Thursday, October 1, 2026

County calls on regional port to withdraw TIA proposal

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CHELAN COUNTY — Chelan County commissioners are asking the Chelan-Douglas Regional Port Authority to withdraw its proposal to form a tax increment area (TIA) in Malaga, citing public opposition and concerns over using redirected tax revenues to help fund cleanup of Alcoa Corporation’s former aluminum smelter site.

The request follows a series of recent discussions about the proposed TIA, which would encompass roughly 3,326 acres and redirect an estimated $195.7 million in future property tax revenues from other local taxing districts over 25 years. The Chelan County Board of Commissioners voted earlier this month to enact a moratorium on new TIAs in unincorporated areas while it reviews how such arrangements affect county services and budgets.

In a statement issued Friday, commissioners said they believe the regional port should withdraw its current plan, spend the next year conducting community outreach, and work collaboratively on any future proposals that “do not harm other taxing districts.”

Commissioner Shon Smith said public input during the county’s recent hearing on the moratorium showed little support for the regional port’s effort to advance the Malaga proposal. He said the county has heard “growing discontent” from residents who view the process as rushed, and that it’s time for the port to “respect the public and put the community first.”

At the Port’s recent Partners in Economic Development event, officials identified redevelopment of the Alcoa site as a key goal of the TIA proposal. The smelter property remains owned by Alcoa and is undergoing state-supervised cleanup. Commissioner Brad Hawkins questioned the idea of directing taxpayer funds toward a private corporate cleanup, saying the regional port’s emphasis on redeveloping the property “doesn’t make sense” given Alcoa’s own environmental and real estate teams.

But the focus at that event wasn’t limited to “cleanup” of the Alcoa site, as the Port and their economic and business consultants made clear that day. Instead, “sewer, water, road, bridge, utility, and park projects that make the 2,800-acre former Alcoa property and surrounding land usable again” were the topics that were mentioned regarding the Port’s interest in the property.

Commissioner Kevin Overbay said the Port’s leadership should acknowledge the moratorium and the level of public concern. He urged the regional port to “publicly withdraw its plans, acknowledge the county’s moratorium, and engage in a community-driven process,” adding that public agencies “need to acknowledge the wishes of the community and their partners.”

The county’s moratorium remains in effect as discussions continue among the regional port, county, and other local jurisdictions. The seeming lack of authority that moratorium holds, however, is underscored by the fact that the county is requesting a withdrawal of the proposal in the first place.

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

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