HomeMy WebLinkAbout10/04/2016 06E SIED Funds Grant for Oak Avenue Development ,,r
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 6.E.
For Meeting of: October 4, 2016
ITEM TITLE: Resolution authorizing application for funding, accept the funds if
offered and execute the necessary agreement for $249,988 in
grant funds and $249,988 in loan funds from the Yakima County
SIED Board, the total of which to be contributed to costs of
engineering, design and construction of Oak Avenue to support
development of the property located between 23 and 26th
Avenues
SUBMITTED BY: Sean Hawkins, Economic Development Manager, 575 -6274
SUMMARY EXPLANATION:
The City's Economic Development Department has been working with Jim Richmond the owner
of Cub Crafters on his company's expansion onto 17 company -owned acres between 23rd and
26th Avenues off of Ahtanum Road on the south side of the Yakima Air Terminal. Cub Crafters
introduced the XCub Master Class of Sport Utility Aircraft earlier this year is experiencing high
demand for the product.
This project includes connecting Oak Avenue between 23rd and 26th Avenue to open up the 17
acre parcel for Cub Crafters expansion and similar based suppliers in the same area. The new
job increase will be over 200 jobs if all expansion plans are realized.
The property owner 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 Board approves the grant and loan
request. This project will complete the extension of Oak Avenue, no other funds or sources will
be needed for this economic development project.
ITEM BUDGETED: NA
STRATEGIC PRIORITY: Economic Development
APPROVED FOR
SUBMITTAL: /1 City Manager
STAFF RECOMMENDATION:
Adopt resolution.
BOARD /COMMITTEE RECOMMENDATION:
The Council Economic Development Committee has recommended moving this application
request to the full council.
ATTACHMENTS:
Description Upload Date Type
D Resolution SIED Cub Crafters 9/29/2016 Coyer 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 $249,988 in grant funds and
$249,988 in loan funds from the Yakima County SIED Board, the total of
which to be contributed to costs of engineering, design and construction of
Oak Avenue to support development of the property located between 23r and
26 Avenues.
WHEREAS, the Yakima City Council has determined that development of commercial
properties and increasing available job opportunities 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 business opportunities; and
WHEREAS, it is estimated that the new businesses that will develop on the property made
available by the development of Oak Avenue will employ over 200 people and allow the expansion
of a locally based manufacturer; and
WHEREAS, the development of the currently vacant 17 acres of property located at Oak
Avenue and 26 Avenue will allow maximum commercial use of the property by increasing
commercial development opportunities, providing utility infrastructure, sidewalk, curb and gutter and
improved vehicle access to serve the new construction opportunities; and
WHEREAS, the street construction is necessary to allow for further development of the
commercial areas and thereby create jobs for Yakima residents; and
WHEREAS, the property owner agrees to repay the loan proceeds from the SIED Fund to
the City of Yakima through a written agreement to be executed if the SI ED Board 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 to the
Yakima County SIED Fund for the purpose of funding infrastructure improvements for the above -
described project and to execute the documents necessary to distribute the funds that may be
awarded so as to accomplish the objectives of further site development, 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 to the
Yakima County SIED program for funding to develop infrastructure improvements associated
with development of the property located on the south side of the Yakima Air Terminal at Oak
Avenue and 26 Avenue which, if awarded, will require the City of Yakima to execute an
agreement with the Yakima County SIED Board for terms and conditions of the loan and
grant, and a repayment agreement with Jim and Susan Richmond to pay the City of Yakima
the amount of the loan portion granted by the SIED Board, both of which will have to be
approved by the City Council.
ADOPTED BY THE CITY COUNCIL this 4th day of October, 2016.
ATTEST: Kathy Coffey, Mayor
Sonya Claar -Tee, City Clerk