HomeMy WebLinkAboutR-1999-110 Baby Jogger Expansion Project (SIED)RESOLUTION NO, R-99-110
A RESOLUTION authorizing the City Manager to execute and submit grant and loan
application with Yakima County for funding from the Yakima County
Supporting Investments in Economic Development (SIED) Fund for
infrastructure improvements necessary for the Baby Jogger Expansion
Project; and setting a public hearing on September 7, 1999 to consider
amending the City's applicable capital funding plans to include all costs
associated with said infrastructure improvements.
WHEREAS, Yakima County has established the Supporting Investments in Economic
Development (SIED) fund to assist the growth of manufacturing business in the County; and
WHEREAS, economic development is a priority for the City of Yakima, and the City
intends to approach economic development on an inclusive, comprehensive basis which involves
public, private and community-based efforts to achieve new investment and redevelopment in the
City; and
WHEREAS, in order to expand its operations, the Baby Jogger Company has entered into
an agreement with Chinook Business Park, LLC ("Chinook"), whereby Chinook will construct a
new manufacturing facility ("Baby Jogger Expansion Project") for the Baby Jogger Company at 1700
North Sixth Street, Yakima, Washington; and
WHEREAS, the site for the Project is currently zoned M-1 Light Industrial; and
WHEREAS, the Baby Jogger Expansion Project will retain at least 75 jobs and create 25
new full time equivalent positions; and
WHEREAS, the Baby Jogger Expansion Project requires construction of certain
infrastructure improvements (i.e., road, curb, gutter, sidewalks, sewer lines, and water lines) in the
general area of the Project; and
WHEREAS, funding (through a grant/loan) may be available from Yakima County through
the SIED Fund for the required infrastructure improvements; and
WHEREAS, Chinook has requested that the City submit a grant/loan application with
Yakima County to fund the infrastructure improvements from the SIED Fund; and
WHEREAS, in consideration and as a condition of the City applying for said grant/loan,
Chinook agrees to pay/reimburse the City the total amount that the City pays or becomes obligated
to pay Yakima County pursuant to the SIED grant/loan; and
WHEREAS, the infrastructure improvements are eligible for inclusion in the Six -Year
Transportation Improvement Plan; and
WHEREAS, the Baby Jogger Expansion Project will leverage approximately $2,500,000 in
private funds; and
WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to
authorize submittal of a grant/loan application with Yakima County for funding of said
infrastructure improvements from the SIED Fund, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
1. The City Manager is hereby authorized and directed to execute and submit the
attached application, including all understandings and assurances contained therein, for financing
from Yakima County's SIED program, in the amount of $400,000, for the Baby Jo14:er Expansion
Project. The City Manager is hereby designated as the official representative of the City to act in
connection with that funding application and is authorized to take such additional actions as may be
necessary and prudent to complete the application process.
2. A public hearing is hereby set for September 7, 1999 to consider amending the City's
capital funding plan to include all costs associated with the infrastructure improvements related to
the Baby Jogger Expansion Project, particularly those infrastructure improvements affecting
portions of North Fourth, Fifth and Sixth Streets, and "R" and "S" Streets.
ADOPTED BY THE CITY COUNCIL this 17th day of August, 1999.
John Puccinelli, Mayor
A'1'1'hST:
KCCi ? ✓ c�yn�
City Clerk
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
1 aL
For Meeting Of: August 17. 1999
ITEM TITLE: Consideration of a resolution to: 1). Authorize the City Manager to
execute and submit a grant/loan application to the Yakima County
Supporting Investments in Economic Development (SIED) fund for
the Baby Jogger Expansion Project; and 2). Set a public hearing
for September 7, 1999 on amendments to the City's capital funding
plans for street and utility improvements related to the Baby Jogger
Ins ion Project.
SUBMITTED BY: : - Cook, Director of Community and Economic Development
CONTACT: Bill Cook, 575-6113
SUMMARY EXPLANATION:
The Chinook Business Park, owned by Mr. Gary Lukehart, has entered into an
agreement to build to suit a manufacturing/assembly facility for the Baby Jogger
Company. The facility will be located on approximately 2 acres of the Chinook Business
Park, at 1700 North 6th Street, which is currently zoned M-1 Light Industrial. The facility
will be 37,000 ± square feet with 97 parking spaces and cost approximately $2,500,000
to construct. When completed, the new facility will allow Baby Jogger to retain
approximately 75 jobs and create 25 new positions.
Chinook Business Park has approached the City to apply for SIED funding, which would
offset the costs of providing infrastructure (road, curb, gutter, sidewalks, sewer/water
mains) off of North 4th Street, North 5th Street, "R" Street and "S" Streets; and North 6th
Street. The total cost of the infrastructure improvements is estimated at $311,594.00.
CONTINUED ON FOLLOWING PAGE
Resolution _X Ordinance — Contract _ Other: Loan Application
Funding Source: Yakima County SIED Fund
Approval for Submittal:
City Mhager
STAFF RECOMMENDATION: Staff recommends approval of the resolution.
BOARD RECOMMENDATION:
COUNCIL ACTION:
1
Although this project is not currently listed in the Six -fear Transportation improvement
Plan, all costs associated with the proposed improvements will be borne by the
developer including match requirements and debt service payments. Other than
technical assistance provided by the City, this is a 100% developer funded project.
State regulations, however, require that the project be included in the City's capital
funding plans to be eligible for assistance.
The SIED program is a Yakima County funding source for economic development that
originates from a refund of County tax revenue from the State of Washington. SIED is
administered for the County by YCDA/New Vision, and the advisory board is appointed
by the County, with nominations from the cities.
SIED funds are available only for construction of public infrastructure, and only in
association with new private sector development which creates or retains manufacturing
jobs. SLED funding consists of a loan and grant award from Yakima County to the
applicant municipality or port district. Funding is limited to $500,000 per project, and a
10 percent local match is required. The match portion of this project will be provided by
the developer through right-of-way donations and cash, if required.
Upon award, the City will enter into a loan agreement with Yakima County for
repayment of the loan portion (50%), and will also enter into an agreement with Mr.
Lukehart for repayment to the City of the aforementioned obligation. The grant
proceeds will also be granted to Mr. Lukehart for the project.
2
CONTINGENCY AGREEMENT
THIS CONTINGENCY AGREEMENT (hereinafter "Agreement") is made and entered
into by and between the City of Yakima, a Washington municipal corporation (hereinafter the
"City"), Chinook Business Park, LLC (hereinafter "Chinook"), and Racing Strollers, Inc., d/b/a
Baby Jogger (hereinafter "Baby Jogger").
WHEREAS, Yakima County has established the Supporting Investments in Economic
Development (SIED) fund to assist the growth of manufacturing business in the County; and
WHEREAS, economic development is a priority for the City of Yakima, and the City
intends to approach economic development on an inclusive, comprehensive basis which
involves public, private and community-based efforts to achieve new investment and
redevelopment in the City; and
WHEREAS, in order to expand its operations, the Baby Jogger Company has entered
into an agreement with Chinook Business Park, LLC ("Chinook"), whereby Chinook will
construct a new manufacturing facility for the Baby Jogger Company at 1700 North Sixth Street,
Yakima, Washington, at a cost of approximately $2,500,000; and
WHEREAS, the Baby Jogger Expansion Project will retain at least 75 jobs and create 25
new full time equivalent positions; and
WHEREAS, the Baby Jogger Expansion Project requires construction of certain
infrastructure improvements (i.e., road, curb, gutter, sidewalks, sewer lines, and water lines) in
the general area of the Project; and
WHEREAS, funding (through a grant/loan) may be available from Yakima County
through the SIED Fund for the required infrastructure improvements; and
WHEREAS, Chinook has requested that the City submit a grant/loan application with
Yakima County to fund the infrastructure improvements from the SIED Fund; and
WHEREAS, on August 17, 1999, the City Council of the City of Yakima passed a
resolution authorizing the City Manager to submit a SIED fund grant/loan application to fund
said public infrastructure improvement.
