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Committee hears support for raising relocation-assistance cap from $50,000 to $200,000 for displaced businesses and nonprofits
Summary
Supporters including King County and small-business owners urged the committee to pass Substitute House Bill 17-33, which would raise the statutory cap for reestablishment reimbursement from $50,000 to $200,000 and require annual CPI adjustments; witnesses said current cap was set 22 years ago and is inadequate in dense urban markets.
The Law & Justice Committee heard from local governments and small-business owners in support of Substitute House Bill 17-33, which would increase the cap on reestablishment reimbursement for people and businesses displaced by public projects from $50,000 to $200,000 and require annual inflation adjustments.
Mac Nicholson, representing the King County Council, testified the cap addresses “reestablishment expenses” such as property repairs, signage, advertising, and lease-cost differences for up to two years. He told the committee the current $50,000 cap “was established at that level 22 years ago” and that the proposed $200,000 cap “better reflects the reality of what non profits and businesses face when having to relocate and reestablish their businesses, particularly in a dense urban environment.”
Jordan Crowley, who represents Alki Beach Academy, a West Seattle childcare center, said the center is one of about 70 businesses that will be displaced by Sound Transit construction. Crowley said raising the cap and indexing it to inflation will “ensure better compensation for those who have invested their lives in serving their communities but are forced out due to circumstances beyond their control.”
Remote testifier Keith Edwards, owner of Joint Chiropractic in West Seattle’s Jefferson Square, told the committee his relocation estimate is about $500,000 and said many affected businesses could face bankruptcy without additional financial assistance; he urged the committee to pass the bill out of committee.
Staff summarized the bill’s mechanics and fiscal note: the Washington State Department of Transportation administers the State Relocation Assistance Program and would be required to adjust the new cap annually by the Consumer Price Index.
Ending: Public testimony concluded with the committee recording one pro signer who did not testify in person and no committee vote during the hearing.
