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HomeMy WebLinkAbout06/16/2026 09.D. Resolution authorize SIED grant application submission_air terminal cargo & MRO feasibility study 'V ii r _�ii • •• i ,ir,;:k >, i t, gin.;—* _1a _- '^ BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 9.D. For Meeting of: June 16, 2026 ITEM TITLE: Resolution authorizing the submittal of grant applications to the Yakima County SIED Board and the U.S. Economic Development Administration (EDA) for the Yakima Air Terminal Cargo & MRO Feasibility Study SUBMITTED BY: Gary Ballew, Assistant City Manager SUMMARY EXPLANATION: Yakima Air Terminal serves an essential role in supporting the region's economy. Growing congestion at Puget Sound airports, particularly SEA, has created the need to examine alternative cargo and MRO capacity in Central Washington. This feasibility study evaluates cargo demand, infrastructure needs, runway requirements, economic impacts, and long-term development opportunities. The total projected cost is $210,000. The City is requesting $150,000 from EDA and $50,000 from the SIED program and utilizing $10,000 from the Economic Development Fund. The SIED and Economic Development contribution will function as the local match required by EDA. No general fund dollars are expected to be required for this project. Attached is the Resolution authorizing the application to both SIED and EDA, the draft SIED application and the draft EDA application. ITEM BUDGETED: No STRATEGIC PRIORITY 24-25: A Thriving Yakima RECOMMENDATION: Adopt Resolution. ATTACHMENTS: Resolution for SIED Application Cargo and MRO.docx SIED Feasibilty and Planning Funding Application -YKM Cargo MRO.pdf YKM_EDA_Application_Responses (1).docx 228 RESOLUTION NO. R-2026- A RESOLUTION authorizing submission of applications to the Yakima County Supporting Investments in Econ authorizing submission of applications to the Yakima County Supporting Investments in Economic Development (SIED) Board and to the U.S. Economic Development Administration (EDA) for feasibility and planning funding to study the expansion of air cargo and MRO capacity at Yakima Air Terminal—McAllister Field (YKM). WHEREAS, the SIED Program provides feasibility and planning grants to Yakima County jurisdictions; and WHEREAS, the U.S. Economic Development Administration offers Planning Grants to support regionally beneficial economic development strategies; and WHEREAS, YKM is a critical public facility supporting agriculture, logistics, manufacturing, and aerospace sectors across Yakima County; and WHEREAS, congestion at Seattle—Tacoma International Airport and regional freight bottlenecks complicate Central Washington's supply chains; and WHEREAS, the City seeks to complete a feasibility and planning study evaluating cargo demand, infrastructure needs, MRO potential, workforce impacts, and funding strategies; and WHEREAS, the total cost of the feasibility study is $210,000, including a $150,000 EDA Planning Grant request, $50,000 SIED request and $10,000 in economic development funding serving as the local match; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: Section 1. The City Manager is authorized to submit a SIED application requesting $50,000 for feasibility and planning funding for the YKM Cargo & MRO Feasibility Study. Section 2. The City Manager is authorized to submit an EDA Planning Grant application requesting $150,000 for the same feasibility study. Section 3. The City Manager is authorized to execute all required certifications, assurances, forms, and related documents. ADOPTED BY THE CITY COUNCIL this 16th day of June, 2026. Matt Brown, Mayor ATTEST: Rosalinda Ibarra, CMC, City Clerk 1 229 Yakima County SIED Fund Supporting Investments in Economic Development Application for Feasibility or Planning Study Funds 230 Yakima County SIED Board Supporting Investments in Economic Development Board APPLICATION FOR FEASIBILITY STUDY/PLANNING PROJECT FUNDING CERTIFICATION Applicant: City of Yakima Federal Tax Number: Contact: Gary Ballew Title: Assistant City Manager Telephone: 509.575.6000 Fax: Email: gary.ballew@yakimawa.gov Address: 129 N 2nd Street Yakima, WA 98901 Indicate the minimum necessary total public project infrastructure feasibility or planning costs. Amount of SIED grant requested: $50,000 ($150,000 Maximum per applicant, per year) 20% match: $10,000 Other funding source(s): $150,000 TOTAL public project infrastructure planning costs: $ 210,000 Feasibility Study/Planning Project title:Cargo/MRO Feasibility Study YKM Resolution #authorizing application: Declaration: I HEREBY CERTIFY THAT