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Home My WebLink AboutR-2001-090 Loan AgreementRESOLUTION No. R-2001- 90 A RESOLUTION authorizing and ratifying approval of 1) amendment #2 for Contract #YC - CM -00 between the City of Yakima and Yakima County and 2) authorizing and directing the City Manager to execute a similar amendment to the loan agreement between the City of Yakima and Teresa and Larry Kraft WHEREAS, In June 2000 Council approved a loan agreement with Yakima County and a second loan agreement with Teresa and Larry Kraft to provide $44,000 of Supporting Investments in Economic Development (SIED) funds for improvements to Ahtanum Road; and WHEREAS, it was envisioned that the Ahtanum road project would be constructed in the spring of 2001 with repayment of the Kraft's loan to the City and the City's repayment of our loan to the County to begin in June 2001; and WHEREAS, scheduling delays have resulted in the project being scheduled for construction later this summer (i.e. 2001); and WHEREAS, the City of Yakima has submitted to the County a request to amend the City's contract with the County to extend the date for the first repayment to June 1, 2002; and WHEREAS, the County Board is scheduled to act on this contract amendment on the morning of June 5, 2001; and, WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to authorize execution of 1) the attached amendment to Contract #YC -CM -00 between the City of Yakima and Yakima County and 2) a similar extension of time for repayment of the loan made by the City of Yakima to Teresa and Larry Kraft, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager's execution of the attached Amended Agreement with Yakima County is hereby authorized and ratified, and furthermore the City manager is authorized and directed to execute a similar amendment to the loan agreement between the City of Yakima and Teresa and Larry Kraft. ADOPTED BY THE CITY COUNCIL this 5711 day of June, 2001. ATTEST: Karen S. Roberts, City Clerk Mary Place, Mayor AMENDMENT 2 SIED CONTRACT NO. YC -CM -OO IT IS HEREBY AGREED between Yakima County and the City of Yakima that Subsection V. of the parties RED Contract No. YC -CM -00, made June 6, 2000; and relating to the loan of County SLED funds for the City of Yakima's Cascade Molding project, is amended, effective, this day of , 2001, as set forth below. This amendment is made in recognition of certain biological assessment delays, unforeseen by the parties, occurring since the date of the parties original Contract and affecting the relations of the parties under that Contract. Except for the amended terms of Subsection V., which are set forth below, the original terms and conditions of SLED Contract No. YC -CM -00 shall remain in full force and effect. V. MUTUAL CONSIDERATION A. COUNTY LOAN—The County shall loan Forty Four Thousand Dollars and Zero Cents (S44,000.00) for the Project described herein. This loan amount shall be by check drawn on the SIED Fund and payable to the City immediately upon approval of this Amendment by both parties. B. REPAYMENT OF COUNTY LOAN—The City shall repay the County's loan of Forty Four Thousand Dollars and Zero Cents (544,000.00) with interest on unpaid principal, at an annual per annum rate of °/0 , which is the Washington State Local Government Investment Pool Rate on the date this Amendment is approved by the County. Repayment of principal and interest shall be made in ten (10) annual installments. The first payment shall be due in June 1, 2002, and annual payments thereafter shall be due on June 1 of each year with the final payment nevertheless due on June 1, 2011; provided however, that the final installment may be in such greater or lesser amount as shall be required for full amortization of the repayment amount. These payments shall be by check payable to Yakima County Infrastructure Fund and delivered to Yakima County Treasurer, Yakima County Courthouse, Room 115, 128 North 2nd Street, Yakima, WA 98901. The City obligation hereunder shall be a limited general obligation of the City, payable from any legally available source of funds. Exhibit A attached hereto and incorporated herein reflects the Debt Service Schedule as noted. 1 SIED Contract No. YC -CM -00 Amendment 2 C. COUNTY GRANT—The County shall grant Forty Four Thousand Dollars and Zero Cents (S44,000.00) to the City for the Project described herein. This grant shall be by check drawn on the SIED Fund and payable to the City within thirty (30) days of the County's receipt of a signed copy of the Project engineer's certificate that 50% of the work on the Project has been completed and the City's invoice for said grant. D. OWNERSHIP AND USE—The City shall construct, own, maintain, and operate the Project as a part of its public infrastructure for economic development, available for use by manufacturing and industrial concerns proximate to the Project. The City shall also permit the use of the Project by the County and its departments on like terms with other users, at such time as the Board of Yakima County Commissioners may deem expedient. For purposes of this paragraph, ownership, maintenance, and operation of the Project or any portion thereof by another municipality, under any conveyance or dedication which is subject to and preserves the County's right of use, shall be deemed ownership, maintenance, and operation by the City. YAKIMA COUNTY CITY OF YAKINIA Steve Hill, Director R.A. Zais, Jr., -eity Manager L(—o( Date CONTRACT AUTHORIZATION COMMISSIONERS Resolution No. Date ATTEST: Karen Roberts, City Clerk Date BOARD OF YAKIMA COUNTY Attest: Clerk of the Board Sylvia E. Cervantes 2 SIED Contract No. YC -CM -00 Amendment 2 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 1 For Meeting Of June 5, 2001 ITEM TITLE: 1) Ratify contract Amendment#2 for Contract #YC -CM -00 between the City of Yakima and Yakima County, and 2) Approve a similar amendment to the City of Yakima's contract with Teresa andarry Kraft SUBMITTED BY: illiam Cook, Director of Community & Economic Development CONTACT PERSON/TELEPHONE: William Cook, (575-6113) SUMMARY EXPLANATION: In June 2000, by Resolution No. R-2000-76, Council approved a loan agreement with Yakima County and a second related loan agreement with Teresa and Larry Kraft to provide $44,000 of Supporting Investments in Economic Development (SIED) funds for improvements to Ahtanum Road in front of the Kraft's new manufacturing facility at 26th Avenue and Ahtanum Road, Yakima. Under these agreements Yakima County lends SIED funds to the City and in turn the City lends these funds to a private developer for construction of public roads, sewer and/or water. It was originally envisioned that the Ahtanum Road project would be constructed in the spring of 2001 and the original contract called for repayment by the Kraft's to the City and from the City back to the County beginning in June 2001. As a result of scheduling delays, the project is now scheduled for later this summer (i.e. 2001). As a result we have submitted to the County a request to amend the City's contract with the County to extend the date for the first repayment to June 1, 2002. The County Board is scheduled to act on this contract amendment on the morning of June 5`h. By this action Council is being requested to 1) ratify contract amendment #2 for the contract between the City and County and 2) approve a similar amendment to the City's contract with the Kraft's. Resolution X Ordinance Other (Specify) Contract Mail to (name and address): Phone: Funding Source APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Approve the attached resolution BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2001-90