NOW, THEREFORE, in consideration of the mutual covenants, conditions, promises,
and agreements set forth herein, it is agreed by and between the City, Chinook, and Baby
Jogger as follows:
1. Conditions for considering City's SIED grant/loan application. The City, Chinook,
and Baby Jogger agree to the following conditions in order for the City's SIED grant/loan
application to be considered by the Yakima County "Supporting Investments in Economic
Development Board":
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a. Expressly contingent and conditioned upon approval of the SIED
funding, the City represents that it will take the necessary measures to
have the public infrastructure improvements constructed. These
improvements are more specifically described in the plan specifications
for "S Street and North Fifth Street Road and Utility Improvements, City
Project # 1887" that are attached hereto as Exhibit "A" and incorporated
herein by this reference.
b. Chinook shall pay for all costs and expenses associated with obtaining
engineering services for the design of the public infrastructure
improvements described in Exhibit A. Chinook shall pay/contribute
these costs as a local match for the City's SIED fund grant/loan
application.
c. To the extent the public infrastructure improvements will be located on
property owned and/or controlled by Chinook, Chinook shall convey all
necessary utility easements and rights-of-way to the City for the public
infrastructure improvements. Chinook shall convey said easements and
rights-of-way to the City as a local match for the City's SIED fund
grant/loan application.
d. In consideration and as a condition of the City applying for a grant/loan
from the SIED fund to pay for said public infrastructure improvements,
Chinook agrees that it shall reimburse the City the total amount that the
City becomes obligated to pay Yakima County pursuant to the SIED
grant/loan. In the event that the City's SIED grant/loan application is
approved, the City, Chinook, and Baby Jogger shall execute a more
detailed loan and reimbursement agreement.
e. Chinook acknowledges that it has entered a legal agreement with Baby
Jogger whereby Chinook shall construct a new manufacturing facility for
the Baby Jogger Company at 1700 North Sixth Street, Yakima,
Washington, at a cost of approximately $2,500,000.
f. Baby Jogger shall retain at least 75 full time equivalent jobs and shall
create 25 new full time equivalent positions within a period of three (3)
years after the new facility is constructed and is operational.
g.
Chinook and Baby Jogger shall provide the City with employment and
investment data as requested by the Yakima County "Supporting
Investments in Economic Development Board."
2. Contingency Nature of Agreement. This Agreement is contingent upon the City's SIED
fund grant/loan application being approved and the City actually receiving the requested SIED
funds. This Agreement is intended to meet/satisfy the first level of convincing evidence of
private development as required by SIED.
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3. Severability. If any portion of this Agreement is changed per mutual agreement or any
portion is held invalid, the remainder of the Agreement shall remain in full force and effect.
4. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Washington.
5. Venue. The venue for any action to enforce or interpret this Agreement shall lie in the
Superior Court of Washington for Yakima County, Washington.
CITY OF YAKIMA
Date:
ATTEST:
R. A. • 's, Jr.,
City Manager
.71z12 -t- "
CHINOOK BUSINESS PARK, LLC
Name: (`,-wAc- I
Title: YY1 E rz
Date:
RACING STROLLERS, INC.
City Clerk
City Contract No. 99-102
Resolution No. R-99-110
Page 3 of 3
(1k)agr/cad cianook baby jogger "frd.pm
Date:
�'�--619
City of Yakima
Chinook Business Park -
Baby Jogger
Expansion Project
Grant and Loan Application
To
Yakima County
Supporting Investments in Economic
Development Board
Yakima County
Supporting Investments In Economic Development Board
Yakima County "SIED" Fund
Supporting Investments in Economic Development
Threshold Checklist
Page
i
Threshold Requirements
Complete Application. All questions must be fully answered in order to
qualify as a complete application.
Page 3 Resolution. A resolution or ordinance of the local governmental
jurisdiction authorizing the SIED application is required.
Project Costs. Engineer cost projections for public project costs are
required. SIED will not entertain requests for project cost overruns. For
the success of your project, ensure project cost estimations are realistic.
Page 3 Local Match. A local match of ten (10) percent of the SIED request is
required. Local match may be demonstrated as cash or in-kind
contribution.
Page 4
Page 7
Page 6
Page 10,11
Page 13
Page 14
Planning. A statement is required from the planning jurisdiction relating
to the type of public facility for which a SIED investment is sought.
Permits. All public and private permits must be received.
Private project description. Job creation and private sector financing
must be evident.
Contingency Agreement. A complete Contingency Agreement (form
included) is required for all projects. The Contingency serves as the first
level of convincing evidence that the private sector development will
occur.
Project Feasibility. This section must be filled out if the project does
not involve expanding businesses or businesses facing retention issues.
Please summit application to:
New Vision, P.O. Box 1387, Yakima, WA 98907-1387
(424 East Yakima Avenue — Yakima)
Application for Funding, 1998 Page 2 Yakima County SIED Program
Yakima County
Supporting Investments In Economic Development Board
APPLICATION FOR FUNDING
CERTIFICATION
Applicant:
Federal Tax Number:
Contact:
Title:
Telephone:
Fax:
Email:
Address:
City of Yakima
91-6001293
Michael A. Morales
Grants Officer
509/575-3533
509/575-6105
mmorales(a,ci.yakima.wa.us
Dept. of Community and Economic Development
129 North 2nd Street
Yakima, Washington 98901
Indicate the minimum necessary total public project infrastructure costs.
Amount of SIED loan requested:
(see Policies for limits)
Amount of SIED grant requested:
(see Policies for limits)
Local match (minimum 10% of SIED request):
List other funding source(s):
TOTAL public project costs:
TOTAL private investment in plant/equipment
$117,586.00
$117,585.00
$ 68,244.46
$561870.38 - Developer contribution
$11,374.08 - City of Yakima in-kind
$303,416.46
$2,700,000.00
Project title: Chinook Business Park — Baby Jogger Expansion Project
Resolution # authorizing application:
99-110 See Attachment 1
Declaration: 1 HEREBY CERTIFY THAT THE INFORMATION GIVEN IN THIS APPLICATION TO THE
SUPPORTING INVESTMENTS IN ECONOMIC DEVELOPMENT BOARD IS TRUE AND CORRECT TO THE BEST
OF MY KNOWLEDGE AND BELIEF.
Signature of Responsible Official:
Print or Type Name and Title:
Application for Funding, 1998
Richard A. Zais, City Manager
Page 3
Yakima County SIED Program
Yakima County
Supporting Investments In Economic Development Board
A. REQUEST FOR FUNDING
A1. Indicate the full terms requested for SLED consideration.
♦ A loan of: $117.585.50
♦ A grant of $117,585.50
♦ A deferral of the first loan payment (up to five years): No deferral requested.
♦ Loan terms requested •Annual interest rate: 4%
•Total number of years for repayment: 7
♦ What is the basis for a lower interest rate request?
The interest rate request is based on two factors:
1. Washington State Public Works Trust Fund interest rates. The PWTF provides
interest rates of 3%, 2% and 1%, depending on the amount of local match
provided. Loan applications providing in excess of 30% match are afforded a
1% interest rate under this formula, 20% match provides 2% interest and 10%
match provides 3% interest.
2. Interest rates of projects previously funded by SIED.
Application for Funding, 1998 Page 4 Yakima County SIED Program
Yakima County
Supporting Investments In Economic Development Board
B. PUBLIC SECTOR PROJECT
81. Describe the entire public facility project, including the parts that you are not asking SIED to fund.
The Chinook Business Park, owned by Mr. Gary Lukehart, has entered into an agreement to
build to suit a manufacturing/assembly facility for Racing Strollers, Inc., doing business as
Baby Jogger. The facility will be located on approximately 2 acres of the Chinook Business
Park, at 1700 North 6th Street, which is currently zoned M-1 Light Industrial. The facility will
be 37,000 ± square feet with 97 parking spaces and cost approximately $2,500,000 to
construct. When completed, the new facility will allow Baby Jogger to retain approximately
75 jobs and create 25 new positions.
Chinook Business Park has approached the City to apply for SIED funding, which would
offset the costs of providing infrastructure (road, curb, gutter, sidewalks, sewer/water
mains) off of North 4th Street, North 5th Street, "R" Street and "S" Streets; and North 6th
Street. The total cost of the infrastructure improvements is estimated at $303,416.46.
82. Will this project upgrade an existing public facility? NO. Build a new one? YES. Describe.
Reference B1.
83. List all funding sources for the public project and amount. •Identify whether the amount has been provided or
is being requested. Provide the status and date the funds were approved or the date that funds are expected
to be approved:
SOURCE STATUS DATE AMOUNT
SIED loan requested Applied 9/9/99 $117,586.00
SIED grant requested Applied 9/9/99 $117,586.00
Private Developer Funds Committed Present $56,870.38
City of Yakima In-kind Committed 8/17,99 $11,374.08
Total project costs $303.416.46
84. Specifically, for what element(s) of the public project are SIED funds requested?
The City of Yakima requests SIED funding to offset the costs of providing infrastructure
(road, curb, gutter, sidewalks, sewer/water mains) off of North 4th Street, North 5th
Street, "R" Street and "S" Streets; and North 6th Street. The total cost of the
infrastructure improvements is estimated at $303,416.46.
85. Include a site map of the area. Identify the location of the site, public infrastructure and private development
project (existing and/or proposed). Specifically identify where SIED funds are proposed to be used.
See Attachment 2
Application for Funding, 1998 Page 5 Yakima County SIED Program
Yakima County
Supporting Investments In Economic Development Board
B6. Attach engineering estimates supporting project costs. Identify whether estimates are from preliminary
engineering or design engineering work.
Preliminary and design engineering work have been prepared by Michael Battle, PE
of Huibregtse, Louman Associates, Inc. and are presented in Attachment 3.
B7. Describe how the public facility project will enhance or encourage other development in the immediate area in
addition to the direct development described in this application (Section D.)
This project will improve access for neighborhood residents and the general public to
industrial and recreational development in the area with the addition of curbs,
gutters, storm drainage and sidewalks.
