Board Of County Commissioners

Tax Increment Financing

Moratorium on creation of TIFs in unincorporated areas in place now

The Board of County Commissioners has passed a six-month moratorium on the creation of any tax increment financing (TIF) areas or projects in the unincorporated areas of Chelan County.

The moratorium was passed unanimously in July 2025 during the board’s regular meeting. Public comment was taken on the moratorium at a public hearing on Sept. 23.

A TIF is generally defined as a financing tool that allows local governments, such as cities, towns, counties, port districts or any combination thereof, to fund public infrastructure in designated areas to encourage private development. Property taxes generated by the new development are then used to pay for the improvements.

As established by the state Legislature, TIFs are meant to be tools to spur economic development in distressed areas that lack development.

State law authorizes the BOCC to adopt a six-month moratorium via board action. The moratorium may not exceed six months unless it is extended for good cause by board resolution at a later date. The moratorium does not apply to incorporated cities.

The moratorium was established for the following reasons:

  • Chelan County has hired a consultant to help establish an urban growth area for Malaga. The new UGA may establish new commercial and industrial zones or rezone areas. It also may impact housing densities in the Malaga area. The UGA study, which is being done in conjunction with the ongoing update to the Chelan County Comprehensive Plan, will be completed late next year.
  • Also underway is the updating of the Transportation Element, a chapter in the Comprehensive Plan. The Transportation Element, in part, will determine necessary infrastructure upgrades to roads that are essential for future residential and commercial growth in the Malaga area. It is premature to determine what road projects may be needed in the TIF area until the Transportation Element is completed, which will be late next year.
  • The Malaga UGA study, in determining future growth, also may look at wastewater infrastructure needs. It has not yet been determined if Chelan County will need to partner with an existing wastewater provider or create a new facility to serve the Malaga area.

County Press Releases:

Press Release: Chelan County passes moratorium on creation of TIFs in unincorporated areas (July 29, 2025)

Press Release: Chelan County commissioners deeply disappointed by port’s plan to divert over $100 million from critical county services (Aug. 27, 2025)

Editorial: Regional port’s proposal is opportunistic, harmful (Sept. 8, 2025)

Press Release: Chelan County calls on regional port to withdraw its TIA proposal (Sept. 29, 2025)

Press Statement: Oct. 3, 2025

Posted: 10/14/2025 10:24 AM
Last Updated: 10/14/2025 12:29 PM

Board Of County Commissioners Calendar

Upcoming events and schedules at the county!

  • 16
    Oct 2025
    06:00 PM - 08:00 PM

    District 2 Fall Community Meeting

    Posted by: Board Of County Commissioners

    Join us for a community meeting with your Chelan County commissioner

    Lake Wenatchee Rec Club