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HomeMy WebLinkAboutR-1996-145 Grant / US Dept of Commerce / Light Manufacturing Business IncubatorRESOLUTION NO. R-96- 145 A RESOLUTION authorizing and directing the City Manger to accept, on behalf of the City of Yakima, a grant of up to $1,032,909 from the U.S. Department of Commerce, Economic Development Administration, for construction of a light manufacturing incubator and infrastructure at the Yakima International Airport - McAllister Field, and further designating and authorizing the City Manager to act as the official representative of the City and to take such additional steps as may be necessary and prudent to to complete transactions associated with the grant. WHEREAS, economic development is a priority of 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 re- development in the City; and WHEREAS, on March 1, 1994, the City Council adopted an economic development strategy which includes creation and implementation of a business incubator based on fed- eral funding; and WHEREAS, through the efforts of the Department of Community and Economic Development the City has been offered Financial Assistance Award of up to $1,032,909 from the U.S. Department of Commerce, Economic Development Administration, for construction of a light manufacturing incubator and infrastructure in the City of Yakima at the Yakima International Airport - McAllister Field; and WHEREAS, it is in the best interests of the City of Yakima that a light manufactur- ing incubator and infrastructure be constructed at the Yakima International Airport - McAllister Field, and that the City expeditiously accept the Financial Assistance Award of up to $1,032,909 from the U.S. Department of Commerce, Economic Development Administration, and proceed promptly to execution of documents officially accepting the grant; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: Section 1. The City of Yakima accepts the Financial Assistance Award of up to $1,032,909 from the U.S. Department of Commerce, Economic Development Administration, for construction of a light manufacturing incubator and infrastructure in the City of Yakima at the Yakima International Airport - McAllister Field. Section 2. The City Manager is designated as the official representative of the City for this grant and is authorized and directed to execute, on behalf of the City, acceptance of the Financial Assistance Award, dated September 30, 1996, a copy of which is attached to this resolution, designated Exhibit A, and is incorporated in this resolution by reference, and to take such additional steps as may be necessary and prudent to complete all complete transactions associated with the grant. ADOPTED BY THE CITY COUNCIL this 5th day of November, 1996. ATTEST: City Clerk lap \ comm&econ development\incubator\accept grant res. 10/31/96 2:05 PM RESOLUTION ACCEPTING FEDERAL GRANT FOR BUSINESS INCUBATOR SEP 30 1996 Mr. R.A. Zais, Jr. City Manager City of Yakima 129 North 2nd Street Yakima, Washington 98901 Dear Mr. Zais: U.S. DEPARTMENT OF COMMERCE Economic Development Administration Jackson Federal Bulking, Room 1856 915 Second Avenue Seattle, Washington 98174 Fax: (206) 220-7669 Phone: (206) 220-7667 RECEIVED CITY OF YAKIMA OCT 41996 OFFICE OF CITY MANAGER RECEIVED OCT 01 1996 COMMUNITY OF DEVELOPMENT We are pleased to inform you that the Economic Development Administration (EDA) has approved a Financial Assistance award in an amount not to exceed $1,032,909 in response to your application for federal assistance for construction of a light manufacturing incubator and infrastructure located in the City of Yakima, Washington. The total project cost is $1,209,159 which is based on the line item estimates contained in Attachment No. 1. Enclosed are two signed copies of the Financial Assistance Award. Your agreement to the terms and conditions of the award should be indicated by the signature of your principal official on both of the signed copies of the Financial Assistance Award. One of the executed copies should be returned to the Director, Seattle Regional Office, Economic Development Administration, Jackson Federal Building, Room 1856, 915 Second Avenue, Seattle, M. 98174. You are cautioned not to make any commitments in reliance on this award, nor to enter into negotiations relative hereto, until you have carefully reviewed the terms and conditions and have determined that you are in compliance or that you can comply therewith. Any commitments or undertakings entered into prior to obtaining the approval of the Government in accordance with its regulations and requirements will be at your own risk. Sincerely, onar• Smith R gional Director Enclosures costo U.S. DEPARTMENT REV 10-431 0A0 203.24 FINANCIAL ASSISTANCE AWARD OF COMMERCE _ 1I GRANT 0 