The Chinook Business Park area is one of the few remaining industrial zoned
properties located next to Interstate 82 within the Yakima Urban Area. The
development of this infrastructure will also provide an additional incentive for
businesses locating to Yakima.
88. List all permits and environmental reviews required for the PUBLIC SECTOR PROJECT and give their current
status (applied for, application being prepared, permit issued, etc.)
NOT APPLICABLE
89. If environmental permits are not required for the project, please explain why they are NOT required.
NOT APPLICABLE
810. Estimated schedule for public project completion. Indicate the month and year when the activities
listed have been, or will be, completed.
Preliminary Engineering Report
Environmental Review
All Required Permits Obtained
Design Engineering
Land/Right-of-Way Acquisition
Prepare Bid Documents
Award Construction Contract
Begin Construction
Project Operational
ESTIMATED COMPLETION DATE
(month/year)
August 1999
August 1999
September 1999
August 1999
August 1999
August 1999
September 1999
October 1999
January 2000
Application for Funding, 1998 Page 6 Yakima County SIED Program
Yakima County
Supporting Investments In Economic Development Board
B11. What other jurisdictions, such as counties, cities, port districts, tribes, state/federal agencies are involved in the
planning, design, financing, construction or operation of this project?
The project is a partnership between the City of Yakima and Chinook Business Park.
812. Will the SIED public facility project be totally maintained by the applicant? If not, whom? Please explain.
The City of Yakima will maintain the public facility project as part of its street and
utility systems.
B13. How will this project impact utility rates and public services within the jurisdiction?
The project will enhance public services within the jurisdiction by providing improved
emergency vehicle access and expanding opportunities for neighboring residents to
connect to the City's water and sewer system.
B14. Is this project consistent with your local comprehensive and capital facilities plans? If no, please explain.
The project is consistent with the local comprehensive plan to retain and expand
existing Yakima County businesses. The City of Yakima has also begun the process
for inclusion of the project into its capital funding plans, including the Capital
Facilities Plan and the Transportation Improvement Plan.
Application for Funding, 1998
Page 7 Yakima County SIED Program
Yakima County
Supporting Investments In Economic Development Board
C. FINANCIAL INFORMATION ON CITIES, TOWNS, PORT DISTRICTS AND COUNTIES
C1. Identify funds (General Fund, Utility Fund, Property taxes, etc.) that are eligible to repay a SLED loan.
The City will enter into a loan agreement with Chinook Business Park for the
repayment and security of the SIED loan. General fund and local tax dollars will not
be pledged for repayment of the loan.
C2. In the context of the local government's overall annual budget, explain the need for SIED assistance. If the
applicant has budget reserves, please explain why these funds are not available for the project?
The City of Yakima policy is for infrastructure improvements related to new
construction to be paid for by the project developer. Local funds for infrastructure
improvements are limited in their use to maintenance and operations expenses, and
improvements to components of the existing system. But for the availability of SIED
funds, the City of Yakima would not be able to assist with the development of this
project.
C3. If the local jurisdiction is not financially contributing to the project, please explain why.
The City is contributing engineering and inspection costs to the project.
C4. Has the use of revenue or general obligation bonds, LID, ULIDS been explored for this public facility project?
Yes No_X . Explain the outcome and describe why these financing sources would or would not be
applicable for this project.
This development is project specific whereby the private developer is funding or
donating all project costs outside of the City's in-kind contributions of staff.
C5. Will a revenue stream be generated that could repay a SIED loan outside of the system's normal
operations and maintenance costs? Yes No_X . Please explain.
The revenue streams created by the project are utility user fees and sales tax paid by
the tenant of the new facility, in addition to property taxes. However, these funds will
not be used to repay the loan as this is a project specific development where the
developer is entering into agreement with the City to repay the SIED loan.
Application for Funding, 1998 Page 8 Yakima County SIED Program
Yakima County
Supporting Investments In Economic Development Board
C6. Other public sources of funding for public economic development projects are listed below. Indicate which
public sources were investigated to fund this project, in addition to SIED. Indicate what the outcome was.
FEDERAL:
Economic Development Administration
Rural Development
T21 (ISTEA)
STATE:
Transportation Improvement Board
Community Development Block Grant
Public Works Trust Fund
Department of Ecology
CERB
RTPO/MPO
Other
YES NO OUTCOME
X
X
X
Insufficient time frame
X Project ineligible due to
location in urban area.
Application planned for
Enhancement Funds.
Insufficient time frame
and lacks traffic counts
for competitiveness.
No 1999 economic
development funds
available.
Insufficient time frame
X
X Insufficient time frame.
X _ Enhancement funding
application planned.
Explain why SIED funds are necessary and the outcome of the investigation of other fund sources:
The Baby Jogger Expansion Project is an example of what SIED funding is intended
to accomplish. A local manufacturing company has grown beyond the limitations of
its current facility. In order to keep pace with increased business, the company needs
a new facility. Its desire is to remain in Yakima County, and SIED funding will ensure
that this happens.
SIED funds are necessary for the successful completion of this project because they
provide a timely access to grant and loan funds that fit the needs of the developer
and Baby Jogger. Project costs have increased significantly due to the project's size
and required infrastructure. Without SIED funds, the project would either be delayed
pending other funding sources or scaled back significantly, putting at risk the ability
to retain Baby Jogger to the Yakima area.
Application for Funding, 1998 Page 9 Yakima County SLED Program
Yakima County
Supporting Investments In Economic Development Board
D. PRIVATE SECTOR COMMITMENT
D1. In order to show that a specific private investment is ready to occur, but will do so only if SIED assistance is
made available to the applicant, SIED requires a signed Contingency Agreement(s) between the applicant and
the private sector representative(s). If a developer is involved, there must also be a signed Contingency
Agreement between the developer and the proposed tenant.
SEE ATTACHMENT 4 -- CONTINGENCY AGREEMENT
D2. Describe the proposed private development or expansion project that will be supported by the public facility
project.
Business: The Baby Jogger
The Chinook Business Park, owned by Mr. Gary Lukehart, has entered into an
agreement to build to suit a manufacturing/assembly facility for the Baby Jogger
Company. The facility will be located on approximately 2 acres of the Chinook
Business Park, at 1700 North 6th Street, which is currently zoned M-1 Light Industrial.
The facility will be 37,000 + square feet with 97 parking spaces and cost
approximately $2,500,000 to construct. When completed, the new facility will allow
Baby Jogger to retain approximately 75 jobs and create 25 new positions.
D3. Name of private sector firm Chinook Business Park
Address 1901 North 4th Street
Yakima, Washington 98901
Phone/Fax Phone: 509/574-3889
Contact Person Mr. Gary Lukehart
Fax: 509/574-3891
D4. Explain why the private development requires the proposed public infrastructure improvements
described in this application.
The proposed infrastructure improvements are required for the following reasons:
1. Water and sewer transmission lines are not available on the building site.
2. Access presently consists of a dirt road that is closed in the evenings.
3. The increased truck and vehicle traffic caused by the new development will
present a clean air hazard with a significant increase in dust.
Application for Funding, 1998 Page 10 Yakima County SIED Program
Yakima County
Supporting Investments In Economic Development Board
D5. List the number of projected jobs, by job type, to be retained and/or created by the firm as a direct
result of the public infrastructure project supporting the private development.
Jobs must be expressed in Full Time Equivalents (FTEs).
Wage data should exclude fringe benefits.
*Management positions should be indicated as an annual salary.
Job Description
Current # Of
Jobs Retained**
(In FTEs)
# Of Jobs
Created Year 1
(In FTEs)
# Of Jobs
Created by
Year 3 (In
FTEs)
Current or initial
Hourly Wages
Local
Occupational
Hourly Wages***
Mgmt./Admin*
1
$40,000 per year
Technical/Prof.
Office/Clerical
1
$10-$11 per hour
Production*
10-15
7
$8.69 per hour
Sales
$40,000 + per year
Skilled Crafts
Others
* Job force fluctuates from 70 to 90 during peak season.
a) Number of Jobs **Retained: 0
b) Projected annual gross payroll for all job classifications $2,000,000.00 (after 36 months)
c) How many of these positions are for seasonal work? (In FTE) 10 to 30
d) What kind of fringe benefits does the company offer to regular full time employees?
> Medical and dental insurance
> Vacation and sick leave
> 401k retirement plan
> Tuition reimbursement
> Sabbatical leave
D6. Will this project displace existing jobs in any other part of the county?
No, the project creates jobs in Yakima County.
D7. How were job projections developed? Explain why the projections are realistic.
Job projections were calculated based on company growth patterns over the past
three years.
Application for Funding, 1998 Page 11 Yakima County SIED Program
Yakima County
Supporting Investments In Economic Development Board
D8. Will the private sector project offer expanded employment opportunities to disadvantaged or unemployed
workers? How will the firm work to hire people from Yakima County?
Baby Jogger currently has a number of disadvantaged or physically challenged
employees. Newly hired employees will be sought from employment agencies,
increasing the likelihood that they are unemployed at the time of hire.
