HomeMy WebLinkAboutR-2000-030 Grant/Loan application to Yakima County SIED Fund for Cascade quality Molding Expansion ProjectRESOLUTION NO. R-2000 - i Q
A RESOLUTION authorizing the City Manager to execute and submit a grant and loan
application with Yakima County for funding from the Yakima County
Supporting Investments in Economic Development (SIED) Fund for
infrastructure improvements necessary for the Cascade Quality Molding
Expansion Project.
WHEREAS, Yakima County has established the Supporting, Investments in Economic
Development (SIED) fund to assist the growth of manufacturing business in the County; and
WHEREAS, economic development is a priority for the City of Yakima, and the City
intends to approach economic development on an inclusive, comprehensive basis which involves
public, private and community-based efforts to achieve new investment and redevelopment in the
City; and
WHEREAS, in order to expand its operations, Cascade Quality Molding, Inc. will construct
a new manufacturing facility at 26th Avenue and Ahtanum Road, Yakima, Washington; and
WHEREAS, the site for the Project is currently zoned M-1 Light Industrial; and
WHEREAS, the Cascade Quality Molding Expansion Project will retain at least 12 jobs and
create 8 new full time equivalent positions; and
WHEREAS, the Cascade Quality Molding Expansion Project requires construction of
certain infrastructure improvements (i.e., road, curb, gutter, sidewalks, sewer lines, and water lines)
in the general area of the Project; and
WHEREAS, funding (through a grant/loan) may be available from Yakima County .through
the SIED Fund for the required infrastructure improvements; and
WHEREAS, Cascade Quality Molding has requested that the City submit a grant/loan
application with Yakima County to fund the infrastructure improvements from the SIED Fund; and
WHEREAS, in consideration and as a condition of the City applying for said grant/loan,
Cascade Quality Molding agrees to pay/reimburse the City the total amount that the City pays or
becomes obligated to pay Yakima County pursuant to the SIED grant/loan; and
WHEREAS, the Cascade Quality Molding Expansion Project will leverage approximately
$1,000,000 in private funds; and
WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to
authorize submittal of a grant/loan application with Yakima County for funding of said
infrastructure improvements from the SIED Fund, now, therefore,
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BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
That the City Manager is hereby authorized and directed to execute and submit the attached
application, including all understandings and assurances contained therein, for financing
from Yakima County's SIED program in an amount not to exceed $100,000.00 for the
Cascade Quality Molding Expansion Project. The City Manager is hereby designated as the
official representative of the City to act in connection with that funding application and is
authorized to take such additional actions as may be necessary and prudent to complete the
application process.
ADOPTED BY THE CITY COUNCIL this 21St day of March, 2000.
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ATTEST: 100 Place, Mayor
City Clerk
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'SENT BY:
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ADDENDUM DATE:
RELATED DOCUIVIF.NTS:
PARTIESS:
BORROWER:
LENDER:
MORTGAGORS and
GUARANTORS:
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ORIGINAL
ADDENDUM TO
TERM LOAN AGREEMENT
BATED JULY 6, 2000
August 28, 2000
TERM NOTE DATED JULY 6, 2000
MORTGAGES DA'Z'ED JULY 6, 2000
UNCONDITIONAL GUARANTY DATED JULY 6, 2000
Cascade Quality Molding, Inc. a Washington corporation
City of Yakima, a Washington municipal corporation
Larry L. Kraft,and Teresa M. Kraft, husband and wife
ELCITALs;
A. Borrower and lender are parties to a Tenn Loan
the City will be building or cause to be built, certain roads, the which references that
water mains on real property described in f xdefhit A to the Term Loan Agreement. bs, gutters, wulks, sewer and
B. The Tenn Loan Agrccmcnt also provides that the narrower will
all its costs and expenses incurred in havin the i pay rhe sty. for
g improvements constructed upon the property.
C. The source of funds for the costs of construction are a grant in the amount of
$44.000.00 from the City and a loan of $44,000.00 from the City to Borrower.
