Port weighs using Pangborn tax increment funds for hangar, Trades District

EAST WENATCHEE – The Chelan Douglas Regional Port Authority is considering using tax increment revenue from the area around Pangborn Memorial Airport to help cover costs for the Airlift Northwest hangar and the first phase of the Trades District. Before making the first allocations, commissioners want to talk with Douglas County about road and utility improvements that could open nearby land to industrial development.

At their Nov. 4 retreat, commissioners unanimously agreed to leave Pangborn’s general aviation terminal out of the initial funding plan. Commissioner Richard DeRock called the terminal, which primarily serves private, charter and business aviation, “an airport benefit that doesn’t have a broader piece to it.” Port CEO Jim Kuntz had proposed using tax increment revenue to help pay debt on three projects and immediately agreed to drop the terminal from the proposal.

Commissioners saw a clearer community benefit in the other two projects. The hangar supports Airlift Northwest’s air ambulance service, and the Trades District provides space for small businesses. Kuntz’s original proposal would have left the Port’s cash contributions in place, preserving more tax increment revenue for other projects. Commissioners were open to reviewing a revised plan that could cover debt payments and reimburse some of that cash for the two projects. They made no allocations at the retreat.

The financing district uses a share of the additional property tax revenue generated as assessed values rise within its boundaries to pay for public improvements. It covers Pangborn and surrounding properties, including land in the Batterman industrial area. Port staff estimated the district could bring in a little more than $1 million in 2027, pending certification of local levies.

Among the projects commissioners want to bring to Douglas County is a proposal to connect South Van Well Avenue and 4th Street SE to an extended Airport Way. The project includes a roundabout and water and sewer extensions that could serve industrial land outside the airport. The proposal would also move existing water lines off airport property and into the Airport Way corridor. Kuntz said the county would need to help lead the work because it owns the road.

Commissioners discussed first addressing the financing district’s effect on other taxing districts. Several then wanted to sit down with Douglas County to weigh the proposed reimbursements alongside projects like Airport Way, where the same revenue could help prepare land for new businesses.

Andrew Simpson: 509-433-7626 or andrew@ward.media