HomeMy WebLinkAboutR-2000-001 Execution of SIED (Supporting Investments in Economic Development) Fund Grant / Loan Contract for the Baby Jogger ExpansRESOLUTION NO. R-2000- 01
A RESOLUTION authorizing the City Manager to execute a SIED Fund Grant/Loan Contract
with Yakima County to fund public infrastructure improvements related to
the Chinook Business Park/Baby Jogger Expansion Project.
WHEREAS, Yakima County has established the Supporting Investments in Economic
Development Fund ("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 result in the retention at least 75 jobs
and an intention to 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, 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 agreed to pay/reimburse the City the total amount that the City pays or becomes obligated
to pay Yakima County pursuant to the SIED Fund grant/loan; and
WHEREAS, the City Council approved the submittal of an application for SIED funding on
August 17, 1999; and
WHEREAS, the City's SIED Fund grant/loan application for the required infrastructure
improvements has been approved by Yakima County in a total amount of $235,172 (a grant of
$117,586, and a loan of $117,586); and
WHEREAS, in order for the City to receive the SIED Fund grant/loan, the County requires
execution of the attached SIED Fund Grant/Loan Contract; and
(Ik)rts-ced sled loan convact dee 99 -pm
WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to
authorize execution of the attached SIED Fund Grant/Loan Contract with Yakima County in order
to receive funding for said inffastnicture improvements, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized to execute the attached and incorporated "SIED
Fund Grant/Loan Contract" with Yakima County to fund public infrastructure improvements
related to the Chinook Business Park/Baby Jogger Expansion Project. The City Attorney shall
approve the final form of the contract.
ADOPTED BY THE CITY COUNCIL this 4th day of January 2000.
ATTEST:
City Clerk
(Ik)res-ced sled loan contract dec 99.pn,
or
12/27/99
CONTRACT NO. YC-CY-99
SIED FUND GRANT/LOAN CONTRACT
BETWEEN YAKIMA COUNTY
AND
CITY OF YAKIMA
THIS SIED FUND GRANT/LOAN CONTRACT (hereinafter the "Contract") is made and
entered into by and between Yakima County, a Washington State municipal corporation
(hereinafter the "County"), and the City of Yakima, a Washington State municipal corporation
(hereinafter the "City").
WHEREAS, sales and use taxes are collected in and for the County under authority of
RCW 82.14 370 and Yakima County Code 3.10 010 for the purpose of financing public facilities
in the County, and the proceeds are deposited in the Yakima County Infrastructure/Supporting
Investments in Economic Development Fund ("SIED Fund") in accordance with YCC 3.10.040.
WHEREAS, RCW 82 14 370 was adopted to serve the goals of promoting business in
rural distressed areas, providing family wage jobs and the development of communities of
excellence, in such areas.
WHEREAS, RCW 43.160 and 43 160 020, adopted for related purposes with those of
RCW 82.14 370, define public facilities to include various buildings, structures and works such as
the Project described below.
WHEREAS, the County, under the authority of RCW 36 01.085, and by agreement of
February 19, 1999, has engaged the Yakima County Development Association, a/k/a New Vision,
to provide administrative and technical assistance in furtherance of the County's economic
development.
WHEREAS, in order to expand its operations, Racing Strollers, Inc. has entered into an
agreement with Chinook Business Park, LLC ("Chinook"), whereby Chinook will construct a new
manufacturing facility for Racing Strollers, Inc at 1700 North Sixth Street, Yakima, Washington.
WHEREAS, Racing Strollers, Inc represents that the expansion of its operation into the
new manufacturing facility will result in retention of at least 75 full-time equivalent jobs and that it
intends to create 25 new full-time equivalent jobs at the new facility
WHEREAS, Racing Strollers, Inc.'s new facility requires construction of certain
infrastructure improvements characterized as street improvements, sewer line extensions, and
water system enhancements (i e., mains, valves, and hydrants), which improvements shall be
collectively referred to hereinafter as the "Project."
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WHEREAS, the City submitted a grant/loan application to New Vision and the County to
provide the necessary monies from the SIED Fund to finance construction of the Project. A copy
of said SIED Fund grant/loan application is attached hereto as Exhibit "A" and incorporated
herein by this reference.