13. In the event that the costs of construction exceed the source of funds, ,the parties
desire to provide for immediate repayment by the Borrower to the City of such excess costs
TBE PARTIES AGM AS FOLLOWS:
1. In the event that the City determines that the costs of the improvements will
exceed the source of funds, the Borrower shall immediately upon request from the City deposit ,
with the City sufficient funds to cover the excess costs. Such amount of excess- costs shall not
exceed $17,800.130.
ADDENDUM 10 TERM LOAN AGREEMENT -
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2. The Borrower, Mortgagors and Guarantors agree that until such excess costs arc
paid to the City, repayment of such amounts due the City shall be secured by the Mortgages from
the Mortgagors to the City and by any and all other security agreements and collateral for the
loan by the City to Borrower. In addition, the Guarantors acknowledge and agree that the
Unconditional Guarantee shall also guarantee the prompt payment of such excess amounts
payable by the Borrower to the City in accordance with the terms of the Unconditional
Guarantee.
3. The parties hereby reaffirm in all respects the Term Loan Agreement and related
documents.
4. The addendum may be executed in counterpart and when signed by all parties
shall be binding upon the parties, Transmission of this addendum by facsimile showing the
original signatures of a party shall be considered an original signature and shall be binding upon
the signatory party. Originals of this document shall also be circulated for signature by all
parties, so that all parties have an original showing the signature of all parties.
IN WITNESS WHEREOF, the parties have caused this addendum to be executed by
their respective officers therein to duly authorize on the date shown. .
BORROWER:
LENDER:
CASCADE QUALITY MOLDING, INC. CITY OF YAKIMA
By
p.- B
MORTGAGORS/GUARANTORS:
.Larry Kraft fr('
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Teresa M. Kraft
ADDENDUM TO TERM LOAN At3REE VIENT • 2
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AMENDED SIED CONTRACT NO. YC -CM -00
YAKIMA COUNTY
and
CITY OF YAKIMA
(Cascade Quality Molding)
I PARTIES
This Contract is made by and between Yakima County (hereinafter referred to as the County)
whose . address is 128 North Second Street, County .Courthouse, Room 102, Yakima,
Washington -98901, and the City of Yakima (hereinafter referred to as the City) whose address
is 129 North Second Street, Yakima, Washington 98901. Notices between the parties shall be
made where and as provided for on Page 8, Section XXII, NOTICES.
II TERM
This Contract takes effect upon execution hereof by the authorized representatives of both
parties and continues in effect until all payments required under Section V, MUTUAL
CONSIDERATION, Subsection B. REPAYMENT OF COUNTY LOAN, have been made or
until terminated as provided for in Section VIII, SUSPENSION, TERMINATION, AND
CLOSEOUT, provided, the 'County's right under Section V, MUTUAL CONSIDERATION,
Subsection D. OWNERSHIP AND USE, to use the Project shall continue so long as the Project
remains in use.
III PURPOSE (Amended to include installation of sewer as requested Aug 30, 2000)
The purpose of this Contract is to provide for the construction of certain infrastructure
improvements (hereinafter referred to as the Project) using. certain County funds designated for
such infrastructure. The Project consists of the widening of Ahtanum Road to four lanes, and
the installation of a 15 -inch sewer line adjacent -to the industrial plant located at 2600
Ahtanum Road, which is more particularly described in the City's amended Supporting
Investments in Economic Development (SIED) Fund Application on file at the County address
recited above. •
IV RECITALS
The Parties make this Contract based on and. in recognition of certain relevant facts and
circumstances including:
A. Sales and use taxes are collected in and for the County under authority of RCW
82.14.370 and . Yakima County Code 3._ 10.010 for the purpose of financing public -
facilities in. the County, and the proceeds are deposited in the Yakima County
Infrastructure Fund (also referred to as SIED Fund), according to YCC 3.10.040.