COOPERATIVE AGREEMENT ACCOUNTING CODE 1)96701600291110 RECIPIENT NAME City of Yakima, Washington AWARD NUMBER 07-39-03625 STREET ADDRESS 129 North 2nd Street FEDERAL SHARIE Of COST $ 1,032„909 - CITY, STATE, ZIP CODE Yakima, Washington 98901 RECIPIENT SHARE OF COST $ 176„2150 AWARD PERIOD From date of approval to 27 months after acceptance TOTAL ESTIMATED COST $ 1,209„159 DEPARTMENT OF COMMERCE OPERATING UNIT Economic Development Administration AUTHORITY (42 U.S.C. 3121, et seq.) Public Works and Economic Development Act of 1965, as amended: 42 U.S.C. Section 3243(b)(1)18) PROJECT TITLE Construction of light manufacturing incubator and infrastructure This Award approved by the Grants Officer is issued in duplicate signing the two documents, the Recipient agrees to comply acceptance by the Recipient, one signed Award document shall document shall be retained by the Recipient. if not signed Grants Officer may declare this Award null and void. 0 EDA Standard Terms and Conditions --Construction Program, ® Special Award Conditions ® Line Item Budget ® 15 CFR Part 24, Uniform Administrative Requirernents Governments ® OMB Circular A-87, Cost Principles for State and Local ® 15 CFR Part 29a, Audit Requirements for State and Local and constitutes an obligation of Federal funding. By with the Award provisions checked below. Upon be returned to the Regional Director and the seconl' and returned by the Recipient within 15 days of receipt, u.a dated 7/95 for Grants and Cooperative Agreements to State and Local Governments Governments of Higher Education, Hospitals, and Other Higher Education and Other Nonprofit Organizations OMB Circular A-110, Grants and Agreements with Institutions Nonprofit Organizations Uniform Administrative Requirements ❑ OMB Circular A-122, Cost Principles for Nonprofit Organizations ❑ OMB Circular A-21, Cost Principles for Educational Institutions ❑ 15 CFR Part 29b, Audit Requirements for Institutions of ❑ 48 CFR Part 31, Contract Cost Principles and Procedures ❑ Other(s): SIGNATURE OF DEPARTMENT OF COMMER : GRANTS 0 - ,` ER ,1 - TITLE A. Leonard Smits, nal Director DATE SEP 30 l9)6 TY NAME AND SIGNA URE OF AUTHORIZED RECIPIENT OFFICIAL TITLE DATE ocictm ca.to U.S. DEPARTMENT OF COMMERCE 46EV 10-93) DAO 203.26 FINANCIAL ASSISTANCE AWARD ® GRANT D COOPERATIVE AGREEMENT ' ACCOUNTING CODE 096701600291110 RECIPIENT NAME City of Yakima, Washington AWARD NUMBER 07.39-03625 STREET ADDRESS 129 North 2nd Street FEDERAL SHARE OF COST 8 1,032,909 CITY. STATE, ZIP CODE RECIPIENT SHARE OF COST Yakima, Washington 98901 $ 176,250 AWARD PERIOD TOTAL ESTIMATED COST From date of approval to 27 months after acceptance 8 1,209,159 DEPARTMENT OF COMMERCE OPERATING UNIT Economic Development Administration AUTHORITY 142 U.S.C. 3121, et seq.) Public Works and Economic Development Act of 1965, as amended: 42 U.S.C. Section 3243(b)(1)(B) PROJECT TITLE Construction of Eght manufacturing incubator and infrastructure This Award approved by the Grants Officer is issued in duplicate and constitutes an obligation of Federal funding. By signing the two documents, the Recipient agrees to comply with the Award provisions checked below. Upon acceptance by the Recipient, one signed Award document shall be returned to the Regional Director and the second document shall be retained by the Recipient. If not signed and returned by the Recipient within 15 days of receipt, the Grants Officer may declare this Award null and void. 13 EDA Standard i erms and Conditions—Construction Program, dated 7/95 1J Special Award Conditions ® Line Item Budget ❑X 15 CFR Part 24, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local overnments X OMB Circular A-87, Cost Principles for State and Local Governments Governments _ 13 15 CFR Part 29a, Audit Requirements for State and Local ❑ OMB Circular A-110, Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations Uniform Administrative Requirements ❑ OMB Circular A-122, Cost Principles for Nonprofit Organizations • OMB Circular A-21, Cost Principles for Educational Institutions ❑ 15 CFR Part 29b, Audit Requirements for Institutions of Higher Education and Other Nonprofit Organizations ■ 48 CFR Part 31, Contract Cost Principles and Procedures ❑ Other(s): SIGNATURE OF DEPARTMENT OF COMM -CE GRANT CER TITLE DATE A. Leonard Smith Se 3 0 1996 Regional Director . TYPED AME AND SIGNA RE 0 AUTHORIZED RECIPIENT OFFICIAL TITLE DATE Form ED -508 U.S. DEPARTMENT OF COMMERCE ATTACHMENT N0. 