The purpose of the City’s proposed East Chelan Area tax increment area (the “TIA”) is to fund a portion of the cost of further developing its water utility infrastructure. The primary public improvement is the construction of the East Chelan Reservoir and Booster Pump Station; other elements of the project include four water main extensions from the reservoir to the surrounding neighborhoods. These improvements will allow the City to meet the demands of private development and provide redundancy during water emergency shortages. As described by the City’s project analysis, the costs for the public improvements are estimated at $27,059,100; of this, up to $16,000,000 is planned to be supported by TIF revenues. To finance the public infrastructure improvements, the City intends to issue Limited Tax General Obligation (“LTGO”) bonds, which will be backed by the full faith and credit of the City. The City expects to issue two series of bonds, one in 2024 for $9 million, and another in 2028 for $7 million.
CITY OF CHELAN
TAX INCREMENT AREA (TIA)
CONSIDERATION OF ORDINANCE NO. 2023-1607
Notice is hereby given that on May 24, 2023, in City Council Chambers at 135 E. Johnson Avenue, Chelan, Washington, beginning at 3:00 p.m. City Council will consider Ordinance No. 2023-1607 to establish a Tax Increment Area (TIA) consistent with Engrossed Substitute House Bill 1189 for the area referred to as East Chelan. The purpose of the East Chelan TIA is to fund the following infrastructure improvements, which will be owned by the City and located within or outside of, and serving the TIA:
- The East Chelan Reservoir and Booster Pump Station (BPS)
- East Chelan Reservoir to Bradley Street Water Main Extension
- Bradley Street to No-See-Um Road Water Main Extension
- Isenhart Road Watermain Extension
The East Chelan TIA is generally described as a 1.2 square mile area centered at Apple Blossom Center and extending southeast to Wilmorth Drive between SR 97A and SR 150, and extending to the northwest towards the City of Chelan Golf Course to No-See-Um Road.
The Ordinance, Project Analysis, Washington State OST Report/Analysis, maps, and other materials can be viewed on the City’s website at https://cityofchelan.us/, or by visiting the Community Development Department at 135 E. Johnson Avenue from Monday to Thursday, between 9 a.m. and 4 p.m.
Dated this 4th day of May, 2023
Published in the Lake Chelan Mirror May 10, 2023.
For additional Information on Tax Increment Financing (TIF) please see the links below.