mitigate impacts on state highway facilities in the vicinity of the development.  However, the Department lacks any authority to require "latecomers,"  who also would benefit from the improvements, to repay either the original developer or the Department for a proportionate share of the original cost.

This is one of five measures developed by the Task Force on Economic Development/Transportation Issues, established by the Legislative Transportation Committee in 1986, to address the transportation needs arising in areas of rapid economic growth.

SUMMARY:

The State Department of Transportation is authorized to enter into agreements with private developers whereby the developer and/or the Department can be reimbursed by latecomer developers for the cost of state highway improvements necessitated by and benefitting both the original and subsequent developments.

The local government having jurisdiction in the area of the development would act as the agent of the Department in developing the contract with the original developer and in collecting reimbursement from the later developers.

Fiscal Note:      none requested

Senate Committee - Testified: Stan Finklestein, Association of Washington Cities; Jim Williams, Washington Association of Counties; John Doyle, Department of Transportation; Steve Callender, Snohomish County Economic Development Coordinator; Alex King Redmond Chamber of Commerce; Wes Bogart, Snohomish County Committee for Improved Transportation