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Home My WebLink About04/07/2026 09.A. Resolution authorize SIED application_Hogback Dev on Nob Hill Blvd proj infrastructure improv !, (7,-, ,.,4'; ft..r. s � F - BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 9.A. For Meeting of: April 7, 2026 ITEM TITLE: Resolution authorizing an application to the Supporting Investments in Economic Development (SIED) Board to support Hogback West Yakima proposed development SUBMITTED BY: Gary Ballew, Assistant City Manager SUMMARY EXPLANATION: This proposed economic development project utilizes a form of tax increment financing (TIF) to encourage and accelerate development. The use of TIF is a reflection of Council's direction to incentivize and encourage economic development in Yakima. The Hogback Development is proposing an approximately 30-acre mixed use development at Nob Hill and 66th (Across from Wal Mart). The development will provide economic benefits, and specifically to the City of Yakima will increase Property Tax and Sales Tax revenues. Staff is recommending pursuing a Supporting Investments in Economic Development (SIED) application of$1,637,100 with a private developer match of$327,420, a SIED grant of$654,840 and a SIED loan of$654,840 that would be paid back by the City of Yakima through a form of local tax increment financing or TIF. Provided for Council review is the proposed application, attachments to the application (which includes a site map) and contingency agreement with the developer and a prospectus showing the efficacy of TIF to meet the loan repayment. Staff is proposing a loan repayment agreement with the Developer if revenues are insufficient to meet the approved loan repayment schedule. ITEM BUDGETED: No STRATEGIC PRIORITY 24-25: A Thriving Yakima RECOMMENDATION: Adopt Resolution. ATTACHMENTS: Resolution_SI ED_Application_Hogback_Nob_Hill_Project Hogback- SIED-Private-Partner-Application-last-update-2023.pdf Attachments Hogback Nob Hill.pdf Hogback West Yakima TIF Prospectus.xlsx 465 RESOLUTION NO. R-2026- A RESOLUTION authorizing the City of Yakima to support the grant and loan application from Yakima County Supporting Investment in Economic Development (SIED) fund to provide public infrastructure improvements in support of the proposed Hogback Development on Nob Hill Boulevard. WHEREAS, the City of Yakima Strategic Priorities includes a focus on economic development; and WHEREAS, the City Council is committed to economic growth as a top priority; and WHEREAS, the proposed Hogback Development on Nob Hill Boulevard will invest $25,000,000 in new development in the first year; and, WHEREAS, the Hogback Development will be accelerated by the investment of Supporting Investments in Economic Development (SIED) funds; and WHEREAS, public infrastructure improvements include an additional leg to the existing traffic signal at the Walmart entrance to West Nob Hill Boulevard and extending approximately 3,900 linear feet of new public sewer infrastructure; and WHEREAS, the City will utilize a form of tax increment financing to repay the loan portion of the proposed SIED award; and WHEREAS, the City Council of the City of Yakima finds that encouraging and accelerating commercial development, attracting private investment, and increasing job opportunities is beneficial to the City; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized to sign the grant application with the Yakima County "Supporting Investment in Economic Development" program in the amount not to exceed one million six hundred and thirty seven thousand and one hundred dollars ($1,637,100) including $654,840 in grant, $654,840 in loan and $327,400 in local match, with loan repayment made through incremental tax revenue generated by the development and local match to be paid by the private developer (Hogback West Yakima, LLC). ADOPTED BY THE CITY COUNCIL this 7th day of April, 2026. Matt Brown, Mayor ATTEST: Rosalinda Ibarra, CMC, City Clerk 1 466 Yakima County Supporting Investments in Economic Development Committed Private Business Application for Funding 467 Threshold Requirements All questions must be fully answered in order to qualify as a complete application. If you need more space for an answer, please attach additional sheets as needed noting the corresponding section,for example "C2." nResolution. A resolution or ordinance of the local governmental jurisdiction authorizing the S/ED application is required. nProject 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. riLocal Match. A local match of twenty (20) percent of the S/ED request is required. Local match may be demonstrated as cash or in-kind contribution. nOther Funding Sources. In addition to SIED, identify which public sources were considered to fund this project. Indicate what the outcome was. nPlanning. A statement is required from the planning jurisdiction relating to the type of public facility for which a SIED investment is sought. riPermits. All public and private permits must be received. nPrivate project description. Job creation and private sector financing must be evident. ZContingency 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. nAcceptance of Reporting Requirements. The County is required to report annual information on the use of SIED funds. A signed agreement (form included)to report the use of SIED funds must accompany the application. ElSTAFF ONLY-Application reviewed by Yakima County legal department. Staff will submit this application prior to the SIED Advisory Board review. Please submit application to: Yakima County Development Association PO Box 1387,Yakima,WA 98907-1387 (2520 W.Washington Avenue Suite 1,Yakima WA 98903) Or digitally to:Joe@YCDA.com Application for Funding, updated 4/2023 Page 2 Yakima County SIED Program 468 REQUEST FOR FUNDING (Funding is awarded 50% Loan and 50%Grant. No more than $2,000,000 total award from SIED when loan and grant combined.) Interest rates on loans are established when the County formally approves the project contract by using the County Interfund Loan Rate, as authorized by law. Loans are given for a term of 10 years and annual payments are made in equal amounts on June 1st of each year. An interlocal agreement will be established between the County and the applicant specifying repayment dates and a loan amortization schedule. Loan payment installments are based on