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HomeMy WebLinkAboutR-2002-105 Washington Department of Community Trade & Economic Development (CTED) Interlocal Agreement (re: administration of CommRESOLUTION NO. R-2002- 105 A RESOLUTION authorizing and directing the City Manager to execute an interlocal agreement between the City of Yakima and the State of Washington Department of Community Trade and Economic Development ("CTED") regarding coordination between the City of Yakima and CTED for purposes of administering the Commercial Revitalization Tax Deductions element of the federal Renewal Communities Program. WHEREAS, the City of Yakima has been formally designated a Renewal Community under the Renewal Communities Program by the federal government; and WHEREAS, the Renewal Communities Program includes, in part, an opportunity for Renewal Communities to participate in a Commercial Revitalization Tax Deductions plan whereby certain local development projects (including certain rehabilitation of existing development) may qualify for accelerated partial deduction of development costs by way of enhanced federal income tax deductibility; and WHEREAS, administration of the Commercial Revitalization Tax Deductions plan requires that CTED undertake certain roles, including coordination of tax deduction credits with other Renewal Communities in the State of Washington and acting as the final arbiter of certain deduction credit allocation decisions, and WHEREAS, despite the involvement of CTED, the City of Yakima retains responsibility for developing and administering locally a Qualified Allocation Plan for evaluating eligible development activities within the community; and WHEREAS, a more detailed statement of the respective roles of CTED and the City of Yakima is appropriately set forth in the interlocal agreement attached hereto; and WHEREAS, the Yakima City Council finds and determines that it is in the public interest to enter into a relationship with CTED for the purposes and on the terms set forth in said interlocal agreement; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager of the City of Yakima is hereby authorized and directed to execute the attached and incorporated "Interlocal Agreement Between the State of Page -1 Washington Department of Community Trade and Economic Development and the City of Yakima." ADOPTED BY THE CITY COUNCIL this 20th day of August, 2002. Mar ace, Mayor ATTEST: 714x) -e_1,...' City Clerk Page -2 Interlocal Agreement Between The State of Washington (Department of Community Trade and Economic Development) And the City of Yakima THIS INTERLOCAL AGREEMENT ("AGREEMENT") is made and entered into by and between the DEPARTMENT OF Community Trade and Economic Development hereinafter referred to as "CTED" and the city of Yakima hereinafter referred to as "Yakima". The purpose of this AGREEMENT is to establish the necessary procedures in order that the state of Washington and its federally designated Renewal Community (Yakima) can comply with the requirements of the Renewal Communities Program and thereby successfully and fully allocate and use the Commercial Revitalization Tax Deductions available to designated Renewal Communities under the federal Renewal Communities Program. THEREFORE, IT IS MUTUALLY AGREED THAT: STATEMENT OF WORK AND RESPONSIBILITIES CTED and Yakima shall furnish the necessary personnel, equipment, material and/or service(s) and otherwise do all things necessary for or incidental to the performance of the work and meeting the obligations set forth in Attachment "A" attached hereto and incorporated herein. The work and responsibilities that are set forth in Attachment "A" are for the purpose of developing and implementing the federally required "Qualified Allocation Plan" necessary for allocation of Commercial Revitalization Deductions in the federally designated Renewal Communities in the state of Washington. PERIOD OF AGREEMENT Subject to its other provisions, this AGREEMENT shall commence on September 3, 2002 and be completed on April 30, 2010 unless terminated sooner as provided herein. RECORDS MAINTENANCE The parties to this AGREEMENT shall each maintain books, records, documents and other evidence which sufficiently and properly reflect all decisionmaking and staff recommendations by all parties in the performance of the service(s) described herein. These records shall be subject to inspection, review or audit by personnel of all parties, other personnel duly authorized by all parties, the Office of the State Auditor, and federal officials so authorized by law. All books, records, documents, and other material relevant to this AGREEMENT will be retained for six years after expiration and the Office of the State Auditor, federal auditors, including but not limited to Internal Revenue Service Auditors, and any persons duly authorized by the parties shall have full access and the right to examine any of these materials during this period. Records and other documents, in any medium, furnished by one party to this AGREEMENT to another party, will remain the property of the furnishing party, unless otherwise agreed. Subject to compliance with RCW 42.17, the receiving party will not disclose or make available this material to any third parties without first giving notice to the furnishing party and giving it a reasonable opportunity