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Home My WebLink About1999-040 Amend 1999 Budget and authorize Loan Agreement with Chinook Business Park ORDINANCE NO. 99- 4 0 AN ORDINANCE amending the 1999 budget for the City of Yakima; and making an appropriation of $235,172 within the 123 — Economic Development Fund for expenditure during 1999 to provide infrastructure for Chinook Business Park. WHEREAS, the amount of $235,172 must be appropriated within the 123 — Economic Development Fund for expenditure during 1999 to provide infrastructure for Chinook Business Park, and WHEREAS, at the time of the adoption of the 1999 budget it could not reasonably have been foreseen that the appropriation provided for by this ordinance would be required; and the City Council finds that an emergency exists of the type contemplated by RCW 35.33.091 and that it is in the best interests of the City to make the appropriation herein provided, now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. The amount of $235,172 is hereby appropriated from the Unappropriated Fund Balance in the 123 — Economic Development Fund to ' account numbers as shown on Schedule I as a 1999 appropriation. Section 2. This ordinance is one making an appropriation and shall take effect immediately upon its passage, approval and publication as provided by law and by the City Charter. • --- • PASSED BY THE CITY COUNCIL, signed and approved this day of C3C7 - 6134-12. 1999. d , JOHN PUCCINELLI, MAYOR ATTEST: CITY CLERK First Reading: Publication Date: j 0• - 2—cT9 Effective Date: PO . — cje 09/15/99 1 SCHEDULEI Fund 123 - Economic Development Fund Resources 123 -3- 123-699- 1887 - 33700 -ILG SIED Interlocal Grant $117,586 123 -3- 123 -699- 1887 - 39180 -COU SIED loan- Yakima County $117,586 TOTAL $235,172 • • Appropriations 123-4 -123 -322- 1887 - 59530 -650 Capital Project - Infrastructure $235,172 7 Page 1 cje 9/16/99 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. c For Meeting Of: S� , 11999 ITEM TITLE: Consideration of: 1) An ordinance appropriating $235,172 in the City's 1999 budget for the project, and 2) A resolution authorizing the City Manager to execute a loan agreement with Chinook Business Park, LLC in an amount not to exceed $117,586.00, for which funding has been awarded by the Yakima County Supporting Investments in Economic Development (SIED) fund for the Baby Jogger Expansion Project. SUBMITTED BY: trt 1 Cook, Director of Community and Economic Development CONTACT: Bill Cook, 575 -6113 SUMMARY EXPLANATION: On August 17, the City Council approved a resolution authorizing submission of a grant and loan application to the Yakima County SIED fund for the Chinook Business Park/Baby Jogger Expansion Project. The SIED board voted to approve the application for $235,172.00 on September 9, 1999. SIED funds will be awarded to the City in the form of a 50% loan to be repaid by the developer and a 50% grant. The County Commissioners are expected to act on the SIED board's recommendation at their meeting on September 21, 1999. By attached ordinance, City Council will appropriate funds in the City's 1999 budget for the estimated total cost ($235,172) of this public works project. By separate resolution, the City Council will enter into a loan agreement with Chinook Business Park, LLC to repay $117,586 of SIED loan funds. The attached Term Loan Agreement, Term Note, Assignment of Certificate of Deposit, and Security Agreement have been prepared for the City by Don Boyd at Halverson and Applegate, attorneys. CONTINUED ON FOLLOWING PAGE Resolution _X Ordinance _X Contract __ Other: Loan Agreement Funding Source: Yakima County SIED Fund Approval for Submittal: - �� City Manager STAFF RECOMMENDATION: 1) Read Ordinance by title only at the September 21, 1999 meeting. Pass Ordinance after second reading at the October 5, 1999 meeting. 2) Staff recommends approval of the resolution, BOARD RECOMMENDATION: COUNCIL ACTION: Resolution adopted. Resolution No. R-99-1Z) Pirst r=v;ding : ;ding of Ordinance. Secm r - ic'jrx; schedule0 for _1 Background: The Chinook Business Park, owned by Mr. Gary Lukehart, has entered into an agreement to build to suit.a manufacturing/assembly facility for the Baby Jogger Company. The facility will be located on approximately 2 acres of the Chinook Business Park, at 1700 North 6th Street, which is currently zoned M -1 Light Industrial. The facility will be 37,000 + square feet with 97 parking spaces and cost approximately $2,500,000 to construct. When completed, the new facility will allow Baby Jogger to retain approximately 75 jobs and create 25 new positions. The City's application for SIED funding serves to offset the costs of providing infrastructure (road, curb, gutter, sidewalks, sewer /water mains) off of North 4th Street, North. 