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R-1998-103 1998 Community Housing Development Organization (CHDO)
RESOLUTION NO. R-98- 103 A RESOLUTION authorizing and directing the City Manager and the City Clerk to execute a loan agreement with Washington Association of Minority Entrepreneurs for a $7,635 loan from 1998 federal HOME funds for costs associated with the planning of a housing project for the elderly. WHEREAS, the City of Yakima was a recipient of 1998 federal HOME funds which may be used, among other things, for Community Housing Development Organization Programs; and WHEREAS, at the November 18, 1997 meeting, the City Council considered and approved the One Year Plan and budget including $472,000 of HOME funds; and WHEREAS, the Washington Association of Minority Entrepreneurs (WAME) is a state - approved CHDO and is requesting a loan of $7,635 of 1998 federal HOME. funds for costs associated with planning the 55-75 unit low and moderate income elderly housing component of the Mercado project; and WHEREAS, pursuant to federal regulations, the $7,635 loan will be converted to a grant if the housing project for the elderly is not built, or the elderly housing project's net cash flow cannot repay the loan within five years from initial occupancy; and WHEREAS, the City desires that 'the $7,635 loan be conditioned upon the following: • WAME raising $40,000 of matching predevelopment funds for the Mercado project, and • WAME enter into a partnership agreement regarding the Mercado project with a for-profit or non-profit housing developer who is experienced in housing developments for the elderly by January 21, 1999, and • That no additional HOME pre -development funds will be requested or approved for the Mercado project, and • That the final determination of how the $7,635 loan is spent shall be based upon a City review of the sharing of responsibilities included in WAME's proposed partnership agreement; and (1k)ree/wame/pm WHEREAS, the City Council has determined that it is in the best interest of the City to contract with the Washington Association of Minority Entrepreneurs to develop this project, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager and the City Clerk are hereby authorized and directed to execute a $7,635 loan agreement between the City of Yakima and WAME for costs associated with the planning of a housing project for the elderly from 1998 federal HOME funds. The final form of the loan agreement shall be reviewed and approved by the City Attorney. day of Z-u.t-. y ADOPTED BY THE CITY COUNCIL this ATTEST: , 1998. City Clerk Qk)r®/weme/pm John Puccinelli, Mayor CITY OF YAKIMA OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES 1. Contracting Organization:Washington Association of Minority Entrepreneurs, Inc. 2. Address: 24 South 3rd Avenue, Yakima WA 98902 3. Phone: (509) 453-5133 4. Contact Person: Luz Gutierrez 5. Title of Service or Program being Funded: Predevelopment funds 6.. Amount of Contract Award:S7,635.00 (HOME) 7. The term of this agreement shall commence upon execution hereof and shall terminate at 12:00 p.m., 9/22/99. , unless sooner terminated by either party in accordance with Section XXIII or Section XXV of incorporated Exhibit A. 8. This contract award and the rights and obligations of both parties hereto shall be subject to and governed by the following: 1) "Terms and conditions" attached hereto as Exhibit "A" and incorporated herein by this reference; and 2) Operating budget including sources and uses statement, work plan, and proof of insurance, all attached hereto as Exhibit "B" and incorporated herein by this reference; and 3) City of Yakima Resolution No. R-103, a copy of which is attached hereto as Exhibit "C" and incorporated herein by this reference. 9. Final contract payment shall be subject to satisfactory completion of project described in Exhibit B, and satisfaction of all contract terms and conditions as stated in Exhibit "A", and satisfaction of all conditions as stated in the preamble on the face of Exhibit "C". This written document and incorporated exhibits constitutes the entire agreement between the parties. IN WITNESS THEREOF the parties have executed this contract as of the day and year ' ndicatedow. 9114pleW iam Cook, CED Director Date R.A. Zais, 47, Cityanager. . Date h— �/;;'°'t Contract No. 98-97 97 Signature/fir Contra_ ing Organization Date Resolution No. R-98-103 RACY ATTEST: City Clerk Title 1 EXHIBIT "A" TERMS AND CONDITIONS I DESIGNATION The City of Yakima, as recipient of a housing and community development grant from the U.S. Department of Housing and Urban Development, hereby designates the Contracting Organization to undertake, and the Contracting Organization hereby agrees to undertake that certain community development or housing assistance project described in Exhibit "B", Scope of Work. II SUB -GRANT A. NOTICE TO PROCEED No work on the project shall occur prior to or without written approval from the City of Yakima Office of Neighborhood Development Services (ONDS) shall furnish the Contracting Organization with written notice to proceed upon release of funds from HUD related to the project pursuant to 24 CFR Part 58. B. AMOUNT OF GRANT The City hereby sub -grants to the Contracting Organization $7,635.00 for said project. III GENERAL BUDGET PROVISIONS The Contracting Organization agrees to the following provisions in satisfying the terms and conditions of this contract: A. PAYMENT AND DISBURSEMENTS Disbursements by the City of Yakima from this contract/grant award shall be on a reimbursement basis covering actual expenditures by the Contracting Organization or obligation of the Contracting Organization currently due and owing, but not paid. Disbursements shall be limited to allowable costs and so shall be made upon the occurrence of all the following, in addition to any other conditions contained herein or in the special conditions: 1. Receipt by the City of Yakima ONDS of a written reimbursement request on forms provided by the City of Yakima ONDS supported by copies of vouchers, invoices, salary and wage summaries, or other acceptable documentation; and 2 2. Determination by the City of Yakima ONDS that the expenditures or obligations for which reimbursement is sought constitute allowable costs under the principles set forth in Federal Management Circular 74-4 "eligible costs under the HOME Program" and come within the Project Budget. B. No payment shall be made for any service rendered by the Contracting Organization except for services within the scope of a category set forth in the budget in Exhibit "B" of this Contract, and all funds received must be used for service as identified in Exhibit "B" of this Contract. C. 1. The Contracting Organization shall submit to the City of Yakima ONDS a written request for approval of budget revision when a proposed revision would result in an increase or decrease of ten percent (10%) or more in an approved budget subject category. Written budget revision approval must be received by the Contracting Organization prior to the Contracting Organization incurring any expenditures against the revised budget sub -object categories. 2. When the revision of the Contracting Organization budget does not exceed ten percent (10%) of an approved budget sub -object category, the Contracting Organization must submit a revised budget to the City of Yakima OND prior to the submittal of claims against the budget. IV COMMENCEMENT OF WORK The City of Yakima OND shall furnish the Contracting Organization with written notice to proceed upon release of funds from HUD related to the project. No work on the project shall occur prior to the notice to proceed without written approval from the City of Yakima ONDS. V BILLING PROCEDURES A. The Contracting Organization shall submit monthly written claims for reimbursement of services performed under this contract in the manner prescribed in paragraph III above, and as prescribed by the City of Yakima ONDS. VI LOCAL FINANCIAL SUPPORT The sub -grant shall not be utilized to reduce substantially the amount of local financial support for community development activities below the level of such support prior to the availability of such assistance. 