1 (Rev. 3/89) ECONOMIC PUBLIC WORKS RECIPIENT: City of Yakima, DEVELOPMENT ADMINISTRATION PROJECT COST CLASSIFICATIONS Washington EDA Award No. 07-39-03625 State: Washington County: Yakima Cost Classification PrAWAid Approved Administrative and legal expenses $ 29,860 $ 29,860 Land, structures and rights-of-way 176,750 176,750 appraisals, etc. Relocation expenses and payments 500 500 Architectural and engineering fees 17,500 1.7,500 Other architectural and engineering 3,000 3,000 fees Project inspection fees 14,000 14,000 Demolition and :removal 0 0 Construction 909,970 909,970 Equipment 0 0 Contingencies 57,579 57,579 TOTAL PROJECT COSTS $ 1,209,159 $ 1,209,159 YAKIMA BUSINESS INCUBATOR PREPARYD ST: TRs ARGUS GROUP AUGUST 1994 CITY Or YAKIMA MAYOR PA? $ZRNDT A$$ISTAN? MAYOR 'CLAIM NCR $ARNI?T COUNCIL KSKBSR LYNN SVC /LANAI COUNCIL KZXBZR MINERS PSALMS COUNCIL KSKBZR 11 ILL BRADO COUNCIL KSMSSR RSRNARD $INS COON CIL KZMBZR ZRNIS $SRGLR CITY KANAGSR RICHARD ZAIS CONI(ONITY AND =CONOKIC DZVZLOPMZNT DIRS C?OR GLSNN ,VALSNZUSLA Exhibit I'M Special Award Conditions Page 5 of 5 Award No. 07-39-03625 City of Yakima, Washington 11. TITLE: Prior to EDA authorization to start construction, the Recipient shall provide evidence satisfactory to the Government that the Recipient has acquired good and merchantable title, free of all mortgages, foreclosable liens, or encumbrances, to all land, rights-of-way, and easements necessary for the completion of the Project. 12. INDEMNIFICATION AGREEMENT: During the useful life of the project, which is 10 years from the date of the Financial and Assistance Award, the Recipient shall indemnify and hold harmless EDA from any liability, losses, damages, suits, judgements, attorney and expert fees, trial expenses and other expenses arising out of the unique partnership between the Recipient and the use of Washington State University graduate students to provide design assistance for this project. 13. WETLAND DELINEATION: Prior to the start of construction, the Recipient shall provide evidence that the recently completed "wetland delineations" has been reviewed and accepted by the U.S. Army Corps of Engineers, as requested in the letter dated May 30, 1996 from the COE Central Washington Regulatory Office. Confirmation of the presence of "jurisdictional wetlands" may initiate a requirement for further consultation and development of acceptable mitigation measures. 14. WASHINGTON SEPA: Prior to the start of construction, the Recipient shall provide evidence satisfactory to EDA that the Washington State Environmental Policy Act, (SEPA, Chapter 43.21C RCW) requirements have been completed, covering the entire proposed project, and that an appropriate "Determination" has been filed per WAC Chapter 197-11, SEPA Rules. 15. EMPLOYMENT PLAN: Prior to the first disbursement, the :Recipient shall provide an acceptable employment plan to overcome the under utilization of women and minorities in its workforce. The Plan will specifically address representation among officials and manager, professional, technicians, and craftspersons. 1 Exhibit HA'. Special Award Conditions Page 4 of 5 Award No. 07-39-03625 City of Yakima, Washington 9. A/E Agreement: Prior to EDA authorization to begin design of this project, the Recipient shall submit to the Government a plan showing how the engineering tasks to be accomplished under this grant will be performed. At a minimum, the engineering plan will include an organization chart showing who will be responsible for each portion of the engineering services, resumes of each project member, and a list of similar work performed by each member of the proposed design team. Additionally, the plan shall include details on how the City will manage the risk that this unique design relationship with Washington State University graduate students will impose on the City. The City should include certificates of insurance for the policies showing the amounts errors and omissions and liability insurance coverage for the design team. The plan shall cover all phases of the project from preliminary engineering through construction completion. EDAs review of plans and specifications created for this project is limited to ensuring that the work to be built is within the scope of work for the grant and that Federal procurement regulations are satisfied. EDA does not review design calculations or ensure that designs satisfy local building codes. If any consultants will be members of the engineering team, the Recipient shall submit to the Government for approval an Architect/Engineer Agreement that meets the requirement of section I of the EDA publication, "Requirements for Approved Projects" as well as the competitive procurement standards of 15 CFR Part 24 or OMB Circular A-110. The fee for basic Architect/Engineer services shall be a lump sum or an agreed maximum. No part of the fees for other services shall be based upon a cost -plus -a -percentage - of -cost, or a cost using a multiplier method of contracting. 