WHEREAS, New Vision, on behalf of the County, reviewed the Project and said
grant/loan application and found that Racing Strollers, Inc is a viable industrial enterprise in a
rural depressed area which provides family wage jobs, that the proposed new facility of Racing
Strollers, Inc requires the infrastructure that the Project would provide, that extension of the
utilities to the new facility site will enhance existing municipal infrastructure systems; and that the
Project will provide services to adjacent undeveloped industrial properties.
WHEREAS, on September 16, 1999, the Board of Yakima County Commissioners
notified the City that the SIED Fund grant/loan application would be approved and that the City
was authorized to expend funds on eligible Project costs and be reimbursed from the SIED Fund
upon closing of the grant/loan agreement between the City and the County
NOW, THEREFORE, in consideration of the mutual covenants, conditions, obligations,
duties, and promises contained herein, the County and the City agree as follows
I PURPOSE
The purpose of this Contract is to provide funding for the construction of certain
infrastructure improvements to the new manufacturing facility site of Racing Strollers, Inc.
located at 1700 North Sixth Street, Yakima, Washington ( the "Project") These improvements
characterized as street improvements, sewer line extensions, and water system enhancements are
set forth and described in Exhibit A, and are herein referred to as the Project In order to fund
construction of the Project, the County is willing to grant the City One Hundred Seventeen
Thousand and Five Hundred Eighty Five Dollars and Zero Cents ($117,585.00), and loan
the City an additional One Hundred Seventeen Thousand and Five Hundred Eighty Six Dollars
and Zero Cents ($117,586.00)
II COVENANTS
A. COUNTY CONTRIBUTION/GRANT TO THE CITY—The County shall
contribute/grant One Hundred Seventeen Thousand and Five Hundred Eighty Five Dollars
and Zero Cents ($117,585.00) to the City for the Project described herein. This contribution
shall be by check drawn on the SIED Fund and payable to the City of Yakima and shall be made
within 30 days of receipt of the Project engineer's certificate that 50% of the work on the Project
has been completed
B. COUNTY LOAN TO THE CITY—The County shall loan the City an additional
One Hundred Seventeen Thousand and Five Hundred Eighty Six Dollars and Zero Cents
($117,586.00) to the City for the Project described herein. This loan amount shall be by check
drawn on the SILD Fund and payable to the City of Yakima and shall be made within thirty (30)
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12/28/99
days from receipt of a written request for said loan amount from the Director of the City's
Community & Economic Development Department.
C. REPAYMENT OF COUNTY LOAN—The City shall repay the County's loan of
One Hundred Seventeen Thousand and Five Hundred Eighty Six Dollars and Zero Cents
($117,586 00), with interest on unpaid principal from the date of disbursement thereof to the City
at an annual per annum rate of 5.540%, which is the Washington State Local Government
Investment Pool Rate on the date of this Contract. Repayment shall be made by the City in seven
equal annual installments (including principal and interest) payable on July 1, 2000, and annually
thereafter on July 1 of each year, with the final payment nevertheless due on July 1, 2006;
provided, however, that the final installment may be in such lesser amount as shall be required for
full amortization of the repayment amount. These payments shall be by check payable to the
Yakima County Infrastructure Fund and delivered to the Yakima County Treasurer. The
City's obligation hereunder shall be a limited general obligation of the City, payable from any
legally available source of funds. Exhibit B attached hereto and incorporated herein reflects the
Debt Service Schedule as noted.
D. OWNERSHIP AND USE—The City shall construct, own, maintain, and operate
the Project as a part of its public infrastructure for economic development, available for use by
manufacturing and industrial concerns proximate to the Project. The City shall also permit the use
of the Project by the County and its departments on like terms with other users, at such time as
the Board of Yakima County Commissioners may deem expedient
E RECORDS—The City agrees to maintain such records and follow such
procedures as may be required by the County. In general, such records will include information
pertaining to this Contract. All such records and all other records pertinent to this Contract and
work undertaken under this Contract shall be retained by the City for a period of three years after
final audit unless a longer period is required to resolve audit findings or litigation. The County
and other authorized representatives of the state and federal government shall have access to any
books, documents, papers, and records of the City which are directly pertinent to this Contract for
the purpose of making audit, examination, excerpts, and transcriptions.