an ordinary annuity, compounded annually. If an applicant needs additional flexibility on loan repayment schedules they can request a deferral. Interest on loans will continue to accrue from the date the contract is approved by the County, even if the applicant is granted a deferral on their first loan payment. If an applicant requests a deferral of the first loan payment,the applicant must justify the request. A SIED loan is a general obligation of the jurisdiction receiving the loan. With acceptance of a SIED loan,the jurisdiction agrees to the terms of the interlocal agreement regardless of the project which prompted the application for SIED funding. Applicant: City of Yakima Tax ID#: Contact: Vicki Baker Title: City Manager Phone: 509-575-6000 Email: vicki.baker@yakimawa.gov Address: 129 N 2nd Street City: Yakima Zip Code: 98901 Resolution Number Authorizing this Application for SIED Funding: I 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 knowledge and belief. Signature of Responsible Official: Printed Name and Title: Indicate the full terms requested for SIED consideration: • Loan Terms Requested: Lowest • A deferral of the first loan payment (up to five years): 4 • Total number of years for repayment: 10 • Please provide justification If requesting a deferral of the first loan payment: The City of Yakima requests a four-year deferral on the first loan payment so the private sector development activity being supported in this application has time for the construction to be completed, and begin generating tax revenues for the City prior to making the first deferred loan payment. • Please provide justification if a lower interest rate is requested: N/A Application for Funding, updated 4/2023 Page 3 Yakima County SIED Program 469 Executive Summary The SIED Advisory Board takes many factors into consideration when making recommendations for funding.This Project Summary highlights the main factors including: local match,funding from other sources,jobs created/retained, wage rates,jobs created/retained per SIED dollar invested, new private investment, and new tax revenues generated. Hogback West Yakima Road, Sewer and Signal Improvements Project Title: Date of Application: 3/19/2026 Project Summary: Describe the public infrastructure project and the private development that will occur. Explain why the private development requires the public infrastructure project: Private Development:The proposed development consists of approximately 31 acres of currently underutilized land located near West Nob Hill Boulevard and South 68th Avenue in the Yakima. The project will support a mix of retail, commercial, office, and multi-family residential uses, creating a significant opportunity for economic growth and community expansion in this area. At this time, three users have been confirmed within the development, including McDonald's, a credit union, and a car wash facility. Additional pad sites and parcels will be marketed for future commercial and potential residential development. The site will be served by existing arterial access from West Nob Hill Boulevard and surrounding local roadways. Public sewer service will be extended to support the full build-out of the development. Upon completion, the project is expected to provide new employment opportunities, expanded housing options, and increased access to goods and services for the surrounding community. Public Development:The proposed public improvements are necessary to facilitate safe access and support the anticipated growth associated with the development. Currently, the nearby intersection operates as a three-leg signalized intersection, limiting direct and efficient access to the project site. The project proposes to upgrade the existing signal to a four-leg intersection, improving traffic circulation, safety, and connectivity in the area. In addition, approximately 3,900 linear feet of new public sewer infrastructure will be constructed to serve the site and surrounding properties. This extension of sewer service is critical to unlocking the development potential of the area, as existing infrastructure is insufficient to support urban-level development. These infrastructure improvements will open approximately 31 acres for development and position the area for long-term growth. The combination of signal improvements and utility extensions represents the most effective and cost-efficient solution to address existing infrastructure limitations while enabling substantial private investment. The City and project proponents have evaluated alternatives and determined that the proposed improvements provide the optimal balance of safety, constructibility, and economic benefit. These enhancements will not only support the immediate development but also lay the groundwork for continued expansion in the area. Application for Funding, updated 4/2023 Page 4 Yakima County SIED Program 470 Indicate the Minimum Necessary Total Public Project Infrastructure Costs (no more than $1,000,000 total award from SIED when loan and grant combined): 654,840.00 SIED Loan Requested: $ 654,840.00 SIED Grant Requested: $ 327,420 Local Match (20%of SIED request): $ 0 All Other Funding Sources: $ 1,637,100 Total Public Project Cost: $ 25,000,000 Total Private Investment in Plant/Equipment: $ 90 Total Jobs Created/Retained: 40,000 50,000 Median Wage: $ Average Wage: $ Health Care, Vision, Dental Fringe Benefits Offered: 22,500,000 Estimated Assessed Value of the New Plant/Equipment: $ 14,552 Total SIED Request divided by Total Jobs Created/Retained: $ 19.09 Total Private Investment in Plant/Equipment divided by Total SIED Request: $ Other Benefits of the Public Infrastructure Project: In addition to supporting the proposed development, this project will provide critical infrastructure improvements that enhance traffic safety and increase overall connectivity within the Nob Hill corridor in the Yakima. The conversion of the existing three-leg signalized intersection to a four-leg intersection will improve traffic flow, reduce conflict points, and provide safer, more efficient access for both existing and future users in the area. The extension of approximately 3,900 linear feet of public sewer infrastructure will not only serve the immediate project site but will also provide necessary utility capacity to adjacent and nearby properties that are currently constrained by limited infrastructure. This investment will reduce barriers to development and make additional properties more viable for urban-level uses. The project is expected to catalyze further economic development by opening approximately 31 acres for mixed-use development, including retail, commercial, office, and multi-family residential uses. While several users have already committed to the site, the improved infrastructure will also attract additional private investment in the surrounding area, where interest has been limited due to access and utility constraints. Overall, these improvements will support long-term growth, increase property utilization, and strengthen the City's tax base while enhancing the functionality and safety of the broader transportation and utility network. Application for Funding, updated 4/2023 Page 5 Yakima County SIED Program 471 A. Public Sector Project Al. 