SENATE 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

Senate Committee on Governmental Operations

Senate Hearing Date(s):March 23, 1989

Majority Report:  Do pass as amended.

      Signed by Senators McCaslin, Chairman; Thorsness, Vice Chairman; Conner, Sutherland.

Senate Staff:Sam Thompson (786-7754)

                  March 23, 1989

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, MARCH 23, 1989

BACKGROUND:

Port districts are authorized to form industrial development districts (IDDs) in order to develop and improve lands for harbor 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 procedures for the removal of property from an IDD.  If IDD property is sold by a port district, covenants must be included in the title which require the land to be used for industrial development purposes.

Some land within industrial development districts may no longer be suitable for industrial development purposes.

SUMMARY:

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

If the port district acquired or improved the land with 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.  Fair market value will be determined as of the effective date of the action to remove the property from the IDD.  The fair market value will be an average of at least two independent appraisals by real estate appraisers or brokers.  Funds must be deposited within 90 days after the port commission's action to remove the property from the IDD.

If the property was acquired by the port district through condemnation or as a consequence of threatened condemnation, and the property was within the IDD 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 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, the sale must be closed within 60 days after the 30 day period.

The provisions of the bill apply to existing and future IDDs.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

SUMMARY OF PROPOSED SENATE AMENDMENT:

Funds from the sale of land improved with IDD levy funds must be deposited within 90 days after the closing of the sale.

Senate Committee - Testified: Don White, Washington Public Ports Association (pro); Bob Lamb, Ports of Ilwaco and Willapa Harbor (pro)