HOUSE BILL REPORT

SHB 2921

BYHouse Committee on Trade & Economic Development (originally sponsored by Representatives Inslee, Doty, Baugher, Rayburn, Hargrove and Vekich)

Establishing an industrial growth demonstration pilot project in Yakima county.

House Committe on Trade & Economic Development

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (12)

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

House Staff:Paul Leistner (786-7340)

AS PASSED HOUSE FEBRUARY 12, 1990

BACKGROUND:

The Washington State economy appears to be separated into areas of high growth and areas of low growth.

Current state economic development programs focus on improving economic development in general or focus on generating economic development in specific areas.

The primary state agencies responsible for economic development are the Department of Trade and Economic Development (DTED), the Department of Community Development (DCD), the Employment Security Department, and the Department of Agriculture.

Major financing programs targeted to rural or distressed areas include the Community Economic Revitalization Board (CERB) in DTED, and the Development Loan Fund and the Coastal Revolving Loan Fund in DCD.  Sales tax deferrals are available for businesses locating or expanding in distressed communities as are Business and Occupation tax credits.

The state also provides funding for programs intended to generate economic development in specifically designated communities. These include programs in DTED such as Team Washington, the Tri- Cities Diversification, the 1989 Timber Package, and the Rural Economic Development Pilot Program in DCD.

SUMMARY:

The Department of Trade and Economic Development establishes an industrial growth management program. The department provides assistance to Yakima County and other areas of the state in the development of industrial parks.  The department also provides assessments of the economic development potential of industrial park sites in areas of the state that request this assistance.

The department must report to the Legislature by December 31, 1990.

Fiscal Note:      Requested February 2, 1990.

Effective Date:The bill contains an emergency clause and takes effect immediately.

House Committee ‑ Testified For:    Representative Jay Inslee, Prime Sponsor; Graham Tollefson; Tim McGree, Executive Director, Yakima County Economic Development Association; Fred Stouder, City of Yakima; Mike Mercy; and Gene Mahre, Coldwell Banker.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    Yakima desperately needs growth, while Seattle is choking on growth.  Yakima needs industrial sites to attract growth but does not have the money, or the local tax base large enough, to do so.  Yakima's economic problems and social problems with drugs and poverty affect the entire state.  In the early 1980s, Yakima ranked last in income growth and first in poverty.  The lack of marketable industrial property inhibits the ability of the community to attract industrial development.  The local community is well-organized for growth, as evidenced by the economic cooperation that already exists between the I-82 corridor and Seattle/King County.  Analyses have already been done on potential industrial park sites in Yakima, and the community is ready to proceed with a project.

House Committee - Testimony Against:      None.