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B. The City proposes to construct the Project with a combination of City, private, and
County funds, including $88,000 from the SIED Fund, $44,000.00 to be in the form
of.a loan and $44,000.00 to be in the form of a grant, and thereafter to own and
operate the Project for the benefit of the City and the County.
B. RCW 82.14.370 was adopted to serve the goals of promoting business in rural distressed
areas, providing family wage jobs and the development of communities of excellence in
such areas, and the parties expect the Project to further these goals. •
D. RCW 43.160 and 43.160.020 adopted and amended for related purposes with those of
RCW 82.14.370, define public facilities to include various buildings, structures and
works, such as the Project.
E. The .County, under authority of RCW 36.01.085, and •by agreement . of February 19,
1999, has engaged the Yakima County Development Association, also known as New
Vision, to provide administrative and technical assistance in furtherance of the County's
economic development.
The County has also created the SIED Board to review applicationsfor grants from the
SLED Fund and make recommendations for SIED Fund investments based on
commitment of other funds, potential for resulting job creation, and other factors.
G. New Vision has investigated the, Project and assisted in preparing the pending application
for SIED funds, and the SIED Board has reviewed the application for STFD funds and
has recommended approval.
H. The SIED Fund balance is sufficient to make the requested contribution to the Project.
I. RCW 39.34 authorizes interlocal agreements whereby municipal governments may
jointly exercise the powers granted to each.
MUTUAL CONSIDERATION
A. COUNTY LOAN—The County shall loan Forty Four Thousand Dollars and Zero
Cents ($44;000.00) for the Project described herein. This loan amount shall be by
check drawn on the SIED Fund and payable to the City within thirty (30) days
from the County's receipt of an invoice from. the City for said loan amount,
following execution of this Contract.
B. REPAYMENT OF COUNTY LOAN—The City shall repay the County's loan of
Forty Four Thousand Dollars and Zero Cents ($44,000.00) with interest on unpaid
principal, at an annual per annum rate of ..2$%, which is the Washington State
Local Government Investment Pool Rate on the d.ty- this Contract is approved by the
County.
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Repayment shall be made by the City in ten equal annual installments (including
principal and interest) payable on June 1, 2001, and annually thereafter on June 1
of each year, with the final payment nevertheless due on June 1, 2010; 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.
C. COUNTY GRANT—The County shall grant Forty Four Thousand Dollars and Zero
Cents ($44,000.00) to the City for the Project described herein. This grant shall be by
check drawn on the SLED Fund and payable to the City within thirty (30) days of
the County's receipt of asigned 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.
VI RECORDS, REPORTS AND AUDITS
The City agrees to maintain such records, make such reports and follow such procedures as may
be required by the County, pertaining to this Contract. All records pertaining to this Contract
and work undertaken hereunder shall be retained by the City fora period of three years after
final audit unless 'a longer period is required to resolve audit findings or litigation. The County
and other authorized representatives of the State and Federal government shall have access to
any books, .documents, papers, and records of the City which pertain to this Contract or work
undertaken hereunder for .the purpose of making audit, examination, excerpts, • and
transcriptions.
VII RELATIONSHIP OF PARTIES AND AGENTS
The relationship of the City to the County, with regard to construction of the Project, shall be
that of an independent contractor rendering professional services. The City shall have no
authority to execute contracts or to make commitments on behalf of the County and nothing
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contained herein shall be deemed to create the 'relationship of employer and employee or
principal and agent between the County and the City.
The City represents that it has or will secure at its own expense all personnel, contractors,
and/or subcontractors required in order to perform work under this Contract. Such personnel
shall not be employees of the County. All such personnel, contractors, and/or subcontractors
shall be fully qualified and authorized/permitted under State and/or local law to perform such
services.
All services required hereunder will be performed by the City or under its supervision and all
personnel engaged in the work shall be fully qualified and shall be authorized or permitted under
State or local law to perform such services.
