Port brings court challenge against County moratorium on Tax District

WENATCHEE — The Port of Chelan County has filed a lawsuit seeking to block Chelan County from enforcing its recently enacted moratorium on Tax Increment Areas (TIAs) in unincorporated areas.

The Port’s Board of Commissioners authorized the legal action on Sept. 29, aiming to secure a preliminary injunction against the county. Port officials said the move follows months of discussion with county leaders regarding a proposed TIA near Malaga.

“We remain focused on the economic growth and prosperity of our region, including Chelan County,” said Jim Kuntz, CEO of the Chelan-Douglas Regional Port Authority. “While we appreciate the concerns voiced by the Chelan County Commissioners, our Commission questions whether the County has authority to halt the Port from using a financing tool expressly provided by the Washington State Legislature in RCW 39.114. Ultimately, this is a legal question that will be resolved by the courts.”

According to the Port, the lawsuit centers on whether the county can prevent the Port from using TIAs — a mechanism established by the Legislature that allows jurisdictions to reinvest a portion of future increases in property tax revenue to fund infrastructure improvements.

Port officials say the Malaga proposal would fund infrastructure needed to attract private investment and support job growth. Kuntz said the project aligns with the Port’s five-year strategic plan, which emphasizes adapting to regional economic shifts.

“This project will create the infrastructure necessary to support private investment, create thousands of jobs, and provide for long-term growth in the tax base that benefits all taxing districts,” Kuntz said.

In a statement, the Port said TIAs do not impose new taxes or reduce current revenues. Instead, they allocate a share of future assessed value growth toward infrastructure that, the Port argues, would otherwise not occur.

The Port’s legal filing comes the same day that Chelan County commissioners issued a public statement calling on the Regional Port to withdraw its proposed Tax Increment Area in Malaga. County officials argued that diverting future tax revenues toward the Port would come at the expense of local services, and urged the agency to pause its plans in favor of a community outreach process. The Port’s response, now moving through the courts, signals a widening dispute between the two publicly funded entities over how to balance regional development with local fiscal impacts.

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