10. OPERATION AND MAINTENANCE AGREEMENT: If the Recipient will not operate and maintain the project, then prior to initial disbursement, the Recipient shall provide to EDA an executed copy of an Agreement with the party responsible for providing the project's operation and maintenance. Such Agreement shall be consistent with EDA policies including, but not limited to, nondiscrimination, nonrelocation, excessive profits, and adequate consideration. The Agreement shall also set forth that prior to occupancy, the occupant of any part of the land acquired or improved by this project must furnish to the Recipient, for transmittal to EDA, properly executed EDA forms evidencing as- surance of compliance with EDA Civil Rights requirements and evidencing that such occupancy is not in violation of the nonrelocation requirements of EDA's regulations at 13 CFR 309.3. Exhibit "Au Special Award Conditions Page 3 of 5 !Award No. 07-39-03625 City of Yakima, Washington b. The Recipient further agrees that in the event that it alienates in any manner any interest in the realproperty acquired or improved with EDA Award funds, the Government shall be entitled to recover damages. EDA's regulation at 13 CFR 314.4 provides that, upon disposition of property acquired or improved with EDA Award funds, the Government shall be entitled to a recovery based upon the ratio of the percentage of the Government's participation in the total cost of the Project to the fair market value of the property at the time of disposition. For the purposes of the lien, the amount of the Government's damages shall be the full amount of the EDA Award, plus interest from the date of the disposition. c. This lien must remain in effect throughout the useful life of the Project as defined in 13 CFR 314.6(a). d. Alienation shall include but not be limited to sale, lease, rent, option, or mortgage, with the exception of those leases or rental agreements the Government approves in writing for tenant space in the Project facilities. 6. LEASING RESTRICTIONS FOR TENANTS OF INCUBATOR The Recipient agrees that any leasing or renting of the fac'.lities involved in this Project shall be subject to the prior written approval of EDA. Prior to EDA granting said approval, it must be satisfied inter alia, that said lease arrangement is consistent with the authorized general and special purpose of the Award; that said lease arrangement will provide adequate employment and economic benefits for the area in which the property is located; that said lease arrangement is consistent with EDA policies concerning, but not limited to, nondiscrimination, nonrelocation and excessive profits; that the proposed Lessee is providing adequate compensation to the Recipient for said lease and that said lease arrangement shall include a covenant prohibiting the use of suchproperty for any purpose other that the general and special purpose of the Award!. Any Lease Agreement entered into by the Recipient of said property shall be subordinate, junior and inferior to the first priority lien mentioned in Special Condition No. 5. 7. LAND LEASE: Prior to first disbursement, the Recipient will submit to EDA a copy of the land leasing agreement with the County for the 10 year useful of the project. 8. APPROVAL OF LEASES: Prior to first disbursement, Recipient shall clarify if the Air Terminal Board, Yakima Air Terminal, will be required to approve the land lease or tenant leases of the incubator building. If the Air Terminal Board is required to approve tenant leases or the land lease, Recipient will provide EDA with evidence of such approval prior to first disbursement. Exhibit "A" Special Award Conditions Page 2 of 5 Award No. 07-39-03625 City of Yakima, Washington A11 changes to this goal, as published in the Federal Register in accordance with the Office of Federal Contract Compliance Programs regulations at 41 CFR 60-4.6, or any successor regulations, shall hereafter be incorporated by reference into these Special Award Conditions. Goals for minority participation shall be as prescribed by Appendix B-80, Federal Register, Volume 45, No. 194, October 3, 1980, or subsequent publications. The Recipient shall include the "Standard Federal Equal Employment Opportunity Construction Contract Spec- ifications" (or cause them to be included, if appropriate) in all Federally assisted contracts and subcontracts. The goals and timetables for minority and female participation may not be less than those published pursuant to 41 CFR 60-4.6. 3. DISCLOSURE OF FEDERAL PARTICIPATION: No amount of this Award shall be used to finance the acquisition of goods or services (including construction services) for the Project unless the Recipient agrees to: a. specify in any announcement of the awarding of the contract for the procurement of the goods and services involved (including construction services) the amount of Federal funds that will be used to finance the acquisition; and b. express the amount announced pursuant to paragraph (a) as a percentage of the total cost of the planned acquisition. The foregoing requirements shall not apply to a procurement for goods or services (including construction services) that have an aggregate value of less than $500,000. 