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 Pending 4/17/2026 $654,840.00 SIED grant requested Pending 4/17/2026 $654,840.00 SIED Match - 20% Pending 4/17/2026 $327,420.00 Total project costs $1,637,100.00 Funding to complete the Public Project must be secured within one year of a SIED offer of financial aid A2. Will this project upgrade an existing public facility or build a new one? Upgrade Existing Describe the entire public facility project, including the parts that you are not asking SIED to fund. The proposed public facility project includes transportation and utility improvements necessary to support development near West Nob Hill Boulevard and South 68th Avenue in the Yakima. The project will convert an existing three-leg signalized intersection into a four-leg intersection, including installation of a new signal leg and associated channelization and striping improvements to improve access and safety. The project also includes construction of new commercial road approaches and approximately 3,900 linear feet of new public sewer infrastructure to extend service to the site and surrounding properties. Additional elements not requested for SIED funding may include frontage improvements, internal roadways, stormwater facilities, and other utility extensions required to support full build-out of the site. Together, these improvements will enable development of approximately 31 acres of mixed-use uses A3. Specifically, for what element(s) of the public project are SIED funds requested? SIED funds will be used in conjunction with local and private match funding to support construction of the signal improvements and public sewer infrastructure. This includes the conversion of the existing three-leg signalized intersection to a four-leg intersection, as well as the installation of approximately 3,900 linear feet of public sewer main necessary to serve the development area. Application for Funding, updated 4/2023 Page 6 Yakima County SIED Program 472 A4. 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 C. Hogback West Yakima Development will increase the access to 30+ acres of undeveloped General Commercial zoned property. The improved access will encourage further economic development in this corridor, and provide potential for much needed commercial infill. Full build-out of the area anticipates an economic benefit of$XX million annually. The project will inject immediate economic stimulus dollars into the City of Yakima's economy through the creation of construction jobs. In the long-term, opening access to additional commercial property along W Nob Hill Blvd. will invigorate development. A5. 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.) ANTICIPATED PERMIT ISSUER STATUS COMPLETION DATE Plans and Specs City of Yakima Not Yet Started October 2026 Permits to complete the Public Project must be secured within six months of a SIED offer of financial aid A6. If environmental permits are not required for the project (e.g., Shorelines Permit, Environmental Impact Statement, etc.), please explain why they are NOT required. The proposed improvements to the existing public roadways and the extension of the public sewer are not anticipated to require environmental review, as they involve standard transportation and utility infrastructure within an already developed corridor and do not impact critical areas or shorelines. Any environmental review required for the private development, including SEPA, will be completed separately as part of the individual development projects. Application for Funding, updated 4/2023 Page 7 Yakima County SIED Program 473 A7. Estimated schedule for public project completion. Indicate the month and year when the activities listed have been, or will be, completed. ESTIMATED COMPLETION DATE (month/year) Preliminary Engineering Report N/A Environmental Review N/A All Required Permits Obtained October 2026 Design Engineering October 2026 Land/Right-of-Way Acquisition October 2026 Prepare Bid Documents November 2026 Award Construction Contract January 2027 Begin Construction February 2027 Project Operational May 2027 A8. 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? N/A Please explain how completion of the project is coordinated between other involved parties. N/A A9. Will the SIED public facility project be totally maintained by the applicant? If not, whom? Please explain. The City of will operate and maintain all street and utility improvements subject to this grant request. Application for Funding, updated 4/2023 Page 8 Yakima County SIED Program 474 A10. How will this project impact utility rates and public services within the jurisdiction? There will be no impact on the utility rates. The City of Yakima will supply necessary public services. B. Financial Information of SIED Applicant B1. Other public sources of funding for public economic development projects are listed below and must be investigated. In addition to SIED, identify which public sources were considered to fund this project. Indicate what the outcome was. Federal Grant/Loan Programs: YES NO OUTCOME Economic Development Administration Jr l ❑ Not Timely Rural Development ❑ ✓❑ Not Eligible FASTACT ❑ ❑✓ Not Eligible Other: ❑ ❑ State Grant/Loan Programs: Transportation Improvement Board 0 ❑ Not Timely Community Development Block Grant ❑ ✓❑ Not Eligible Public Works Trust Fund ❑ Q Not Available Department of Ecology ❑ Q Not Eligible CERB 0 ❑ Not Timely RTPO/MPO ❑ ✓❑ Not Eligible Other ❑ ❑ Other Funding Options: Revenue Bonds ❑ Q Not Eligible General Obligation Bonds ❑ Q Not Eligible LID ❑ Q Not Eligible ULID ❑ Q Not Eligible Other: ❑ ❑ Application for Funding, updated 4/2023 Page 9 Yakima County SIED Program 475 B1 continued: Provide a narrative of the investigation of the above referenced funding sources and the outcomes: The City believes SIED funds are the most effective resource to leverage alongside private investment for this project due to the need to unlock 31 acres of commercial, office, and residential development, while addressing traffic safety and utility infrastructure needs. The public improvements will provide long-term benefits, supporting economic growth and development opportunities that extend beyond the immediate project area and positively impact the entire City of Yakima. B2. 