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HomeMy WebLinkAbout10/04/2016 06E SIED Funds Grant for Oak Avenue Development ,,r xs . .a 4 4 s 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