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HomeMy WebLinkAboutR-2024-083 Resolution authorizing a grant application to the Washington State Department of Commerce Industrial Site Readiness Grant for land development improvements at the Yakima Air Terminal-McAllister Field RESOLUTION NO. R-2024-083 A RESOLUTION authorizing a grant application to the Washington State Department of Commerce Industrial Site Readiness Grant for land development improvements at the Yakima Air Terminal-McAllister Field. WHEREAS, the City owns and operates the Yakima Air Terminal-McAllister Field in accordance with applicable Federal, State, and Local regulations; WHEREAS, the Yakima Air Terminal-McAllister Field has recently identified 157 acres on airport property that can be developed for industrial aeronautical use; WHEREAS, the Yakima Air Terminal-McAllister Field has been notified that grant funds may be available to maintain and/or improve airport owned land upon submission of completed Industrial Site Readiness grant application and satisfaction of certain conditions; WHEREAS, the grant application will request a total of approximately Two-Hundred Fifty Thousand Dollars ($250,000) in Site Readiness funding administered by the Washington State Department of Commerce; and WHEREAS, the City Council deems it to be in the best interest of the City and its residents to authorize submission of the grant application to the Washington State Department of Commerce for grant funds needed to accomplish the identified land development improvements and, if grant funds are awarded, to accept the funds for the purposes identified in the grant application, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized and directed to submit a completed Industrial Site Readiness grant application to the Washington State Department of Commerce for the Yakima Air Terminal-McAllister Field. If grant funds are awarded, the City Manager is further authorized and directed to accept and spend said grant funds to be applied to the purposes specified above. ADOPTED BY THE CITY COUNCIL this 7th day of May, 2024. ATTEST: Pa ricia Byers, M or CAA (SV,Ps-1-' 1 i, � - z 0 osalinda Ibarra, City Clerk •gsHiNG� Washington State Department of 9410 Commerce Industrial Site Readiness Grant Application Administered by the Washington State Department of Commerce Summary Data Property Name Yakima Airport Owner(s) City of Yakima Property Address 2406 W.Washington Ave,Suite B Nearest City/Town Yakima County Yakima Parcel Size in Acres(contiguous only) 157 Existing Zoning Aircraft Transportation Describe how the current site is zoned. Additionally,is any portion being transitioned to industrial? Is any portion of the site within the Urban Growth Area (UGA)? Aircraft Transportation zoning is compatible with industrial use. The entire airport falls under this zone;there are numerous industrial activities occurring on the airport including manufacturing in several locations. The site is within the UGA. Recommended Word limit:250 Contact Information Contact person/lead for application Name Robert Hodgman Position/Title Airport Director Phone 0: 509-575-6260 C: 509-833-0898 Email 1 Robert.Hodgman@yakimawa.gov Authorized Official's Signature To the best of my knowledge,all data and information in this application are true and correct.As the Applicant,we will comply with the guidelines of this application if funds are awarded.The signature below constitutes assurance that the information provided in this Application accurately represents the applicant's plans,activities and projected goals;and acknowledges the applicant understands that the above-mentioned,along with the approved budget,will be incorporated by reference in the Contract with the Washington State Department of Commerce. Name Dave Zabell Title Interim City Manager I certify all data and information in this application are true and correct,to the best of my knowledge. Yes X No `S"e .❑ Date ��) CITY ONTRACT NO:y�2o24. 0 I(D �� ® 1 C/V R:SOLUTION NO. K-2o24-og3 Conflict of Interest Will any current or former Washington state employees be paid for participation in this project or do they serve on any board of directors involved in this project as of the date of this application? Yes 0 No 2 Application Review Period Are you applying to be considered for funding during the first application period of review per the timeline below? First Review Period/First Round of Funding: • Application Deadline: March 21, 2024, 11:59 p.m. Pacific Time • First review will start on March 25th prioritizing applicants prepared to utilize funding through June 30, 2024. • The first round of grants is estimated to be awarded in April 2024,subject to change. • Applicants who demonstrate at least partial deliverable before June 30, 2024 will be prioritized during first review. • To be considered for the first review,the applicant must provide a body of work tied to at least$200,000 dollars by June 30, 2024.The intent is to have deliverables met before June 30 in each fiscal year due to spend down requirements for the funding. Contracts can run through June of 2025. Second Review Period/Second Round of Funding: • Application Deadline: May 15, 2024, 11:59 p.m. Pacific Time o Contract performance period: Performance period is July 1st, 2024 to June 30th, 2025. Commerce reserves the right to revise the above schedule Yes 0 No X 3 Requested Grant Amount Please provide the total grant funds being requested and timeline for completion of the proposed project. Consider whether the timeline to complete all provided activity is reasonable—all funds must be spent and reimbursed by:June 30,2024(First Review/Round of Funding) and June 30th,2025 (Second Review/Round of Funding). Total Requested Amount $250,000 Timeline for Completion 12 months If early review applicant, please demonstrate ability to utilize funds before June 30`h, 2024. Que_stionnalrF Scoring will be based on the Criteria included in the Program Guidelines(Section 4:Application instructions). 