4. BUY AMERICAN -MADE EQUIPMENT OR PRODUCTS: Recipients are hereby notified that they are encouraged, to the extent feasible, to purchase American-made equipment and products with funding provided under this program in accordance with Congressional intent as set forth in the resolution contained in Public Law 103-317, Sections 607. (a) and (b). 5. FIRST PRIORITY UNSUBORDINATED LIEN: a. Recipient expressly agrees to grant to the Government, prior to initial Award disbursement, a first priority unsubordinated lien against, or security interest in, the property acquired or improved in whole or in part with the funds made available perfected in accordance with local law. The Government will, in its sole discretion, determine whether the lien or security interest which has been granted to the Government is satisfactory, and it may require an opinion of counsel for the Recipient to substantiate the lien or security interest has been properly recorded. EXHIBIT "A" U.S. DEPARTMENT OF COMMERCE Economic Development Administration Public Works and Development Facilities RECIPIENT: City of Yakima, Washington Page 1 of 5 Award No. 07-39-03625 SPECIAL AWARD CONDITIONS 1. PROJECT DEVELOPMENT TIME SCHEDULE: The Recipient agrees to the following Project development time schedule: Time allowed after receipt of Financial Assistance Award for: Return of Executed Financial Assistance Award - 15 days Time allowed after acceptance by Recipient of Financial Assistance Award for: Start. of Construction - 300 days Construction Period - 9 months Project Closeout - All Project closeout documents, including final financial information and any required program reports, shall be submitted to the Government not :..ore than 90 days after the state the Recipient accepts the completed Project from the contractor(s). The Recipient shall pursue diligently the development of the Project so as to ensure completion of the Project and submission of closeout documents within this time schedule. Moreover, the Recipient shall notify the Government in writing of any event: which could delay substantially the achievement of the Project within the prescribed time limits. The Recipient further acknowledges that failure to meet the development time schedule may result in the taking action to terminate the Award in accordance with the regulations set forth at 13 CFR 305.99(b) and 15 CFR 24.43 (53 Fed. Egg., 8048-9, 8102, March 11, 1988). 2. GOALS FOR WOMEN AND MINORITIES IN CONSTRUCTION: Department of Labor regulations set forth in 41 CFR 60-4 establish goals and timetables for participation of minorities and women in the con- struction industry. These regulations apply to all Federally assisted construction contracts in excess of $10,000. The Recipient shall comply with these regulations and shall obtain compliance with 41 CFR 60-4 from contractors and subcontractors employed in the completion of the Project by including such notices, clauses and provisions in the Solicitations for Offers or Bids as required by 41 CFR 60-4. The goal for the participation of women in each trade area shall be as follows: From April 1, 1981, until further notice: 6.9 percent OBSERVATIONS A key to the development of the Yakima Business Incubator is the desirability of its location for growth potential of business. Another key is the communities desire to assist companies located nearby to expand to Yakima. Yakima has more than sufficient land resources to accommodate and encourage business expansion. This would be attractive to emerging companies. There is a sufficient labor force to accommodate businesses work force requirements. There appears to be more than adequate resources for training people for various job functions. However, the lack of housing, especially rental properties could prevent or reduce the attractiveness of expansion into the Yakima area. A review of past studies on economic conditions and trends indicates that the population in Yakima is growing. 