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 does not have funds available to directly fund a project of this magnitude. The City's existing budget for transportation improvements is very limited and primarily focuses on maintaining existing roads, with no reserves available. The City of Yakima will utilize revenue generated by the development and developer agreement to finance the project. B3. Identify funds (General Fund, Utility Fund, Property taxes, etc.)that are eligible to repay a SIED loan: The City will utilize a combination of reserves, property taxes, construction sales tax, retail sales tax, and developer reimbursement for repayment of the SIED loan funding. Will a revenue stream be generated that could repay a SIED loan outside of the system's normal operations and maintenance costs? If yes, please explain: The improvements will generate construction sales tax, and retail sales tax due to the improvements in the developed area. The assessed value will also increase and provide new property tax revenue to the City and the County. There are no anticipated additional revenue sources to pay back the SIED loan. B4. If the local jurisdiction is not financially contributing to the project, please explain why. The City is committed to the SIED loan repayment, although they will primarily use revenue generated by the development and developer agreement to finance the project. Application for Funding, updated 4/2023 Page 10 Yakima County SIED Program 476 C. Private Sector Project Complete Section C and a Contingency Agreement for each private sector entity. 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. Private Sector Business: Hogback West Yakima Contact: Chris Waddle Title: Lead Developer Phone: 509-728-4744 Email: chris@hogbackdevelop.com Address: 2612 West Nob Hill, Ste H City: Yakima Zip Code: 98902 Cl. Describe the private development that will be supported by the public infrastructure/facility project. The public infrastructure improvements will support approximately 31 acres of mixed-use private development near West Nob Hill Boulevard and South 68th Avenue in the Yakima. The development will include retail, commercial, office, and multi-family residential uses, creating new employment opportunities and housing options in the area. Three users have already committed to the site, including McDonald's, a credit union, and a car wash, with additional parcels available for future development. The public roadway and sewer improvements are essential to provide safe access, utility service, and the infrastructure backbone necessary to enable full build-out of the site and attract further private investment. C2. Explain why the private development requires the proposed public infrastructure improvements described in this application. The private development cannot proceed at full scale without the proposed public infrastructure improvements. The existing roadway intersection is a three-leg signal that does not provide safe or efficient access to the site, limiting the ability to accommodate traffic from retail, office, and multi-family uses. Upgrading the signal to a four-leg intersection ensures safe entry and exit for future users. Additionally, the existing sewer infrastructure is insufficient to serve the 31-acre development. Extending approximately 3,900 linear feet of public sewer is necessary to provide adequate utility service for both the confirmed users— McDonald's, a credit union, and a car wash—and future private development. These improvements remove key infrastructure barriers, making the site viable for development and enabling the economic and community benefits envisioned for the project. Application for Funding, updated 4/2023 Page 11 Yakima County SIED Program 477 C3. Indicate the construction schedule (if applicable) for the proposed private sector project. (month/year) Private Facility Construction Begins January 2027 Private Facility Construction Completed November 2027 Private Facility Operational November 2027 C4. 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 Binding Site Plan City of Yakima May 2026 September 2026 Type 1 City of Yakima May 2026 September 2026 Building Permit City of Yakima In design December 2026 Civil Plans City of Yakima In design December 2026 Permits to complete the Private Project must be secured within one year of a SIED offer of financial aid C5. What private authorizations remain prior to proceeding with the proposed private development project? The only remaining private authorizations for the proposed development near West Nob Hill Boulevard and South 68th Avenue will be the result of the SIED board application. Once approval is provided, the project can proceed. Confirmed users, including McDonald's, a credit union, and a car wash. Land leases and any necessary site agreements will formalize these commitments, and no obstacles are anticipated. C6. Explain how the private sector is financing their capital investment in this project. The project will have a multitude of private sector funding. The McDonald's and credit union developers will each provide their own capital through private equity to finance their respective projects. Hogback West Yakima Development will be responsible for constructing the supporting infrastructure, including internal roads, utilities, and site improvements, while private developers will fund their building construction and tenant improvements. Hogback will also be construct additional build to suit commercial buildings on the remaining portions of the 31 acre site through already