1. Scope and Site Readiness Describe the proposed site and how it meets the grant requirement,including size and ownership. What are the current gaps impacting the site's readiness?How will the proposed scope of work enhance the site?How will the enhancements lead to new manufacturing employment in the state? The purpose of this grant request is to conduct site due diligence to address site development needs on land within the boundary of the Yakima Air Terminal airport property. This site has been identified due to its potential to increase the economic vitality of the airport by providing industrial development land available for recruiting manufacturing companies. The airport has been in existence since 1926; all of the airport land is previously disturbed. During World War II the McAllister School of Flying became part of the Civilian Pilot Training Program/War Training Service to teach flying to the US Navy and Army Air Corps. The previous uses of this site are unknown; however,WW II training areas are fraught with environmental concerns. The site is currently grassland with native sage brush and similar plant life. The site is in Washington state and is owned by the City of Yakima. The site consists of 157 acres in three contiguous parcels. The site is zoned Aircraft Transportation. As established in Yakima Municipal Code,Airport Support District(AS); The purpose of the airport support district is to accommodate airport and aircraft related activities within the airport property. This district includes the Yakima Air Terminal.A variety of uses are permitted. Uses are influenced by activities that are compatible with noise, height obstruction and other impacts from the airport operation. The WSDOT Airports and Compatible Land Use Guidebook Appendix F documents industrial/manufacturing as a compatible use. 4 The scope of this project is Remedial Investigations at the site.This includes all plans and reports. Specific tasks may include: • Background information acquisition and review. • Environmental summary. • Due diligence/Phase I Environmental Site Assessment. • Phase II scoping and planning. • Initial Phase II investigation. • Supplemental Phase II investigation. • Phase II data evaluation and reporting. • Other technical support related to the project site regarding property investigation, environmental and geotechnical conditions, cleanup and regulatory compliance, and funding sources. Recommended word limit:500 2. Market Attractiveness Describe up to five project opportunities this site was considered for within the past five years. What recent business recruitment or expansion activities have occurred?Include estimated number of jobs and capex for each project.Code names are acceptable. Provide reasons why the site was not selected or selected,if available. Looking forward,also describe the market viability for this property. In the last year,the airport has had development interest from Cub Crafters,Triumph, and South Korean drone maker This Is Engineering (TIE). CubCrafters has a two-year backlog of airplane orders and is running three-shifts to try to keep up. The company is modernizing manufacturing equipment to leverage robotics in an effort to maximize the efficiency of human role in manufacturing, and is severely compressed for manufacturing space. The company is also wrestling with insufficient completed aircraft storage prior to delivery. The airport is in ongoing discussion with the company seeking near-term solutions while we work to develop more permanent outcomes. Cubcrafters is expected to expand their workforce by roughly a dozen skilled aerospace technicians in the immediate near-term, and more once sufficient space is available. CubCrafters manufacturing wages range from $25 to$31 per hour. In 2022 CubCrafters was approved by the SEC to raise$50 million in capital in a public offering. In it's 2022 annual report the company cited 214 employees. Triumph is a current airport tenant that manufacturers actuator assemblies for commercial aircraft. In addition to manufacturing,Triumph is also a Maintenance, Repair, and Overhaul (MRO) company for the products they manufacturer. Triumph is seeking to expand their MRO operation. Wages average$35/hour. Triumph Group does not identify specific Yakima plant statistics on employment and financials. TIE is seeking a testing and manufacturing site for its new Electric Vertical Take-off and Landing (eVTOL)aircraft. The company is interested in first setting up an R&D facility(skunkworks)with approximately four employees,with the intention of establishing an initial small manufacturing facility of ten employees. Further expansion will depend on the eVTOL market. Wages for this company are unknown but can be expected to be on par with CubCrafters. TIE is a privately held, start-up company based in South Korea; employment and financials are unavailable. 