D9. Indicate the construction schedule (if applicable) for the proposed private sector project.
(month/year)
Private Facility Construction Begins September 1999*
Private Facility Construction Completed December 1999*
Private Facility Operational January 1999*
* Times subject to change due to circumstances beyond the developer's control (i.e., adverse weather
conditions, permit delays, etc.)
D10. List all permits required for the PRIVATE SECTOR PROJECT and give their current status (applied for,
application being prepared, permit issued, etc.)
ANTICIPATED
PERMIT/ENVIROMENTAL COMPLETION
REVIEW ISSUER STATUS DATE
Plan Review City of Yakima In process August 1999
Land Use Application City of Yakima In process August 1999
Class 2 Review City of Yakima In process August 1999
SEPA Checklist City of Yakima In process August 1999
Building Permit City of Yakima In process August 1999
Traffic Capacity Test City of Yakima In process August 1999
DI 1. What private authorizations remain prior to proceeding with the proposed private development project?
No additional private authorizations are pending.
D12. Explain how the private sector is financing their capital investment in this project. When will private sector
financing be in place? Please list financial references that can verify financing sources and capacity for this
project.
The private sector capital investment to the project will be financed by Western Bank, the
commercial banking division of Washington Mutual Bank. These funds will be used for the
construction of the building housing the Baby Jogger operation.
Financial contact: Bob Seitz phone#: 574-3930
Application for Funding, 1998 Page 12 Yakima County SIED Program
RESOLUTION NO. R-99-1
A RESOLUTION authorizing the City Manager to execute and submit grant and loan
application with Yakima County for funding from the Yakima County
Supporting Investments in Economic Development (SIED) Fund for
infrastructure improvements necessary for the Baby Jogger Expansion
Project; and setting a public hearing on September 7, 1999 to consider
amending the City's applicable capital funding plans to include all costs
associated with said infrastructure improvements.
WHEREAS, Yakima County has established the Supporting Investments in Economic
Development (SIED) fund to assist the growth of manufacturing business in the County; and
WHEREAS, economic development is a priority for the City of Yakima, and the City
intends to approach economic development on an inclusive, comprehensive basis which involves
public, private and community-based efforts to achieve new investment and redevelopment in the
City; and
WHEREAS, in order to expand its operations, the Baby Jogger Company has entered into
an agreement with Chinook Business Park, LLC ("Chinook"), whereby Chinook will construct a
new manufacturing facility ("Baby Jogger Expansion Project") for the Baby Jogger Company at 1700
North Sixth Street, Yakima, Washington; and
WHEREAS, the site for the Project is currently zoned M-1 Light Industrial; and
WHEREAS, the Baby Jogger Expansion Project will retain at least 75 jobs and create 25
new full time equivalent positions; and
WHEREAS, the Baby Jogger Expansion Project requires construction of certain
infrastructure improvements (i.e., road, curb, gutter, sidewalks, sewer lines, and water lines) in the
general area of the Project; and
WHEREAS, funding (through a grant/loan) may be available from Yakima County through
the SIED Fund for the required infrastructure improvements; and
WHEREAS, Chinook has requested that the City submit a grant/loan application with
Yakima County to fund the infrastructure improvements from the SIED Fund; and
WHEREAS, in consideration and as a condition of the City applying for said grant/loan,
Chinook agrees to pay/reimburse the City the total amount that the City pays or becomes obligated
to pay Yakima County pursuant to the SIED grant/loan; and
WHEREAS, the infrastructure improvements are eligible for inclusion in the Six -Year
Transportation Improvement Plan; and
ITEM TITLE:
SUBMITTED BY:
CONTACT:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. i �-
For Meeting Of: August 17, 1999
Consideration of a resolution to: 1). Authorize the City Manager to
execute and submit a grant/loan application to the Yakima County
Supporting Investments in Economic Development (SIED) fund for
the Baby Jogger Expansion Project; and 2). Set a public hearing
for September 7, 1999 on amendments to the City's capital funding
plans for street and utility improvements related to the Baby Jogger
insion Project.
Cook, Director of Community and Economic Development
Bill Cook, 575-6113
SUMMARY EXPLANATION:
The Chinook Business Park, owned by Mr. Gary Lukehart, has entered into an
agreement to build to suit a manufacturing/assembly facility for the Baby Jogger
Company. The facility will be located on approximately 2 acres of the Chinook Business
Park, at 1700 North 6th Street, which is currently zoned M-1 Light Industrial. The facility
will be 37,000 ± square feet with 97 parking spaces and cost approximately $2,500,000
to construct. When completed, the new facility will allow Baby Jogger to retain
approximately 75 jobs and create 25 new positions.
Chinook Business Park has approached the City to apply for SIED funding, which would
offset the costs of providing infrastructure (road, curb, gutter, sidewalks, sewer/water
mains) off of North 4th Street, North 5th Street, "R" Street and "S" Streets; and North 6th
Street. The total cost of the infrastructure improvements is estimated at $311,594.00.
CONTINUED ON FOLLOWING PAGE
Resolution _X Ordinance Contract Other: Loan Application
Funding Source: Yakima County SIED Fund
Approval for Submittal: ��rZ
City Manager
STAFF RECOMMENDATION: Staff recommends approval of the resolution.
BOARD RECOMMENDATION:
COUNCIL ACTION:
1
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VICINITY MAP
"8" STREET AND NORTH FIFTH STREET
ROADWAY AND UTILITY IMPROVEMENTS
AUGUST 31, 1999
City of Yakima
"S" Street and North Fifth Street Roadway and Utility Improvements
City of Yakima Tracking No. 1887
HLA No. 95114
09/02/99
Project Cost Summary
Total Project Construction Cost
(includes construction, contingency, and taxes)
Total Engineering Cost
(includes design, plans, specifications, and const. surveying)
Total City of Yakima Fees
(estimated at 5% of construction for review and const. inspection)
$235,171.95
$56,870.38
$11,374.08
Total Estimated Project Cost $303,416.40
CITY OF YAKIMA
Street and Utility Improvements 09/02/99
"S" Street; N. Fifth Street; Sewermain Improvements; Watermain Improvements
HLA No. 95114
No.
Description
Unit
Quantity
Cost
Total
Schedule A - "S" Street Improvements
1
Mobilization
L.S.
1
$5,000.00
$5,000.00
2
Clearing and Grubbing
L.S.
1
$2000.00
$2,000.00
3
Unclassified Excavation Including Haul
C Y
500
$10.00
$5,000.00
4
Crushed Surfacing Base Course
TON
600
$14.00
$8,400.00
5
Crushed Surfacing Top Course
TON
20
$20.00
$400.00
6
Asphalt Concrete Pavement Class A
TON
160
$40.00
$6,400.00
7
Asphalt Treated Base
TON
240
$36.00
$8,640.00
8
Cement Concrete Barrier Curb and Gutter
L.F
355
$7.00
$2,485.00
9
Mountable Cement Conc. Curb and Gutter
L.F
245
$7.00
$1,715.00
10
Cement Concrete Sidewalk, 4 Inch Thick
S.Y.
170
$20.00
$3,400.00
11
Adjust Valve Box to Grade
EA
3
$250.00
$750.00
12
Illumination System Complete
L.S.
1
$4,000.00
$4,000.00
Subtotal $48,190
Contingency 15% $7,229
Subtotal $55,419
Tax 0% $0
Engineering 25% $13,855
City of Yakima Engineering Fees 5% $2,771
TOTAL $72,044
CITY OF YAKIMA
Street and Utility Improvements 09/02/99
"S" Street; N. Fifth Street; Sewermain Improvements; Watermain Improvements
HLA No. 95114
No.
Description
_ Unit
Quantity
Cost
Total
Schedule B - N. Fifth Street Improvements
1
Mobilization
L.S.
1
$5,000.00
$5,000.00
2
Clearing and Grubbing
L.S.
1
$2,500.00
$2,500.00
3
Unclassified Excavation Including Haul
C.Y
300
$10.00
$3,000.00
4
Crushed Surfacing Base Course
TON
750
$14.00
$10,500.00
5
Crushed Surfacing Top Course
TON
20
$20.00
$400.00
6
Asphalt Concrete Pavement Class A
TON
190
$40.00
$7,600.00
7
Asphalt Treated Base
TON
290
$36.00
$10,440.00
8
Cement Concrete Barrier Curb and Gutter
L.F
600
$7 00
$4,200.00
9
Mountable Cement Conc. Curb and Gutter
L.F
130
$7.00
$910.00
10
Cement Concrete Sidewalk, 4 Inch Thick
S.Y
185
$20.00
$3,700.00
11
Storm Sewer Pipe, 12-inch
L.F.
110
$22.00
$2,420.00
12
Catch Basin
EA
3
$850.00
$2,550.00
13
48-Inch Storm Drain Manhole
EA
1
$2,000.00
$2,000.00
14
Select Backfill
TON
50
$15.00
$750.00
15
Infiltration Trench
L.S.