established private funding partnerships. This collaborative financing approach ensures both public infrastructure and private development proceed efficiently. Application for Funding, updated 4/2023 Page 12 Yakima County SIED Program 478 C6 continued: When will private sector financing be in place? Currently in place. Please list financial references that can verify financing sources and capacity for this project. See above. C7. List the number of projected jobs to be retained and/or created by the firm as a direct result of the public infrastructure project supporting the private development. Retained jobs are defined as jobs that will be lost to the county if the public project is not completed. Jobs must be expressed in Full Time Equivalents (FTEs) and wage data should exclude fringe benefits. Management positions should be indicated as an annual salary. #Of Jobs #Of Jobs #Of Jobs Local Retained (In Created Year 1 Created by Year Current or initial Occupational Job Description FTEs) (In FTEs) 3 (In FTEs) Hourly Wages Hourly Wages Mgmt./Admin* 10 20 $25 $25 Technical/Prof. 5 10 $22 $22 Office/Clerical 10 20 $20 $20 Production 30 50 $17.50 $17.50 Sales Skilled Crafts Others Totals 55 90 a) How many of these positions are for seasonal work? Give response in FTE: 0 b) What kind of fringe benefits does the company offer to regular full time employees? Heath, dental, and vision for full time employees C8. How were job projections developed? Explain how the projections are realistic. Job predictions are from experience in developing previous quick service restaurants, credit unions and car washes. The anticipated jobs are only fro the three immediate businesses, and the remaining commercial land serviced by the improvements would likely produce 400 or more additional job opportunities. Application for Funding, updated 4/2023 Page 13 Yakima County SIED Program 479 C9. Will this project move existing jobs from another part of the county? If yes, please describe why the project cannot happen where the jobs are currently located. No jobs are anticipated being relocated from other parts of the County. Mangers from other restaurants will assist in start-up operations and staffing, but are anticipated to return to their current facility, or another employee would be promoted to replace them at that facility. C10. 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? The proximity to low income areas offers close job opportunities to disadvantaged and currently unemployed workers. Local employees will be specifically engaged and provided opportunities at locations such as job fairs, local job posting sites, etc. Attachments 1. Resolution: A resolution or ordinance of the local governmental jurisdiction authorizing the SIED application. 2. Plan listing the project: Attach a copy of the section of the comprehensive plan or capital facilities plan that lists the public project. 3. 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. Materials must be reproducible in black and white and in 8 1/2 x 11 format. 4. Engineering estimates supporting project costs: Identify whether estimates are from preliminary engineering or design engineering work. SIED will not entertain requests for additional funding if projections are insufficient 5. Contingency agreement: A complete Contingency agreement (form included) is required for all projects. The agreement serves as the first level of convincing evidence that the private sector development will occur. 6. Business plan or year-end financial statements of the Private Sector Business: Attach supporting information such as a business plan or year-end financial statements (financial statements may be unaudited). The entire SIED application is considered a public record; however, financial and commercial information provided by the private business is exempt from disclosure to the extent permitted by RCW 42.56.270 paragraph (4). 7. Letters of support: If applicable, please include any letters of support for this project from partners or others entities in the community. Application for Funding, updated 4/2023 Page 14 Yakima County SIED Program 480 SAMPLE CONTINGENCY AGREEMENT 1. PARTIES. The parties to this Agreement are THE APPLICANT and THE PRIVATE BUSINESS. ATTENTION: If a developer is involved in the project, the tenant must also be a party to this agreement or there must be an additional agreement between the developer and the tenant. 2. PURPOSE. The purpose of this Agreement is to clarify the intentions of the parties regarding the completion of THE PUBLIC FACILITIES PROJECT. This section should also contain an explanation of the need for the public improvements. 3. BACKGROUND. The purpose of this section is to provide a description of the public improvements, which can be referenced, thereafter, as "required public improvements." 4. AGREEMENT. This section must contain the following: a) A statement that the applicant agrees to construct the required public improvements providing that SIED financing is approved. b) A statement by the business of the projected number of permanent, full-time jobs created and/or retained as a result of the public facilities project. (Attention: Job estimates identified here must equal those in Question C5.) c) A statement by the business of the estimated private capital investment. d) An agreement by the business to contact the local One-Stop Career Center, Job Service Center, or appropriate Community Based Organization for assistance in filling new positions. e) An agreement by the business to provide the applicant with employment and investment data as requested by SIED. f) If applicable, this section must also contain a list of any public and/or private contributions to the public facilities project, such as cash contribution or donated land. 5. CONTINGENCY. This Agreement is contingent upon receipt of SIED funds by THE APPLICANT and is intended to meet the first level of convincing evidence of private development as required by SIED. All parties must sign the Agreement. Application for Funding, updated 4/2023 Page 15 Yakima County SIED Program 481 Supporting Investments in Economic Development Reporting Form City of Yakima Applicant: Hogback West Yakima Road, Sewer and Signal Improvement Project Project Title: Hogback West Yakima Road, Sewer and Signal Improvement Project Public Infrastructure Project: Plan Containing the Project: $1,637,100 Total Spent on the Project: 1,309,680 Amount of SIED Funds (loan and grant) spent on the project Estimated Number of Businesses Created or Retained by Project: Estimated Number of Jobs Created or Retained by Project: Instructions to Preparer: 1. List the public facility project. 