HomeMy WebLinkAbout07/05/2016 06C Yakima County SIED Grant for Development of Property at South 24th Avenue and West Nob Hill Blvd. xs .1
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 6.C.
For Meeting of: July 5, 2016
ITEM TITLE: Resolution authorizing application for $254,970 in grant funding and
$208,612 in a loan from the Yakima County SI ED Board to
contribute funds for the engineering, design and reconstruction of
certain streets and utilities necessary to support the development
of the property located at South 24th Avenue and West Nob Hill
Blvd
SUBMITTED BY: Sean Hawkins, Economic Development Manager, 575 -6274
SUMMARY EXPLANATION:
The former Montgomery Ward location at 24th and West Nob Hill Blvd has been a vacant eye
sore in the heart of the city since 2002. In 2013, Hogback Development began a complete
renovation of the former Nob Hill Plaza that sat to the west of this location. The success of their
redevelopment led to them purchasing the adjacent 8 acre former Montgomery Ward site on the
corner of 24th and Nob Hill Blvd. The planned development of this site would include four new
buildings with a private investment of $13 million. This project would create $57 million in annual
taxable sales and 205 jobs based on industry standards for the tenant types being recruited to
lease the available spaces.
The project requires $463,583 in necessary public improvements including street improvements,
potable water improvements and sanitary sewer improvements. The SI ED application would ask
for assistance in making these public improvements. A grant of $254,970 would be requested
along with a loan of $208,612. Upon approval from the SI ED Board, the City would prepare a
Promissory Note and Deed of Trust arrangement to secure the repayment of the loan proceeds
from Hogback Development.
ITEM BUDGETED: NA
STRATEGIC PRIORITY: Economic Development
APPROVED FOR SUBMITTAL ' t Interim City Manager
STAFF RECOMMENDATION:
Adopt resolution.
BOARD /COMMITTEE RECOMMENDATION:
This item was reviewed by the Council Economic Development Committee at its May 5, 2016
meeting. After a short presentation from Hogback Development's Chris Waddle and the City's
Economic Development Manager Sean Hawkins, the council members (Coffey, A. Gutierrez and
Cousens) voted 3 -0 for City staff to prepare a resolution authorizing the City to apply for these
funds on behalf of Hogback Development and that the resolution be moved to the full council
for its consideration.
ATTACHMENTS:
Description Upload Date Type
D SISD Resduti - Former Montgomery Ward Site 6/27/2016 r Memo
RESOLUTION NO. R -2016-
A RESOLUTION authorizing the City Manager to apply for funding, accept the funds if offered
and execute the necessary agreement for $254,970 in a grant and a $208,612
loan from the Yakima County SIED Board to contribute funds for the
engineering, design and reconstruction of certain streets and utilities
necessary to support the development of the property located at South 24
Avenue and West Nob Hill Blvd.,
WHEREAS, the Yakima City Council established that development of commercial properties
and increasing jobs for residents of the City, is an Economic Development priority for the City of
Yakima; and
WHEREAS, Yakima County has established the Supporting Investments in Economic
Diversification (SIED) funds to assist the growth of business; and
WHEREAS, the developer, Hogback Development Company, is proposing to improve the
eight acres of property at the Southwest corner of South 24 Avenue and West Nob Hill Blvd., into a
commercial development with three new buildings along West Nob Hill Blvd, which will house
approximately five new businesses, and one new building on the Southern portion of the property,
which will house approximately three new businesses;
WHEREAS, it is estimated that the new businesses will employ over 200 people, and bring in
approximately $50 million in taxable revenue; and
WHEREAS, the development of the currently vacant property at South 24 Avenue and West
Nob Hill Blvd., a total of 8 acres, will allow maximum commercial use of the property by increasing
road lighting, curb and gutter system for proper water drainage, and improve the usable pavement
around the commercial center; and
WHEREAS, the street improvements are needed to allow for further development of
commercial areas and create jobs for Yakima residents; and
WHEREAS, improvements to the existing public streets in the vicinity of the proposed
commercial property outlined herein will improve public safety, facilitate access to the development
and improve the neighborhood. Street upgrades are generally a requirement for new development in
Yakima County as well as within the City of Yakima; and
WHEREAS, the developer agrees to repay the loan proceeds from the SIED Fund to the City
of Yakima through a written agreement to be executed if the SIED Fund approves the grant and loan
request; and
WHEREAS, the City Council deems it to be in the best interest of the City of Yakima and its
residents to authorize the City Manager to execute and submit a grant/loan application with Yakima
County for funding of infrastructure improvements from the SIED Fund for the above - described
project, 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 grant application with
Yakima County for funding from the Yakima County SIED program for infrastructure
improvements associated with development of the property located at the southwest corner of
South 24 Avenue and West Nob Hill Blvd., which, if awarded will require the City of Yakima
to execute Agreement with the Yakima County SIED Board for terms and conditions of the
loan and grant, and a repayment agreement with Hogback Development Company to pay the
City of Yakima an amount equal to the loan amount granted by SIED, both of which will have
to be approved by the City Council.
ADOPTED BY THE CITY COUNCIL this 5th day of July, 2016.
ATTEST: Avina Guiterrez, Mayor
Sonya Claar -Tee, City Clerk