5 These industries have expressed interest, but negotiations have been limited due in part to the unknown site conditions. There are 52 manufacturing companies within 10 miles of the airport, however aerospace companies tend to seek airport property because of the lower land-lease rate for aeronautical activities, and access to the runway for flight activities. Recommended word limit:500 3. Regional Impact Describe the foreseeable impact of the funded activities on the overall community. Aerospace is one of the key activities identified by Washington State Department of Commerce. Yakima Air Terminal has a regional reach, providing commercial air passenger service and air cargo support to Yakima and Kittitas counties. Presently the airport contributes$489,970,000 in economic impact to the region and 1,896 jobs. Adding twelve manufacturing employees would boost the airport economic impact to$492,339,000 and 1,912 jobs for the region, an increase$2,368,000 in economic impact and 16 jobs. In addition, adding or expanding aerospace companies enhances Washington's competitiveness in the world market and bolsters the appeal of the state to recruit more aerospace firms. Since 1992,the federal Health Resources and Services Administration (HRSA) has designated Yakima County as a Medically Underserved Area (MUA). Yakima county is identified by the Washington State Employment Security Division as and economically distressed area. The average hourly wage in Yakima MSA was $25.34 in May 2022, 15 percent below the nationwide average of$29.76. To note: Underserved and Rural communities are defined as any group, area, population, or community that has disproportionate access to resources and/or disproportionate needs for resources. Recommended Word limit:300 4. Community Commitment and Matching Funds Describe any past investments(in dollars) into site improvement or other active grant applications that relate to the proposed property.Are there pending or recent awards within the past five(5) years,or other funding that has been granted to enhance the site?If not,describe why matching funds are unavailable.While not required, preference will be given to projects that leverage match funding outside of the requested grant. There are no other grant applications related to these specific parcels. However,the city received $5M in federal funds in 2023 for the airport terminal building modernization and has applied for a Yakima County SIED grant and a CERB planning grant. The city also invested $125k in economic development supporting expanded air service and obtained a USDOT grant of$700K for the same. The city is also applying for a WSDOT Aviation grant for$275K with a $275K local match. Recommended Word limit:500 5. Property Accessibility and Infrastructure Readiness List availability and distance to the following services and describe proximity to major highways or other transportation connectivity. Preference will be provided to properties with some existing services within several miles of the property border at the time of project application: 6 Water,wastewater, electricity, and natural gas are all available at the site; please refer to the attached documents. The site is less than two miles from 1-82 and from rail lines. Large electrical demands can be supplied through the underground primary power along the north side of Airport Lane. An existing 2-inch gas main is located at the intersection of Airport Lane and 21st Ave.This 2- inch gas main is fed by a 6-inch main in Ahtanum Road. Recommended Word limit: 500 6. Proposed Use of Funds Describe how the requested funds will be utilized. Reference the Allowable Costs listed in Section 3 of the Program Guidelines. List the type of site readiness activity(e.g.engineering study,soil analysis, permitting,etc.),a brief description,timeline and cost range for each proposed activity— only estimates are required within the application. Funds will be used for environmental studies to support planning for site development,soils analysis, engineering services for site evaluation, and archaeology,geotechnical and cultural resources work. This site is on the south side of the airport, readily accessible from Ahtanum Road. Consider whether the timeline to complete all activity is reasonable—all funds must be spent and reimbursed by June 30, 2024 (First Review/Round of Funding) and June 30th, 2025 (Second Review/Round of Funding). Please make a note if you'd like to be considered for the First Review/ Review of funding.Applicants indicating that the majority of the proposed funding will be spend before June 30, 2024 will be considered for the first review will be prioritized for immediate review. First Review/Round of Funding 0 Second Review/Round of Funding X Recommended word limit:75 for each