THE INFORMATION GIVEN IN THIS APPLICATION TO THE SUPPORTING INVESTMENTS IN ECONOMIC DEVELOPMENT OARD IS TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE AND BELIEF. Signature of Responsible Official: Print or Type Name and Title: Gary Ballew, Assistant City Manager Application for Funding Page 2 Yakima County SIED Program 231 Yakima County SIED Board Supporting Investments in Economic Development Board To improve the economic vitality of Yakima County, SIED is authorized to make grants (and loans) to Yakima County political subdivisions to conduct feasibility studies or planning projects that support tangible or potential investments in public facilities. A. PROJECT DESCRIPTION Al. Describe the entire feasibility study or planning project, including the parts that you are not asking SIED to fund. The City of Yakima seeks support to complete a comprehensive feasibility and planning study focused on expanding air cargo and maintenance, repair, and overhaul (MRO) operations at Yakima Air Terminal—McAllister Field (YKM). The project will examine regional air cargo demand, potential diversion of cargo from congested Puget Sound airports, infrastructure needs such as runway extension and cargo apron expansion, MRO facility siting, economic and workforce impacts, and funding and implementation strategies. This study will evaluate A2. How will this feasibility study or planning project lead to investments in public facilities? The study will produce data and market driven analysis to determine what public airport infrastructure will be needed to capture potential market share. This will generate engineering concepts necessary to pursue capital investments in public airport infrastructure. Anticipated future public facilities include potential runway extensions, apron and taxiway expansion, utility upgrades, cargo handling areas, cold-storage facilities, and potential MRO hangars. The feasibility study will generate the technical documentation needed for future grant applications to A3. List all funding sources for the feasibility/planning project and the 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 grant requested Pending July2026 $50,000 EDA Planning Grant(Submit on SIED Approval) Pending August 2026 $200,000 City of Yakima Economic Development Secured Available Now $10,000 Total project costs $210,000 Other public sources of funding for planning for public economic development projects are listed below. Indicate which public sources were investigated to fund this project, in addition to SIED. Indicate what the outcome was. YES NO OUTCOME FEDERAL: Economic Development Administration Z Pending Rural Development ❑ Not Eligible Other: El STATE: Community Development Block Grant n Not Eligible Public Works Trust Fund 111 ✓ Not Eligible Department of Ecology I I Not Eligible CERB I I ,( Will seek project specific Other: Application for Funding Page 3 Yakima County SIED Program 232 Yakima County SIED Board Supporting Investments in Economic Development Board NOTE: ALL REQUIRED FUNDING TO COMPLETE THE PROJECT MUST BE SECURED WITHIN ONE YEAR OF A SIED OFFER OF FINANCIAL AID. A4. Describe how the potential public facility indicated in the feasibility study or planning project will enhance or encourage other development in the immediate area (in addition to the direct investment in public facilities described in this application). The potential development of expanded cargo and MRO infrastructure at YKM will stimulate growth in adjacent industrial areas, including aerospace suppliers, logistics firms, cold-storage operators, agricultural exporters, and advanced manufacturing firms seeking proximity to air cargo flow. Improved multimodal connectivity will increase private investment interest in Yakima's industrial corridors and support long-term job creation. A5. Identify the prospective location of the project referenced in the feasibility study or planning project. Please attach a map of the area indicating the proposed project site. The planning project focuses on Yakima Air Terminal—McAllister Field (YKM), including existing runway facilities, adjacent airport-owned land, cargo ramp areas, and aviation-industrial zones. A6. What other jurisdictions, such as counties, cities, port districts, native nations, or state/federal agencies are involved in the planning, design, financing, construction or operation of this project? See below, this section isn't working. See below, this section isn't working. Please explain how completion of the feasibility study or planning project is coordinated between other involved parties. City of Yakima-Yakima Air