Chelan County sets hearing on TIF moratorium as Malaga growth studies unfold

MALAGA — Chelan County commissioners are preparing to hear from the public on their six-month moratorium halting new tax increment areas (TIA) in unincorporated parts of the county — a pause that has direct implications for the Malaga community, where both county planners and the Port Authority have been exploring tax-increment financing as a tool for infrastructure and growth.

The Chelan–Douglas Regional Port Authority has indicated that they intend to form the TIA before the end of the year, despite the County’s moratorium.

The public hearing is scheduled for 11 a.m. Tuesday, Sep. 23, at the commissioners’ chambers in Wenatchee. Residents may attend in person, log in through Zoom (through https://www.co.chelan.wa.us/board-of-commissioners/pages/join-the-commissioners-meeting), or submit written comments by mail, email, or the county’s online form.

Commissioners imposed the moratorium in July, shortly after the Port unveiled maps and early plans for a Malaga-centered TIF. At the time, county leaders raised alarms that such a district could move forward before the county finished critical groundwork: Defining Malaga’s urban growth boundary, updating the transportation element of the comprehensive plan, and deciding how to handle wastewater service.

“As a board, it is rare for us to institute a moratorium; we do not take this action lightly,” Commissioner Shon Smith said in announcing the hearing. He pointed to unanswered questions about how a TIF/TIA would affect county tax districts and whether residents would be asked to pay more to make up for diverted revenues.

The timing of the moratorium intersects directly with Malaga’s planning process. The county has hired a consultant to guide the long-awaited urban growth area study for the community, due late next year. That study will likely reshape zoning, housing density, and commercial or industrial land designations in the area. At the same time, the county is rewriting its Transportation Element — the section of the Comprehensive Plan that determines what roads must be built or upgraded to support growth.

Until those pieces are in place, commissioners say, it would be premature to lock in a TIF district that could commit tax revenues for up to 25 years. They also note that wastewater infrastructure remains an open question: Wwill Malaga need a new treatment facility, or can an existing provider expand service?

Those unresolved issues echo the concerns first raised when the Port’s TIF concept map for Malaga surfaced this summer, prompting the county to assert its role in pacing the conversation.

By law, counties that adopt a moratorium must hold a public hearing within 60 days, and commissioners must explain their reasoning for extending or lifting it. The Chelan County moratorium is currently limited to six months, though it could run up to a year if linked to a specific work plan.

Commissioners stress that they are not closing the door on tax increment financing altogether. “We continue to be open to a partnership with any entity proposing a TIA; however, we also need to move forward on the moratorium while we work toward completing our Comprehensive Plan,” Smith said.

For Malaga residents, that means two tracks of planning are unfolding at once. There’s the Port’s ambition to spark growth using tax increment financing, and the county’s insistence on first completing its long-range studies. The Sept. 23 hearing will be the public’s chance to weigh in on how those tracks should align.

You can comment on the online County form at https://www.co.chelan.wa.us/board-of-commissioners/forms/public-comment-form. You can also email comments to CM.Comment@co.chelan.wa.us or mail your comments directly to the Board of County Commissioners, 400 Douglas St., Suite 201, Wenatchee, WA, 98801

Andrew Simpson: 509-433-7626 or andrew@ward.media