PORT ANGELES — Calling the landmark deal a fair one, the City Council unanimously approved a revenue sharing agreement with Clallam County on Tuesday night that paves the way for extending sewer service east of the city limit.
“I hope our vote is unanimous. I’m glad we were able to salvage this,” said City Councilman Larry Williams, referring to the county commissioners’ 2-1 vote earlier in the day.
Beginning April 1, the county will pay the city 50 percent of the sales tax from new businesses in the city’s eastern urban growth area, which stretches from DelGuzzi Drive to North Masters Road at Koenig Chevrolet Subaru, according to the agreement.
A new business is defined as those that begin in the area after June 30, 2006; increase or expand following issuance of a building permit or change in occupancy; or new commercial or multi-family (more than five units) construction.
The deal affects only new businesses.
Clallam County will continue to collect all of the sales tax from existing businesses in the area.
Six months after annexing the area — no specific date having been scheduled — the city would pay the county 50 percent of the sales tax from new businesses that begin after annexation.
The number of payment periods would be equal for both city and county, according to the agreement.
The county will receive — without sharing — sales tax from residential construction, property tax from new businesses and property tax from new construction, all of which could increase with the sewer line being extended into the area, said city officials.
City Councilwoman Betsy Wharton said she heard county commissioners say they thought they could get a better deal, but they offered nothing specific to do that.
“It’s just about as fair as you can get. I don’t know you can make it any more equitable,” said Councilman Richard Headrick.
City Councilman Gary Braun said businesses would take advantage of the new sewer line, and there would be fill-in development on vacant lots between businesses.