Terminal (airport sponsor) Washington State Department of Transportation—Aviation Division Federal Aviation Administration (FAA Seattle Airports District Office) Port of Seattle - SeaTac RNCF Railway /fnr miilfimnrlal rnnrrlinafinn\ B. EVALUATION OF FUNDING SOURCES AND FINANCIAL CAPACITY B1. Explain why SIED funds are necessary and the outcome of the investigation of other fund sources: SIED funding is required to meet the required match for the pending EDA Planning Grant application. The study's regional economic benefits extend beyond the City of Yakima, supporting Yakima County's exporters, logistics firms, and workforce. Since the study is regional in scope, it is appropriate for regional SIED participation. Other state and federal programs either do not fund planning studies or have been explored and found unsuitable at this stage. Application for Funding Page 4 Yakima County SIED Program 233 Yakima County SIED Board Supporting Investments in Economic Development Board 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 feasibility study or planning project? The City of Yakima faces significant general fund demands related to public safety, transportation, parks, and community services. Discretionary economic development dollars are limited, and aviation planning at this scale is beyond the Airport's budgeted capacity. While the airport is self-funded through enterprise revenues, it does not generate sufficient surplus for a study of this magnitude. Therefore, SIED funding is necessary to leverage federal planning dollars. B3. Have funding sources been identified to help pay for the project supported by the planning or feasibility study? The study will identify and position the region for future capital funding from: FAA Airport Improvement Program (AIP) EDA Public Works WSDOT Aviation C. M16 PRidePgkiitipl�vyith ON ly3a is gpbr gf cargo carriers, or MRO firms Cl. Summarize the issues or opportunities facing your jurisdiction that necessitate a feasibility or planning study. Yakima County lacks dedicated air cargo infrastructure despite being a hub for agriculture, food processing, and logistics. SEA-TAC congestion and regional freight bottlenecks increasingly threaten Central Washington's supply chains. YKM has available airfield and industrial land but lacks the analysis needed to attract tenants, secure funding, or plan public facilities. This study addresses cargo demand, infrastructure needs, and economic opportunities. C2. Describe the feasibility study or planning project goals, desired outcomes and timelines using the table below (attach additional information if necessary): Goals Outcomes Timelines Assess local, regional and statewide cargo demanc Cargo Market Assessme Month 4 Evaluate runway, apron & utility needs Infrastructure & Feasibilit Month 7 Estimate economic & workforce impacts Economic & Workforce In Month 9 Identify funding, value proposition and implementat Funding Strategy & Actioi Month 11 Final Study (Similar report for MRO) Final Report + Presentatil Month 12 C3. How will businesses directly or indirectly benefit from the proposed project? Businesses will benefit from: Improved logistics reliability Faster access to regional, national, and global markets Lower transportation costs for agricultural exporters Potential for co-location of cold storage, logistics, aerospace, and MRO operations Increased regional competitiveness and economic diversification Application for Funding Page 5 Yakima County SIED Program 234 EDA Planning Grant Application Responses — Yakima Air Terminal (YKM ) Section B — Project Description 6.1 . Scope of Work The proposed EDA investment will fund a comprehensive planning study to evaluate the feasibility, economic potential, and infrastructure requirements for expanding air cargo and MRO capabilities at Yakima Air Terminal—McAllister Field (YKM). The study will examine how YKM can serve as a strategic regional cargo hub in response to increasing congestion at Seattle—Tacoma International Airport (SEA) and limited capacity at other Puget Sound airports. The study includes cargo demand forecasting, infrastructure and engineering feasibility analysis, economic and workforce impact analysis, and next❑steps planning. 6.2. Deliverables / Outcomes The project will produce: Regional Cargo Market Assessment; 20❑Year Demand Forecast; Infrastructure & Engineering Feasibility Study; Runway Extension Analysis; Economic & Workforce Impact Report; Funding & Implementation Strategy; Prioritized Action Plan; Stakeholder Engagement Plan; Final Comprehensive Report; and Executive Summary & presentation materials. 