3 VII BUDGET SURPLUS The Contracting Organization agrees that funds determined by the City of Yakima ONDS to be surplus at the end of the project within the budget of this Contract will be subject to cancellation by the City of Yakima ONDS and may be negotiated if they are to be included in future contracts. VIII COMPLIANCE WITH LAWS A. GENERAL The Contracting Organization, in performance of this Contract, agrees to comply with all applicable Federal, State and Local Laws and ordinances, and the rules and regulations promulgated by the U.S. Department of Housing and Urban Development, including, but not limited to, Federal HOME Regulations and other policies and guidelines established by the City of Yakima ONDS. B. PROCUREMENT AND CONSTRUCTION OR REPAIR PROJECT REQUIREMENTS The following federal provisions may apply, among others, to this contract: 1. Office of Federal Contract Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as amended by Executive Order 12086, and 24 CFR 570.601 (Discrimination prohibited). 2. The Lead Based Paint Poisoning Prevention Act, 42 USC Section 4831 et seq., and HUD regulations implementing the Act, 24 CFR Part 35, where, residential structures are involved. The Contracting Organization shall provide whatever assistance is necessary to enable the City of Yakima's Building Official to carry out its inspection and certification responsibility under those regulations. 3. Historic and Archaeological Preservation requirements as set forth in 24 CFR Section 570.604.36 CFR Part 800, RCW 27.44.010 (Native American Burial Law), RCW 27.53.010-.090 (Protection of Archaeological Resources), and RCW 43.51.750-.820 (Preservation of Historic Properties). 4. Architectural Barriers Act of 1968 as amended, 42 USC Section 4151 et seq., implementing regulations, and Chapter 70.92 RCW. 5. Clean Air Act as amended, 42 USC Section 1857 et seq; Water Pollution Control Act, as amended, 33 USC Section 1251 et seq.; and Environmental 4 Protection Agency regulations, 40 CFR Part 15. 6. Section 3 of the Housing and Urban Development Act of 1968 (12 USC Section 1701u) and 24 CFR Part 135 (Employment opportunities for project area businesses and low income persons). 7. Contract Work Hours and Safety Standards Act, 40 USC Sections 327-333, (Overtime Compensation). 8. Davis -Bacon Act, as amended, 40 USC Sections 276a 276a-5, and RCW Chapter 3-12 (Prevailing Wage Rates). 9. Attachment 0 of the Office of Management and Budget Circular, A-102 (Procurement Standards) and Federal Management Circular, FMC 74-4. 10. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and regulations contained in 24 CFR Parts 42 and 570. 11. Title VI of the Civil Rights Act of 1964 (P.L. 88- 352) as amended, and HUD regulations with respect thereto including the regulations under 24 CFR Part 1. In the sale, lease or other transfer of land acquired, cleared or improved with assistance provided under this Agreement, the Contracting Organization shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination upon the basis of race, color, religion, sex, or national origin, in the sale, lease or rental, or in the use or occupancy of such land or any improvements erected or to be erected thereon, and providing that the Contracting Organization, the County, and the United States are beneficiaries of and entitled to enforce such covenant. The Contracting Organization, in undertaking its obligation in carrying out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant and will not itself so discriminate. 12. Age Discrimination Act of 1975 (24 CFR 146). 13. Fair Housing Act (24 CFR 100, CFR 107 and 24 CFR 1) 14. Housing Quality Standards (24 CFR 882.109). 15. WBE/MBE (24 CFR 85.36(e)). 16. ENVIRONMENTAL REVIEW A. NEPA The City of Yakima ONDS retains environmental review responsibility for purposes of fulfilling requirements of the National Environmental Policy Act, under which the City of Yakima ONDS may require the Contracting Organization to furnish data, information and assistance for the City's review and assessment in determining whether the City must prepare an Environmental Impact Statement. B. SEPA The Contract Organization retains responsibility for fulfilling the requirements of the State Environmental Policy Act and regulations and ordinance adopted thereunder. C. COMPLIANCE AS PRE -CONDITION Performance by either the City of Yakima ONDS or the Contracting Organization under this Agreement shall be contingent upon satisfaction of all applicable requirements of the National and State Environmental Policy Acts. IX NON-DISCRIMINATION IN EMPLOYMENT A. The City of Yakima is an Equal Opportunity Employer. B. The Contracting Organization agrees that it shall not discriminate against any employee or applicant on the grounds of race, creed, color, religion, national origin, sex, marital status, age, or the presence of any sensory, mental or physical handicap. Such action shall include, but not be limited to: employment, upgrading, demotion or transfer;recruitment or recruitment advertising, layoff or termination; rates of pay or other forms of compensation; and programs for training including apprenticeships. The Contracting Organization specifically agrees to abide by the Office of Federal Contract Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as amended by Executive Order 12086, and HUD Anti Discrimination Requirements, 24 CFR 570.601. X NON-DISCRIMINATION IN CLIENT SERVICES A. The Contracting Organization agrees to affirmatively market units made available through this contract (24 CFR 92.352), and shall not, on the grounds of race, color, sex, religion, national origin, creed, marital status, or age: 6 1. Deny a qualified individual any facilities, financial aid, services or other benefits provided under this Contract; 2. Provide any service(s) or other benefits to a qualified individual which are different, or are provided in a different manner, from those provided to others under this Contract; separate treatment in any manner related to his receipt of any service(s) or other benefits provided under this Contract; 3. Deny any qualified individual an opportunity to participate in any program provided by this Contract through the provision of service(s) or otherwise, or will afford him an opportunity to do so which is different from that afforded others under this Contract. B. The Contracting Organization shall abide by all provisions of Section 504 of the HEW Rehabilitation Act of 1973 prohibiting discrimination against handicapped individuals either through purpose or intent. C. If assignment and/or subcontracting has been authorized, said assignment or subcontract shall include appropriate safeguards against discrimination in client services binding upon each contractor or subcontractor. The Contracting Organization shall take such action as may be required to ensure full compliance with the provisions of this clause, including sanctions for noncompliance. XI LICENSING AND PROGRAM STANDARDS The Contracting Organization agrees to comply with all applicable Federal, State, County and Municipal standards for licensing, certification and operation of facilities and programs, and accreditation and licensing of individuals, and any other standards or criteria as described in the Contract to assure quality of services. XII MONITORING AND ACCESS TO RECORDS A. Contracting Organization agrees that City may carry out monitoring and evaluation activities so as to ensure compliance by Contracting Organization with this Contracting Organization agreement, with the HOME Compliance Documents, and with all other laws, regulations, and ordinances related to the performance hereof. Contracting Organization agrees to provide City with any data determined by City to be necessary for its effective fulfillment of its monitoring and evaluation responsibilities. 