Second Substitute House Bill 1173 - State Lands Development Authorities (2021 Regular Session)

Summary

Second Substitute House Bill 1173, State of Washington, 67th Legislature, 2021 Regular Session, by House Capital Budget (originally sponsored by Representatives Berry, Frame, Dolan, and Lekanoff), read first time 02/22/21. The title describes an act relating to state lands development authorities and adding a new chapter to Title 43 RCW. Section 1 authorizes state lands development authorities to oversee and manage the development or redevelopment of state-owned property within or adjacent to manufacturing industrial centers, and exempts property owned or managed by the department of natural resources. An authority may only be formed in a county with a population of 2,000,000 or greater, and a later subsection defines the Interbay property.

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     H-0989.1

                       SECOND SUBSTITUTE HOUSE BILL 1173


     State of Washington         67th Legislature         2021 Regular Session

     By House Capital Budget (originally      sponsored    by   Representatives
     Berry, Frame, Dolan, and Lekanoff)

     READ FIRST TIME 02/22/21.




1        AN ACT Relating to state lands       development    authorities;   and
2    adding a new chapter to Title 43 RCW.


3    BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


 4       NEW SECTION.   Sec. 1.   (1) State lands development authorities
 5   are hereby authorized to oversee and manage the development or
 6   redevelopment of state-owned property that is within or adjacent to
 7   manufacturing industrial centers. Any property owned or managed by
 8   the department of natural resources is exempt from the provisions of
 9   this chapter.
10       (2) The legislative delegation from a district containing state-
11   owned land that is included within, or is adjacent to, a
12   manufacturing industrial center may propose the formation of a state
13   lands development authority. The proposal must be presented in
14   writing to the relevant legislative committees in both the house of
15   representatives and the senate. The proposal must contain:
16       (a) The proposed general geographic boundaries of the state lands
17   development authority; and
18       (b) Legislative findings relating to formation of the state lands
19   development authority which find that:
20       (i) The state owns property within the boundaries of the proposed
21   state lands development authority;
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 1       (ii) The state-owned land is located within or adjacent to a
 2   manufacturing industrial center;
 3       (iii) The state agency with custodial responsibility for the
 4   property has completed an assessment regarding the current use,
 5   future use, and a projected date or conditions when the land is
 6   vacant, excess, or surplus to the mission of the state agency;
 7       (iv) The legislature intends that the state lands development
 8   authority be appropriately funded and staffed; and
 9       (v) The formation of a state lands development authority to
10   oversee and manage the development or redevelopment of the state-
11   owned land will be useful and beneficial to the community within and
12   adjacent to the boundaries of the state lands development authority.
13       (3) Formation of a state lands development authority is subject
14   to legislative authorization by statute.
15       (4) A state lands development authority may only be formed in a
16   county with a population of 2,000,000 or greater.


17       NEW SECTION.     Sec. 2.    (1) The affairs of a state lands
18   development authority shall be managed by a board of directors.
19       (2) The initial board of directors of a state lands development
20   authority must be appointed by the governor upon recommendation from
21   the state legislative delegation from the district in which the
22   boundaries of the state lands development authority are contained.
23       (3) The number of persons on the board of directors must be
24   included in the proposal to establish a state lands development
25   authority under section 1 of this act.
26       (4) Members of the board of directors must include:
27       (a) At least one member representing each of the following:
28       (i) The governing body of each city included in the boundaries of
29   the state lands development authority;
30       (ii) The mayor's office of each city included in the boundaries
31   of the state lands development authority;
32       (iii) The governing body of each county included in the
33   boundaries of the state lands development authority; and
34       (iv) The governing body of each port district included in the
35   boundaries of the state lands development authority;
36       (b) Additional members if required by the proposal to establish a
37   state lands development authority under section 1 of this act; and



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 1       (c) Ex officio, nonvoting members if required by the proposal to
 2   establish a state lands development authority under section 1 of this
 3   act.