to respond. Each party will utilize reasonable security procedures and protections to assure that records and documents provided by the other party are not erroneously disclosed to third parties. INDEPENDENT CAPACITY The employees or agents of each party who are engaged in the performance of this AGREEMENT shall continue to be employees or agents of that party and shall not be considered for any purpose to be employees or agents of the other party. AGREEMENT ALTERATIONS AND AMENDMENTS This AGREEMENT may be amended by mutual agreement of the parties. Such amendments shall not be binding unless they are in writing and signed by personnel authorized to bind each of the parties. This AGREEMENT is signed by the Director of CTED based on the Governor's designation of CTED as the "Community Revitalization Agency" (referred to in federal law as the Commercial Revitalization Agency) as required by federal law for allocation of Commercial Revitalization Deductions (see Attachment "B", which is attached hereto and by this reference incorporated herein). A change in which state agency is so designated shall not require an amendment to this AGREEMENT but rather a substitution of a new designation letter as Attachment "B". TERMINATION CTED may not arbitrarily terminate this AGREEMENT. Any termination of this AGREEMENT by the Renewal Community shall result in the full and complete delegation of all allocation responsibilities and powers to CTED to the full degree allowed by federal law. Termination of this AGREEMENT will require six months' prior written notification to all other parties to this AGREEMENT. TERMINATION FOR CAUSE If for any cause, the Renewal Community does not fulfill in a timely and proper manner its obligations under this AGREEMENT, CTED will give the Renewal Community written notice of such failure or violation. The Renewal Community will be given the opportunity to correct the violation or failure within 30 working days. If the failure or violation is not corrected, CTED may terminate this AGREEMENT immediately as to the violating Renewal Community by giving written notice to it. DISPUTES The parties agree that is in their best interest to resolve any disputes that arise under this AGREEMENT at the lowest level possible. In the event that a dispute arises under this AGREEMENT, it shall be determined by a Dispute Board in the following manner: Each party involved in the dispute shall appoint one member to the Dispute Board. The members so appointed shall jointly appoint an additional member to the Dispute Board. The Dispute Board shall review the facts, AGREEMENT terms and applicable statutes and rules and make a determination of the dispute. The parties agree to use this process prior to filing any action in a judicial or quasi-judicial tribunal. GOVERNANCE This AGREEMENT is entered into pursuant to and under the authority granted by the laws of the state of Washington and any applicable federal laws, including, but not limited to, the changes to the Internal Revenue Service Code contained in House Bill 5662 and enacted into law in 2000. See Subtitle A, Chapter 1, Subchapter X, Part 3, Section 14001. The provisions of this AGREEMENT shall be construed to conform to those laws. In the event of an inconsistency in the terms of this AGREEMENT, or between its terms and any applicable statute or rule, the inconsistency shall be resolved by giving precedence in the following order: 2 a. Applicable federal statutes and rules; b. Applicable state statutes and rules; c. Statement of work; and d. Any other provisions of this AGREEMENT, including materials incorporated by reference. ASSIGNMENT The work to be provided under this AGREEMENT, and any claim arising thereunder, is not assignable or delegable by any signing party in whole or in part, without the express prior written consent of the other affected parties to this AGREEMENT, which consent shall not be unreasonably withheld. AGREEMENT TO BENEFIT NAMED PARTIES This AGREEMENT is for the benefit of the named parties. Nothing contained herein shall be construed to create any third party beneficiary relationship or any right to the award of a Commercial Revitalization Deduction in any developer who may submit a project to the Renewal Community for consideration WAIVER A failure by any party to exercise its rights under this AGREEMENT shall not preclude that party from subsequent exercise of such rights and shall not constitute a waiver of any other rights under this AGREEMENT unless stated to be such in a writing, signed by an authorized representative of the party and attached to the original AGREEMENT. SEVERABILITY If any provision of this AGREEMENTor any provision of any document incorporated by reference shall be held invalid, such invalidity shall not affect the other provisions of this AGREEMENT which can be given effect without the invalid provision, if such remainder conforms to the requirements of applicable law and the fundamental purpose of this AGREEMENT, and to this end the provisions of this AGREEMENT are declared to be severable. ALL WRITINGS CONTAINED HEREIN This AGREEMENT contains all the terms and conditions agreed upon by the parties. No other understandings, oral or otherwise, regarding the subject matter of this AGREEMENT shall be deemed to exist or to bind any of the parties hereto. CONTRACT MANAGEMENT The