7 B. At any reasonable time and as often as City may deem necessary, Contracting Orgainization shall make all of its records available to City, HUD, the Comptroller General of the United States, or any of their authorized representatives, and shall permit City, HUD, the Comptroller General of the United States, or any of their authorized representatives to audit, examine, and make excerpts and/or copies of same. Contracting Organization records shall include, but shall not be limited to, the following: payroll, personnel and employment records; procurement bidding documents; contracts; sales closing statements; and invoices. C. The Contract Organization shall be required to make reasonable changes in the services as completed or to be completed if said services fall below the standards and specifications set forth in the Special Terms and Conditions, Project Description, or Statement of Work. XIII SAFEGUARDING OF CLIENT INFORMATION The use or disclosure by any party of any confidential information concerning a recipient or client for any purpose not directly connected with the City's or the Contractor's responsibilities with respect to services provided under this Contract is prohibited except on written consent of the recipient or client, his/her attorney or his/her responsible parent or guardian or as otherwise provided by law. XIV ASSIGNMENT AND/OR SUBCONTRACTING The Contracting Organization shall not assign or subcontract any portion of the services provided within the terms of this Contract without obtaining prior written approval from the City. All terms and conditions of this Contract shall apply to any approved subcontract or assignment related to the Contract. XV STANDARDS FOR FISCAL ACCOUNTABILITY A. The Contracting Organization agrees to provide project line item draw requests, annual verification of rents, annual audited financial statement to compare income and expenses, records, documents and accounting procedures which accurately reflect all direct and indirect costs related to the performance of this Contract. Such fiscal books, records, documents, reports and other data shall be retained in a manner consistent with the "Budgeting, Accounting, Reporting System for Counties and Cities, and Other Local Governments", hereinafter referred to as "BARS", as issued by the Office of State Auditor, State of Washington. The Contracting Organization further agrees that the City of Yakima ONDS shall have the right to monitor and audit the fiscal components of the organization to insure that actual expenditures remain consistent with the terms of this 8 Contract. The Contracting Organization shall retain all books,records, documents and other material relevant to the Contract for seven (7) years after settlement of this Contract. The Contracting Organization agrees that the City of Yakima, the U.S.Department of Housing and Urban Development, the Washington State Auditor, or their designees, shall have full access to and a right to examine any of said materials at all reasonable times during said period. B. The Contracting Organization agrees that any contributions or payments made for services furnished under this agreement shall be used for the sole benefit of this program. XVI PROGRAM PROPERTY Any personal property having a useful life of more than one year and purchased wholly or in part with sub -grant funds at a cost of three hundred dollars ($300) or more per item, shall upon its purchase or receipt become the property of the City of Yakima and/or federal government. Final ownership and disposition of such property shall be determined under the provisions of Attachment N of OMB, A-102. The Contracting Organization shall be responsible for all such property, including its care and maintenance, and shall comply with the following procedural requirements: 1. Property records shall be maintained accurately and provide for: A description of the property; manufacturer's serial number or other identification number; acquisition date and cost; source of the property; percentage of HOME funds used in the purchase of property; location, use, and condition of the property. 2. A physical inventory of property shall be taken and the results reconciled with the property records at least once every two years to verify the existence, current utilization, and continued need for the property. 3. A control system shall be in effect to insure adequate safeguards to prevent lose, damage, or theft to the property. Any loss, damage, or theft of the property shall be investigated and fully documented. 4. Adequate maintenance procedures shall be implemented to keep the property in good condition. 5. If the Contracting Organization elects to capitalize and depreciate such nonexpendable personal property in lieu of claiming the acquisition cost as a direct item of cost, title to such property shall remain with the Contracting Organization. An election to capitalize and depreciate or claim acquisition cost as a direct item of cost shall be irrevocable. 9 6. Nonexpendable personal property purchased by the Contracting Organization under the terms of this Contract, in which title is vested in the City of Yakima or Federal Government shall not be rented, loaned, or otherwise passed to any person,partnership, corporation, association or organization without the prior express approval of the City of Yakima ONDS. 7. Any nonexpendable personal property furnished to, or purchased by, the Contracting Organization, title to which is vested in the City of Yakima ONDS or federal government shall, unless otherwise provided herein or approved by the Contracting Officer, be used only for the performance of activities defined in this Contract. 8. As a condition prerequisite to reimbursement for the purchase of nonexpendable personal property, title to which shall vest in the City of Yakima ONDS or federal government, the Contracting Organization agrees to execute such security agreements and other documents as shall be necessary for the City of Yakima ONDS or federal government to perfect its interest in such property in accordance with the "Uniform Commercial Code - Secured Transactions" as codified in Article 9 of RCW Chapter 62A. 9. The Contracting Organization shall be responsible for any loss or damage to the property of the City of Yakima ONDS or federal government (including expenses entered thereunto) which results from negligence, willful misconduct, or lack of good faith on the part of the Contracting Organization to maintain and administer in accordance with sound management practices that property, to ensure that the property will be returned to the City of Yakima ONDS or federal government in like condition to that in which condition the property was acquired by purchase, fair wear and tear accepted. XVII RELATIONSHIP OF THE PARTIES The parties intend that an independent contractor/city relationship will be created by this Contract. The City of Yakima ONDS is interested only in the results to be achieved, the implementation of services will lie solely with the Contracting Organization. No agent, employee, or representatives of the Contracting Organization shall be deemed to be an employee, agent, servant or representative of the City of Yakima for any purpose, and the employees of the Contracting Organization are not entitled to any of the benefits the City of Yakima provides for City Employees. The Contracting Organization will be solely and entirely responsible for its acts and for the acts of its agents, employees, servants, subcontractors, or otherwise during the performance of this Contract. 10 XVIII TAXES AND ASSESSMENTS Contractor shall be solely responsible for and shall pay all taxes, deductions, and assessments, including but not limited to, sales tax, federal income tax, FICA, social security tax, assessments for unemployment and industrial injury insurance, and other deductions from income which may be required by law or assessed against either party as a result of this Agreement. In the event the City is assessed a tax or assesssment as a result of this Agreement, Contractor shall pay the same before it becomes due. XIX QUARTERLY REPORT The Contracting Organization agrees to submit a written quarterly report outlining the progress towards completion of activities included in Exhibit B, to the City of Yakima. XX INSURANCE All insurance checked below shall be required with an effective date preceeding the effective date of this contract. © A. COMMERCIAL LIABILITY INSURANCE On or before the effective date of this Agreement, the Contractor shall provide the City with a certificate of insurance as proof of liability insurance in the amount of One Million Dollars ($1,000,000.00) that clearly states who the provider is, the amount of coverage, the policy number, and when the policy and provisions provided are in effect (any statement in the certificate to the effect of "this certificate is issued as a matter of information only and confers no right upon the certificate holder" shall be deleted). Said policy shall be in effect for the duration of this Agreement. The policy shall name the City, its elected officials, officers, agents and employees as additional insureds, and shall contain a clause that the insurer will not cancel or change the insurance without first giving the City thirty (30) calendar days prior written notice (any language in the clause to the effect of "but failure to mail such notice shall impose no obligation or liability of any kind upon the company" shall be crossed out and initiated by the insurance agent). The insurance shall be with an insurance company or companies rated A -VII or higher in Best's Guide and admitted in the State of Washington. The Contractor shall also provide the City with a true and correct copy of the said insurance policy on or before the effective date of this Agreement. 