2. Indicate where the project is listed (e.g., officially adopted county economic development plan, economic development section of the county's comprehensive plan, etc.). 3. List an amount of total expenditures related to the project. 4. List an amount of expenditures paid for by SIED funding. 5. The applicant must provide an actual or estimated number of businesses jobs that will be created, attracted, expanded or retained. 6. Documentation supporting this report must be made available upon request for audit purposes and public requests. If awarded SIED funds, I hereby agree to annually report to the SIED Board the use of those funds according to the instructions above. Signature of Responsible Official: Printed Name and Title: Application for Funding, updated 4/2023 Page 16 Yakima County SIED Program 482 ATTACHMENT 1 Resolution 483 ATTACHMENT 2 Site Map Of The Area & Site Plan 484 , rh, _,... .. _.. , _ _ , , _. ,chris@hogbackdevelop.com - 1 _6_26 9_53_28 _.,,,,,.. . ,., -.1r,:p . ,_ L z New 8L " ` 7 - :. �'` . -� New 8 lilt --- — _ ' _. ,�.� Sewer Typ. _� - -N� . , - � I,,_- Sewer Typ '! -. - Multi-family _ - � - N n N _ _ 1111.111.1.11 mum -p i _ . .., . , , . _ _ , ll . ' n Q I., n P L ,i � '--U Lam' , r i. Li 7 - r1 n ^ III i r t t i Remove L ��■■�� ■■� 41• ■�■■�■ ■��■ ■�■■�� ih imp I Road `� ��■ • ■■■■ MUM I I I I I • • ■■■■ ■■■■ ■■■■ i Approach I _ - , 4 C D C 7 C rT1 New Retail _ , 1 N J Typ. - New Office Typ. Cn �, E C 7 C 7 1c. _ ii. 1 tair 1/. 1---- fl - 1 . . I I I z EL i I '7 -II . - y - _ 11 cl A _�� ■ ill r- f j New 8" � .■� I Q 1- " ' Sewer Typ., i c c 3 I r mu.McDonald's . 1 I , , LJ r� 1 � , 1 J1 I // `J • 1 f -1 Credit II � ilia - P'�l -lt y ... F =ailliz I Union ' - - - Nob Hill Blvd. a ,� Repair , _, New - -,ice - ,. Commercial -' Revise _ New Signal Commercial Commercial .. Approach Leg Approach �� Approach SITE HOTEL RETAIL PARKS GARDEN OFFICE PARKING MASTER PLAN EARTHWORK Acreage 31 .44 Keys 112 Load 791 Load 125 Units 288 Floor Load 170 Stalls 1 ,630 Stalls 1 ,630 Cut 9,246 FAR 0.36 Modules 0.0 Net 79,667.7 Net 0.0 Beds 342 Net 51 ,795 Average 508 Fill 6,814 BLDG CVG% 15.4 Baths 0.0 Gross 79,667.7 Gross 12,500.6 Baths 342.0 Gross 57,550 Ratio (NRSF) 3.90 Ratio (NRSF) 3.90 Import 0 IMP CVG% 81 .1 Stalls Req. 112 Stalls Req. 234 Stalls Req. 0 Stalls Req. 432 Stalls Req. 257 ma Parking Req. 1 ,035 Export 2,432 DU/AC 12.7 Stacking 39 —M Retention Ponds 0 485 N o 40 80 160 I 1 1 ILOU 17 6.23 79135292 I 11 I — 4O4 2 6.23 a05292 II L®T2 .P79664f1/ I I I __ __ __ 57' SHARED ACCESS AND I I I I I R —UTILITY EASEMENT PER I I 1, 4 I PROPOSED 30' ACCESS t_ A.F.NO. 7969698, FOR THE X X PROPOSED 30' ACCESS AND UTILITY EASEMENT BENEFIT OF LOTS 1, 2, 3, 11 II —_ AND 4 OF S.P. 7966494. AND UTILITY EASEMENT LOT 13 I /' 43,966±sf LOT 11 iL J °'� \\ LOT 15 (40,135±sf LESS EASEMENTS) 112,423±sf L-- I LOT 14 0 71 182,508±sf 11 (108,437±sf LESS EASEMENTS) LOT 12 3' HEBARD LATERAL 201,770±sf I I \�\ 71,255±sf LESS EASEMENTS) IRRIGATION ESMT. (191,694±sf LESS EASEMENTS) 43,462±sf PER A.F.NO. 7894 0 (41,182±sf LESS EASEMENTS) I I 1o' PueucunuTr Io ——— __ ___ ,(X EASEMENT PER S.P. ® R II 7988494 I 1 APPROX LOCATION OF Io COI Ili PERAEFDNOR 25906ENT I I Q ❑ I ot '4 PROPOSED 50' ACCESS 4OO 4 3 LOT 9 I AND UTILITY EASEMLENT OT 8 S.P.9720923 1 w I 113,766±sf ' I 133,825±sf (99,134±sf LESS EASEMENTS) I (118,875±sf LESS EASEMENTS) LOT 7 11 I LOT 10 I I 102,552±sf =__ __ ___ 1 I 1 1 A 928±s f (95,782±sf LESS EASEMENTS) I sf 7 —PROPOSED 40' ACCESS (112,791±sf LESS EASEMENTS) 11 1 AND UTILITY EASEMENT o PROPOSED 40' ACCESS 40O 4 1 `� 242.94' �' AND UTILITY EASEMENT 6.23 79392/79 LOT 5A 35,392±sf I 1 — —— ——- I I J} PROPOSED 50' ACCESS E (27,462±sf LESS E ISEMENTS) AND unurY EASEMENT W \ 28' ACCESS AND unuTr 1 16 I I 1 LOT 1 N w EASEMENT PER S.P. 7921730 FOR THE BENEFIT I I AbA'3- G p6 LOT 6 I I I 77,651±sf I— CO v w PLATOFLOTS 3 AND 4 OF SAID I I I k..-S S S\ 52,966±sf c I (63,654±sf LESS EASEMENTS) O L[) co LO ¢ 4O4 2 43 185±sf LESS J H W LOT 4 QANG C° (EASEMENTS) LOT 5B o PI O w p Oopo a0°O�a30 ±sf ±sf T �0(PPR�� N 45'EASEMENT 31,063±sf LESS 35,474 EASEMENTS) � co ,' 47,3953L682 EASEMENTS) I 1 I I 10'NOB HILL WATER I ) L 765SEMENT PER A.F.NO. —_ — —2077 --- _ VV.NOB HILL BOULEVARD S IS Z.IA lif 10 JOB NUMBER: DATE: 26060 3-13-26 HOGBACK SHEET HLA2803 River Road FILE NAMES: Y(509)9 6A 00002 L� 11V11 11V�°, if DRAWING: 26060.dwgREVIEWED BY: E PLAN CITY OF YAKIMWEST OA YAK MA COUNTYB HILL BINDING TWASH NGTON OF 1www.hlacivil.com lSUBJECT'� l�1 11T O1 11ro'Vl�pp�lS[I OI1r\I U1�LS V �C ENTERED BY: ETH/MRHTDD LOT LAYOUT REVISION DATE 486 ATTACHMENT 3 Engineering Estimate Supporting Project Costs 487 City of Yakima Hogback West Yakima Improvements LA 3/15/2026 Engineers Opinion of Construction Cost PRELIMINARY Nob Hill BLVD Road,Signal and Sewer Improvements HLA Project No. 26060 Item Overall Description Payment Unit Unit Cost Overall Cost No. Specification Quantity 1 Minor Change 1-04.4(1) FA $25,000.00 1 $25,000.00 2 SPCC Plan 1-07.15(1) LS $1,500.00 1 $1,500.00 3 Mobilization 1-09.7 LS $85,000.00 1 $85,000.00 4 Project Temporary Traffic Control 1-10.5(1) LS $20,000.00 1 $20,000.00 5 Clearing and Grubbing 2-01.5 LS $7,500.00 1 $7,500.00 6 Removal of Structures and Obstructions 2-02.5 LS $15,000.00 1 $15,000.00 7 Unclassified Excavation Incl.Haul 2-03.5 CY $200.00 100 $20,000.00 8 Crushed Surfacing Base Course 4-04.5 TON $70.00 35 $2,450.00 9 Crushed Surfacing Top Course 4-04.5 TON $75.00 17 $1,275.00 10 HMA Cl.1/2-Inch PG 64H-28 5-04.5 TON $140.00 20 $2,800.00 11 Doghouse Manhole 48 In.Diam. 7-05.5 EA $5,500.00 2 $11,000.00 12 Select Backfill,as Directed 7-08.5 CY $60.00 100 $6,000.00 13 Shoring or Extra Excavation 7-08.5 LF $3.00 3,900 $11,700.00 14 PVC Sanitary Sewer Pipe 8 In.Diam. 7-17.5 LF $100.00 3,900 $390,000.00 15 Sanitary Sewer Service 4-Inch Diam. 7-18.5 LF $60.00 300 $18,000.00 16 Erosion Control and Water Pollution Prevention 8-01.5 LS $3,000.00 1 $3,000.00 17 Landscape Restoration 8-02.5 FA $7,500.00 1 $7,500.00 18 Cement Conc.Traffic Curb and Gutter 8-04.5 LF $50.00 150 $7,500.00 19 Commercial