Port of Moses Lake eyeing industrial development district

MOSES LAKE — Port of Moses Lake officials will have a public hearing at 10 a.m. June 23 to get public reaction to a proposal to form an industrial development district. The port’s attorney, Frank Chmelik, said an industrial development district would give port officials more flexibility. 

“You pick up a few more powers for industrial development, is essentially what happens,” Chmelik said. 

Commissioner Darrin Jackson said the port has the money to fund the industrial development district activities without imposing additional taxes. That followed a question from Commissioner Kent Jones. 

“All of these projects are going to cost a lot of money,” Jones said. 

Port officials have done a good job finding outside funding, Jones said, but eventually, the port will have to use some of its own money. 

“At some point, somebody is going to want to get in our pockets too, and we don’t have much money,” Jones added. 

Commissioners implemented a “tax increment financing area” in 2023, which uses property tax revenue generated through the growth in assessed property value within the tax increment financing area.  That money can only be used for specific activities, including improvements to utilities. Richard Hanover, the port’s director of business development, said money generated through tax increment financing and being able to work with private partners should pay for the utility upgrades. 

“We have companies lined up to land in our TIF area,” Hanover said. “All the recruitment that I’m currently working on, those are going into the TIF area, which is going to add to what we’re able to collect, and those funds will be able to be utilized to build the power infrastructure, not affecting our taxpayers in any way.” 

Potential customers need additional electricity; the port’s wastewater treatment facilities also are in need of upgrades. There’s development all around Grant County, competing for the same resources, and Commissioner Stroud Kunkel said he thought an industrial development district would provide more flexibility. 

“What we’re looking at now with the utilities is, there are limitations on everything. If we don’t do this, we’re going to have to live with those limitations,” Kunkel said. 

Jackson said in his experience, the Port of Moses Lake – actually any port – has advantages over other publicly funded economic development agencies. 

“The port has an easier way of guiding its way through these entanglements to get stuff done in a quicker manner than normal government,” Jackson said. 

Hanover cited supplying electrical power as an example. 

“We’re looking at building a 70-mile stretch of transmission (line), and we’re looking at a time frame that’s not capable by our PUD. It’s probably because of the public and private aspect that we’re able to bring people in to do that, and it’s going to be done in about three years, as opposed to 15 years. Which is a huge difference,” Hanover said. “Port districts have unique powers for a reason; this gives us the ability to really move things forward at a pace that is not normal for government.” 

Consultant Jim Darling said the future of Grant County has been the focus of a number of studies, most of which are forecasting continued growth. 

“The tax structure is such that unless you have commercial and industrial development with that growth, cities and fire districts and other service providers find it hard to provide the services that population growth demands,” Chmelik said. 

The growth spurred by industrial and commercial development also has a favorable impact on housing, he said.  

Jackson said he supports the idea because of the flexibility it provides. 

“It’s another tool that the port has that we have never utilized, that we have the opportunity to utilize and speed things forward without causing a burden on the people that made the port, which is the citizens of our district,” he said. 

    From left, Port of Moses Lake Commissioners Darrin Jackson, Kent Jones and Stroud Kunkel listen to a presentation on forming an industrial development district. A public hearing on the proposal is scheduled for June 23.