0 B. AUTOMOBILE LIABILITY Contractor agrees to carry auto insurance for injuries and damages caused by contractor owned vehicle on the job site. Automobile liability: $1,000,000 combined single limit bodily injury and property damage. 11 x❑ C. ❑ D. DIRECTORS AND OFFICERS LIABILITY INSURANCE The Contractor shall obtain Directors and Officers Liability insurance policy with a minimum limit of One Million Dollars ($1,000,000.00) and a maximum retention of Five Thousand Dollars ($5,000.00). On or before the effective date of this Agreement, the Contractor shall provide the City with a true and correct copy of said insurance policy. The definition of insured under said policy shall include the Contractor, its individual directors, officers, trustees, employees, and volunteers. Said policy shall have a retroactive date on or before the effective date of this Agreement. Coverage under said policy shall remain in full force and effect for a three (3) year period after the expiration/termination date of this Agreement with the same retroactive date either through renewal policies or "tail" coverage on the current policy. PERFORMANCE AND PAYMENT BOND A Performance Bond for 100% of the contract price to secure fulfillment of all of the contractor's obligations under this contract. x❑ E. FIDELITY BOND Employee Dishonesty coverage or a fidelity bond will be obtained in the amount of $7,635.00. The policy will cover claims resulting from employee theft of money associated with the performance of this contract. The policy will be written on a blanket basis covering all employees, or upon prior approval by the City, on those employees having access to funds. A copy of the policy will be furnished to the City. E F. WORKERS' COMPENSATION The Contractor agrees to pay all premiums provided for by the Workman's Compensation Act of the State of Washington. Evidence of the contractors workers' compensation coverage will be furnished to the City. The contractor holds the City harmless for any injury or death to the contractor's employees while performing this contract. XXI INDEMNIFICATION All services to be rendered or performed under this Contract will be performed or rendered entirely at the Contracting Organization's own risk and the Contracting Organization expressly agrees to indemnify the City of Yakima and all of its officers, agents, employees, or otherwise, from any and all liability, loss or damage they may suffer as a result of claims, demands, actions, or damages to any and all persons or property, costs, or judgements against which result from, arise out of, or are in any way connected with the services to be performed by the Contracting Organization under this Contract. 12 XXII HOLD HARMLESS All services to be rendered or performed under this Contract will be performed or rendered entirely at the Contracting Organization's own risk and the Contracting Organization expressly agrees to indemnify and hold harmless the City of Yakima and all of its officers, agents, employees, or otherwise, from any and all liability, loss or damage, inducing reasonable cost of defense they may suffer as a result of claims, demands, actions, or damages to any and all persons or property, costs or judgements against the City of Yakima which result from, arise out of, or are in any way connected with the services to be performed by the Contracting Organization under this Contract. XXIII CONTRACT, TERMINATION AND CLOSE OUT If the Contracting Organization fails to comply with the terms and conditions of this Contract, the City of Yakima ONDS may pursue such remedies as are legally available including but not limited to, the termination of this Contract in the manner specified herein. A. TERMINATION FOR CAUSE If the Contracting Organization fails to comply with the terms and conditions of this Contract and any of the following conditions exist: 1. The lack of compliance with the provisions of this Contract are of such scope and nature that the City of Yakima ONDS deems continuation of this Contract to be substantially non -beneficial to the public interest; 2. The Contracting Organization has failed to take satisfactory corrective action as directed by the City of Yakima ONDS or its authorized representative within the time specified by same; 3. The Contracting Organization has failed within the time specified by the City of Yakima ONDS or its authorized representative to satisfactorily substantiate its compliance with the terms and conditions of this Contract, then: The City of Yakima ONDS may terminate this contract in whole or in part, and thereupon shall notify the Contracting Organization of the termination, the reasons therefore and the effective date provided such effective date shall not be prior to notification to the Contracting Organization. After this effective date, no charges incurred under any terminated portions are allowable. 13 B. TERMINATIONS ON OTHER GROUNDS This Contract may also be terminated in whole or in part by mutual agreement of the parties. C. TERMINATION FOR WITHDRAWAL, REDUCTION OR LIMITATION OF FUNDING In the event that funding from the Federal government is withdrawn, reduced or limited in any way after the effective date of this contract, and prior to its normal completion, the City of Yakima ONDS may summarily terminate this Contract as to the funds reduced or limited, nonwithstanding any other termination provision of this contract. If the level of funding so reduced or limited is so great that the City of Yakima OND deems that the continuation of the program covered by this contract is no longer in the best interest of the public, the City of Yakima ONDS may summarily terminate this contract in whole nonwithstanding any other termination provisions of this contract. Termination under this Section shall be effective upon receipt of written notice by the Contracting Organization or its representative. The City of Yakima ONDS agrees to promptly notify the Contracting Organization of any proposed reduction in funding by Federal or other officials. The Contracting Organization agrees that upon receipt of such notice it shall take appropriate and reasonable action to reduce its spending in the affected funding area so that expenditures do not exceed the funding level which would result if said proposed reduction became effective. This agreement may further be terminated by the City of Yakima upon written demand by the City of Yakima ONDS for assurances that the terms of the Project Description are being timely complied with, if such assurances are not made to the City's satisfaction within thirty (30) days of the date of such written demand. D. CLOSE-OUT In the event that this Contract is terminated in whole or in part for any reason, the following provisions shall apply: 1. Upon written request by the Contracting Organization, the City of Yakima shall make or arrange for payment to the Contracting Organization of allowable reimbursable costs not covered by previous payments; 2. The Contracting Organization shall submit within thirty (30) days after the date of expiration of this Contract, all financial, performance and other reports required by this Contract, and in addition, 14 will cooperate in a program audit by the City of Yakima or its designee. 