 4       NEW SECTION.   Sec. 3.    (1) State lands development authorities
 5   have the power to:
 6       (a) Accept gifts, grants, loans, or other aid from public and
 7   private entities;
 8       (b) Employ and appoint such agents, attorneys, officers, and
 9   employees as may be necessary to implement its purposes and duties;
10       (c) Contract and enter into partnerships with individuals,
11   associations,   corporations,    and   local,   state,   and   federal
12   governments;
13       (d) Buy, own, and lease real and personal property;
14       (e) Sell real and personal property, subject to any rules and
15   restrictions contained in the proposal to establish a state lands
16   development authority under section 1 of this act;
17       (f) Hold in trust, improve, and develop land;
18       (g) Invest, deposit, and reinvest its funds;
19       (h) Incur debt in furtherance of its mission: Provided, however,
20   that state lands development authorities are expressly prohibited
21   from incurring debt on behalf of the state of Washington as defined
22   in Article VIII, section 1 of the state Constitution. A state lands
23   development authority obligation to repay borrowed money does not
24   constitute an obligation, either general, special, or moral, of the
25   state of Washington. State lands development authorities are
26   expressly prohibited from using, either directly or indirectly,
27   "general state revenues" as defined in Article VIII, section 1 of the
28   state Constitution to satisfy any state lands development authority
29   obligation to repay borrowed money;
30       (i) Lend or grant its funds for any lawful purposes. For purposes
31   of this section, "lawful purposes" includes without limitation, any
32   use of funds, including loans thereof to public or private parties,
33   authorized by agreements with the United States or any department or
34   agency thereof under which federal or private funds are obtained, or
35   authorized under federal laws and regulations pertinent to such
36   agreements; and
37       (j) Exercise such additional powers as may be authorized by law.
38       (2) A state lands development authority that accepts public funds
39   under subsection (1)(a) of this section:
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1        (a) Is subject in all respects to Article VIII, section 5 or 7,
2    as appropriate, of the state Constitution, and RCW 42.17A.550; and
3        (b) May not use such funds to support or oppose a candidate,
4    ballot proposition, political party, or political committee.
5        (3) State lands development authorities do not have any authority
6    to levy taxes or assessments.

 7       NEW SECTION.   Sec. 4.   A state lands development authority has
 8   the duty to:
 9       (1) Adopt bylaws for the authority that will govern how the
10   authority will generally conduct its affairs;
11       (2) Establish specific geographic boundaries for the authority
12   with its bylaws based on the general geographic boundaries
13   established in the proposal approved by the legislature;
14        (3) Assume responsibility for the development or redevelopment of
15   the state-owned property within the boundaries of the authority;
16        (4) Create a strategic plan for the development or redevelopment
17   of the state-owned property that includes, but is not limited to, the
18   following elements:
19       (a) An examination of the existing uses of the property and an
20   assessment of whether such should change in the future in order for
21   the use of the property to achieve maximum public benefit;
22       (b) An examination of options for development or redevelopment
23   that    include   industrial uses   only,  mixed-use   commercial  and
24   residential     development, and   mixed-use   light  industrial   and
25   residential development, as well as the incorporation of community-
26   oriented facilities, and an evaluation of which options would achieve
27   maximum public benefit;
28       (c) A plan for extensive public engagement throughout the
29   development or redevelopment process, which must include a regular
30   schedule of public meetings and opportunities for public comment; and
31       (d) A financial plan for the authority that identifies funding
32   sources necessary to carry out the authority's strategic plan;
33       (5) Use gifts, grants, loans, and other aid from public or
34   private entities to further the development and redevelopment
35   projects identified in the authority's strategic plan; and
36       (6) Submit a written report to the relevant committees of the
37   legislature by December 1st of each even-numbered year that
38   summarizes the authority's strategic plan and details the progress of


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 1   the authority in meeting its strategic goals related to development
 2   and redevelopment, public engagement, and financial planning.


 3       NEW SECTION.    Sec. 5.   The state lands development authority
 4   account is created in the state treasury for use if the legislature
 5   provides state funds for authority purposes. The account is composed
 6   of two subaccounts, one for moneys to be appropriated for operating
 7   purposes and the other for moneys to be appropriated for capital
 8   purposes.   Moneys   in  the  account  may   be  spent   only  after
 9   appropriation. Expenditures from the account may be used only for
10   projects under this chapter.