1
$5,000.00
$5,000.00
16
Illumination System Complete
L.S.
1
$4,000.00
$4,000.00
Subtotal $64,970
Contingency 15% $9,746
Subtotal $74,716
Tax 0% $0
Engineering 25% $18,679
City of Yakima Engineering Fees 5% $3,736
TOTAL $97,130
CITY OF YAKIMA
Street and Utility Improvements 09/02/99
"S" Street; N. Fifth Street; Sewermain Improvements; Watermain Improvements
HLA No. 95114
CITY OF YAKIMA
Street and Utility Improvements 09/02/99
"S" Street; N. Fifth Street; Sewermain Improvements; Watermain Improvements
HLA No. 95114
No.
Description
Unit
Quantity
Cost
Total
Schedule C - Sanitary Sewer Improvements
1
1
Mobilization
L.S.
1
$3,000.00
$3,000.00
2
PVC Sanitary Sewer Pipe, 8 -Inch Diameter
L.F
340
$25.00
$8,500.00
3
PVC Sanitary Sewer Pipe, 6 -Inch Diameter
L.F
50
$20.00
$1,000.00
4
Manhole, 48 -inch Diameter
EA
1
$2,250.00
$2,250.00
5
Select Backfill
TON
500
$15.00
$7,500.00
6
Shoring and Cribbing
L.F
390
$2.00
$780.00
Hydrant Assembly
EA
3
$2,000.00
$6,000.00
9
Service Connection, 2 -inch
Subtotal $23,030
Contingency 15% $3,455
Subtotal $26,485
Tax 7 9% $2,092
Engineering 25% $6,621
City of Yakima Engineering Fees 5% $1,324
TOTAL $36,522
CITY OF YAKIMA
Street and Utility Improvements 09/02/99
"S" Street; N. Fifth Street; Sewermain Improvements; Watermain Improvements
HLA No. 95114
No.
Description
Unit
Quantity
Cost
Total
Schedule 0 - Water System Improvements
1
Mobilization
L.S.
1
$6,000.00
$6,000.00
3
Ductile Iron Pipe for Water Main, 8 -Inch Diameter
LF
1065
$28.00
$29,820.00
4
Ductile Iron Pipe for Water Main, 6 -Inch Diameter
L.F
80
$25.00
$2,000.00
5
Butterfly Valve, 12 -Inch
EA
1
$1,000.00
$1,000.00
6
Gate Valve, 8 -Inch
EA
5
$650.00
$3,250.00
7
Gate Valve, 6 -Inch
EA
3
$600.00
$1,800.00
8
Hydrant Assembly
EA
3
$2,000.00
$6,000.00
9
Service Connection, 2 -inch
EA
1
$500.00
$500.00
5
Select Backfill
TON
600
$15.00
$9,000.00
6
Shoring or Extra Excavation Class B
L.F.
1125
$2.00
$2,250.00
Subtotal $61,620
Contingency 15% $9,243
Subtotal $70,863
Tax 7.9% $5,598
Engineering 25% $17,716
City of Yakima Engineering Fees 5% $3,543
TOTAL $97,720
MEMORANDUM
TO: Mike Morales
FROM: Linda Watkins
DATE: April 25, 2000
SUBJECT: Contract Follow -Up
In September, 1999 a Contingency Agreement between the City and Chinook
Business Park and Racing Strollers (Baby Jogger) was approved by Resolution
No. 99-110. This was an SIED Grant and Loan Application. My noes show it was
signed by Dick Zais and Gary Lukehart but required the Racing Strollers'
signature and that it was hand delivered to you on September 8, 1999 to obtain
that signature. We never received a signed original (or copy) back.
Could you please check your records and see if you have a signed copy of this
agreement and, if so, forward an original/copy to us for our files. Let me know
if you don't have it and we'll try to determine what steps to take to obtain one.
Thanks.
August 12, 1999
TO: City of Yakima Economic Development Committee
FROM: David McFadden, New Vision — 575-1140
RE: Preparing for Discussion on Incentives with CB Richard Ellis Client
Several months ago we talked with a site selection consultant representing a 1000 job
customer service center client. They will be visiting next Thursday (8/19), and meeting
with you to discuss incentives. In preparation for this visit, Bill Cook and I have carefully
evaluated what the City could potentially do to help attract this project to Yakima. The
following outlines our latest views on possible City incentives.
Background
Our state Constitution's prohibition on the lending of credit makes it difficult for cities to
offer incentives to private companies. Cities can, however, use federal CDBG funds for
economic development. These funds can be packaged as incentives to help a
company expand or locate in our community. Over the past two years, the City has
begun to fund economic development activities using CDBG funds.
Current Recruitment Opportunity
New Vision has responded to over 50 call centers evaluation Yakima as a potential
location for new facilities. One group in particular, CB Richard Ellis out of Phoenix, has
brought several large clients through our area (Staples, Bass Resorts, Avis). Next week
these site selection consultants will be bringing a major financial institution through town
to evaluate our community. I am attaching a letter that acquaints you with the
company's needs. This correspondence points out that incentives are important to the
company. The letter also suggests that CB Richard Ellis has had significant success
locating these operations across the United States.
Evaluating Yakima's Potential Incentives
Bill Cook and I have examined how CDBG-based resources could be used as
incentives. Here are some ways we could package these funds to attract companies to
Yakima:
ID Float Loan — The City could offer the company a short-term (12 mos. or less)
low or no interest loan that would lower the firms' construction costs. Up to
$500,000 could be made available through this mechanism.
CDBG Resources — The City could tap its CDBG resources to help fund
company facility investments. The most interesting scenarios involve using these
funds to lease land at the airport for the company. After discussing this with Bob
Clem, we think it's possible to lease 12 acre airport sites for $35,000 to $50,000
annually. CDBG funds could also be used to write down company borrowing
costs. These funds could also be used to fund an on-site child care facility or
other key parts of the facility. Historically, the City has used CDBG resources to
pay off housing bonds, so a multi-year CDBG commitment is possible.
E> HUD 108 Funding — The City still has $1 million available of 108 funding if
Morrier's project goes forward. These funds could be used to help fund the
company's facility, or to purchase of lease land for the client.
Fast Track permitting and Development Support — New Vision is prepared offer 0.5
FTE to the company during the critical early development gent phase of their project. It
would be attractive if the City could make similar resources available. I do not think the
company would ever tap these FTEs to their full extent, but I think the offer would be
well received. We will also have our local training institutions dedicate an FTE to the
company during the
company's hiring and training phase.
Conclusion
After discussing incentives with CB Richard Ellis, they advised me to make our offer in
simple terms. I'd suggest we offer the company $1000 of incentive per job they create.
We should also indicate that we need some flexibility to package our tools, so that the
company gets what it wants and the City can meet CDBG program requirements. Bill
and I think this offer is realistic.
I look forward to discussing this client visit with you on Monday.
BROKERAGE SERVICES
May 14, 1999
David McFadden
New Vision
PO BOX 1387
Yakima, WA 98907
41441.
Dear David: /i`.)vy�r
We will be visiting Yakima with one of our clients on June 2nd to evaluate your community for a
1000 -seat call center facility. This company will be interested in discussing the local labor
market, connecting with job training providers, and evaluating sites for a 100,000 square foot
build to suit facility.
Incentives will be important to the company, and we are especially attracted to the City of
Yakima's HUD financing. Being able to tap this funding for construction costs or tenant
improvements could help Yakima gain a competitive edge over other communities being
considered for this project.
Over the last 4 years, our call center team at CB Richard Ellis has helped 45 companies locate
iew facilities across the United States. These companies have invested over $76 million in
facilities, and they collectively employ over 19,000 people at their operations. Employees at
these call centers typically make eight dollars per hour; plus they receive decent benefits.
After having Staples and several other call center clients visit Yakima, we are optimistic that
your community is a good fit for one of these operations. You have the labor force,
telecommunications infrastructure, and general business climate that our clients need. The only
factors that are missing seem to be available buildings and bottom-line incentives.
We would like to meet with the City of Yakima during our upcoming visit to discuss whether
your HUD funding could be used to support our client's needs. Yakima is definitely on our short
list for clients we work with, and we want to be first through the gate in terms of bringing you a
call center operation.
Please call me if you have any questions. I'll look forward to receiving your itinerary for our
upcoming visit in June.
CB ® Richard Ellis
CB Richard Ellis, Inc.
2415 E. Camelbock Road
Phoenix, AZ 85016-4290
www cbrichardellis.com
Sincerely,
es J. gh
irst Vice Pr= ident
602-735-55.9
\\PHXO\VOL I\SUPPORI\CTMUTrobaugh\Yakima Itr.doc
RECEIVED MAY 2 1 1S99
gust 11,1999
TO:
FR:
RE:
Economic Development C
City of Yakima
Luz Bazan Gutierrez
President & CEO
Acton Ass0
0
Minority & Women Lending Initiative (MWLI) Loan Fund
We are respectfully requesting that the new contract with the City of Yakima and WAME be
amended in order to increase the efficiency and number of loans and allow for leveraging of these
monies for other federal grants. The contract language would need to be changed to make
WAME the subrecipient. The projected $50,000 for capital and the $12,500 for technical
assistance would function as the Lower Valley RLF functions now. The reasons are as follows:
(1) The change will allow more efficiency in its operation and increase the number of loans for
City businesses. The recommendation is based on the very successful track record of the Yakima
County Microenterprise Revolving Loan Fund that is a pass through from the City of Sunnyside.