3. In the event a financial audit has not been performed prior to close-out of this Contract, the City of Yakima ONDS retains the right to withhold a just and reasonable sum from the final payment to the Contracting Organization after fully considering the recommendation on disallowed costs resulting from the final audit. XXIV COVENANT AGAINST CONTINGENT FEES The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee, excepting bona fide employees or bona fide established commercial or selling agency maintained by the Contractor for the purpose of securing business. The City of Yakima ONDS shall have the right, in the event of breach of this clause by the Contractor, to annul this Contract without liability or, in its discretion, to deduct from the Contract price or consideration or otherwise recover the full amount of such commission, percentage, brokerage or contingent fee. XXV CONFLICT OF INTEREST The City may, by written notice to the Contractor: A. Terminate the right of the Contractor to proceed under this Contract if it is found, after due notice and hearing, by the City that gratuities in the form of entertainment, gifts, or otherwise offered or given by the Contractor, or agent or representative of the Contractor, to any officer or employee of the City of Yakima, with a view towards securing this Contract or securing favorable treatment with respect to the awarding or amending or the making of any determinations with respect to this contract. B. In the event this Contract is terminated as provided in (A) above, the City of Yakima shall be entitled to pursue the same remedies against the Contractor as it could pursue in the event of a breach of the Contract by the Contractor. The rights and remedies of the City of Yakima provided for in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law. The existence of facts upon which the City of Yakima makes any determination under this clause shall be an issue and may be reviewed as provided in the "Disputes" clause of this Agreement. 15 XXVI RIGHTS IN DATA The City of Yakima ONDS may duplicate, use and disclose in any manner and for any purposes whatsoever, and have others so do, all data delivered under this agreement. The contractor hereby grants to the City of Yakima, a royalty - free, non-exclusive, and irrevocable license to publish, translate, reproduce, deliver, perform, dispose of, and to authorize others to do so, all data now or hereinafter covered by copyright: Provided, that with respect to data not originated in the performance of this contract such license shall be only to the extent that the Contractor has the right to grant such license without becoming liable to pay compensation to others because of such grant. The Contractor shall exert all reasonable effort to advise the City of Yakima ONDS, at the time of delivery of data furnished under this agreement, of all invasions of the right of privacy contained therein and of all portions of such data copied from work not composed or produced in the performance of this agreement and not licensed under this clause. The Contractor shall report to the City of Yakima ONDS, promptly and in written detail,each notice or claim of copyright infringement received by the Contractor with respect to all data delivered under this agreement. The Contractor shall not affix any restrictive markings upon any data, and if such markings are affixed, the City of Yakima ONDS shall have the right at any time to modify, remove, obliterate, or ignore such markings. XXVII RULE OF CONSTRUCTION In the event of an inconsistency in this contract/grant award unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order: 1. Appropriate provisions of state and federal statutes and regulations including HUD Home Regulations. 2. General Terms and Conditions (Exhibit A). 3. Those attachments incorporated by reference herein, including the statement of work/project description, approved HUD grant budget, in the order in which attached, and 4. Any other provisions whether incorporated by reference herein or otherwise provided that nothing herein shall be construed as giving preference to provisions of this contract/grant award over any provisions of law. XXVIII VENUE STIPULATION This Contract has been and shall be construed as having been entered into and delivered within the State of Washington, and it is mutually understood and greed by each party hereto that this Contract shall be governed by laws of the State of Washington, both as to interpertation and performance. 16 Any action at law, suite in equity, or judicial proceeding for the enforcement of this Contract or any provisions thereof, shall be instituted and maintained only in any of the courts of competent jurisdiction at Yakima in Yakima County, Washington. XXIX MODIFICATION Either party may request changes in this Contract, however, no change or addition to this Contract shall be valid or binding upon either party unless such change or addition be in writing, and executed by both parties, except budget adjustments as specified in Section IV of this Contract. XXX SEVERABILITY It is understood and agreed by the parties hereto that if any part, term, or provision of this Contract is held by the courts to be illegal, the validity of the remaining provisions shall not be affected; and the rights and obligations of the parties shall be construed and enforced as if the Contract did not contain the particular provision held to be invalid. If it should appear that any provision hereof is in conflict with any statutory provision of the United States or the State of Washington, said provision which may conflict, therewith, and shall be deemed modified to conform to such statutory provision. XXXI PROGRAM INCOME Any program income shall be accounted for by the Contractor, over the contract time period, shall be reported to the City. Income is to be used to continue or benefit the program, as determined by the intent and purpose of the project. XXXII CONFLICT OF INTEREST No member, officer, or employee of the City of Yakima, or the Contracting Organization, or assignees or agents, no member of the governing body of the City of Yakima, and no other public official of the City of Yakima or such other localities who exercises any functions or responsibilities with respect to the program during his tenure or for one year thereafter, shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with a City of Yakima Home funded program. XXXIII RETURN OF HOME FUNDS The Contracting Organization shall return to the City all monies provided hereunder by the City to the Contracting Organization if any of the following occur: 1. The Contracting Organization materially changes the primary purpose and scope of the CHDO Project as described on Exhibit "B" to the contract; or 17 2. The Department of Housing & Urban Development requires a 20 year "Affordability Period" from the date of execution of the Contract, and if the real property that is the subject of the CHDO Project described on Exhibit "B" to the Contract is sold or transferred in any way by the Contracting Organization. XXXIV PROJECT PROCEEDS HOME funds provided by the City of Yakima to the Contracting Organization shall be repaid to the city at no interest from project cash flow if and to the extent that annual net operating income to the Contracting Organization (after project operating expense and first lien debt service) exceeds ten (10) percent of the Contracting Organizations investment in the project (including equity and private lending) in any of the first five (5) years after issuance of a Certificate of Occupancy. 