program manager for each of the parties shall be responsible for and shall be the contact person for all communications regarding the performance of this AGREEMENT. The Program Manager for CTED is: Stephen Buxbaum, 906 Columbia St. SW, P.O. Box 48350, Olympia, WA 98504-8350, (360) 725-3005 The Program Manager for Yakima is: [Name, address and phone number] 3 IN WITNESS WHEREOF, the parties have executed this AGREEMENT State of Washington (CTED) Signature Title f Yakima Signature Richard A_ Za s, Jr_ Date City Manager Title CITY f.'411TRACT HO REG-MUT:ON NO' Date Attachment A Delegation of Responsibilities regarding the Commercial Revitalization Deduction (between CTED and Renewal Communities) Program Establishment The federal government has established the Commercial Revitalization Deduction Program to benefit and encourage investment in designated Renewal Communities around the country. As part of this Program the designated state Commercial Revitalization Agency (CTED) must institute a Qualified Allocation Plan and must consult with any and all federally designated Renewal Communities in Washington state in its development. The delegation of responsibilities detailed below is for the purpose of implementing this program in accordance with federal law while providing a significant amount of local input and decisionmaking in the process. CTED will facilitate development of the state Qualified Allocation Plan, including discussion and agreement between the state and its designated Renewal Communities regarding the administrative guidelines and any delegations of responsibility to their respective city governments. The state's Qualified Allocation Plan will consist of each renewal community's respective Qualified Allocation Plan and the Interlocal Agreement (AGREEMENT) between the Renewal Communities and CTED that will specify the roles and responsibilities of each in regards to Commercial Revitalization Deductions (CRDs). If CTED has consented to the delegation by a Renewal Community to another entity of a portion of the work under this Agreement, the Renewal Community nonetheless remains fully responsible to ensure performance of all duties to be peformed by the Renewal Community as set forth herein. CTED will delegate to the city governments of the designated Renewal Communities in Washington state the responsibility to develop and administer locally a Qualified Allocation Plan for their respective Renewal Communities. CTED will be responsible for reviewing these plans and all locally approved allocations of the Commercial Revitalization Deductions for completeness and verification that these actions have met the federal regulation intent. CTED will avoid any use of these reviews for the purpose of altering locally set priorities. The public hearing(s) required before approval of this AGREEMENT will be held in conjunction with the public hearings to be held by each Renewal Community on its respective Qualified Allocation Plan. Operating Roles and Responsibilities Each Renewal Community in Washington state will develop their criteria and weighting of those criteria for determining which proposed projects qualify for use of the Commercial Revitalization Deduction. The criteria and weighting so developed shall be sufficiently designed so that they provide a specific and objectively -based rating that will clearly assess whether any particular project meets a base level of qualification for use of the Commercial Revitalization Deduction and will then differentiate and assign priority between competing projects. Because the state is considered by the federal legislation as the ultimate arbiter of this process CTED reserves the right to comment and negotiate with the local government for either Renewal Community to assure that the adopted criteria and resulting ratings can be easily defended if any challenge to the allocation is filed at the state level. The city government of each Renewal Community will be responsible to accept and handle all CRD allocation proposals for their respective Renewal Communities locally. The basic assumption of CTED is that each city's respective annual allocation of $12 million in Commercial Revitalization Deductions wilt be prioritized and used by that city unless it has insufficient qualifying projects to fully use the allocation. This implies that the basic level of qualification for a project under the Qualified Allocation Plan should be approximately the same for the Renewal Communities. 1 CTED, as the state designated Commercial Revitalization Agency (CRA), shall be responsible for tracking the use of the annual allocations of the Commercial Revitalization Deductions by the Renewal Communities. Beginning in 2003, if one or more of the Renewal Communities has not fully utilized their annual allocation of the Commercial Revitalization Deductions by the end of September, CTED shall poll each of its Renewal Communities partners to ascertain whether there needs to be a shift in allocation for that fiscal year between the Renewal Communities. if the CTED staff determines that such a change in allocation may be necessary, they shall be responsible for convening a meeting with representatives of the Renewal Communities during October to decide how to deal with the remaining allocation. Some of the options to be discussed include shifting allocation to a qualified