(WAME/City of Sunnyside Contract Attached) This City/WAME partnership has proved
successful. Approximately $400,000 has passed through the City of Sunnyside to WAME during
ne last 2 1/2 years. All funds have been accounted for and have provided clean audits since its
inception. The process provides for a loan review committee to review all loan packages and the
Board of WAME making final approval. We believe this model will generate more loans for the
City of Yakima and therefore more tax revenue for the City of Yakima. _
(2) The second reason is related to being able to use the $50,000 as leverage to match a $300,000
grant from EDA for bigger loans. The $50,000 cannot be used as a match if the City Council is
the decision maker on loans. The present contract will not allow this to happen. (Copy of Letter
to EDA attached)
(3) WAME has just changed the legislative entity for the YCMRLF to Yakima County and an
additional $125,000 has been awarded. The contract will be the same as the City of Sunnyside. A
$50,000 match for the EDA grant will be used. (Copy of Award Letter Attached)
Washington Association of Minority Entrepreneurs
24& 3rd Avenue
P.O. Bar 9492
Yakima, WA 98909-0492
(509) 453-5133
Far: (509) 453-5165
CLIENTS TO WHOM WE ACTUALLY MADE LOANS
Rich's Auto Repair
Flores Coin Op Laundry
Hernandez Law Office
H&H Upholstery
Eddie's Video
Security Seru.ce
Garza Security . ' .--
Maria's Home Licensed
Cruz Tub & Tile
Panaderia & Birreria Cha
La Fogata
Noni Thaxton Services
Amigo Gardener
Pretty Woman Designs
Zavala Trucking
Viilegas Iron Arts
Car denas Hoof Trimming
(Hernandez) Office Party
Total CTED Loans
Home Applicance
Las Lupitas
Migoli Woodworks
El Alacran
TJ'S Refrigeration
Gill's Marina
El Taco Loco Taqueria
Corie's Graphics
Anguiano Products
Total USDA Loans
,1.A:'
Grandview
Wapato
Grandview
Sunnyside
Toppenish
Sunnyside
Toppenish
Grandview
Toppenish
Sunnyside
Grandview
Selah
Sunnyside
Grandview
Moxee
Outlook
Sunnyside
M
M H
M H
M H
M H
M H
F H
M H
F H
F H
F WF
M H
F H
M H
M H
M H
M H
510,000 00
517,754 00
$25,000 00
520,000 00
$15,000 00
55,000 00
51,500 00
525,000.00
$20,000 00
525,000 00
52,135 52
520,000.00
513,590.00
525,000.00
$25,000.00
525,000.00
525,000 00
$274,979 52
Sunnyside
Sunnyside
Grandview
Sunnyside
Sunnyside
Sunnyside
Grandview
Granger
Wapato
M
M
M
M
M
M
H
H
H
H
WM
H
H
H
CTED
C
rrrn
l�I U
CTED
CTED/USDA
CTED
CTED
CTED
CTED
CTED
CTED/USDA
CTED
CTED
CTED
CTED
CTED
CTED
CTED
1 00 C
2 00 C
3 00 C
3 00 PO
100 0
4 00 0
1.00 0
4 00 D
3 00 0
4 00 0
1 00 C
5 00 New
100 C
100 New
2.00 New
1.00 New
1 D
law
Cruz Electric
Gonzales Constructions
Total City of Yakima Loans
OTHER
Yakima M
Yakima
M
Western Quick Luba
Work Plus & Associates
Total Other Loans
Toppenish
Sunnyside
M
M
515,000 00
$1�,vvv vnnnnn
.y .vv
510,000 00
$10,000.00
$25,000 00
525,000 00
$15,000 00
$10,500.00
520, 000.00
$145,500.00
USDA
IISDA
USDA
USDA
USDA
USDA
USDA
USDA
USDA
2 00
0 00
1 00
1 00
3 00
1 00
2 00
1.00
2.00
PO
D
C
D
C
C
C
C
New
t131]►OG ( "4:'; % 13BS y
300
2.00 C
H 515,000 00 Yakima
H $16,074 00 Yakima
531,074 00
H
H
STAT.Y
`� � ;> , K `= ,i„r :SOBS STAT
5101,000.00 SBA Pre Qual 3.00
$10,225.00 SBA -Pre Qual z- I . -C—
$111,225.00
$111,225.00
August 5,1999
Thomas Bridges
Program Manager
U.S. Dept of Commerce
915 Second Ave.
Seattle. Wa. 98174
Dear Mr. Bridges:
This is a summary of our discussion yesterday in regard to you or your representative not being
able to make any recommended changes on the contract itself
You told me that the biggest stumbling block in regard to being able to use the City of Yakima's
$50,000 as a match for the EDA capital is as follows:
Page 2, paragraph d: "The City, through its Economic Development Committee,
retains final authority to approve or deny any loan application."
You stated that this paragraph will "take away final authority from the grantee's (WAME) loan
review and approval process that has already been cleared through EDA...that process is already
in place with the Yakima County RLF."
Thank you for your work on getting to this point...we continue to move forward. The EDA RLF
committee has met again and all final forms will be submitted by next week to have the press
release and final announcement in early September.
cc: Bill Cook, Director
City of Yakima Economic Development Committee
Washin0ton Assneiation of Minority Entrepreneurs
24 S 3rd Avenue
)'O. Aar 9492
Yakima, WA 90909.0492
(509) 453.5133
Fax (509) 453.5165
MUNICIPAL SERVICES AGREEMENT
This agreement made and entered into and between the City of Sunnyside (hereinafter referred
as the CITY) and the Washington Associate n -of Minority Entrepreneurs (hereinafter referred to
as WAME) witnesses that:
WHEREAS, the CITY and WAME are desirous of entering into an Agreement to formalize their
relationship. and
WHEREAS. pursuant to Title I of the Housing and Community Development Act of 1974, as
amended. the Washington State Department of Housing and Urban Development (HUD) to
provide Small Cities Discretionary Community Development Block Grant(CDBG) Program
selected to y undertake • carry certain programs and
funds to units of local government and carry out ___ _____ programs
projects under the Washington State Community Development Block Grant Program in
compliance with all applicable local. state. and federal laws, regulations. and policies, and
WHEREAS. the CITY , as part of its CDBG grant agreement with DCTED. has been awarded
CDBG C. theof establishing. 1,........ o.,t program to make
CDBG Bunds for purpose a Microenterprise development program
small business loans to benefit low and moderate income people Sunnyside, Grandview, Mabton,
Wapato and Toppenish.
WHEREA-S; the Services included in this agreement are authorized as part of the-CITY's
approved CDBG project, and:
WHEREAS, it would be beneficial to the CITY. in conjunction with the Regional Advisory,
Committee. as set forth in the Interlocal Agreement, incorporated herein by reference as
Exhibit"A", between the five (5) jurisdictions above named, to utilize WAME as an independent
non-profit corporation engaged in originating and servicing small business loans to accomplish
the Services as set forth herein.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES, COVENANTS,
AND PROVISIONS CONTAINED herein, and the mutual benefits to be derived therefrom, the
parties hereto agree as follows:
1. Services to be provided by the parties
a. WAME shall complete in a satisfactory and proper manner, as determined by the CITY
the services described in the 1995 Regional Microenterprise Project Community
Development Block Grant Application attached hereto and incorporated herein as Exhibit
"B" and in accordance with the provisions of the Contract between the CITY and DCTED,
attached hereto and incorporated herein as Exhibit "C", and the Non -Construction CDBG
Management Handbook, incorporated herein by reference, hereinafter referred to as to
"Services."
1
b. The CITY will provide such assistance:and guidance as may be required to support the
objectives set for the as the Services and will provide compensation as set forth in Section 3
below. The CITY will monitor the performance of WAME against goals and performance
standards required herein. Substandard performance as determined by the CITY will
constitute non-compliance with this Agreement. If action to correct such substandard
performance is not taken by WAME within a reasonable period of time after being notified
by City, Agreement suspension or termination procedures will be initiated.
2 Time of Performance
The effective date of this Agreement shall be the date the parties sign and approve
execution of the Agreement. The termination date of the Agreement shall be with
the termination date and close-out procedures and provisions in the contract between the
CITY and DCTED (Exhibit "C" hereto).
3. Consideration
The CITY shall reimburse WAME monthly based on a projected monthly estimate of costs,
with a detailed prior monthly report for all allowable expenses agreed upon by the parties to
complete the Services. The Services shall be billed at approved rated according to the
budget accepted by DCTED.