F RELATIONSHIP OF THE PARTIES—The relationship of the City to the
County, with regard to construction of the Project, shall be that of an independent contractor
rendering professional services The City shall have no authority to execute contracts or to make
commitments on behalf of the County and nothing contained herein shall be deemed to create the
relationship of employer and employee or principal and agent between the County and the City
G SUSPENSION, TERMINATION, AND CLOSEOUT—If The City fails to
comply with the terms and conditions of this Contract, the County may pursue such remedies as
are legally available, including, but not limited to, the suspension or termination of this Contract in
the manner specified herein
1. Suspension—If the City fails to comply with terms and conditions of this Contract,
or whenever the City is unable to substantiate full compliance with provisions of this Contract, the
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12/27/99
County may suspend this Contract pending corrective action or investigation, effective not less
than seven days following written notification to the City or its authorized representative The
suspension will remain in full force and effect until the City has taken corrective action to the
satisfaction of the County and is able to substantiate its full compliance with the terms and
conditions of this Contract. No obligations incurred by the City or its authorized representative
during the period of suspension will be allowable under this Contract, except
a. Reasonable, proper, and otherwise allowable costs which the City could not
avoid during the period of suspension,
b. Otherwise allowable costs incurred during the period of suspension, if upon
investigation, the County is satisfied of the City's compliance with the terms
and conditions of this Contract to the extent of the compensation claimed by
the City
2. Termination for Cause—If the City fails to comply with the terms and conditions
of this Contract and any of the following conditions exist:
a. The lack of compliance with the provisions of this Contract were of such
scope and nature that the County deems continuation of this Contract to be
substantially detrimental to the interests of the County;
b. The City has failed to take satisfactory action as directed by the County or
its authorized representative within the time period specified by same;
c. The City has failed within the time specified by the County or its authorized
representative to satisfactorily substantiate its compliance with the terms and
conditions of this Contract, then,
the County may terminate this Contract in whole or in part, and thereupon shall notify the City of
termination, the reasons therefore, and the effective date, provided such effective date shall not be
prior to notification of the City After this effective date, no charges incurred under any
terminated portions outlined in the application for funding are allowable
3 Termination for Other Grounds—This Contract may also be terminated in whole
or in part by mutual consent and written agreement setting forth the conditions of termination,
including effective date and, in case of termination in part, that portion to be terminated.
III TERM
This Contract takes effect upon execution hereof by the authorized representatives of both
parties and shall continue though midnight July 1, 2006, or until terminated in accordance with
Section II (G) of this Contract.
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12/27/99
IV PERSONNEL
The City represents that it has or will secure at its own expense all personnel, contractors,
and/or subcontractors required in order to perform under this Contract. Such personnel shall not
be employees of the County. All such personnel, contractors, and/or subcontractors shall be fully
qualified and authorized/permitted under state and/or local law to perform such services.
V REPORTS AND INFORMATION
The City, at such times and in such forms as the County may require, shall furnish the
County such periodic reports as it may request pertaining to the work or services undertaken
pursuant to this Contract, the costs and obligations incurred or to be incurred in connection
therewith, and any other matters covered by this Contract.
VI COPYRIGHT RESTRICTION
No report, maps, or other documents produced in whole or in part under this Contract
shall be the subject of an application for copyright by or on behalf of the City.
VII COMPLIANCE WITH LAWS
The County and the City shall comply with all applicable laws, ordinances, and codes of
the federal, state and local governments with regard to the performance of this Contract.
VIII TITLE VI OF THE CIVIL RIGHT ACT OF 1964
Under Title VI of the Civil Rights Act of 1964, no person shall, on the grounds of race,
color, creed, religion, sex, or national origin, be excluded from participation in, be denied the
benefits of, or be subjected to discrimination under any program or activity receiving federal
financial assistance
IX SECTION 109—HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974
No person in the United States shall on the grounds of race, color, creed, religion, sex, or
national origin be excluded from participation in, be denied benefits of, or be subjected to
discrimination under any program or activity funded in whole or in part with funds made available
under this title.