VIII SUSPENSION, TERMINATION, AND CLOSEOUT
If the City fails to comply with the terms and conditions of this Contract, the County may.pursue
such remedies as are legally available, including, but not limited to, the suspension or termination
of this Contract in the manner specified herein:
A. SUSPENSION—If the City fails to comply with terms and conditions of this Contract,
or whenever the City is unable to substantiate full compliance with provisions of this
Contract, the County may suspend this Contract pending corrective action or
investigation, effective not less than seven days following written notification to the'City
or its authorized representative. The suspension will remain in full force and effect until
the City has taken corrective action to the satisfaction of the County and is able to
substantiate its frill compliance with the terms and conditions of this Contract. No
obligations incurred by the City or its authorized representative during the period of
suspension will be allowable under this Contract, except:
Reasonable, proper, and otherwise allowable costs which the City could
not avoid during.the'period of suspension;
Otherwise allowable costs incurred during the period of suspension, if upon
investigation, the County is satisfied of, the City's compliance with the
terms and conditions of this Contract to the extent of the compensation
claimed by.the City.
B. TERMINATION FOR CAUSE—If the City fails to comply with the terms and
.conditions of this Contract and any of the following conditions exist:
1. The lack of compliance with theprovisions of this Contract were of such
scope and nature that the County deems continuation of this Contract to be
substantially detrimental to'the interests of the County;
2. The City has failed to take satisfactory action as directed by the County or
its authorized representative within the time period specified by same;
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The City has failed within the time specified by the County or its authorized
representative to satisfactorily substantiate its compliance with the terms
and conditions of this Contract; then,
The County may terminate this Contract in whole or in part, and thereupon shall notify
the City of termination, the reasons therefore, andthe effective date, provided such
effective date shall not be prior to notification of the City. After this effective date, no
charges incurred under any terminated portions outlined in the application for funding
are allowable.
C. TERMINATION FOR OTHER GROUNDS—This Contract may also be terminated
in whole or in part by mutual consent and written agreement setting forth the conditions
of termination, including effective date and, in case. of termination in part, that portion to
be terminated.
IX COPYRIGHT RESTRICTION
No report, maps, or other documents produced in whole or in partunder this Contract shall be
the subject of an application for copyright by or on behalf of the City.
COMPLIANCE WITH LAWS
The County and the City shall comply with all applicable laws, ordinances, and codes of the
Federal, State and local governments with regard to the performance of this Contract.
XI TITLE VI OF THE CIVIL RIGHT ACT OF 1964
Under Title VI of the Civil Rights Act of 1964, no person shall, on the grounds of race, color,
creed, religion, sex, or national origin, be excluded from participation in, be denied the benefits
of, or be subjected to discrimination under any program or activity receiving Federal financial
assistance.
XII SECTION 109—HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974
No person in the United States shall on the grounds of race, color, creed, religion, sex, or
national origin be excluded from participation in, be denied benefits of, or be subjected to
discrimination under any program or activity funded in .whole or in part with funds made
available under this title.
XIII AGE DISCRIMINATION ACT OF 1975 (As Amended)
No person shall be excluded from participation, denied program benefits, or subjected to
discrimination on the basis of age under any program or activity receiving Federal funding
assistance. (42 U.S.C. 610 et. seq.)
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XIV SECTION 504 OF THE REHABILITATION ACT OF 1973 (As Amended)
No otherwise qualified individual shall, solely by reason of his or her handicap, be excluded from
participation (including employment), denied program benefits, orsubjected to discrimination
under any program or activity receiving Federal funds (29 U.S.C. 794).
XV INTEREST OF MEMBERS OF THE COUNTY AND THE CITY
No member of the governing body of either party and no other officer, employee, or agent of
either party who exercises any functions or responsibilities in connection with the planning or
carrying out of the Project shall have any personal financial interest, direct or indirect, in this
Contract.
XVI HOLD .HARMLESS AND INDEMNITY
The City shall indemnify and hold harmless the County, its officers, agents, and employees, from
all .liability, loss or damage, including costs of defense they may suffer as a result of claims;
demands, actions costs, or judgments which result from the activities to be performed by the
City, its agents, employees, or subcontractors pursuant to this Contract.