In no event shall the total amount to be reimbursed by the CITY exceed the sum of $195,500.
with expenditures in compliance with the provisions of the contract between the CITY and
DCTED and "Attachment I-1995 Project Summary." Reimbursement under this Agreement
shall be based on billings. supported by appropriate documentation of costs actually
incurred. It is expressly understood that claims for reimbursement shall not be submitted in
excess of actual, immediate cash requirement necessary to carry out the purposes of the
Agreement.
It is understood that this Agreement is funded in whole or in part with CDBG funds through
the Washington State Community Development Block Grant Program as administered by
DCTED and is subject to those regulations and restrictions normally associated with
federally -funded programs and any of those requirements that the state may prescribe,
which shall be followed by WAME.
4. Records
WAME agrees to maintain such records and follow such procedures as may be required by the
state's CDBG and any other such documents that the CITY or DCTED may prescribe. In
general and without limitation, such records, as outlined in the Non -Construction CDBG
Handbook incorporated herein by reference, will include information pertaining to the
2
Agreement. obligations and unobligated balances, assets and liabilities, outlays, equal
opportunity. labor standards (as appropriate). and performance.
All such records and all other records pertinent to this Agreement and work undertaken under
this Agreement shall be retained by WAME for a period of three years after final audit of the
CITY'S CDBG project. unless a longer period is required to resolve audit finding or
litigation. In such cases. the CITY shall request a longer period of record retention.
The CITY. DCTED and other authorized representatives of the CITY, state and federal
o.,t shall ha.: „nt;n,;teri and immediate access to anv books. documents, papers,
oo`IL1d116 ent shall ha,,e w
and records of WAME which are related to this Agreement or the operation of WAME for
any purpose..
5. Relationship
The relationship of WAME to the CITY shall be that of an independent or independent
contractor rendering professional services. WAME shall have no authority to execute
contracts or to make commitments on behalf of the CITY and nothing contained herein shall
be deemed to create the relationship of employer and employee or principal and agent
between the CITY and WAME.
In addition, this agreement creates no relationship between WAME and the State of
Washington. WAME shall not hold the State of Washington liable for any claims or damages
from it performance of the Services hereunder,
arising 11 Date its p�aavx
6. Suspension, Termination, and Close-out
If WAME fails to comply with the terms and condition to this Agreement, the city may pursue
such remedies as are legally available, including, but not limited to, the suspension or
termination of this agreement in the manner specified herein:
a. Suspension if WAME fails to comply with the terms and conditions of this Agreement, or
whenever WAME is unable to substantiate full compliance with provisions of this
Agreement, the CITY may suspend the Agreement pending corrective actions or investigation
effective no less that seven (7) days following written notification to WAME or its authorized
representative. The suspension will remain in full force and effect until WAME has taken
corrective action to the satisfaction of the CITY is able to substantiate its full compliance with
the terms and conditions of this Agreement. No obligations incurred by WAME or its
authorized representative during the period of suspension will be allowable under the
Agreement except:
3
(1) Reasonable. proper. and otherwise allowable costs which WAME could not avoid
during the period of suspension.
(2) If upon im esti<gation. WAME is able to substantiate compliance with the
terms and conditions of this Agreement. otherwise allowable costs incurred during the
period of suspension will be allowed: and
(3) In the event all of or any portion of the work prepared or partiality prepared by
WAME is suspended. abandoned, or otherwise terminated, the CITY shall pay WAME
for work performed to the satisfaction of the CITY, in accordance with the percentage of
the work completed.
b. Termination for Cause- If WAME fails to comply with the terms and condition of this
Agreement and am of the following condition exist:
(I) The lack of compliance with the provisions of this Agreement were of such scope
and nature that the CITY deems continuation of the Agreement of be substantially
detrimental to the interest of the CITY;
(2) WAME has failed to take satisfactory action as directed by the CITY or its
authorized representative within the time period specified by same; or
(3) WAME has failed within the time specified by the CITY or its authorized
representative to satisfactorily substantiate its compliance with the terms and
conditions of this Agreement; then,
The CITY may terminate this Agreement in whole or in part, and thereupon shall
notify WAME of termination, the reasons therefor, and the effective date.
Termination shall be governed in accordance with the provision of the contract
between the CITY and DCTED.
c. Termination for Other Grounds -This Agreement may also be terminated in whole or in Part;
(l) By the CITY, with the consent of WAME, or by WAME with the consent of the
CITY, in which case the two parties shall devise by mutual agreement, the
condition of termination, including effective dates and in case of termination in
part, that portion to be terminated;
4
(2) If the funds allocated by the CITY via this Agreement are from anticipated sources
of revenue. and if the aniticpated sources of revenue do not become available for
use in purchasing services:
(3) In the event the CITY fails to pay WAME promptly or within sixty (60) days after
invoices are rendered. the CITY agrees that WAME shall have the right to
consider said default a breach of this Agreement and the duties of WAME under
this Agreement terminated. In such event, the CITY shall then promptly pay
, performed expenses incurred:
WAME for all allowable sen°ices pc��V„ad�� and all allowable -••r------
or
(4) The CITY may terminate this Agreement at any time giving at least thirty (30)
days notice in writing to WAME. If the Agreement is terminated for convenience
, for t;n,a r�r['tt�i[�Pd
of the CITY as provided herein, WAivIE will be paid allowable p -
and allowable expenses incurred up to the termination date.
7. Changes. Amendments. Modifications
The CITY may. from time to time. require changes or modifications in the Services to be
performed. Such changes. including any decrease or increase in the amount of compensation,
which are mutually agreed upon by the CITY and WAME and shall be incorporated in
written amendment to this 'Agreement required as a result of amendment to DCTED
Contract # 1-95-774-092, attached hereto.
8. Personnel
WAME represents that they have. or will secure, all personnel required in order to perform
under this agreement. Such personnel shall not be employees of, or have any contractual
relationship to, the CITY.
All services required hereunder will be performed by WAME or under their supervision and
all personnel engaged in the work shall be fully be qualified and shall be authorized or
permitted under state or local laws to perform such services.
None of the work or services covered by this Agreement shall be subcontracted without prior
written approval of the CITY. Any work or services subcontracted hereunder shall be
specified in written contact or agreement and shall be subject to each provision of this
Agreement.
5
9. Assignability
WAME shall not assign any interest in this Agreement. and shall not transfer any interest in
this Agreement ( whether by assignment or novation). without prior written consent of the
CITY thereto: provided. however. that claims for money by WAME from the CITY under
this Agreement may be assigned to a bank. trust company. or other financial institution
without such approval. Written notice .of -any such assignment or transfer shall be furnished
promptly to the CITY by WAME.
10. Reports and Information
WAME. at such times and in such forms as the CITY may require. shall furnish the CITY
such periodic reports as it may request pertaining to the work or services undertaken pursuant
to this Agreement, the cost and obligations incurred or be incurred in connection therewith
covered by this Agreement.
11. Findings Confidential
All of the reports. information. data. etc.. prepared or assembled by WAME under this
Agreement are confidential and WAME agree that they shall not be may available to any
individual or organization without prior written approval of the CITY.
12. Copvright
No report, maps, or other documents produced in whole or in part under this Agreement shall
be subject of an application for copyright by or an behalf of WAME.
13. Compliance with All Laws.
WAME shall comply with all applicable laws, ordinances, statutes and codes of the federal,
state and local government and WAME shall hold the CITY harmless with respect to any
damages arising from any act or omission, negligent or intentional, done in performing any of
the Services embraced by this Agreement.
WAME shall comply with the followings laws. This list is in addition to and may be
duplicative of the provisions of this Agreement and its attachment, and is not intended to act as
a limitation on the Agreement and its attachments:
6
Title VII L. .ne Civil Rights Act of 19GS, commc, , referred to as the Federal
.0 ilii HOu->iRgACt, as amended by the !air Housing k nisi dments Act of 19SS
Executive Order No. 1 s Amended by Exenntive Order 12259
11v110Gy , r�
Section 109 of the Housing a11d Community Development Act of 1974, ns
Amended
Section )04(h) of the Housing and Community Development Act of 1974, as
amended
Section 164(d) of the Title I of the I-tottsing and Community Development Act of
1974, Rs amended
Section 104 (I) of the .busing and Community Development Act of 1074, as
amended.
Age Discrimination Act of 1975, as emended (42 U.S.C. 6101 et sec] )
Section 504 of the Rehabilitation Act of' 1773, As amended
Public 1.:tw 101-336,
U.S.0
12101 et seq.)
