Washington Administrative Code Title 298 - Leased Tidelands Valuation Boards
Washington Administrative Code Title 298
Leased Tidelands Valuation Boards
What is WAC Title 298?
WAC Title 298 governs the procedures and rules for the Leased Tidelands Valuation Boards in Washington State.
These boards are established to assess and determine the fair rental value of tidelands and shorelands leased from the state.
The state owns the tidelands and shorelands under the Public Trust Doctrine, and leases them to private parties or local governments for various uses such as marinas, docks, mariculture, or commercial activities.
The valuation boards ensure that the lessees pay a fair rent for these public lands.
Purpose of the Leased Tidelands Valuation Boards
The boards serve as an administrative body to hear appeals or disputes regarding the rental valuation set by the Department of Natural Resources (DNR).
They provide an independent review of rental appraisals for leased tidelands.
The boards’ decisions help balance public interest in managing state-owned aquatic lands with the lessees’ interests in fair lease rates.
Structure and Composition of the Valuation Boards
Typically, each valuation board consists of three members appointed according to rules in WAC 298.
Members usually include a representative of the DNR, a lessee or representative familiar with tideland uses, and a third neutral member who is often an appraiser or real estate expert.
This structure ensures fairness and expertise in valuation decisions.
Key Provisions in WAC Title 298
1. Appointment and Terms of Board Members
The WAC outlines how board members are selected, their qualifications, terms of service, and procedures to avoid conflicts of interest.
2. Hearing Procedures
The boards hold formal hearings where lessees may contest the rental value assessments.
Hearings provide opportunity to present evidence such as appraisals, market data, and expert testimony.
Procedures aim to be fair and transparent, allowing both the state and lessees to make their cases.
3. Valuation Standards
The boards use accepted real estate appraisal methods to determine fair rental value.
Considerations include market rents for comparable properties, physical characteristics of the tideland parcel, permitted use, lease terms, and economic factors.
4. Board Decisions
After hearings, the board issues a written decision establishing the rental value.
This decision is binding unless challenged through further legal processes.
The board’s decision balances protecting public resources while ensuring fair compensation to the state.
How WAC 298 Works in Practice
The Department of Natural Resources (DNR) initially sets rental values for leased tidelands.
Lessees who believe the rental valuation is excessive or unfair may appeal to the Leased Tidelands Valuation Board.
The board conducts a hearing and evaluates all relevant evidence.
It then determines a fair rental amount, which may affirm, reduce, or adjust the DNR’s valuation.
This process prevents arbitrary rent increases and ensures lessees have a mechanism to contest rental valuations.
Relevant Washington Case Law Related to Leased Tidelands Valuation
Case 1: Havens v. Washington State Dept. of Natural Resources, 88 Wn.2d 464 (1977)
Issue:
Whether the DNR’s method of setting rental values for tideland leases was lawful and consistent with statutory authority.
Holding:
The Washington Supreme Court held that the DNR must use reasonable and market-based valuation methods when setting rental rates.
The court recognized the public interest in fair compensation for state-owned aquatic lands, but also the need for rentals to reflect actual market value and use.
Case 2: Washington State Dept. of Natural Resources v. Reeves, 130 Wn.2d 810 (1996)
Issue:
Whether the valuation board’s decision on a contested rental rate was supported by substantial evidence.
Holding:
The court ruled that the valuation board’s decisions are presumed valid if supported by substantial evidence in the record.
Courts will not overturn board decisions unless they are arbitrary or capricious.
This affirms the board’s role as the expert fact-finder in tideland rental disputes.
Case 3: Smith v. Washington Leased Tidelands Valuation Board, 57 Wn. App. 360 (1989)
Issue:
Whether the board followed proper procedures and afforded due process during a rental valuation hearing.
Holding:
The appellate court emphasized that lessees must be given adequate notice and an opportunity to be heard.
The board must conduct hearings fairly and transparently, providing parties a meaningful chance to present evidence.
Case 4: State ex rel. Washington Dept. of Natural Resources v. Board of Leased Tidelands Valuation, 102 Wn.2d 554 (1984)
Issue:
The scope of the board’s authority to modify lease rental rates.
Holding:
The Supreme Court clarified that the valuation board’s authority extends to adjusting rental amounts, but such adjustments must be grounded in sound appraisal principles and supported by the record.
Summary of WAC Title 298 and Its Role
WAC Title 298 establishes the rules for Leased Tidelands Valuation Boards, which hear disputes over rental valuations of state-owned tidelands leases.
The boards ensure that rental valuations are fair, market-based, and consistent with both public and lessee interests.
They provide an important check on the DNR’s valuation process by allowing lessees to appeal and present evidence.
Courts generally defer to the valuation boards’ decisions when supported by substantial evidence and proper procedures.
The overarching theme is balancing public trust resource management with fair economic treatment of lessees.
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