5th Street, "R" Street and "S" Streets; and North 6 Street. • September 2, 1999 TO: Yakima County Commission, FROM: David McFadden, Administrator Yakima County SIED Program Project: Notice of SIED Board Action on City of Yakima Application At a duly constituted SIED Board meeting on September 9 1999, the Board • unanimously approved a funding request from the City of Yakima to support Racing Strollers' expansion to the Chinook Business Park. Specifically the Board recommends that the County: 1. Use $117,586 of SIED funds to participate in funding infrastructure improvements (described below) to Racing Strollers site at the Chinook Business Park; and 2. Extend $117,586 of SIED funds to the City of Yakima to fund infrastructure improvements to Racing Strollers' site at the Chinook Business Park. A user fee will be charged to the City of Yakima for the use of these funds. The percentage rate of this user fee will be set at the County's interfund transfer rate. Repayment of these funds plus the user fee will occur over a seven -year period. Payments will be due annually, with the first payment due on November 1, 2000 Project Description For the City of Yakima's project described above, SIED funds will specifically be used to: 1. Make street improvements to North Fifth Street and "S" Street 2. Extend six and eight inch sewer lines approximately 340 feet; and 3. Construct water system improvements (mains, valves and hydrants). The attached engineering estimates provide a full description of all work that is to be completed as part of this project. SIED Board Findings The SIED Board made the following findings as a basis for making this award: %' Racing Strollers will create 20 -25 new jobs within 3 years. A $2,700,000 investment in new plant and equipment will be made. • Funds to support private expansion are evident and committed. %' Other funds are not available for a project of this type. SIED request is for approximately 78 percent of total project costs. • The 20+ percent local or private match triggers 50 percent SIED participation • The SIED fund will fill a gap in public financing for this project. All private permits have been identified and can be secured by September 15, 1999. The Racing Strollers project is consistent with Yakima's comprehensive plan. The Yakima City Council has passed a resolution in support of project. The project will enhance existing municipal infrastructure systems. • The infrastructure improvements will also provide services to adjacent undeveloped industrial property. BOARD OF ymu _ COUNTY • °,,,- - * District One * District Two 9t G stri twee , ` James M. Lewis Bettie Ingham g Jesse�atacios 11 6 1 999 September 16, 1999 , - pp ' �CL Mayor John Puccinelli and Members of the City Council City of Yakima 129 N. 2 Street Yakima, WA 98901 Dear Mayor Puccinelli and Council Members: RE: AWARD LETTER — LUKEHART PROJECT This is to inform you that the Board of Yakima County Commissioners will be approving the City of Yakima's application to support the Racing Stroller's expansion. We are only waiting for final contracts from our Corporate Counsel before making the award official. This will serve as the "Award Letter" requested by Gary Lukehart so his project can proceed forward in a timely manner. Effective as of the date of this letter, the City is authorized to expend funds on eligible project costs and be reimbursed from SIED funds upon closing of the loan between the City and the County. This letter will be acted on during our September 21, 1999, regular Agenda meeting by the Board of Yakima County Commissioners. Attached is the notice of SIED Board Action, which fully describes the project and the funding request. Sincerely, BOARD OF YAKIMA COUNTY COMMISSIONERS James M. Lewi' ai an JML:hah Enclosure 128 North Second Street • Yakima, Washington 98901 • 509 -574 -1500 • FAX 509 - 574 -1501