5• However, the diversity of industries has not followed national trends. There is a basic difference between job creation and job foundation for. business. Job creation would be classified as minimum to low paying positions i.e., sales jobs at major retailers or fast food establishments. Job foundation would be classified as growth potential positions in emerging industries' 'that would be skilled in nature, and which grow with the business. Historically, incubators attract businesses that are involved in emerging industries, which create positions that form job foundation. Business license requests has stayed consistent. At approximately 3,000 a year since 1988. This would indicate a stable growth, yet flat. 6 • Because of the preceding points it is felt that the following incubator project should go forward with the following recommendations: OP That it be developed to diversify the local economy for a better job foundation for the community. That a cornerstone or key tenant be procured which entrepreneurial businesses can work with, and that will form a solid financial base for the incubator. •- The incubator should meet the key tenants facility needs. - After the key tenant is procured, a balance of emerging business and start-up business should be obtained. Too may incubators fail because they do not have a key tenant or they are highly concentrated on start-up business. 7 - As the incubator would be of economic benefit to the City and County of Yakima, both should share in its initial financial funding. After initial funding the'incubator should be self sustaining. - The incubator must identify a champion or driving force that will promote and guide it. - 90% of incubators are non-profit and 60% of those are 501(c)(3)s. However, most of these organizations often operate with ongoing subsidies. It is recommended that Yakima's incubator be geared to stand on its own and to require limited governmental funds. - There appears to be sufficient leasable space in Yakima. However, to ensure success for the project a building should be constructed to afford the incubator the ability to 8 expand it facility as demand for its service grows. - The incubator, in order to best serve the Yakima region, should develop a program that would provide technical assistance to growth companies that have facilities away from the incubator, yet would benefit from services offered by the incubator. - A manager must be found to guide the development of the incubator and to assist in obtaining financing and a key tenant. - A board of directors consisting of a mix of private and public sectors, ;must be formed to assist the manager. - Incubator services must ]be marketed throughout Eastern Washington. 9 - A commitment of approximately $500,000 to 750,000 must be obtained to cover initial start-up costs. 10 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA $TATEMENT Item Not 1 For Meeting Of November 5, 1996 ITEM TITLE: Resolution Accepting a Grant from the United States Department Commerce for the Construction of a Light Manufacturing Business Incubator. SUBMITTED BY: Glenn J. Valenzuela, Director of Community and Economic Develo CONTACT PERSON/TELEPHONE: Glenn J. Valenzuela, 575-6113 of SUMMARY EXPLANATION: The City has notification that we have been successful in obtaining a $ 1,032,909 grant from the Economic Development Administration division of the United States Department of Commerce. The grant if accepted will allow for public infrastructure improvements in the City's ability to deliver water and sewer services to the site, plus the construction of a twenty thousand square foot facility to house the incubator. This grant is one of the largest grants ever received by the City and is a part of the City's overall economic development strategy. The attached historical summary has been provided for Council information. Funding Source United States Department of Commerce Grant in the amount of $1,032,909. APPROVAL FOR SUBMITTAL: CityYana er 9 STAFF RECOMMENDATION: Staff recommends approval of the Resolution. BOARD RECOMMENDATION: The Council Committee on Economic Development recommends approval. COUNCIL ACTION: BUSINESS INCUBATOR ----HISTORY The City of Yakima Council Policy in 1993-4 included a priority of economic development in an effort to create jobs and develop a positive business climate. Staff began developing a strategy in a series of applications and reorganization tb become more business active. The following represents those efforts in the submission and successful application of those efforts. March 1994: City is successful in obtaining state designation as a State Empowerment Zone. As part of the strategy, it was stated `The City of Yakima will formulate and enact a coordinated approach to develop an active business incentive zone within the designated Neighborhood Reinvestment Area. The Yakima International Airport will serve as the hub in the development of the community's overall economic development strategy. The City will create and implement a business incubator, with the use of federal funds, to develop a number of businesses locally that can participate in regional and international trade opportunities" Council approved Resolution March 1, 1994. May 1994; City Council approves a professional service contract with the Argus Group to develop a feasibility study to evaluate