project that is not an allocated project in "a different" Renewal Community, expanding an allocation to a project that has previously gained a partial allocation, or re-evaluation of projects denied allocation due to failure to qualify based on the threshold rating. Each city with a Renewal Community designation shall be responsible for monitoring the projects approved by them for Commercial Revitalization Deduction allocation. On an annual basis each city will submit to CTED a monitoring report on all projects that have received an allocation up to that date. The report shall cover the prior calendar year and be submitted by the end of April following the year being reported upon (i.e., a report for 2002 would be submitted by April 30, 2003). The monitoring report will include sufficient information to show whether each project approved met the goals of its Commercial Revitalization Deduction application. The report will also provide a set of cumulative totals for ail projects approved to date. CTED reserves the right to withhold official allocations to projects in a Renewal Community that has not filed its report in a timely fashion. CTED will make every attempt to allow each city to use any HUD required reports they file on Renewal Community projects as the primary basis of their report to CTED. If a Renewal Community decides to amend its local Qualified Allocation Pian, it must go through the same process of public hearing and participation as was required to adopt the plan initially. It must submit the plan and revised project criteria, prior to final approval, to CTED for review to make sure that the proposed changes meet federal intent, are clear and specific, and will not create allocation difficulties between the two respective Renewal Communities. If the developer of a project in a Renewal Community is not awarded a full Commercial Revitalization Deduction for that project, CTED will not entertain any review of the local allocation unless the developer can specifically demonstrate that the locally established Qualified Allocation Plan and its selection criteria were not fairly applied. In the event that a developer can show a specific failure of fair application, CTED CRA staff may re -rate the project, using the local criteria as established in the local plan, and will then consult the governmental officials of the affected Renewal Community to work out a fair allocation. Any requests for such a review must be made within 45 days of the date that the Renewal Community issues its notice of the allocation award decision to the developer. CTED will be responsible for tracking the CRD allocations made by each city and for issuing any necessary related tax forms; the cities will be responsible for notifying CTED with regards to any decisions made to allocate Commercial Revitalization Deductions. In keeping with HUD guidelines, allocations for any project must be made before the end of the calendar year in which the project goes into service; however, allocations may be made for projects that are not expected to be put in service until some time in the future (up until December 31, 2009) 2 CITY OF YAKIMA BOARDS AND COMMISSIONS APPLICATION Please number the board(s) or commission(s) in the priority in which you are interested. A brief description of the purpose of the boards and commissions can be found on-line at http:www.ci.yakima.wa.us./council/ under Boards and Comissions, or call for information. We appreciate your interest in wishing to serve your City in this capacity. We ask your indulgence in completing this brief form so that the City Council can have sufficient information to make an appointment to the desired board or commission of the City of Yakima. PLEASE PRINT CLEARLY: NAME: (Mr., Mrs., Ms.) HOME ADDRESS: Number Street Apt. City Zip Code PHONE NUMBERS: (HOME) (BUSINESS) E-MAIL: YEARS OF RESIDENCE: IN YAKIMA OCCUPATION: Please give any training or experience which you possess that would be beneficial to a member of the board or commission in which you are interested: Special reasons for wishing to serve on this Commission: S1JC FF 8/15/02 Air Terminal Board Bicycle/Pedestrian Advisory Committee Board of Appeals Charter City Employees Civil Service Commission Cable Advisory Committee* Capital Improvements / Facilities Committee Commercial Revitalization Deduction Review Committee Community Review Board* Housing Authority Board Housing Loan Review Committee* A brief description of the purpose of the boards and commissions can be found on-line at http:www.ci.yakima.wa.us./council/ under Boards and Comissions, or call for information. We appreciate your interest in wishing to serve your City in this capacity. We ask your indulgence in completing this brief form so that the City Council can have sufficient information to make an appointment to the desired board or commission of the City of Yakima. PLEASE PRINT CLEARLY: NAME: (Mr., Mrs., Ms.) HOME ADDRESS: Number Street Apt. City Zip Code PHONE NUMBERS: (HOME) (BUSINESS) E-MAIL: YEARS OF RESIDENCE: IN YAKIMA OCCUPATION: Please give any training or experience which you possess that would be beneficial to a member of the board or commission in which you are interested: Special reasons for wishing to serve on this Commission: S1JC FF 8/15/02 Local Review Board for Historic Preservation Parks and Recreation Commission