Tumwater property to be held in trust for Squaxin Island Tribe
Two parcels of land in Tumwater near Olympia Regional Airport are set to be held in trust for the Squaxin Island Tribe, according to the Bureau of Indian Affairs and city of Tumwater.
In February, the BIA, a division of the U.S. Department of Interior, issued a notice of decision to acquire land into trust on behalf of the tribe, meaning the federal government would own the land but give control of the property to the tribe.
Barring an appeal during a 30-day appeal process, that decision was expected to be final. Squaxin Island Tribe representatives could not be reached for comment late last week.
The property to be held in trust is at 7233 and 7249 Old Highway 99, which is located between Tumwater Boulevard and Henderson Boulevard. A check of the property shows an office building at the 7249 address.
Thurston County Assessor information shows the current property owner is Island Enterprises, the economic development arm of the tribe, which bought it in August 2020.
Prior to the BIA’s announcement in February, the federal agency reached out to Tumwater officials to learn more about the property. City Administrator John Doan replied in a letter, explaining the taxation in the area, the city services provided to the site and zoning.
“The general property taxes paid to the city of Tumwater were $480.38 and $1,278.21 for each parcel,” said Doan in his letter. “The city also operates a Metropolitan Park District which collected $84.42 and $224.63 for each parcel. Although a separate legal entity, the district is wholly managed by the city and is the sole recipient of their revenues.”
Once placed into trust, some of those taxes would not apply to the tribe. According to the BIA, federal income taxes are not levied on income from trust lands held for them by the U.S., and local property taxes are not paid on reservation or trust land.
The parcels are zoned “airport related industry,” which allows a range of non-residential uses including office, professional services, retail, aviation-related uses, hotel/motel, and restaurants, according to Doan.
“We continue to work with the tribe on a broad memorandum of agreement regarding our long-term relationship,” he said.
Before Doan’s letter, former Tumwater Mayor Pete Kmet expressed his support for the land to be held in trust.
“The city understands that this parcel sits in the ancestral lands of the tribe, where a thriving culture and economy existed long before the presence of the city,” Kmet said in an October letter.
“We recognize the tribe is a responsible steward of the environment and has established positive and long-term relationships with the cities and counties in the vicinity that allow the tribe and other governments to address jurisdictional and other issues.
“The tribe has and continues to make ongoing investments in both the tribal and surrounding community. Tribal enterprises provide high-quality employment opportunities and economic possibilities in our shared community.”
This story was originally published April 3, 2022 at 5:45 AM.