XVII PUBLIC LIABILITY
The City or its contractors) shall maintain for the duration of work under this Contract, issued
on an occurrence basis, comprehensive liability insurance with a combined single limit of not less
than one million dollars ($1,000,000) from a company authorized to provide insurance in the
State of Washington'. Said policies shall provide that the policy shall not be canceled or altered
by any party without written notice to Yakima County, delivered not less than thirty (30) days
prior to such cancellation or alteration. Certificates of such insurance shall be provided to the
County within thirty (30) days after the execution of this Contract.
XVHI ASSIGNABILITY
The City shall not assign any interest in this Contract and shall not transfer any interest in this
Contract .(whether by assignment or novation) without prior written consent of the County
thereto, provided, however, that claims for money by the City from the County under this
Contract may be assigned to a bank, trust company, or other financial institution without such
approval. Written notice of any such assignment or transfer shall be furnished promptly to the
Couhty by the City.
XIX NON -WAIVER
The failure of either party to insist upon strict performance of any provision of this Contractor
to exercise any right based upon a breach thereof or the acceptance of any performance during
such breachshall not constitute a waiver of any right under this Contract.
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XX CONTRACT MODIFICATIONS
It is mutually agreed and understood that no modification or waiver of any clause or condition
of this Contract is binding upon either party unless such modification or waiver is in writing and
executed by the County and the City.
XXI SEVERABILITY
If any portion of this Contract is changed per mutual contract or any portion is held invalid, the
remainder of this Contract shall remain in full force and effect.
XXII NOTICES
Unless stated otherwise herein, all novices and demands shall be in writing and sent or hand -
delivered to the parties to their addresses as follows.
TO CITY:
TO COUNTY:
Bill Cook, Director
Department of Community Economic Development
City of Yakima ,.
129 North Second Street
Yakima, WA 98901
Steve Hill, Director
Yakima County Departments of
Community Services & Grant Management
128 North Second Street, Room 102
Yakima, WA 98901
or to such other addresses as the parties may hereafter designate in writing. Notices and/or
demands shall be sent by registered or certified mail, postage prepaid, or hand -delivered. Such
notices shall be deemed effective. when mailed or hand -delivered at the addresses specified
above.
XXIII INTEGRATION
This Contract contains all' terms and conditions agreed to by the County and the City. There are
no other oral or written agreements between the City and Countyas to the subjects contained
herein. No changes or additions to this Contract shall be valid or binding upon either party
unless such change or addition be in writing and executed by both parties.
XXIV GOVERNING LAW AND VENUE
All questions of the validity, construction, and application of this Contract shall be governed by
the laws of the State of Washington. Venue for any suit between the parties arising out of this
Contract shall be the Superior Court of Yakima County, Washington.
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XXV FILING
Upon execution by the authorized representatives of the parties, a copy of this Contract shall be
promptly filed with the Yakima County Auditor pursuant to RCW 39.34.040.
* * * * * * * * * * * * * * *
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IN WITNESS WHEREOF, the County and the City have executed this Contract as of the date and year
last written below.