11       NEW SECTION. Sec. 6. (1) The legislature finds:
12       (a) The state of Washington owns a property of approximately 25
13   acres in size located at 1601 West Armory Way within Seattle's
14   Ballard-Interbay   northend  manufacturing   industrial  center   and
15   Interbay neighborhood, known as the Interbay property. The Interbay
16   property was transferred to the state of Washington in 1971 with deed
17   limitations which limit use of the property for national guard
18   purposes only. The national guard currently uses the Interbay
19   property for the Seattle readiness center, built in 1974. The
20   national guard has determined that it must relocate from the Interbay
21   property to another site, and an assessment has been completed
22   pursuant to section 1(2)(b) of this act. Once the national guard
23   facilities are funded and constructed and the national guard is
24   relocated in a new, fully operational readiness center, and the
25   department of defense has released its use restrictions on the
26   property, the Interbay property will be available for redevelopment.
27       (b) The formation of a state lands development authority to
28   oversee and manage the redevelopment of the Interbay property will be
29   useful and beneficial to the community within and adjacent to the
30   Interbay neighborhood in the city of Seattle. The legislature intends
31   that the authority be appropriately funded and staffed.
32       (2) The legislature authorizes the establishment of the Ballard-
33   Interbay state lands development authority, which boundaries are
34   coextensive with the boundaries of the Interbay property.
35       (3) The Ballard-Interbay state lands development authority may
36   exercise its authority in furtherance of projects that are located
37   only within the boundaries of the Interbay property.


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 1       (4) The Ballard-Interbay state lands development authority does
 2   not have site control or access until after the national guard
 3   relocation and may not sell the Interbay property or portions of the
 4   Interbay property to another entity.
 5       (5) The affairs of the Ballard-Interbay state lands development
 6   authority shall be managed by a board of directors, consisting of the
 7   following members:
 8       (a) One member with experience developing workforce or affordable
 9   housing;
10       (b) One member with knowledge of project financing options for
11   public-private partnerships related to housing;
12       (c) Two members with architectural design and development
13   experience related to industrial and mixed-use zoning;
14       (d) One member representing the port of Seattle;
15       (e) One member representing the governor's office;
16       (f) One member representing the King county council;
17       (g) One member representing the city of Seattle mayor's office;
18       (h) One member representing the Seattle city council; and
19       (i) Two members of the thirty-sixth legislative district
20   delegation.
21       (6) No member of the board of directors may hold office for more
22   than four years. Board positions must be numbered one through 11 and
23   the terms staggered as follows:
24       (a) Board members appointed to positions one through five shall
25   serve two-year terms, and if reappointed, may serve no more than one
26   additional two-year term.
27       (b) Board members initially appointed to positions six through 11
28   shall serve a three-year term only.
29       (c) Board members appointed to positions six through 11 after the
30   initial three-year term shall serve two-year terms, and if
31   reappointed, may serve no more than one additional two-year term.
32       (7) The initial board of directors of the Ballard-Interbay state
33   lands development authority must be appointed by the governor upon
34   recommendation from the legislative delegation from the district in
35   which the boundaries of the authority are contained, as required by
36   section 2(2) of this act. With respect to the appointment of
37   subsequent boards of directors, the existing board members must
38   develop a list of candidates for each position and deliver the
39   recommendations to the members of the legislative delegation for the
40   district in which the authority is located. The legislative
                                     p. 6                        2SHB 1173
 1   delegation must present the list of candidates for recommendation to
 2   the governor for appointment to the board of directors. In developing
 3   the list of candidates, the board of directors must consider racial,
 4   gender, and geographic diversity so that the board may reflect the
 5   diversity of the community.
 6       (8) For purposes of this section, "Interbay property" means a
 7   state-owned property with deed limitations indicating it may be used
 8   for national guard purposes only located at 1601 West Armory Way,
 9   consisting of approximately 25 acres of land within Seattle's
10   Ballard-Interbay   northend  manufacturing   industrial  center   and
11   Interbay neighborhood.

12       NEW SECTION.     Sec. 7.    Sections 1   through   6   of   this   act
13   constitute a new chapter in Title 43 RCW.

                                  --- END ---




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