18 EXHIBIT B PROJECT DESCRIPTION: The proposed Mercado Retail Center and Senior Housing Project is the first of its kind in the entire Northwest and is based on two very successful models in San Diego and San Jose, California. The project contains two components, consisting of residential and commercial uses. With both components constructed, the entire project will consist of approximately 6.0 acres of developed property. The purpose and objectives of The Mercado include: 1. Provide decent, safe, sanitary and affordable housing for seniors; 2. Develop a commercial retail center for new and emerging entrepreneurs with a primary focus on women and minorities; 3. Promote and increase tourism for the Yakima Valley; 4. Create jobs for youth and residents of a distressed neighborhood; and 5. Create a Collaborative Agreement between the private and public sectors for cultural enhancement of the Hispahjc community. The Mercado (Mexican Marketplace) Retail Center will consist of a partial two-story retail/office center of approximately 30,000 square feet, of which 23,000 square feet will be for first floor retail space and 7,000 square feet of office space on the second floor. The Mercado will feature Spanish/Southwestern architecture that includes columns, clay tile, and Spanish style windows and entrance arches. The interior and exterior walkways will feature terra cotta paving and a water fountain centerpiece in the center of the interior mall. A rectangular balcony will overlook the fountain from the second story office area, all of which will enjoy natural light from a centered pyramid - shaped skylight. The interior walkways will be spacious, easy flowing corridors that will spoke out in four directions, two of which will direct shoppers laterally to small, quaint specialty shops, boutiques and vendors that will feature international foods and merchandise. At either end of the center, The Mercado will boast two well-established, spacious Mexican restaurants to add a sense of comfort and elegance to the marketplace. One hundred fifty (150) parking spaces will be provided for The Mercado's shoppers and office users, and the design will incorporate the design guidelines provided in the WAC5120 accessibility code for disabled and handicapped individuals. The rear of The Mercado will open out to the proposed senior residential complex and provide a courtyard with park benches on its perimeter for shoppers and residents to socialize, relax and enjoy the sights and sounds of the marketplace. SECTION II: PROJECT DESCRIPTION PAGE The second component of the project consists of 80 to 100 units of affordable housing for low and moderate income senior citizens. The units will consist of nicely landscaped "Casitas" (small units) and will offer amenities such as controlled security access, a clubhouse, laundry rooms, and walking trails around the complex. The design of the Casitas will complement the architecture of the adjacent Mercado. The soft lines of the structures and their clustering will help to create a warm, friendly environment and neighborly support system. The security of the senior tenants will be the architects' primary consideration during the design phase of this project. Visitor parking will be located close to each Casita to accommodate and encourage frequent visitors of the senior population. Open areas will be provided with benches, attractive landscaping, and well lighted streets and walkways. In addition to the pride that The Mercado will bring to the City's Hispanic community, the economic benefits of this development include the creation of 150 construction jobs, 85 permanent jobs, and additional retail and real estate tax revenue to the City of Yakima. The Mercado will enhance the neighborhood by providing economic opportunities for local resident and improving access to goods and services for the neighborhood. Finally, The Mercado will serve as a destination point for tourists to grasp the flavor of Yakima's increasingly diverse community. The Mercado Retail Center and Senior Housing Project will demonstrate the accomplishment that is possible through the collaborative efforts of the Private, Public and Nonprofit sectors working toward common community goals. PROJECT BENEFICIARIES AND NEED: The project will benefit the residents of Southeast Yakima, the poorest area of the City of Yakima. The Consolidated Plan for the City of Yakima has addressed the need for economic development and incubator type projects for the southeast neighborhoods. In addition, a coalition of local residents and organizations that serve the east side of Yakima were successfully advocated to encourage the Yakima City Council to pursue The Mercado Project. In September 1996, WAME, in partnership with the US West Foundation and the City of Yakima, provided the first ever door-to-door survey of 5,000 households to determine the needs or perceived needs for the residents of Southeast Yakima. While the survey was not intended to be a comprehensive analysis on the community, the 78.6% response rate was indicative of some of the major issues facing the target population. Significant findings included: SECTION II: PROJECT DESCRIPTION PAGE 8 • The majority (55%) of the respondents surveyed were of Hispanic origin, and of those, 53% were born in Mexico. • Of the 34% Anglo respondents, many were Senior Citizens on fixed income, living in multi -residential complexes. • 39% of the respondents had an average income of $12,000 or less. The most significant finding was the drastic change in demographics. At one time, the neighborhood was mostly older established white residents, the agricultural work force and new IRCA legislation have drastically changed the faces and color of the east side of Yakima. The public-private collaboration is very significant to the progress of the project, and the strength and the empowering of a community-based organization makes it very unique. WAME has brought together an experienced, talented and diverse development team, which includes: Ray Ruiz, Community Development Resources; Nancy Spring, California Lutheran Homes; Robert Steinberg, The Steinberg Group, Architects; Jose Bazan, Bazan & Associates, Architects; Pete Garza, Chairman of WAME's Board of Directors; and Luz Bazan Gutierrez, Executive Director of WAME. The Mercado Retail Center and Senior Housing Project is a capacity building project that will have a lasting impact in the community for the following reasons: 1. WAME is a grassroots -driven organization that focuses on empowering people by creating business ownership for new to market borrowers; and 2. The project will be strategically placed in a distressed neighborhood, creating jobs for and providing goods and services to the resident population. Minorities are the primary drivers of the project and are at the table making decisions that impact their community. Pre -development moneys will be utilized to develop a conceptual design and cost analysis. The desire is to make it a Spanish -style setting with the openness of a Mexican or European marketplace. Discussions on the proposed design will be held with neighborhood residents to solicit their involvement and project buy -in. PROJECT DEVELOPMENT TEAM: Project Team (Resumes in Addendum): • Washington Association of Minority Entrepreneurs, Inc. (WAME), a nonprofit community development corporation and certified CHDO. SECTION II: PROJECT DESCRIPTION PAGE 9 • Community Development Resources, Inc. (CDR), a for-profit, minority-owned development and construction management business. • California Lutheran Homes, a nonprofit senior housing developer and operator. • City of Yakima, Community & Economic Development Department, Office of Neighborhood Development Services • Lead Architect - The Steinberg Group • Design Architect - Bazan and Associates • Local Lending Institutions Luz Bazan Gutierrez, Executive Director of WAME, is the lead executive and administrator for the project. Ms. Gutierrez is the founder of WAME and is heavily involved in economic development affairs in the City of Yakima. Ray Ruiz, President of Community Development Resources, Inc., has over 17 years of experience in real estate development and brokerage. Noted for his contributions to community service and development, Mr. Ruiz has been named Broker of the Year by the San Jose Chamber of Commerce, Business Man of the Year by the Hispanic Chamber of Commerce, Trustee of the Year by the National Hispanic University, and Board Member of the Year by the National Hispanic Employees' Association. He has been instrumental in developing a myriad of projects, totaling over 4.5 million square feet of commercial developments. Mr. Ruiz will coordinate the development of the entire project and serve as the property manager of The Mercado Retail Center, training and transitioning the administration of The Mercado to WAME within five years of operation. Nancy Spring, Development Director of California Lutheran Homes, has over 20 years of experience in administration and management of senior housing. She brings a wealth of knowledge in regard