CITY OF YAICIIVIA
R
Zais,
City Manager Date
Acting
Attest: City Clerk
rioci
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Li da Watkins
Contract No. 20000 -
Resolution No. R-2
* SEAL
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BOARD OF COUNTY COMMISSIONERS
esse S. Palacios, Chair
„9_171:17-1Q
Bettie Ingham, Commissioner
k.)‹ C US ed
James M. Lewis, Commissioner
Approved as to Form:
John Staffan, Deputy Prosecuting Attorney
• CONTRACT AUTHORIZATION
Attest: Clerk of the Board
1 •
E. Cervantes
sy
Date
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Yakima County Treasurer's Office File = YAKZMACO(2000)Sumzy.sf-YAKCO-Yakima- SINGLEFURPOSE
6/ 7/2000 1:59 FM
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Yakima County, Washington
Loan Repayment Schedule
City of Yakima (Cascade Quality Molding)
Beginning Date: June 1, 2000
DEBT SERVICE SCHEDULE
Date
Principal
Coupon
Interest
Total P+I
6/01/2000
-
-
-
-
6/01/2001
$5,197.36
6.280%
$2,763.20
$7,960.56
6/01/2002
5,523.75
6.280%
2,436.81
7,960.56
6/01/2003
5,870.65
6.280%
2,089.91
7,960.56
6/01/2004
6,239.32
6.280%
1,721.24
7,960.56
6/01/2005
6,631.15
6.280%
1,329.41
7,960.56
6/01/2006
7,047.59
6.280%
912.97
7,960.56
6/01/2007
7,490.18
6.280%
470.38
7,960.56
Total
$44,000.00
$11,723.92
$55,723.92
Yakima County Treasurer's Office File = YAKZMACO(2000)Sumzy.sf-YAKCO-Yakima- SINGLEFURPOSE
6/ 7/2000 1:59 FM
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CONTINGENCY AGREEMENT
THIS CONTINGENCY AGREEMENT (hereinafter "Agreement") is made and entered
into by and between the City of Yakima, a Washington municipal corporation (hereinafter the
"City"), and Cascade Quality Molding, Incorporated, a Washington corporation (hereinafter
"Cascade."
WHEREAS, Yakima County has established the Supporting Investments in Economic
Development (SIED) fund to assist the growth of manufacturing business in the County; and
WHEREAS, economic development is a priority for the City of Yakima, and the City
intends to approach economic development on an inclusive, comprehensive basis which
involves public, private and 'community-based efforts to achieve new investment and
redevelopment in the City; and
WHEREAS, in order to expand its operations, Cascade will construct a new
manufacturing facility on Ahtanum Road, Yakima, Washington, at a cost of approximately
$1,000,000.00; and
WHEREAS, the Cascade Molding Expansion Project will retain at least 12 jobs and
create 8 new full time equivalent positions; and
WHEREAS,. the Cascade Molding Expansion Project requires construction of certain
infrastructure improvements (i.e., road, curb, gutter) in the general area of the Project; and
WHEREAS, funding (through a grant/loan) may be available from Yakima County
through the SIED Fund for the required infrastructure improvements; and
WHEREAS, Cascade has requested that the City submit a grant/loan application with
Yakima County to fund the infrastructure improvements from the SIED Fund; and
WHEREAS, on March 21, 2000, the City Council of the City of Yakima passed a
resolution authorizing the City Manager to submit a SIED fund grant/loan application to fund
said public infrastructure improvement.
NOW, THEREFORE, in consideration of the mutual covenants, conditions, promises,
and agreements set forth herein, it is agreed by and between the City, and Cascade as follows:
1. Conditions for considering City's SIED grant/loan application. The City and Cascade
agree to the following conditions in order for the City's SIED grant/loan application to be
considered by the Yakima County "Supporting Investments in Economic Development Board":
a. Expressly contingent and conditioned upon approval of the SIED
funding, the City represents that it will take the necessary measures to
have the public infrastructure improvements constructed. These
improvements are more specifically described in the plan specifications
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for Ahtanum Road that are attached hereto as Exhibit "A" and
incorporated herein by this reference.
c. To the extent the public infrastructure improvements will be located on
property owned and/or controlled by Cascade, Cascade shall convey all
necessary utility . easements and rights-of-way to the City for the public
infrastructure improvements. Cascade shall convey said easements and
rights-of-way to. _the City as a local match for the City's SIED fund
grant/loan application.
d. In consideration and as a condition of the City applying for a grant/loan
from the SIED fund to pay for said public infrastructure improvements,
Cascade agrees that it shall reimburse the City the total amount that the
City becomes obligated to pay Yakima County pursuant to the SIED
grant/loan. In the event that the City's SIED grant/loan application is
approved, the City and Cascade shall execute a more detailed loan and
reimbursement agreement.
f. Cascade shall retain at least 12 full time equivalent jobs and shall create 8
new full time equivalent positions within a period of three (3) years after
the new facility is constructed and is operational.
