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SUBJECTS › ECONOMIC DEVELOPMENT › Public Corporations/Public Development Authorities (PDA) (RCW 35.21.730 - 35.21.755)
Updated 05/08

Public Corporations/Public Development Authorities (PDA)
(RCW 35.21.730 - 35.21.755)

Contents

About PDAs

Under RCW 35.21.730, et seq., general purpose local government may establish "public corporations, commissions or authorities." These special purpose quasi-municipal corporations have become known as "PDA's." The statutory purpose for the creation of a public corporation under this statute is to improve the administration of authorized federal grants or programs, to improve governmental efficiency and services, or to improve the general living conditions in the urban areas of the state. The provision was initially enacted to authorize counties, cities, and towns to participate in and implement federally-assisted programs, including revenue sharing.

Many communities have established public corporations for a variety of public purposes. In the opinion of many municipal attorneys, a public corporation created under RCW 35.21.730, et seq. is best used for unusual endeavors, which for a variety of reasons, the parent municipality would not want to undertake itself.

Articles

List of Known Operating Public Corporations or Public Development Authorities

Samples of Local Government Ordinance Provisions, Charters, Bylaws

This list is a sampling Washington local governments that have enacted provisions allowing the formation of public corporations. In some instances, provisions were enacted providing for public corporations, but no actual public corporation was created by these jurisdictions, or the corporation created is no longer active. 

Cities and Joint City-County

Counties

Frequently Asked Questions

  • Is a public development corporation (PDA) established under RCW 35.21.730 - .755 a municipal corporation?
    MRSC legal consultants do not consider a PDA to be a municipal corporation, although there is no specific authority on this issue. The authorizing statutes, RCW 35.21.730 - .755 refer to a PDA as a "public corporation," and do not refer to one as a municipal or quasi-municipal corporation. A PDA is set up under the statutes as essentially a sub-agency of a city, town, or county, with no defined territory. This opinion is also based on various definitions scattered throughout the RCWs that appear to distinguish between public corporations and municipal or quasi-municipal corporations. See, e.g., RCW 7.25.010; 43.21F.025; 43.21G.020; 39.59.010. While these definitions do not specifically apply to the PDA statutes, they provide some consistent evidence of the statutory distinction between a municipal corporation and a public corporation that may be created by the former. In addition, a PDA does not have the attributes of a municipal corporation as discussed in McQuillin, Municipal Corporations, §§ 2.07.10, .20.

    However, even if a PDA is not considered a municipal corporation, it is nevertheless subject to the gift of public funds and lending of credit prohibitions in article 8, section 7 of the state constitution that apply to municipal corporations. RCW 35.21.757. A PDA is also subject to other general laws that apply to local governments, such as the public disclosure law, the Open Public Meetings Act, municipal accounting requirements in chapter 43.09 RCW, the contractual conflict of interest prohibitions and the ethics provisions in chapter 42.23 RCW, and the prohibition on using its facilities for campaign purposes. RCW 35.21.759.
  • Do bid and prevailing wage laws apply to public development authorities (PDAs) established under RCW 35.21.730?
    Although there is no statute that specifically addresses the application of bid laws to PDAs, it makes logical sense that bid laws should apply to PDAs in their capacity as creations of municipalities, to which bid laws specifically apply. The prevailing wage laws specifically apply to "the state or any county, municipality or political subdivision created by its laws." RCW 39.12.020. A PDA is a form of political subdivision authorized by state law. Accordingly, the prevailing wage law applies. Also, it is likely that bidding and prevailing wage laws would apply by virtue of RCW 35.21.759, discussed in the preceding question.
  • Is a city liable for debts incurred by a public corporation?
    The legislative intent of RCW 35.21.730(4) appears to be that a city, town or county would not be liable for any debts incurred by a public corporation. Any liabilities incurred are to be satisfied exclusively from the assets and properties of the public corporation. See also RCW 35.21.750.

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