to the availability of senior housing funds and property management. CLH will serve as the property managers and operators of the senior housing, and will train and transition the administration of the facility to WAME within five years of operation. Robert Steinberg of The Steinberg Group is the Principal of this architectural, planning and interior design firm, which specializes in a broad spectrum of building types, including senior and commercial retail among others. TSG has a thorough knowledge of commercial building spaces and often incorporates retail and services into residential projects. The firm has an extensive history of working with senior nonprofit clients in developing plans and designs for a variety of senior facilities. Jose Bazan of Bazan & Associates, an architectural firm from Seattle, is a former migrant in Yakima Valley. Mr. Bazan has 16 years of professional experience, encompassing a diverse range of projects for the public and private sectors. As principal of Bazan & Associates, he is responsible for planning, directing and coordinating the firm's overall operations. He is anxious to work on a major project SECTION II: PROJECT DESCRIPTION I'AGE 10 that will leave his mark in the Yakima Valley. He will partner his firm with the larger Steinberg Group and will be the design architect of record. City of Yakima: The City of Yakima Department of Community and Economic Development has provided guidance and resources on various pre -development issues, including business plan development and site selection. With the support of the City Council Economic Development Committee, the City continues to assist with the development of the The Mercado through the identification of grant and loan resources, and technical assistance in the areas of site selection, land use planning, and public financing. The City of Yakima is committed to support sustainable economic development projects that establish strong public and private collaboration, and provide entrepreneurial opportunities and livable wage jobs for its residents. Local Lending Institutions: It is hoped and anticipated that a local consortium of lending institutions will play a strategic role in the financial support of this project. A commitment for part or all of the construction and/or take-out financing from the local banking community will speak volumes in support of the project to potential grant providers, foundations, and any other funding sources that may express an interest in the project. JOB CREATION AND TAX REVENUE: It is estimated that the construction of the proposed project will generate approximately 100 to 150 construction jobs. Once the project is completed and both project components are filled with tenants, the number of new jobs created could possibly exceed 100 new positions, ranging from stock clerks to store and administrative management. In addition to property tax revenues, the City of Yakima would also enjoy sales tax revenues that The Mercado Retail Center would generate on an annual basis. PROJECT FINANCIAL INFORMATION 10. PROJECT FINANCING: Total Cost $ $8,515,740 CHDO request $ 30,150 Other financing $ $8,485,590 CHDO request as % of total cost 3.5% % Total cost/unit $ 88,702 Est. CHDO cost/unit $ 314 CHDO request from the City: Loan: Grant: 30,150 Funds to be returned to the Telephone number: grants approved for project prior to commitment. Grant amount: $ $5,000,000 City: Yes No ,f. Source of funds contact person: If yes, amount to be returned to the City: $ or $ per unit 11. NON-CHDO FINANCING TERMS: Total amount: $ $8,485,590 Cash by applicant: (provide signed commitment of funds, with statement of source) $ Loan amount: $ $3,500,000 Interest rate: $ 6.5 Term: 30 years Source of loan: Yakima County Rank Consortium Commitment status: Preliminary discussions With local banks. Additional preliminary Source of funds contact person: work such as preliminary plans, site control and Telephone number: grants approved for project prior to commitment. Grant amount: $ $5,000,000 Source of grant: Preliminary discussions with various agencies under way. Commitment status: Source of funds contact person: Neighborhood Dev. HOME Invitation for Proposals 5/13/98 16 PROJECT COSTS (1) (1) Please note: The above analysis does not include operating funds. Neighborhood Dev. HOME Invitation for Proposals 5/13/98 17 TOTAL COST COST/UNIT ACQUISITION: 'band Relocation $ 75,000 $ 781 Land and Existing building 1,450/000 15,104 Title and Recording 20,000 708 Other (specify) HARD COST: Demolition 250,000 2,604 Site Work 180,000 1,875 Rehabilitation Construction 5,574,240 58,065 Other (specify) RELOCATION: SOFT COSTS: Legal Fees 5,000 52 Survey 20,000 208 Architect Design Fee 65,000 677 Architect Inspection Fee 80,000 833 Engineering Fees 64,000 666 Appraiser 7,000 73 Accounting 5,000 52 Other Professional Fees/PERMIT; 55,500 578 Insurance Construction 10,000 104 Marketing 5,000 52 FINANCING COSTS: Credit Report Loan Origination Fee 48,000 500 Points Legal 2,000 21 Other (specify) Interest Reser'ie 240,000 2,500 RESERVES: Rent Up Reserve 150,000 1/562 Operation Reserve 80,000 833 Maintenance Reserve Replacement Reserve DEVELOPER FEES: 130,000 1,354 TOTAL PROJECT COST: $ 8,515,740 $ 88,702 (1) Please note: The above analysis does not include operating funds. Neighborhood Dev. HOME Invitation for Proposals 5/13/98 17 CASH FLOW RENTAL PROJECTS INCOME: Unit Type # Rent/Unit Gross Income Efficiency $ $ 1 Bedroom 96 Units 750sq.ft. $ 650 Ave $ 62,400 2 Bedroom $ $ 3 Bedroom $ $ 4 Bedroom $ $ Total ANNUAL RENTAL INCOME $ 748,800 Other Projected Income $ Gross Projected Income $ 748,800 Vacancy Loss 5% $ (37,050) Net Income $ 711,750 EXPENSES: ManagemenVoffice Staff/Office Supplies $ 122,210 Water $ 10,625 Electricity $ 10,200 Gas $ 17,850 Garbage Trash $ 5,750 Maintenance/ Janitorial Staff/Maintenance Supplies $ 86,850 Exterminating $ 1,700 Decorating $ 16,150 Advertising $ 2,125 Insurance $ 35,000 Marketing $ Property Taxes $ 5,100 Other (specify) payroll Taxes, L&I $ 22,270 Total $ 328,740 of Gross Income da % Gross Rental Income $ 383,010 Net Operating Expenses $ 328,740 HOME Debt Service $ Non -HOME Debt Service $ Net Income After Debt Service $ Proposed Use of Net Income: (add extra pages if required) Debt Service is not determined due to the fact that project financing will be a combination of grants and loans. $30,000 will be set aside for RPSPrvPs. Services in Addition to Housing: (add extra pages if required) Describe the services in addition to housing, to be provided to project residents by the CHDO: Neighborhood Dev. HOME Invitation for Proposals 5/13/98 19 ACTION: Site: Option Acquisition Non-CHDO Financing: Application Conditional Commitment Firm Commitment Design: Selection of Architect Preliminary Designs Final Designs Bidding: Advertise Open Bids Award Bid Construction: Begin Construction Complete Construction Rent Up/Sell Neighborhood Dev. HOME Invitation for Proposals 5/13/98 PROJECT SCHEDULE Target Date in Months from Project Approval: 02/01/98 01/01/2000 04/01/99 08/01/99 10/01/99 10/01/98 04/01/99 08/01/99 10/01/99 12/01/99 02/01/2000 02/01/2000 12/01/2000 06/01/2001 20 111'r Aft •riTL: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No.: I 1 ,A For Meeting of: July 21. 