Approach 8-06.5 EA $7,500.00 3 $22,500.00 20 Cement Conc.Sidewalk 4-Inch Thick 8-14.5 SY $80.00 50 $4,000.00 21 Traffic Signal System,Complete 8-20.5 LS $325,000.00 1 $325,000.00 22 Permanent Signing 8-21.5 LS $3,500.00 1 $3,500.00 23 Pavement Markings 8-22.5 LS $5,000.00 1 $5,000.00 Subtotal $995,225.00 Assumptions: Contingency 15% $149,300.00 Total Estimated Construction Cost $1,144,525.00 Design Engineering 14% $160,200.00 Construction Engineering 16% $183,100.00 PROJECT TOTAL /SIED Request.... $1,637,100.00 SIED Request (Minus 20%Match).... $1,309,680.00 Private Developer Match (Min.20%of SIED Request).... $327,420.00 Easement Contribution.... Square-Feet Price/SF Mike Heit,PE Date 75,000 I $3.50 I $263,000.00 HLA Engineering and Land Surveying,Inc. Cash Contribution.... $64,420.00 SIED Loan Request.... $654,840.00 SIED Grant Request.... $654,840.00 Private Developer Match .... $327.420.00 PROJECT TOTAL.... $1,637,100.00 C:\Users\mheit\AppData\Local\Temp\Bluebeam Software\39324836.xlsx 488 ATTACHMENT 4 Contingency Agreement 489 Docusign Envelope ID:3D5150E4-227A-4B1C-84BD-BD84616E66FC Supporting Investments in Economic Diversity (SIED) Board Contingency Agreement 1. PARTIES The parties to this Agreement are City of Yakima, whose address is 129 N. 2nd Street,Yakima,WA 98901 and Hogback West Yakima, LLC,whose address is 2612 West Nob Hill, Ste H, Yakima,WA 98902. PURPOSE In order to allow development to occur on property near the intersection of West Nob Hill Boulevard and South 68th Avenue,West Nob Hill Boulevard will need to be improved to add an additional leg to the existing traffic signal at the Walmart entrance to West Nob Hill Boulevard to City of Yakima Standards. The project will also extend approximately 3,900 linear feet of new public sewer infrastructure will be constructed to serve the future commercial development sites. The proposed project will result in new commercial development and significant jobs for the City and region. BACKGROUND Required public improvements to be completed for this project include: A. Hogback West Yakima Road, Sewer and Signal Improvement Project The improvements will add a new signal leg to the existing traffic signal at the Walmart entrance to West Nob Hill Boulevard and associated channelization and striping improvements, and revise or add road approaches to improve access and safety. The project will also extend approximately 3,900 linear feet of new public sewer infrastructure all to City of Yakima Standards. AGREEMENT The PARTIES do hereby agree as follows: A. The City of Yakima agrees to use approved SIED financing for development of the required public improvements provided SIED financing is approved, and Developer loan re-payment agreement(s)are executed. B. Hogback West Yakima, LLC projects approximately 50 jobs may be created in the 1st year,and 90 jobs may be created by the 3rd year. C. Hogback West Yakima, LLC anticipates the total private investment in the development project to be$25,000,000. D. Hogback West Yakima, LLC agrees to contact the local One-Stop Career Center, Job Service Center or other Community based Organizations for assistance in filling new job positions. E. Hogback West Yakima, LLC agrees to provide the City of Yakima with employment and investment data as requested by SIED. F. The funding for this project anticipates a$654,840 SIED Grant, a$654,840 SIED Loan, and a 20% matching requirement of $327,420. The $327,420 match will be provided by the developer, Hogback West Yakima, LLC, in the form of cash, and sewer easements. CONTINGENCY This Agreement is contingent upon receipt of the full SIED funding request by the City of Yakima. City of Yakima Date Hogback West Yakima, LLC Date 4/1/2026 t 0,1s WItt, —oa��snn-aoca City Manager Designate rRepresentative City of Yakima Hogback West Yakima Road, Sewer and Signal Improvement Project Hogback West Yakima, LLC Development 490 ATTACHMENT 5 Business Plan 491 ATTACHMENT 6 Letters of Support 492 CASCADIA FIELDSTON ®& DEVELOPMENT LIVING COMMUNITIES March 30, 2026 To Whom It May Concern: As a resident of the City of Yakima and a commercial developer active throughout the Yakima Valley, I am writing to express my strong support for the Supporting Investments in Economic Diversity(SIED) Board funding of the Hogback West Yakima Road,Sewer and Signal Improvement Project. I am currently evaluating potential retail development opportunities in this area and have firsthand knowledge of the existing traffic constraints along West Nob Hill Boulevard.The lack of adequate access and traffic control presents a significant challenge to safe and efficient circulation, particularly for vehicles exiting future commercial sites.The addition of a signalized intersection at 68th Avenue would greatly improve safety,accessibility,and overall traffic operations. From a development standpoint,these improvements are critical. Enhancing traffic flow and infrastructure capacity will directly increase the feasibility of commercial investment along the corridor, support new business growth, and help unlock the economic potential of currently underutilized properties.This project represents a strategic investment that will benefit both the local economy and the broader Yakima community. For these reasons, I strongly encourage the SIED Board to fund this important project. Sincerely, Justin Younker Cascadia Senior Living, LLC Cascadia Development, LLC 506 N.40th Avenue,Suite 100 I Yakima,WA 98908 1509.426.2756 I cascadiaseniorliving.com 493 10 -\":4\ER—cc < 218 Staff Sgt Pendleton Way (.)