HOUSE BILL REPORT

EHB 1286

BYRepresentatives Cantwell, Nealey, Basich, Prince, Moyer and P. King 

Specifying how the boundaries of an industrial development district may be revised.

House Committe on Trade & Economic Development

Majority Report:  Do pass with amendments.  (12)

      Signed by Representatives Cantwell, Chair; Wineberry, Vice Chair; Doty, Ranking Republican Member, G. Fisher, Kremen, Moyer, Rasmussen, Rector, Schoon, Tate, Walk and Youngsman.

House Staff:Bill Lynch (786-7092)

AS PASSED HOUSE MARCH 14, 1989

BACKGROUND:

Port districts are authorized to form industrial development districts (IDDs) in order to develop and improve lands for harbor improvements and industrial uses. An IDD is formed by the port commissioners at a public hearing in which the boundaries of the district must be defined.

There are no statutory procedures to allow a port district to remove property from the boundaries of an IDD. Even if the property is subsequently sold by the port district, covenants must be included in the title which require the land to be used for industrial development purposes.

Some land which was initially included within an industrial development district may no longer be suitable for industrial development purposes.

SUMMARY:

A port district may revise the boundaries of an industrial development district.  Land may be removed from the boundaries of an industrial development district by a resolution by the port commission unless the property was obtained by conveyance from the county commissioners after a tax foreclosure.

If the port district acquired or improved the property pursuant to IDD levy funds, then the port must deposit funds equal to the fair market value of the land and improvements into the IDD account for future use. The fair market value is established as of the effective date of the port district's action to delete the property from the IDD boundaries.  The fair market value is determined by averaging at least two independent appraisals conducted by professionally designated real estate appraisers or licensed real estate brokers. Funds must be deposited for future use within 90 days after the port commission's action to delete the property from the IDD boundaries.

If the property was acquired by the port district through condemnation or as a consequence of threatened condemnation, and the property was included within the boundaries of the industrial development district for less than two years, then the port district must offer the property to the former owner for sale for cash at the appraised price.  The offer must be made by certified or registered letter to the last known address of the former owner. The former owner must respond to the offer in writing within 30 days or lose the right to purchase. If the former owner responds to the offer to purchase, the sale must be closed within 60 calendar days following the expiration of the 30 day period.

The provisions of the bill apply to existing industrial development districts as well as future industrial development districts.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Jeff Lucas, Washington Public Ports; Gary Neal, Port of Clarkston; and Robert Lamb, Attorney.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The procedure established by the bill will allow property to be removed from the boundaries of the industrial development district without a cloud on the title of the property.  This will allow property not suitable for industrial purposes to be put to its highest and best use.

House Committee - Testimony Against:      None Presented.