1998 1998 Community Housing Development Organization (CHDO) Contract SUBMITTED BY: Glenn K. Rice, Assistant City Manager, Acting Director of Community and Economic Development CONTACT PERSON/PHONE: William Cook, Manager, Neighborhood Development Services (575-6101) SUMMARY EXPLANATION: Community Housing Development Organizations (CHDO's) are entitled to 15% of a jurisdiction's allocated federal HOME monies. HOME Program funds may be used for housing development, sponsored and/or owned by the CHDO. Eligible activities include predevelopment costs and the acquisition, rehabilitation and new construction of rental housing. homeownership and renter assistance. The Washington Association of Minority Entrepreneurs (WAME), a certified CHDO is requesting a loan of $7,635 of 1998 CHDO funds. These dollars will be used to complete the second phase of the design and site selection for a 55-75 unit low and moderate income elderly housing component of a mixed use housing and commercial project (Mercado). The City funded $7.000 of CHDO funds in 1997 for the first phase of these predevelopment expenses. As authorized by federal regulations, this loan will be converted to a grant if 1) the project is not built. or 2) the project's net cash flow cannot repay the loan within five years from initial occupancy. Resolution X Ordinance Contract Other Specify Funding Source: ME CHDO Funds APPROVAL FOR SUBMITTAL: City' Manager STAFF RECOMMENDATION: Approve Resolution BOARD/COMMISSION RECOMMENDATION: City Council Neighborhood Development Committee recommends approval (with three conditions) COUNCIL ACTION: Paae This proposal was discussed at a meeting of the City Council's Neighborhood Development Committee on Friday, July 10, 1998 with a recommendation that Council approve this contract contingent upon 1) WAME entering into a partnership agreement with an experienced for- profit or non-profit elderly housing developer within six months (i.e. January 21, 1999), 2) that no additional CHDO predevelopment funds be requested or approved for this project, and 3) that the final determination of how these $7,635 of City funds will be spent will be based upon City review of the sharing of responsibilities included in WAME's proposed partnership agreement. Any extensions of time will require approval of City Council. Approval of this resolution will authorize and direct the City Manager to execute a contract with the Washington Association of Minority Entrepreneurs which will include a project description, work plan with identification of funding sources, the contingencies listed above, and a requirement that WAME continue their efforts to raise $40,000 of matching non -city funds for this project. 44) California Lutheran Homes 40 and Community Services 2320 South Fremont Ave. • Alhambra, CA 91803-4317 • (818) 570-5600 • Fax (818) 570-5610 May 31, 199E Mt: Luz Bazan Gutierrez Executive Director Washington Association of Minority Enterpreneurs P.O. Box 9492 Yakima, Washington 98909-0492 Dear Ms. Gutierrez; It is my pleasure, as the President & CEO of California Lutheran Homes and Community Services (CLH\CS) to lend our corporation's support to Del Norte's project, The Mercado in Yakima Washington. In 1997, CLH\CS will be celebrating its 50th year of providing a continum of healthcare, housing and ret)rement services in its owned and managed communities. An important part of planning for the future needs of our aging population is partnering with like-minded groups to expand the availability of quality living environments where seniors can live, shop, and receive supportive services in a community setting such as The Mercado. CLH\CS is looking forward to being an active partner is this project through team involvement «: ith the Del Norte Governing Board, The City of Yakima and various other community organizations. The work we have been doing with Del Norte and Mr. Ray Ruiz, President of Community Development Resources, on this project is an exciting opportunity for us. We are committed to lending our expertise in the field of management and aging services to this exciting mission. On a long -tern basis, we are committed to providing professional management for the senior housing portion of The Mercado, through CARING, our management and community services subsidiary. As a part of that management plan, we will draw on our long established tradition of providing, within our communities, training to students in the field of health care and housing program administration. As a part of that continuing committment, CARING will be hiring and training local persons to provide the on-site administration and complete staffing of this planned community. page 2 Luz Gutierrez Spring, .� r• _t• r, • T1TkTi` will _ L_ available . .L,. ivMs. Nancy spring, the Executive Director of CARR N .J will continue to be available to the team as the planning for this community goes forward. We are looking forward to the successful completion of this project and offer our assistance and expertise in making The Mercado a unique part of the Yakima community. Sinceely, Qajr1L4.- Gary L. Wheeler, President c CEO California Lutheran Homes and Community Services cc_ Glenn J. Valenzuela, Director Department of Community and Economic Development, City of Yakima Ray Ruiz, President, Community Development Resources Nancy L. Spring, Executive Director, CARING, Managed Communities & Services MERCADO RETAIL CENTER & SENIOR HOUSING PROJECT ESTIMATED FAIR MARKET VALUE The proposed project is within the Community Development Block Grant (CDBG) area of the Yakima City limits. The street block that is being considered is bordered by Fair Ave.(formerly 10th St ), Pacific Ave , 13th Street and Adams Street. The property* that will be affected is listed as follows with projected fair market value based on a comparative market analysis for this area at this time: Address Own Occ/Renter Bd. Ba. Fair Market Value 801 Fair Ave 803 Fair Ave 807 Fair Ave 811 Fair Ave 817 Fair Ave (3 houses/1 lot) 1011 Pacific Ave 1013 Pacific Ave 1015 Pacific Ave 1 101 Pacific Ave 1103 Pacific Ave 1 105 Pacific Ave Rented Own Occ Own Occ Own Occ Own Occ Rental 41 Rental #2 Rental Rental Business Rental Owner Rental 2 1 3 1 3 2 3 2 3 2 2 1 2 1 2 1 2 1 Pacific Equipment 2 1 2 1 2 I 810 S 13th St Rental 2 1 808 S 13th St Own Occ 3 2 1210 Adams St 1208 Adams St 1206 Adams St 1202 Adams St Rental Rental Own Occ Rental 3 2 1114-1118 Adams St # 1 3 1 (3 houses on 1 lot) # 2 2 1 # 3" 2 1 $48,000 60,000 80,000 75,000 75,000 55,000 55,000 45,000 48,000 Co. 150,000 45,000 45,000 62,000 Being remodeled Nice home/brown Nice home/blue (2 lots) Nice home/beige Double Wide Mobile $450 $450 $450 $450 $425 Single Wide Mobile Manufactured Home 50,000 Manufactured Home 75,000 Manufactured Home 65,000 45,000 50,000 50,000 50,000 40,000 45,000 Double Wide Mobile Old house Nice Home Old house Old house Old Mobile home TOTAL RENTAL = 13 TOTAL OWNER OCCUPIED = 8 TOTAL BUSINESSES = 1 TOTAL PROPERTIES = 21 TOTAL ESTIMATED MARKET VALUE $1,313,000 *Some owners did not allow us access to home so this is estimated based on real estate knowledge TACOMA (AP) — Active seniors able to take care of themselves but who want a home easy to care for and leaving them lots of leisure time arc becoming a rapidly grow- ing consumer group. And Puget Sound developers are recognizing the financial rewards of meeting seniors' demand for a lifestyle which maintains their independence but is less stressful .and labor-inten- sive than traditional home own- ers. ,Builders say that.with the aging baby -boomer generation, meeting .this demand could keep their drawing boards filled with pro- ers 1 rin jccts for many years. "We're at the leading edge of an enormous construction boom," said Tacoma developer Scott Edwards, who has built five senior citizens duplexes and condomini- ums. "Until all ,the baby boomers retire (in about 35 years), our busi- ness will'be robust." The construction'opportunitics 'cover a range of needs '= from 'low-income rentals to low -mainte- nance, owner -occupied, condos. Edwards said that in the past nine years, his company's annual income has increased tenfold, to Y,l,1. .ion n reti.1 deme $10 million, serving the senior market. ' ' "Many seniors are society's most affluent people," Edwards said. "Their mortgages arc paid off,.and,many have enjoyed a (tax- free) windfall from selling their hones." Often they use the proceeds to buy an RV or take a winter vaca- tion in the sunbelt, then return to their Puget 'Sound -arca condos, ranging in price from $120,000 to $190,000. "They, no lonber require as ,much space, need wider hallways and don't want to climb stairs," Edwards said. "A large portion of our buyers do not live in their homes year round " The state's population projec- tions show that by 2015, there will be just under one million resi- dents 65 -and -older, more than double the number in 1985. "These figures present a huge, growing market that's going to require a large amount of new housing," said Eric Blitz, whose Tacoma company is building sin- gle -stogy senior duplexes for peo- ple who don't want the mainte- nance chores demanded by two- story homes with large yards. Local governments and hous- ing advocates say they are just t s ', sin beginning to corse to. grips wi the issuccof supply and demai for senior citizen housing...