X AGE DISCRIMINATION ACT OF 1975 (As Amended)
No person shall be excluded from participation, denied program benefits, or subjected to
discrimination on the basis of age under any program or activity receiving federal funding
assistance (42 U S C 610 et seq.)
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12/27/99
XI SECTION 504 OF THE REHABILITATION ACT OF 1973 (As Amended)
No otherwise qualified individual shall, solely by reason of his or her handicap, be
excluded from participation (including employment), denied program benefits, or subjected to
discrimination under any program or activity receiving Federal funds (29 U S C 794)
XII INTEREST OF MEMBERS OF THE COUNTY AND THE CITY
No member of the governing body of the City or the County and no other officer,
employee, or agent of the City or the County 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 Contract.
XIII AUDITS AND INSPECTIONS
The County and the State Auditor, 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 Project and this Contract, by whatever legal and reasonable means are deemed
expedient by the County or the State Auditor
XIV HOLD HARMLESS AND INDEMNITY
A. The County agrees to hold harmless, indemnify, and defend the City, its elected
officials, officers, employees, and agents from and against any and all suits, actions, claims,
liability, damages, judgments, costs and expenses (including reasonable attorney's fees) which
result from or arise out of the sole negligence of County, its elected officials, officers, employees,
and agents in connection with or incidental to the performance or non-performance of the
County's services, duties and obligations under this Contract.
B The City agrees to hold harmless, indemnify, and defend the County, its elected
officials, officers, employees, and agents from and against any and all suits, actions, claims,
liability, damages, judgments, costs and expenses (including reasonable attorney's fees) which
result from or arise out of the sole negligence of the City, its elected officials, officers, employees,
and agents in connection with or incidental to the performance or non-performance of the City's
services, duties and obligations under this Contract.
C. In the event that the officials, officers, agents, and/or employees of both the
County and the City are negligent, each party shall be liable for its contributory share of
negligence for any resulting suits, actions, claims, liability, damages, judgments, costs and
expenses (including reasonable attorney's fees)
D. Nothing contained in this Section or this Agreement shall be construed to create a
right of indemnification in any third party
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XV ASSIGNABILITY
The City shall not assign any interest in this Contract and shall not transfer any interest in
this Contract (whether by assignment or novation) without prior written consent of the County
thereto provided, however, that claims for money by the City from the County under this Contract
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 County by the
City.
XVI NON -WAIVER
The failure of either party to insist upon strict performance of any provision of this
Contract or to exercise any right based upon a breach thereof or the acceptance of any
performance during such breach shall not constitute a waiver of any right under this Contract.
XVII CONTRACT MODIFICATIONS
It is mutually agreed and understood that no modification or waiver of any clause or
condition of this Contract is binding upon either party unless such modification or waiver is in
writing and executed by the County and the City In the event the activities described in the
Project are not accomplished within the period of this Contract, the period may be extended
pending approval by the County and the City
XVIII SEVERABILITY
If any portion of this Contract is changed per mutual Contract or any portion is held
invalid, the remainder of the Contract shall remain in full force and effect.
XIX NOTICES
Unless stated otherwise herein, all notices and demands shall be in writing and sent or
hand -delivered to the parties to their addresses as follows
TO CITY:
TO COUNTY:
Bill Cook, Director
Department of Community & Economic
Development
129 North Second Street
Yakima, WA 98901
Steve Hill, Director
Yakima County Departments of
Community Services & Grant Management
128 North Second Street, Room 102
Yakima, WA 98901
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12/27/99
or to such other addresses as the parties may hereafter designate in writing. Notices and/or
demands shall be sent by registered or certified mail, postage prepaid, or hand -delivered Such
notices shall be deemed effective when mailed or hand -delivered at the addresses specified above.
XX INTEGRATION
This Contract contains all terms and conditions agreed to by the County and the City.
There are no other oral or written agreements between the City and County as to the subjects
contained herein. No changes or additions to this Contract shall be valid or binding upon either
party unless such change or addition be in writing and executed by both parties
XXI GOVERNING LAW AND VENUE
This Contract shall be construed and enforced in accordance with, and the validity and
performance thereof shall be governed by the laws of the State of Washington Venue of any suit
between the parties arising out of this Contract shall be the Superior Court of Yakima County,
Washington.
