Fire Department Rejects Malaga TIF Proposal Over Funding Losses
Wenatchee Valley Fire Department Commissioners rejected the Chelan-Douglas Regional Port Authority's proposed mitigation for the proposed Malaga Tax Increment Finance Area.
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Why the Fire Department Opposes the Malaga TIF
The Fire Department asked for mitigation in response to a staffing agreement for its Malaga Fire Station it has with Microsoft and its data centers through 2027. With the implementation of a TIF, Fire Chief Brian Brett said the department would lose $1.2 million in funding and risk major staffing shortages at that station.
How the Port’s Mitigation Proposal Works
Brett said the Port's proposal requires the fire department to first maximize its existing tax capacity on local taxpayers to qualify for mitigation payments. Under the Port's offer, the department would receive $135,000 per year from 2029-2031.
Tax Capacity and Funding Concerns Explained
The Fire Department could levy up to an additional $12.1 million in taxes within its jurisdiction, but the Commissioners have consistently avoided imposing an increase. They say they have relied on the natural growth of assessed value to minimize tax burdens on the community instead.
Commissioners’ Final Decision and Statement
Fire Commissioners concluded that the proposal does not constitute meaningful mitigation.
"The Board remains optimistic that the Chelan County Port Authority will revisit the proposed TIA boundaries to allow affected taxing districts to retain revenue already scheduled to come online," Brett said. "Adjusting the boundaries in this manner would eliminate the need for near-term mitigation and reflect a collaborative approach to supporting essential public services provided by all taxing districts."
What’s Included in the Proposed TIF Area
The Port's proposed TIF encompasses over 3,300 acres of land and includes the Microsoft Data centers, the old Alcoa plant, and the potential site of Helion Energy's proposed fusion power plant.