6.3. Schedule & Milestones 12❑month schedule: Months 1-2 kickoff and data collection; Months 3-5 demand forecasting; Months 6-8 engineering feasibility; Months 9-10 economic & workforce analysis; Month 11 implementation strategy; Month 12 final report and presentation. 6.4. Investment Priority Alignment The project advances multiple EDA priorities including equity, supply chain resilience, workforce development, manufacturing and export competitiveness, innovation (electric aircraft integration), and environmentally sustainable development supported by Yakima's 100% hydroelectric grid. 235 Section D — Economic Conditions D.1 . Economic Conditions & Distress Yakima County's median household income is significantly below national averages. The region experiences underemployment, seasonal volatility, and dependence on agriculture, making it vulnerable to supply❑chain limitations. Air cargo bottlenecks and limited logistics infrastructure constrain growth and create economic adjustment needs. D.2. How the Project Addresses Needs The planning project identifies how YKM can absorb displaced cargo demand, diversify the economy, reduce logistics bottlenecks, support exporters, and define a strategy for high❑skill workforce development. It strengthens regional planning capacity and positions Yakima for future federal investments. D.3. CEDS Alignment Yes. D.4. CEDS Strategy Alignment The project supports CEDS goals related to logistics infrastructure, workforce development, industry diversification, economic resilience, and advanced manufacturing and aerospace opportunities. Section E — Economic Impact E.1 . Long-Term Economic Impact The study positions the region for long❑term growth by enabling YKM to support new cargo and MRO operations. Future infrastructure could support hundreds of jobs and unlock significant private investment. Export competitiveness, workforce training pathways, and supply chain reliability will be strengthened. E.2. Committed Beneficiaries No. E.S. Jobs & Private Investment Estimates Estimated Jobs Created: 0; Estimated Jobs Retained: 0; Estimated Private Investment: $0 — planning study only. 236 E.6. Source of Estimates Future job and investment impacts will be modeled using IMPLAN and aviation industry analysis during the planning study. Section F — Capacity & Administration F.1 . Strategic Partners Partners include the City of Yakima, Yakima Air Terminal, SIED (local match provider), WSDOT Aviation, BNSF Railway, regional colleges and technical institutes, and regional economic development organizations. F.2. Applicant Capacity The City of Yakima has extensive experience managing federal grants from FAA, DOT, HUD, and EDA. The City maintains compliant procurement, financial management, and reporting systems. F.3. Staff Capacity The Assistant City Manager will lead the project, supported by the Airport Director and Finance Department staff. A qualified aviation consultant will be competitively procured. Section G — Budget & Match G.1 . Budget & Match Narrative Total Project Cost: $200,000. EDA Share: $150,000. Local Match: $50,000 from SIED. All non❑EDA funds are committed and unencumbered. No other federal funds are anticipated. G.1 .f. Budget Narrative (Line Items) Consultant Services: $190,000 — all technical analyses and reports. Public Engagement: $10,000. Administrative Costs: $10,000. No equipment purchases and no indirect costs are requested. G.2. Procurement Yes, consultant work will be competitively procured in accordance with federal requirements. 237 G.3. Equipment No equipment will be purchased. G.4. Business Incubators No, the project does not involve any incubator or accelerator construction. Section H — Regional Eligibility & Distress H.1 . Distress Criteria Yakima County exhibits income levels significantly below national averages and has areas of persistent poverty and underemployment. These conditions support eligibility and justify the proposed EDA share. H.2. Special Need The region faces underemployment, supply chain constraints, and negative freight impacts resulting from SEA congestion. The project addresses these special need conditions. H.3. Data Sources ACS median income and poverty data, BLS unemployment data, and WSDOT aviation data. H.4. Substantial Direct Benefit Yes — the project benefits residents of the region through long term workforce opportunities and improved supply❑chain infrastructure. H.5. Distressed Geography Not required for planning projects, but several Yakima County census tracts qualify based on income and unemployment. The project is intended to primarily benefit these areas. 238