Cascade shall provide the City with employment and investment data as
requested by the Yakima County SIED Board.
2. Contingency Nature of Agreement. This Agreement is contingent upon the City's SIED
fund grant/loan application being approved and the City actually receiving the requested SIED
funds. This Agreement is intended to meet/ satisfy the first level of convincing evidence of
private development as required by SIED.
g.
3. Severability. If any portion of this Agreement is changed per mutual agreement or any
portion is held invalid, the remainder of the Agreement shall remain in full force and effect.
4. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Washington.
5. Venue. The venue for any action to enforce or interpret this Agreement shall lie in the
Superior Court of Washington for Yakima County, Washington.
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CITY OF YAKIMA
Date:
R. A. ais, Jr.,
City Manager
3_.2 —o0.
ATTEST:
City Clerk
CASCADE QUALITY MOLDING, INC
Name,: tarryKiaft44cI( Title: /
Date:
City Contract No. 2000-27
Resolution No. R-2000-30
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Date:
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•
•
City Limits
Project Area
Cascade Moulding Expansion
Ahtanum Road Widening
Project Area Map
Scale: 1"=400'
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. ,
For Meeting Of: March 21. 2000
ITEM TITLE: Consideration of a resolution to authorize the City Manager to
execute and submit a grant/loan application to the Yakima County
Supporting Investments in Economic Development (SIED) fund for
Cascade Quality Molding Expansion Project.
SUBMITTED BY: ook, Director of Community and Economic Development
CONTACT: Bill Cook, 575-6113
SUMMARY EXPLANATION:
Cascade Quality Molding, a local manufacturer owned by Larry Kraft, is constructing a
new facility to accommodate its growth. The facility will be located on 26th Avenue and
Ahtanum Road on a site presently zoned M-1 Light Industrial. The facility will cost
approximately $1,000,000 to construct. When completed, the new facility will allow
Cascade Quality Molding to retain 12 jobs and create 8 new positions.
Cascade Quality Molding has approached the City to apply for funding, which would
offset the costs of road improvements. The total cost of the infrastructure improvements
is estimated at $87,157.00.
CONTINUED ON FOLLOWING PAGE
Resolution X Ordinance _ Contract Other: Loan Application
Funding Source: Yakima County SIED Fund
Approval for Submittal: �2• V
City nager
STAFF RECOMMENDATION: Staff recommends approval of the resolution.
BOARD RECOMMENDATION:
COUNCIL ACTION:
Upon award, the City will enter into a loan agreement with Yakima County for
repayment of the loan portion (50%), and will also enter into an agreement with
Cascade Quality Molding for repayment to the City of the aforementioned obligation.
State regulations require that the project be included in the City's capital funding plans
to be eligible for assistance. Therefore, by separate action today, Council will also
consider a resolution setting a public hearing for April 4, 2000 to allow public comment
regarding the amendment of the Capital Facilities and Six -Year Transportation
Improvement Plan to include the proposed improvements to Ahtanum Road.
The SIED program is a Yakima County funding source for economic development that
originates from a refund of County tax revenue from the State of Washington. SIED is
administered for the County by YCDA/New Vision, and the advisory board is appointed
by the County, with nominations from the cities.
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SIED funds are available only for construction of public infrastructure, and only in
association with new private sector development which creates or retains manufacturing
jobs. SIED funding consists of a loan and grant award from Yakima County to the
applicant ;municipality or port district. Funding is limited to $500,000 per project, and a
10 percent local match is required. Local match will be provided through the City's
contribution of right-of-way for the widening of Ahtanum Road.
In addition, the City will leverage the private investment of road improvements funded
by Cascade Quality, Molding together with available federal transportation grant funds to
completelythe widening, to four lanes, of Ahtanum Road from 16th Avenue west to the
City limits. Total project cost is estimated at $437,500.00.
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