Police and Fire Civil Service Commission Public Facilities District Board Southeast Yakima Community Center Advisory Board Yakima Downtown Association Yakima Urban Area Regional Planning Commission Yakima Valley Regional Library Board Other -- A brief description of the purpose of the boards and commissions can be found on-line at http:www.ci.yakima.wa.us./council/ under Boards and Comissions, or call for information. We appreciate your interest in wishing to serve your City in this capacity. We ask your indulgence in completing this brief form so that the City Council can have sufficient information to make an appointment to the desired board or commission of the City of Yakima. PLEASE PRINT CLEARLY: NAME: (Mr., Mrs., Ms.) HOME ADDRESS: Number Street Apt. City Zip Code PHONE NUMBERS: (HOME) (BUSINESS) E-MAIL: YEARS OF RESIDENCE: IN YAKIMA OCCUPATION: Please give any training or experience which you possess that would be beneficial to a member of the board or commission in which you are interested: Special reasons for wishing to serve on this Commission: S1JC FF 8/15/02 Available for day meetings: Available for evening meetings: Have you ever served on any other board or commission? If so, please state City, dates, and name of board or commission: Please furnish two references who can speak to your qualifications for the desired appointment: NAME: ADDRESS: Zip Code DAYTIME PHONE NUMBER NAME: ADDRESS: Zip Code DAYTIME PHONE NUMBER: *Additional information requested for representation requirements: Cable Advisory Committee: Ethnic Origin Sex Community Review Board: Representation (local resident, health community, residential rental community, building industry or business community): Yakima Downtown Association and Housing Loan Review Committee: Business Name/Location When a vacancy occurs on a board or commission in which you have indicated an interest, your application will be provided to the Council Committee. The Committee will then make a recommendation to Council for appointment. The Council Committee or the City Council may desire to conduct an interview. This application is subject to public disclosure. Your residential address and residential telephone number are personal information which would violate your right to privacy and may be exempt unless you authorize full disclosure. I I I I IkuthurlLe full-uiSChJSure Your Signature: Date: Please return completed form to Yakima City Clerk, 129 North 2nd Street, Yakima, WA, 98901. Applications will be kept on file for one year. (If you have any questions please call 575-6037.) STDC FF 8/15/02 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No.: For Meeting of: August 20, 2002 ITEM TITLE: Consideration of Resolutions: A) establishing procedures for the administration of the Federal Commercial Revitalization Tax Deduction Program available within areas of the City of Yakima, and B) authorizing and directing the City Manager to execute a Memorandum of Understanding between the City of Yakima and the State of Washington Department of Community Trade and Economic Development ("CTED") identifying responsibilities for the magement of this program. SUBMITTED BY: r iam Cook, Director of Community and Economic Development CONTACT PERSON/TELEPHONE: William Cook (575-6113) SUMMARY EXPLANATION: Included with the federal income tax incentives provided through the Renewal Community Program, the City of Yakima may recommend projects to the State of Washington for receipt of federal commercial revitalization tax deductions. These tax deductions for capital investments within the City of Yakima's Renewal Community boundaries are only available for projects recommended by City Council and approved by the State of Washington. Beginning in 2002, and for an eight year period, $12 million dollars per year or (total of $96 million) in tax deductions are available for capital investments within the City's Renewal Community. Such capital investments include new construction and substantial rehabilitation of existing buildings. To access this important incentive opportunity, the City of Yakima must establish procedures and criteria for evaluating and selecting projects for recommendation to the State. In addition, to operationalize the commercial revitalization tax deduction component of the Renewal Community Program a Memorandum of Understanding is required between the City of Yakima and the State of Washington outlining responsibilities of each partner. Attached are Resolutions to A) establish local procedures for administering this program and B) authorize the City Manager to execute a Memorandum of Understanding with the State of Washington. Resolution X Ordinance Contract X Other Specify Memorandum of Understanding. Funding Source: APPROVAL FOR SUBMITTAL: Aeh City Manager STAFF RECOMMENDATION: Approve Resolutions A and B. BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: Please note that we have also attached, as a reminder, a copy of the City's Boards and Commissions Application form. It is our hope to bring back to the Council at their September 3 meeting, recommendations for appointments to the seven member Commercial Revitalization Deduction Review Committee identified in the attached program guidelines. The Council Economic Development Committee reviewed these items at their meeting on August 14, 2002 and recommends Council approval.