HomeMy WebLinkAboutR-2003-127 2003 Renewal Community Commercial Revitalization Deduction AllocationsRESOLUTION NO. R-2003-127
A RESOLUTION approving projects for the 2003 allocation of the federal Renewal
Community Commercial Revitalization Deduction, and directing the City
Manager to submit the list of approved projects to the Washington State
Department of Community, Trade and Economic Development (CTED)
for ratification and commitment.
WHEREAS, economic development is a priority of the City of Yakima, and the City
intends to approach economic development on a comprehensive basis involving public, private
and community-based efforts to achieve new investment and redevelopment in the City; and
WHEREAS, the City has been formally designated a Renewal Community under the
Empowerment Zones and Renewal Communities Initiative 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, 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, the City of Yakima has an allocation of $12 million in Commercial
Revitalization Tax Deductions for the year 2003; and
WHEREAS, applications for the 2003 Commercial Revitalization Deduction were made
available to, and were received from the public; and
WHEREAS, a total of seven applications were submitted to the City in response to a
public call for applications; and
WHEREAS, all project applications were determined to be eligible to receive the
Commercial Revitalization Deduction; and
WHEREAS, the City Council appointed Commercial Revitalization Deduction
Allocations Committee reviewed and recommends approval of the projects; and
WHEREAS, the City Council finds it is in the best interests of the City of Yakima to
approve the submit for federal Commercial Revitalization Deductions the projects listed on the
attached sheet; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
1. The City Council approves the attached list of projects to receive allocations from the
2003 federal Renewal Community Commercial Revitalization Deduction; and
2. The City Manager is hereby authorized and directed to submit the list of approved
projects to the Washington State Department of Community, Trade and Economic
Development for ratification and commitment.
ADOPTED BY THE CITY COUNCIL this 7th day of October, 2003
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y Place, Mayor
ATTEST:
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City Clerk
City of Yakima
Renewal Community
Commercial Revitalization Deduction
2003 Allocation Project List
Applicant/Project Allocation Amount
Up Front Development $700,000
Old City Hall Restoration @ 27 N. Front Street
Withrow Development $605,000
New car wash @ 907 E. Nob Hill
Owens Cycle, Inc. $1,200,000
New Harley-Davidson Dealership @ N. 1st St. & "R" St.
Triangle Auto Supply $100,000
Building improvements @ 401 E. Arlington Street
Kobe Properties, LLC $400,000
New facility for Central Chain & Transmission @ 702 S. 2nd Street
ACTNOW Personnel & Training Services $110,000
Building rehab @ 303 W. "B" Street
Cascade Natural Gas Corp. $1,770,000
Building rehab and expansion for offices @ 701 S. 1st Ave.
TOTAL ALLOCATIONS: $4,885,000
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting Of: October 7, 2003
ITEM TITLE: Approve projects for the 2003 allocation of the Commercial
Revitalization Deduction, and forward to state of Washington for
commitment.
SUBMITTED BY: Michael Morales, Grants Officer
Department of Community and Economic Development
CONTACT: Michael Morales, 575-3533
SUMMARY EXPLANATION:
The City of Yakima was designated a federal Renewal Community by the U.S.
Department of Housing and Urban Development (HUD) in January 2002. The RC
designation provides a variety of tax incentives to RC businesses, including the
Commercial Revitalization Deduction (CRD), which requires a local project selection
process.
A public call for CRD applications was issued in May of this year, and the City received
seven applications in response. Staff conducted an initial screening and eligibility
review of the applications, and the list of projects was forwarded to the CRD Committee
for concurrence. The total amount of CRD requested in this round of applications is
$4,885,000. The City still has $7,115,000 of its CRD allocation that it must commit to
eligible projects by December 31, 2003.
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Resolution Ordinance Contract _ Other: Appointments
Approval for Submittal:
City Mgnager
STAFF RECOMMENDATION: Staff recommends approval of the allocations.
BOARD RECOMMENDATION: CRD Allocations Committee and Council Economic
Development Committee recommend approval
Resolution adopted. RESOLUTION NO. R-2003-127
COUNCIL ACTION:
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The projects for the 2002 allocation of the Commercial Revitalization Deduction, their
review score, and amount requested, are listed below:
Applicant/Proiect
Up Front Development
Old City Hall Restoration @ 27 N. Front Street
Withrow Development
New car wash @ 907 E. Nob Hill
Owens Cycle, Inc.
New Harley-Davidson Dealership @ N. 1st St. & "R" St.
Triangle Auto Supply
Building improvements @ 401 E. Arlington Street
Kobe Properties, LLC
New facility for Central Chain & Transmission @ 702 S.
ACTNOW Personnel & Training Services
Building rehab @ 303 W. "B" Street
Cascade Natural Gas Corp.
Building rehab and expansion for offices @ 701 S.
TOTAL ALLOCATIONS:
Allocation Amount
$700,000
$605,000
$1,200,000
$100,000
$400,000
2"d Street
$110,000
$1,770,000
1st Ave.
$4,885,000
With City Council approval, the list of projects will be forwarded to the state Department
of Community, Trade and Economic Development for ratification. CTED will then
provide a binding commitment letter and contract to the CRD awardees for verification
with the Internal Revenue Service. Another allocation of $12 million will be available
January 1, 2004.
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