[Board1] concerning proposal by Port Angeles City Council

Thu Dec 4 19:50:28 PST 2025

Thank you for bringing this to our attention Maureen.  I think any time we are dealing with property inside a Native American Reservation, or we are dealing with land held in trust for a tribe or individual tribal member we always need to consider what jurisdiction the tribe has over the land.  Some tribes assert jurisdiction over their entire reservation, regardless of whether the landowners inside the reservation are non-Native fee owners.  Some are only concerned with regulating the property the tribe and their members own in trust or restricted fee.

In those situations we will often see some kind of tribal compact between the tribe and the municipality, in which they essentially agree to disagree about who has jurisdiction but for the good of the community they enter into a formal document outlining who has jurisdiction over what.  What is being proposed here seems to reach beyond that, by giving the tribe ultimate authority to consent to or veto a project.  Then again, I am only reading the notes prepared in opposition to the approach, I haven't reviewed the entire FPIC manual.

I think it is unlikely this will pass, but if it does, then it will be up to each underwriter to decide if they are willing to insure development projects that could be impacted by the expanded authority granted to tribes.  It may be possible to insure if the underwriter is comfortable with the documentation evidencing the tribe's consent (although the note regarding "reversing" it's decision is troublesome, I would personally want more clarity on that).  It may also be possible to insure with an exception that addresses the tribe's authority.

I don't see much as an industry we can do to impact the outcome of this, we are instead going to have to react to the outcome.  However, it's important to be aware of the result so that each underwriter can set forth their own guidelines for insuring in the impacted area.

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Megan Powell
Director of Underwriting - Direct Division

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From: Board1 <board1-bounces at washingtonlandtitle.com> On Behalf Of Maureen Pfaff
Sent: Thursday, December 4, 2025 3:04 PM
To: 1 WLTA Board (board1 at washingtonlandtitle.com) <board1 at washingtonlandtitle.com>
Subject: [External] [Board1] concerning proposal by Port Angeles City Council
Importance: High

Hi all,

One of our local builders called me this afternoon about a proposal that came out at the city council meeting this week.  They were discussing the city's 20-year Comprehensive Plan which is under review and scheduled to be finalized and go into effect January 26, 2026.  The specific proposed change that got my attention is discussed in the attached document beginning on the bottom of page 4 under the heading:  A New Push:  Expanded Tribal Authority over City Decisions.

In a nutshell, they are proposing to replace the current language of acknowledging the Lower Elwha Klallam Tribe's sovereign status and agreement by the City to work collaboratively with the Tribe on future land-use planning with "Free, Prior, and Informed Consent (FPIC) which is an international legal standard going far beyond anything currently required under Washington law, the Centennial Accord, or federal Indian law according to the party who wrote this review of the council session.

FPIC requires the following:

  *   Tribal consent before a project moves forward

  *   No deadlines or time limits

  *   Full documentation, in the tribe's language

  *   The right for the tribe to say yes, no, or reverse it's decision
  *   Binding legal agreements, grievance procedures, and compensation systems
  *   Deference to tribal timelines, lawyers, and independent experts
  *   Stoppage of projects until consent is obtained
According to the writer, FPIC is designed for mining, dams, oil extraction, and major infrastructure in developing nations.  It has never been applied to municipal planning, city rezones, or individual property permits in Washington state.

In reading this, my concern is how would it affect our ability to insure transactions?  I don't believe the council is taking into account all of the potential repercussions adopting this language is opening up.  I am curious if anyone else on the board has heard of language such as this being added into a city planning document and, if so, what sort of issues have arisen insuring projects.  Beyond that, I am curious what our underwriters see as potential effects on insurability of properties in the city of Port Angeles with this type of planning requirement.

The next city council meeting is December 16th and the local real estate community plans to be at the meeting with prepared comments.  I would like to hear the thoughts of this board as I am preparing my own comments for submission.

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