HOUSE BILL REPORT

HB 1293

BYRepresentatives G. Fisher, Cantwell, Doty, Schoon, Rasmussen, Raiter, Moyer, Rector, R. King, Todd, McLean and P. King; by request of  Director of Trade and Economic Development

Revising provisions for the community economic revitalization board.

House Committe on Trade & Economic Development

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (13)

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

House Staff:Bill Lynch (786-7092)

AS REPORTED BY COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

FEBRUARY 15, 1989

BACKGROUND:

The Community Economic Revitalization Board (CERB) is authorized to make loans and grants to port districts, counties, cities, and towns to construct public facilities that support economic development efforts.  Grants may be authorized only to the extent that a loan is not possible.

Before any loan or grant application is approved, the local unit of government must demonstrate to CERB that no other timely source of funding is available to it at costs which are reasonably similar to CERB financing.

The CERB prioritizes each proposed project according to the number of jobs it would create after it is completed and the unemployment rate in the area in which the jobs are located.  At least twenty percent of the funds available for grants and loans must be for projects in distressed counties, unless it appears that the number of applications for projects in these areas is insufficient to use the twenty percent allocation.

The Community Economic Revitalization Board is prohibited from making a grant or loan for a project whose primary purpose is to facilitate or promote a retail shopping development or expansion, or for a project that would displace existing jobs in any other community in the state, or for the acquisition of real property including any buildings or fixtures which are a part of real property.

The Community Economic Revitalization Board is authorized to make grants and loans only for projects which result in specific private developments or expansions in manufacturing, production, food processing, assembly, warehousing, and industrial distribution, or which substantially support the exporting goods and services outside the state.

The board may also find projects that will help industry establish or expand, that will assist in the creation or retention of long-term economic opportunities, or if there is convincing evidence that a specific private development or expansion is ready to occur and will only occur if the grant or loan is made.

Destination tourist resorts are not specifically listed as an eligible project for CERB funding.

SUMMARY:

SUBSTITUTE BILL: The Community Economic Revitalization Board is authorized to make grants or loans which would result in specific private developments or expansions in destination tourist resorts. A destination tourism resort is defined as a master planned tourism and recreation complex that is developed primarily as a location for recreation and tourism activities that will be used primarily by non-residents of the state.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The substitute added a definition of "destination tourism resort".

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Mr. John Anderson, Director, Department of Trade and Economic Development; Mr. Virgil Fassio, Publisher, Seattle Post-Intelligencer; Carol Vipperman, Chair, Small Business Improvement Council, Seattle;  Representative Alex W. McLean, Twelfth District, Washington State; Cindy Van Auken, North Central Washington and Chelan Economic Development Council; Barbara Brooner, Assistant Director, Tourism Development Group, Department of Trade and Economic Development; Kenneth Gouldthorpe, Publisher, Washington Magazine; Steve Morris, President, Seattle-King County Convention Bureau; Jim Wright, Space Needle Corporation; Andrew Olson, Laventhol and Horwath Consultants; Dave Moffett, Alpental Ski Area, Snoqualmie; Frank Finnian, Washington State Lodging Association; Joe Daniels, Unique Northwest County Inns; and Bob Cowan, Chair, Community Economic Revitalization Board.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    There is considerable interest on the part of companies to build destination tourist resorts in the state, but the lack of public facilities make them reluctant to invest.  The investors want to see that there is government support for tourism.  More tourists would come to the state if there were more resorts. 

House Committee - Testimony Against:      None Presented.