Section 3 of the Housing and Urban Development Act of 1968 (12 U S C. 1701u,
24 CFR Part 135)
11LIY
11 of the Americans with nisnhilities Act of 1990 (42
F.xecutive Order 11246, as amended by Exccutivc Order 1 1375
Davi Bacon Act, n; amended (40 U.S.C. 276a)
Copeland Act, Anti -Kickback Act (40 U.S.C. 276(c))
Contract Work Hours and Safety Standards Act (40 U.S.C. 32 7 et seq )
The National Environmcntnl Policy Act of 1969 (42 1J.S.C. 4321 ct beq. And 24
C.F.R. Part 58)
The Clean Air Act, AS amended (42 U.S.C. 7401 et seq )
HUD Environmental Criteria and Standards (24 C.F.R. Part 51)
7
.Uxecutive Order 11990, May 24, 1977• Protect;on of Wetlands (42 C F.R 26961
et seq.)
'1'hc Wild and Scenic Rivers Act of 1968, as amended 06 U.S.C. I271 ct seq )
Executive Order ,1 1'988, Floodplain Management
Gown! Zone Management A•rt of 1972, as amended (16 U.S.C. 1451 et seq )
The Endangered Species Act of 1973, as emended (16 U.S.C. 1531 et seq.)
The Reservoir Saivage Act of 1960, es amended by the Archaeological and
Historic Preservation Act of 1074 (16 U.S.C. 469 ct scq.)
The Safe Drinking Water Act of 1074, as amended (42 U.S.C. Section .201,
300(f) ct seq , and U.S.C. 349)
The Federal Water Pollution Control Act of 1972, as amended including thc
Clean Waste Act of 1977, Public Law 92-212 (33 U.S.C. 1251 et scq )
The Solid Waste Disposal Act, as amended by the Resource Conservation and
Recovery Act of 1076 (42 U.S.C. 690I et seq )
The Fich and Wildlife Coordination Act of 1958, as amended (16 U.S.C. 661 et
scq.)
The National Historic Preservation Act of 1966 (16 U.S.C. 470)
The Archaeological and Historical Data Preservation Act of 1974 (16 U.S.C. 469
a-1)
Executive Order 11593, Protection find Enhancement of thc Cultural
Environment, May 13, 1971
Title 1I and 1I1 of the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, AS amended
Title IV of thc Lead -Based Paint Poisoning Prevention Act
U.S. Office of Management and Budget Circular A-87, Principles for
Determining Costa Applicable to Grants and Contracts with State, Locai and
Federally Recognized Indian Tribal Governments
Administrative Requirements for Grants and Cooperative Agreements to State
and Local Governments
8
Non -Federal Government Audit Requirements (24 C.F.R. Part 44)
Prevailing Wales on Public Works. RCW 39.12 et seq.
Relocation Assistance and Reai Property Acquisition Policy, RCW seq.
State Environment Policy Act. (SEPA), RCW 43.21 (C) et seq.
Shoreline Management Act of 1971. RCW 90.58 et seq.
State Building Code RCW 19.27 et seq.. Energy RelatedBuilding Standards. RCW 19.27A et
seq. Provisions and Buildings for Aged and Handicapped persons. RCW 70.92 et seq.
Open Public Meetings Act, RCW 42.30 et seq.
Law Against Discrimination RCW 49.60 et seq.
Interlocal local C eration Act. RCW 19.'14 et seq.
int2r tv�.at �.ovp.., .,,,
Governor's Executive Order 89-10- Protection of Wetland, Governor's Executive Order 90-04,
Protection of Wetlands.
14. Interest of Members of a City
No member of the governing body of the CITY and no other officer, employee, or agent of
the CITY who exercises any functions or responsibilities in connection with the planning or
carrying out of the project, shall have any personal financial interest, direct or indirect, in
this Agreement; and WAME shall take appropriate steps to assure compliance.
15. Interest of Other Public Officials--,
No member of the government body of the locality and no other public official of such
locality, who exercises any function or responsibilities in connection with the planning or
carrying out of the project. shall have any personal financial interest, direct or indirect, in
this Agreement, and WAME shall take appropriate steps to assure compliance.
16. Interest of Consultant and Employees
WAME covenants that they presently have no interest and shall not acquire interest, direct,
or indirect. in the study area or any parcels therein or any other interest which conflict in any
manner or degree with the performance of their services hereunder, no person having such
interest shall be employed.
9
17. Audits and Inspections
The CITY. DCTED. the State .Auditor. and HUD or their delegates shall have the right to
review and monitor the financial and other components of the work and services provided
and undertaken as part of the CDBG project and this Agreement. by whatever legal and
reasonable means are deemed expedient by the CITY, DCTED, the State Auditor,and HUD.
WAME will adhere to OMB -A-133 audit requirements.
18. Hold Harmless
WAME agrees to indemnify and hold harmless'the CITY, its appointed and elective officers
and employees. from and against all loss and expense, including attorney';s fees and costs by
reason of any and all claims and demands upon the CITY, its elected and appointed officers
and employees from damages sustained by any person or persons, arising out of or in
consequence of WAME's and its agents' negligent or intentional acts or omissions arising
from the Services performed under this Agreement.
19. Insurance
WAME shall carry, at its own expense, the following insurance coverage to the extent
described below:
a. Public Liability and Property Damage in a combined single limit of $1,000,000;
b. Director and Officers Errors and Omissions Insurance in the amount of $1.000,000
WAME shall procure and maintain policies for all insurance required by this section during
the duration of this Agreement commencing with a Certificate of Insurance as satisfactory
evidence that the premiums have been paid and that such insurance policy is in effect. The
CITY shall be carried as a named insured on each policy required by this section. WAME
shall provide the CITY with a thirty (30) day notice of cancellation. Failure to maintain
insurance and certificates listing the CITY (on or before the date this Agreement
commences ) with a Certificate of Insurance as satisfactory evidence that the premiums
have been paid and that such insurance policy is in effect. The CITY shall be carried as a
named insured on each insurance policy required by this section. WAME shall provide the
CITY with a thirty (30) day notice of cancellation. Failure to maintain insurance and
certificates listing the CITY as a named insured, shall be a default of the terms and
conditions of this Agreement and/or basis for termination of the Agreement.
10
20. Ownership
All documents, reports. plans and information created by WAME pursuant to this Agreement
shall at all times remain the property of the CITY.
This Agreement contains all terms and conditions agreed to bv the CITY and WAME. The
attachments to this Agreement are identified as follows:'
Exhibit A-- Interlocal Agreement
Exhibit B --The 1995 Regional Microenterprise Project
C munit Development Block Grant Application
omdAduiA�a. Application
Exhibit C-- CITY and DCTEA.J DA.i Ct. ommnunitv�D✓evev1opme..n. Block Grant Program
Agreement
Number 1-9-744-092•'
IN WITNESS WHEREOF. the parties hereto have executed this Agreement this
/
day of /J241 6,11 1996.
WASHINGTON ASSOCIATIQN OF
MINORITY ENTREPRENEURS
CITY OF SUNNYSIDE
/i,
Mayor Pro -tern
ATTEST:
puty City Clerk
Approved as to Form:
11
City Attorxiey
STATE OF WASHINGTON
DEPARTMENT OF COMMUNITY, TRADE AND ECONOMIC DEVELOPMENT
906 Columbia St. SW • PO Box 48300 • Olympia, Washington 98504-8300 • (360) 753-2200
July 2, 1999
The Honorable James M. Lewis, Chair
Yakima County Board of Commissioners
128 North 2nd Street
Yakima, Washington 98901
Dear Commissioner Lewis:
I am pleased that Yakima County has been selected by the Washington State Department
of Community, Trade and Economic Development (CTED) to receive up to S125,000 in
1999 Community Development Block Grant (CDBG) funds. This award will fund
microenterprise development activities throughout Yakima County, with the exception of
the City of Yakima, which is an entitlement city. The Washington Association of
Minorities Entrepreneurs (WAME) is the County's subrecipient under this grant award.
A portion of this award, S50,000, may be used as a match for an anticipated Economic
Development Administration (EDA) award to the extent that CDBG fiends are used only
to match qualifying EDA microenterprise activities, which are defined as:
o Loans up to S25,000;
o Five or fewer employees including the owner; and
o Meeting a HUD National Objective — either Limited Clientele or. Job Creation
for low- and moderate -income persons.
Prior to our preparation of the contract between Yakima County and CTED, we require a
completed and signed Title VI Certification. A blank copy is enclosed for your
convenience.
RECEIVED
DATE
to
The Honorable James M. Lewis
July 2, 1999
P age L
As soon as the contract is formally executed, you will be authorized to begin incurring
costs. Costs may only be incurred for environmental review activities until the
Pnvirnnmental review is complete_ The environmental review process is fairly simple for
microenterprise development grants. Enclosed are sample environmental documents
from the 1998 City of Sunnyside Microenterprise award.
tt
I congratulate you and others in Yakima County for your efforts thus far. If you have any
questions about this letter or your grant, please contact Dan Riebli, at (360) 586-0871.
Sincerely,
( ..#�L1
Steve Wells
Assistant Director
Local Government Division
SW:DR:by
Enclosures
cc: Steve Hill, Director, Department of Community Services & Grant Management
Trinita Houser, Grants Fiscal Manager
Luz Bazan Gutierrez, WAKE
Stephen Buxbaum, CPDU Managing Director
Dan Reibli CDBG Project Manager