/bizort Yakima 509.966.3800• WA 98901 ' , I almoncommercial.com March 30, 2026 -p�q C E SAP To Whom It May Concern: As a resident of the City of Yakima and a commercial real estate broker and investor active throughout the Yakima Valley, I am writing to express my strong support for the Supporting Investments in Economic Diversity (SIED) Board funding of the Hogback West Yakima Road, Sewer and Signal Improvement Project. I am currently evaluating potential retail development opportunities in this area and have firsthand knowledge of the existing traffic constraints along West Nob Hill Boulevard. The lack of adequate access and traffic control presents a significant challenge to safe and efficient circulation, particularly for vehicles exiting future commercial sites. The addition of a signalized intersection at 68th Avenue would greatly improve safety, accessibility, and overall traffic operations. From a development standpoint, these improvements are critical. Enhancing traffic flow and infrastructure capacity will directly increase the feasibility of commercial investment along the corridor, support new business growth, and help unlock the economic potential of currently underutilized properties. This project represents a strategic investment that will benefit both the local economy and the broader Yakima community. For these reasons, I strongly encourage the SIED Board to fund this important project. Sincerely, Bill Almon, Jr. Almon Commercial Real Estate 494 ORTON FRUI BORTON &SONS, INC. - FRUIT&COLD STORAGE To Whom It May Concern As a resident of the City of Yakima and a commercial developer active throughout the Yakima Valley, I am writing to express my strong support for the Supporting Investments in Economic Diversity (SIED) Board funding of the Hogback West Yakima Road, Sewer and Signal Improvement Project. I am currently evaluating potential retail development opportunities in this area and have firsthand knowledge of the existing traffic constraints along West Nob Hill Boulevard. The lack of adequate access and traffic control presents a significant challenge to safe and efficient circulation, particularly for vehicles exiting future commercial sites. The addition of a signalized intersection at 68th Avenue would greatly improve safety, accessibility, and overall traffic operations. From a development standpoint, these improvements are critical. Enhancing traffic flow and infrastructure capacity will directly increase the feasibility of commercial investment along the corridor, support new business growth, and help unlock the economic potential of currently underutilized properties. This project represents a strategic investment that will benefit both the local economy and the broader Yakima community. For these reasons, I strongly encourage the SIED Board to fund this important project. Sincerely Byron Borton CVO Borton & Son's Inc. 2550 BORTON ROAD • YAKIMA,WA 98903 • PHONE 509-966-3905 • FAX 509-966-3994 • SALES FAX 509-966-5131 495 Docusign Envelope ID:C4D6FEDE-9297-4887-8648-AA736ADA6375 To Whom It May Concern As a resident of the City of Yakima and a commercial developer active throughout the Yakima Valley, I am writing to express my strong support for the Supporting Investments in Economic Diversity(SIED) Board funding of the Hogback West Yakima Road, Sewer and Signal Improvement Project. I am currently evaluating potential retail development opportunities in this area and have firsthand knowledge of the existing traffic constraints along West Nob Hill Boulevard. The lack of adequate access and traffic control presents a significant challenge to safe and efficient circulation, particularly for vehicles exiting future commercial sites. The addition of a signalized intersection at 68th Avenue would greatly improve safety, accessibility, and overall traffic operations. From a development standpoint, these improvements are critical. Enhancing traffic flow and infrastructure capacity will directly increase the feasibility of commercial investment along the corridor, support new business growth, and help unlock the economic potential of currently underutilized properties. This project represents a strategic investment that will benefit both the local economy and the broader Yakima community. For these reasons, I strongly encourage the SIED Board to fund this important project. Sincerely, Signed by: (,lava WA, D47F3A17540C468... Chris waddle Hogback Development Company Manager 496 Hogback Nob Hill Development City Revenue Prospectus 32 Acres Year 0 1 2 Market Value $ 6,940,000.00 $ 6,940,000.00 $ 8,940,000.00 Assessed Value (75% of Market) $ 73,000.00 $ 5,205,000.00 $ 6,705,000.00 Building Sq Feet 0 10000 20000 Construction ($200/sq ft) $ - $ 2,000,000.00 $ 4,000,000.00 Retail Sales $ - $ - $ 7,000,000.00 Property Tax $ 130.67 $ 9,316.95 $ 12,001.95 Sales Tax Const $ - $ 8,500.00 $ 17,000.00 Sales Tax Retail $ - $ - $ 59,500.00 50% Increment $ 65.34 $ 8,908.48 $ 44,250.98 Loan Repayment $ - $ - $ - 50% Econ Dvlp Fund $ 65.34 $ 8,908.48 $ 44,250.98 Total Econ Dvlp Fund $ 65.34 $ 8,973.81 $ 53,224.79 50% General Fund $ 65.34 $ 8,908.48 $ 44,250.98 Total General Fund $ 65.34 $ 8,973.81 $ 53,224.79 497 Match $ 327,420.00 SIED Grant $ 654,840.00 SIED Loan $ 654,840.00 3 4 5 6 7 $ 14,234,000.00 $ 24,457,400.00 $ 35,703,140.00 $ 45,873,454.00 $ 57,060,799.40 $ 10,675,500.00 $ 18,343,050.00 $ 26,777,355.00 $ 34,405,090.50 $ 42,795,599.55 40000 40000 30000 30000 20000 $ 8,000,000.00 $ 8,000,000.00 $ 6,000,000.00 $ 6,000,000.00 $ 4,000,000.00 $ 8,400,000.00 $ 10,080,000.00 $ 11,088,000.00 $ 12,196,800.00 $ 12,806,640.00 $ 19,109.15 $ 32,834.06 $ 47,931.47 $ 61,585.11 $ 76,604.12 $ 34,000.00 $ 34,000.00 $ 25,500.00 $ 25,500.00 $ 17,000.00 $ 71,400.00 $ 85,680.00 $ 94,248.00 $ 103,672.80 $ 108,856.44 $ 62,254.57 $ 76,257.03 $ 83,839.73 $ 95,378.96 $ 101,230.28 $ 79,650.00 $ 79,650.00 $ 79,650.00 $ 79,650.00 $ 79,650.00 $ 62,254.57 $ 76,257.03 $ 83,839.73 $ 95,378.96 $ 101,230.28 $ 35,829.36 $ 32,436.39 $ 36,626.12 $ 52,355.08 $ 73,935.36 $ 62,254.57 $ 76,257.03 $ 83,839.73 $ 95,378.96 $ 101,230.28 $ 115,479.36 $ 191,736.39 $ 275,576.12 $ 370,955.08 $ 472,185.36 498 8 9 10 11 12 $ 67,166,879.34 $ 78,283,567.27 $ 90,511,924.00 $ 103,963,116.40 $ 116,559,428.04 $ 50,375,159.51 $ 58,712,675.46 $ 67,883,943.00 $ 77,972,337.30 $ 87,419,571.03 20000 20000 20000 10000 0 $ 4,000,000.00 $ 4,000,000.00 $ 4,000,000.00 $ 2,000,000.00 $ - $ 13,446,972.00 $ 14,119,320.60 $ 14,825,286.63 $ 15,566,550.96 $ 16,344,878.51 $ 90,171.54 $ 105,095.69 $ 121,512.26 $ 139,570.48 $ 156,481.03 $ 17,000.00 $ 17,000.00 $ 17,000.00 $ 8,500.00 $ - $ 114,299.26 $ 120,014.23 $ 126,014.94 $ 132,315.68 $ 138,931.47 $ 110,735.40 $ 121,054.96 $ 132,263.60 $ 140,193.08 $ 147,706.25 $ 79,650.00 $ 79,650.00 $ 79,650.00 $ 79,650.00 $ 79,650.00 $ 110,735.40 $ 121,054.96 $ 132,263.60 $ 140,193.08 $ 147,706.25 $ 105,020.76 $ 146,425.71 $ 199,039.31 $ 259,582.39 $ 327,638.64 $ 110,735.40 $ 121,054.96 $ 132,263.60 $ 140,193.08 $ 147,706.25 $ 582,920.76 $ 703,975.71 $ 836,239.31 $ 976,432.39 $ 1,124,138.64 499 13 $ 120,000,000.00 $ 90,000,000.00 0 $$ 17,162,122.44 $ 161,100.00 $$ 145,878.04 $ 153,489.02 $$ 153,489.02 $$ 306,978.04 $ 1,431,116.68 500