HOUSE BILL REPORT

HB 2012

BYRepresentatives Haugen, Ferguson, Cantwell, Wolfe, Nealey and Phillips

Regulating port district land improvement.

House Committe on Local Government

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (14)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Ferguson, Ranking Republican Member; Horn, Nealey, Nelson, Nutley, Phillips, Raiter, Rayburn, Todd, Wolfe, Wood and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS REPORTED BY COMMITTEE ON LOCAL GOVERNMENT FEBRUARY 22, 1989

BACKGROUND:

One statute authorizes port districts to improve and develop their lands for sale or lease for industrial and commercial purposes.

A separate statute permits port districts to sell their property that is no longer needed for district purposes.  Another statute allows port districts to lease their real and personal property.

Port districts are allowed to create industrial development districts and improve property in such districts.

SUMMARY:

SUBSTITUTE BILL:  Statutory language is deleted limiting the ability of a port district to sell or lease its improved property for only commercial or industrial purposes.  Port districts are permitted expressly to lease port property for purposes which the port commission deems proper.

Port district real property located in industrial development districts may be sold without limiting the use of such property to industrial purposes if the port commission finds that: (1) the sale is in the interests of the port and people of the port district; (2) the property is not needed for harbor development or industrial development; and (3) the potential use of the property for industrial purposes is limited due to the construction of a road or the location of a utility line or other facility that divided the property into a narrow or otherwise unusable shape.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The industrial development district property sales language was added.  Language was added expressly permitting a port to lease its lands for purposes deemed proper by the port commission.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Don White, Washington Public Ports Association; Steve Sewell and Dan Dingfield, Port of Seattle.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Bond counsels have raised the issue of whether a port district can lease property to be used for purposes other than industrial or commercial.  This clarifies the issue.  Property in industrial development districts can only be sold for industrial purposes.  This permits useless strips of property to be sold without limitation.

House Committee - Testimony Against:      None Presented.