text field Please note additional or new activities may not be pursued unless specifically approved by Commerce. Activity#1(top priority) Type of activity(e.g.engineering study,soil analysis, permitting,etc.). Will this activity be conducted by a third party? If yes,please explain the selection process. Environmental analysis is the top priority. There is a seasonal creek that runs through part of this area. There may be habitat associated with the creek that needs resolution. As mentioned earlier, this area is previously disturbed soil and the activities that occurred there and potential 7 contamination are unknown. It is unlikely industry would consider developing in this area with these unknowns. The city will seek firms qualified to do this work through a competitive RFQ solicitation. How will this increase site readiness for business recruitment? Once the environmental condition of this property is known the airport can move forward with any remediation or other steps needed to make the site usable. Cost range/estimate $150,000 Timeline Nine months Activity#2 Type of activity(e.g.engineering study,soil analysis, permitting,etc.). Cultural resource analysis is the second priority. Yakima Air Terminal is located near the Yakama Nation and the city and airport property are situated on lands once occupied by the tribe. How will this increase site readiness for business recruitment? As with environmental analysis, it is unlikely a company would select this site with these unknowns. If any cultural artifacts were discovered during development this would seriously undermine a project. In order to recruit businesses for this site, cultural resources need to be fully documented. Cost range/estimate $50,000 Timeline Nine months Activity#3 Type of activity(e.g. engineering study,soil analysis,permitting,etc.) Soils Analysis is the third priority. Since this site is previously disturbed,the type of soil onsite is unknown. There could be contaminated soil, or soil composition that is incompatible with construction of buildings. How will this increase site readiness for business recruitment? 8 Companies are unlikely to choose a site with unknowns. Not only could their development costs increase, but also the time required to complete the project. In most cases companies want to get their operation underway as quickly as possible and are more likely to choose a site that has resolved all the potential challenges and provides a straight forward path to construction. Cost range/estimate $50,000 Timeline Nine months. Activity#4 Type of activity(e.g.engineering study,soil analysis,permitting,etc.) How will this increase site readiness for business recruitment? Cost range/estimate Timeline Activity#5 Type of activity(e.g. engineering study,soil analysis,permitting,etc.) How will this increase site readiness for business recruitment? Cost range/estimate Timeline 7. Community Support Briefly describe the local support for industrial development of this site. Has there been any opposition to this development? If so,why? 9 Are you aware of any community that may be negatively impacted by potential development as a result of the site readiness activities in the area, including underserved, rural,or tribal communities? Yakima Airport has been in existence since 1926; it is part of the community. The proposed development is consistent with existing on-airport manufacturing. Moreover,the site is on the south side of the airport, off Ahtanum road. In that same area there are various manufacturers,fruit packers, car repair shops, etc.this area is already industrial. The City and Airport have a very good relationship with the Yakama Nation. There have been no objections to development in the proposed area. Letters of support will be reviewed and factored into the evaluation process/scoring. Recommended Word limit: 250 8. Optional Please describe any additional studies,steps and other site preparation activities that will require longer term support to increase this site's readiness. Essentially,how much additional operational and capex would you have to invest? This insight will help Commerce to better understand the future investments necessary. For instance, how much more operational and/or capex would be necessary to fully enhance the appearance or function of the site(e.g.fully graded,water/sewer piping installation, electrical substations planned)? Recommended word limit: 500 Operational (cost estimate/range) Capex(cost estimate/range) Additional Documentation Property Flyer, map,and/or letters of support for the project(no more than 10 pages). 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This site has been identified due to its potential to increase the economic vitality of the airport by providing industrial development land available for recruiting manufacturing companies. ITEM BUDGETED: Yes STRATEGIC PRIORITY: Economic Development APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Adopt Resolution. ATTACHMENTS: Description Upload Date Type ❑ Resolution 4/12/2024 Resolution ❑ Grant Application 4/16/2024 Contract ❑ Yakima Airport Property Parcels 4/16/2024 Backup Material ❑ YKM-City Sewer 4/16/2024 Backup Material D YKM-City Water 4/16/2024 Backup Material