the need for the potential success of a business incubator. The Council approved the contract for an amount of $6,200 by unanimous vote. October 1994: City delegation of Mayor Pat Berndt, Council member Lynn Buchanan, Chamber Manager Gary Webster, Hispanic Chamber President Juan Aguilar, and CED Director Glenn Valenzuela travel to Washington D.C. to discuss enterprise community application and potential projects in the City. At a meeting with Mr„ Luis Bueso, Director of the Planning Division, Economic Development Administration, it is shared that the City has completed a feasibility study for a business incubator, Mr. Bueso invites the City to request authorization to apply for Economic Development Administration assistance in the construction of a business incubator. November 1324 - April 1995: Council Economic Development Committee reviews the incubator concept and agrees to formulate the request for assistance. May 25. 1995: Community and Economic Development Director submits a request for authorization to apply for Economic Development Administration grant funding to support the construction of a small business incubator facility and infrastructure developments associated with the facility. ,June 26. 1995: Mr. Lloyd Kiirry, Economic Development Administration Representative, requests that the appropriate Economic Development Administration forms be submitted to allow for review by the regional office. All forms are provided to the City. July 10. 1995: The City submits the required Pre application Construction Grant Proposal requesting Economic Development Administration funding support. April 29. 1996: The City receives a formal invitation to apply for Economic Development Administration funding from the Regional Director, Leonard Smith. The City, at this time, is authorized to submit an application in the amount of $800,000. The process is explained to the City staff, the most critical issue is timing as Economic Development Administration is limited to the number of applicants it may receive during the annual funding cycle. August 5. 1996: The City submits a formal application in the amount of $1,032,909 after negotiations with the Economic Development Administration. The Economic Development Administration Regional office begins its internal review of the request. August 26. 1996: City staff is informed by regional staff that the proposal has received regional endorsement and has been forwarded to the Washington D.C. office for review. September 30. 1996: The City is notified that the application has been approved subject to the terms and conditions of the United States Department of Commerce. The award amount is $1,032,909 making this award one of the largest in City history. October 17. 1996: Council members Beauchamp and Puccinelli, Planner McBride and Director Valenzuela attend a meeting with regional Economic Development Administration staff to discuss the terms and conditions of the grant. The meeting is held to clarify and understand fully the terms in order that the City can comply with the agreement. City representatives are told that the grant acceptance must take place prior to November 15, 1996 or the funds will be returned to the national office for redistribution. FUTURE ACTIONS: Should the City Council accept the grant, the following steps will be necessary to complete the requirements of the grant. 1) The City will need to meet all obligations of the terms and conditions of the award prior to the initial disbursement of funds. It is anticipated that staff will meet all obligations prior to January 1, 1997. 2) Staff will request authorization to proceed with a professional service contract to allow for the development of a business plan for the incubator. It is anticipated that the plan will cost in the neighborhood of $6,000. This will include tenant lease rates, tenant terms, maximum length of occupancy in the incubator, oversight structure, services offered with rates, and financial pro forma. Council action required: December 3, 1996. 3) Staff will request authorization to release a Request for Qualifications, seeking individuals or firms to enter into an agreement with the City to operate the facility. Council action required: January 1997. 4) Staff will begin marketing the incubator for potential tenants. This activity will begin once the business plan has been accepted by the Council. 5) Council appointed oversight committee. It is recommended that the Council Economic Development Committee review applicants and offer a recommendation to the full council. Requires Council action: early 1997. 6) Staff will request authorization to place the construction contract out to bid. Staff may produce two bids, one for infrastructure and one for the facility. Requires Council action: spring or early summer 1997.