BACKGROUND :  (Updated June 2008)

The City of Bremerton has adopted ordinances and resolutions over a number of years, including Resolutions 1730, 2117 and Ordinance 4830, which characterize the condition of lands in downtown Bremerton and along its shoreline as blighted.   By these resolutions the City expressed the need for renewal and rehabilitation of downtown Bremerton in the interest of the health and welfare of the residents.   The City is now pursuing redevelopment for optimization and utilization of the downtown shoreline for all citizens.  

In cooperative pursuit of this goal, the Port of Bremerton, at the direction of the Port Commission, identified lands along the downtown Bremerton waterfront in need of redevelopment.   This area, designated as Industrial Development District No. 2, was selected for the expansion and development of the harbor and other facilities.   A public hearing was advertised and took place on November 8, 2005, where the Commission heard from all persons desiring to be heard upon the question of adoption of a resolution creating a second Port Industrial Development District, the first (Industrial Development District 1) having been designated in the late 1960’s for the Port’s airport and industrial lands on SR3 southwest of Bremerton..

As the Commission developed plans to improve this area, the initial project being a recreational marina, it examined numerous financing options including federal and state grants, public-private partnerships, revenue and general obligation bonds among other methods.   It was concluded that in order to fund the marina project, a combination of many financing means would be necessary.   It was determined the planned redevelopment would require the use of the Industrial Development District (IDD) levy (RCW 53.36), said levy only to be used for statutory port purposes within the boundary of the Port’s Industrial Development Districts.

This IDD levy is limited to six years and cannot be renewed.   Ports are limited to two uses of the six-year IDD levy.   The 2007 – 2012 levy represents the second and last industrial development district the Port of Bremerton can institute under current state law.   The tax levy affects only the port’s portion of property taxes, raising it by 45 cents per $1,000 on the assessed value of property located within Bremerton Port District.   This levy rate is expected to decline in years 2 – 6.

Unless specifically authorized by state law, a port cannot place a tax measure directly on the ballot for public vote. The IDD levy is not one of those measures authorized for such ballot placement.

BRIEF FACT-SET ON THE PORT’S INDUSTRIAL DEVELOPMENT LEVY :

Ø  State law in Washington allows the Port of Bremerton to enact an Industrial Development District levy, in two parts, for a total of 12 years (two six year periods) to raise funds for capital investment and improvements, acquisition and development, environmental work, and debt service within a Commission designated Industrial Development District for development of Port properties and facilities. In 2006 the Port initiated the second of these levy periods for 2007-2012. 

SUMMARY OF PORT FUNDING AND OPERATIONS BUDGET:

The Port of Bremerton, like other Washington ports generates funds to expand, operate, and improve its properties through a variety of sources. The following represents the principle sources:

Ø         Revenue generated from industrial park, airport, and harbor facility rents, leases and other fees

Ø         Partnerships with other parties

Ø         Bonds

Ø         Federal and state grants, loans and other programs

Ø         Property taxes (the IDD levy is one of these tax sources)

Ø         State shared revenues, and

Ø         Interest on funds