HomeMy WebLinkAboutR-2005-126 2005 Allocations Approval of Federal Renewal Community Commercial Revitalization DeductionsRESOLUTION NO. R-2005-126
A RESOLUTION approving projects for the 2005 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 2005 that must be allocated by December 31, 2005;
and
WHEREAS, applications for the 2005 Commercial Revitalization Deduction were made
available to, and were received from the public; and
WHEREAS, a total of fourteen (14) applications were submitted to the City for
consideration of the Commercial Revitalization Deduction; 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 for eight (8) of the projects in the
amount of $12,000,000; and
WHEREAS, the City Council finds it is in the best interests of the City of Yakima to
approve and 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
2005 federal Renewal Community Commercial Revitalization Deduction in the
amount of $12,000,000; 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 16th day of August, 2005
ATTEST:
Paul George, Mayor
1260.6.4
City Clerk
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting Of: August 16, 2005
ITEM TITLE: Approve projects for the 2005 allocation of the Commercial
Revitalization Deduction, and forward to state of Washington for
commitment.
SUBMITTED BY: William Cook, Director, Community & Econ Development
CONTACT: Michael Morales, Economic & Community Affairs Specialist
575-3533
SUMMARY EXPLANATION:
The Commercial Revitalization Deduction (CRD) is a federal Renewal Community tax
benefit that allows the rapid depreciation of new construction or rehabilitation of
commercial buildings in the Renewal Community. The city receives a $12 million
allocation of CRD each year through 2009. We are pleased to report that, with council
approval today, the City will have committed its full 2005 allocation of CRD. The City
received over $20 million in applications for the $12 million allocation. Although
Renewal Community guidelines provide that a project receiving a CRD allocation must
be put in service within two years, the review committee prioritized their
recommendation to projects that would be put in service within the next twelve months.
With City Council approval, the list of projects will be forwarded to the state Department
of Community, Trade and Economic Development for ratification. After passage of a
45 day appeal period, CTED will then provide a binding commitment letter and
certificate to the CRD awardees for verification with the Internal Revenue Service.
Another allocation of $12 million will be available beginning January 1, 2006.
CONTINUED ON NEXT PAGE
Resolution X Ordinance Contract Other:
Approval for Submittal:
City Manager
STAFF RECOMMENDATION: Staff recommends approval of the allocations.
BOARD RECOMMENDATION: CRD Allocations Committee recommends approval.
COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2005-126
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City of Yakima Renewal Community
2005 Commercial Revitalization Deduction Projects
Applicant/Proiect Allocation Amount
Jeld-Wen, Inc. $6,500,000
New manufacturing plant at 1311 North 6th Avenue
Morrier Hotel, LLC $3,253,700
New hotel @ 401 East Yakima Avenue
Horizon Distribution, Inc. $185,000
Building improvements and expansion @ 911 South 3rd Street
Sports Center Universe, LLC $227,500
Restaurant & Lounge @ 214 East Yakima Avenue
Beems Corporation $805,825
Nutrition store and retail center @ 3803 River Road
Triplet Enterprises $650,000
New office building @ 3901 Kern Road
Dr. Dennis Cozzocrea $153,075
Building rehabilitation for Precision Spinal Care @ 208 North 3rd
Avenue
$224,900
Fidel Duran
New retail center @ 231 South 1st Street
TOTAL 2005 CRD ALLOCATIONS: $12,000,000
The City of Yakima was designated a federal Renewal Community in January 2002.
The RC designation provides a variety of tax incentives to RC businesses, including RC
Employment Wage Credits, increased Section 179 Expensing, Zero Capital Rate, and
the CRD. These incentives are available in Census Tracts 01, 02, 03, 06, 07 and 15
through 2009.
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