XXII FILING
Each party shall approve this Contract by resolution, ordinance or otherwise pursuant to
the laws of the governing body of each party The attested signatures of the City Manager and
the Yakima County Commissioners below shall constitute a presumption that such approval was
properly obtained. Upon execution by the authorized representatives of the parties, a copy of this
Contract shall be promptly filed with the Yakima County Auditor pursuant to RCW 39 34.040.
* * * * * * * * * * * * * * *
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12/27/99
IN WITNESS WHEREOF, the County and the City have executed this Contract as of the date
and year last written below.
City of Yakima B ,ard of Yakima Coy
'ty Commissioners
LI 1.1L
7
R. A. Zais, Jr.,'dity Manager
Date %— —0-0
Attest: City Clerk
Karen Roberts
Date
Contract No. 2000-02
Resolution No. R-2000-01
Bettie Ingham, Commis
Excused
Jesse S. Palacios,Commissioner
Steve Hill, Grants Administrator
Department of Grants Management
Approved as to Form:
110F1
0a4 "p,K o AKi luty Prosecuting Attorney Date
P0 ;:t° �'-4..nosy
1. ° ,.
4•
S%G�
•
os wit g.RACT AUTHORIZATION
SV...• *4iT
�: Clerk of the Board
ism"•••..
Sy is E. Hinojosa
Date: 11.1 its 106
Page 9 of 9 City of Yakima
EXHIBIT "B"
YIELD STATISTICS
Bond Year Dollars $415.48
Average Life 3.533 Years
Average Coupon 5.5400%
Yakima County, Washington
SIED Agreement - Loan Repayment Schedule
City of Yakima
Funding Date: February 1, 2000
DEBT SERVICE SCHEDULE
Date
Principal
Coupon
Interest
Total P+I
7/01/2000
$17,371.92
5.54%
$2,714.28
$20,086.20
7/01/2001
14,534.33
5.54%
5,551.86
20,086.19
7/01/2002
15,339.53
5.54%
4,746.66
20,086.19
7/01/2003
16,189.35
5.54%
3,896.85
20,086.20
7/01/2004
17,086.23
5.54%
2,999.96
20,086.19
7/01/2005
18,032.81
5.54%
2,053.38
20,086.19
7/01/2006
19,031.83
5.54%
1,054.36
20,086.19
Total
$117,586.00
-
$23,017.35
$140,603.35
YIELD STATISTICS
Bond Year Dollars $415.48
Average Life 3.533 Years
Average Coupon 5.5400%
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. I
For Meeting Of: January 4, 2000
ITEM TITLE: Consideration of a resolution to: Authorize the City Manager to
execute a financial award agreement with Yakima County for a
grant not to exceed $117,585.00, and a loan not to exceed
$117,586.00, funding for which will come from the Yakima County
Supporting Investments in Economic Development (SIED) fund.
SIED funds will be used for public infrastructure improvements
related to the Chinook Business Park/Baby Jogger Expansion
Project.
SUBMITTED BY: Bill Cook, Director of Community and Economic Development
CONTACT: Bill Cook, 575-6113
SUMMARY EXPLANATION:
On August 17, the City Council approved a resolution authorizing submission of a grant
and loan application to the Yakima County SIED fund for the Chinook Business
Park/Baby Jogger Expansion Project. The SIED board voted to approve the application
for $235,172.00 on September 9, 1999. SIED funds will be awarded to the City in the
form of a 50% grant and 50% loan to be repaid by the developer. The Yakima County
Board of Commissioners ratified this decision by resolution on September 21, 1999.
Also on September 21, the City Council, by resolution, authorized the City to enter into a
loan agreement with Chinook Business Park, LLC for $117,586 in SIED loan funds, and
also appropriated funds in the City's 1999 budget for the total cost of this public works
project.
CONTINUED ON FOLLOWING PAGE
Resolution _X Ordinance — Contract _ Other: Loan Agreement
Funding Source: Yakima Count SI i Fund
Approval for Submittal:
y Manager
STAFF RECOMMENDATION:
BOARD RECOMMENDATION:
COUNCIL ACTION:
Staff recommends approval of the resolution.
1
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.
The City's award of SLED funding will 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.
2