HomeMy WebLinkAbout12082016 Economic Development Committee PacketCouncil Economic Development
Committee
Members:
Councilmember Coffey
Councilmember A. Gutierrez
Councilmember Cousens
Action Items:
CED Conference Room
City Hall
December 8, 2016
1:30 p.m.
Staff: Others:
Cliff Moore, City Manager
Sean Hawkins, Economic Development
Manager
Rob Peterson, Airport Manager
Joan Davenport, Director of Community
Development
Colleda Monick, Economic Development
Assistant
A enda
1. Downtown Partnership Proposal — Sean Hawkins
2. CERB Planning Grant and Project RFP — Sean Hawkins
3. RCDR CDBG Funding Request — Archie Matthews
4. Updates to YMC 11.63 — Downtown Housing Incentive — Sean Hawkins and Jeff Cutter
Update Items:
1) Air Service Update with Alaska Airlines — Sean Hawkins / Rob Peterson
2) Apprenticeship Program
3) Cubcrafters SIED Program Request
Council Economic Development
Members:
Councilmember Coffey
Councilmember Gutierrez
Committee
Council Chambers
City Hall
October 27th, 2016
1:30 p.m.
Staff:
Cliff Moore, City Manager
Sean Hawkins, Economic Development
Manager
Scott Schafer, Public Works
Director
Colleda Monick, Economic
Development Assistant
Executive Minutes
Others:
Maria Rodriguez
Luz Gutierrez
Jonathan Smith
John Cooper
Roger Wilson
Joe Mann
Nickolas Bumpaous
Michael Bosse
• Apprenticeship Program
Bumpaous and Bosse provided an overview of `apprentice utilization' and a possible
model that the city could use as a template for a resolution via Kennewick. Schafer
provided some city context and will continue to work with legal on developing further
written communication to bring to full council for review.
Downtown Partnership Proposal
Hawkins presented a draft proposal to develop a 3-5 year contract with the Downtown
Association of Yakima (DAY) to take currently led city programs, such as the DYBID,
Block by Block and event management and house them under DAY. Hawkins will
continue to develop a more comprehensive proposal to share with council which will
include a 3-5 year funding projection, city involvement, city exit strategy, as well as a
potential scope of work. Gutierrez and Coffey both supported the proposal and have
asked Moore to provide a 10,000 foot overview at the next full council meeting.
SIED Application for YMCA Road Project
Moore presented a draft Resolution for a SIED application for a $700,000 loan and a
$700,000 grant for the road improvement project around the aquatic center, which is a
little under half of the necessary overall costs to complete project. The city has also
applied for federal DOT funding to help with the remaining costs of this $2.9 million
project, and the city should know by the end of November whether or not those funds
will be granted. Moore would like to hold off on formally presenting the Resolution until
a revenue source has been identified to cover the $700,000 loan portion of the
application.
Update Items
KMART — Hawkins presented a marketing package put together by CB Richard Ellis to promote
the 120,000 square/foot WART facility and the city's willingness to assist in the process.
CERB Grant Planning Grant Presentation — Hawkins will be travelling to Olympia on November
17th to present the incubator funding request to the CERB Board.
Incubator Follow Up — Hawkins to work with Price to schedule tour of available sites with
interested Councilmembers. The parking lot next door to Hellisen Lumber Building has been
purchased by Memorial Hospital.
CubCrafters SIED Presentation — SIED Board requested additional information in order to be
able to make their final decision. Hawkins and Schafer will work on amending the application and
will re -submit.
Meeting adjourned
Memorandum
To: City Manager, Cliff Moore
From: Sean Hawkins, Economic Development Manager
Date: December 1, 2016
Subject: Downtown Yakima Partnership
Downtown Yakima Partnership Concept
Based on conversations with the City's Council Economic Development Committee, there
appears to be general consensus for the City's Economic Development staff to transition out of
the day-to-day work they have been performing in downtown development and shifting this work
to the Downtown Association of Yakima. Throughout the last few months, City of Yakima staff
have been working directly with the Downtown Association of Yakima and various downtown
stakeholders on the creation of a Downtown Yakima Partnership proposal. The partnership
model is the most common downtown management method used throughout the United States.
The concept of the Downtown Yakima Partnership would be to place Yakima's three pillars of
downtown activity under one organizational home. Under this proposal, the Downtown
Association of Yakima would manage the three following reoccurring downtown programs:
1) Promotion and Downtown Communication — These services are currently performed
by the Downtown Association of Yakima with City assistance.
2) Downtown Event Production — the City of Yakima Economic Development
Department currently produces Downtown Summer Nights, Roots and Vines
Festival, Blues and Brews Festival, Lunchtime Live, Light Up the Plaza and more.
3) Downtown Yakima Business Improvement District — the City of Yakima Economic
Development Department currently manages the Block by Block contract for
downtown maintenance services.
Downtown Yakima Partnership Funding
To fund the Downtown Yakima Partnership, City staff seeks guidance from council on funding
the following three expenditures:
Washington State Main Street Tax Credit
City staff is seeking council approval to enter into an agreement with the Downtown Association
of Yakima to continue an annual application for a Washington State Main Street Tax Credit. The
City of Yakima has successfully applied for this funding in 2015 and 2016. The City of Yakima
annually pays over $500,000 in utility taxes to the State of Washington and upon Department of
Revenue approval, this program allows us to keep up to $100,000 of our annual tax obligation
Page 1 of 4
and provide it to our local State Certified Main Street program. The tax credit program allows a
tax credit to the City in the year after it is approved so the tax credit we were awarded in 2015
reduced our utility tax obligation in 2016.
The tax credit funding works like this:
2016 — City pledges $133,333 to the Downtown Association of Yakima and applies to
the Department of Revenue for the tax credit on the first working day of 2017;
2017 — City receives $100,000 tax credit towards their State of Washington Tax
Obligation as a result of the pledge;
2017 — Downtown Association reimburses the City of Yakima $33,333 to cover the net
cost of the tax credit.
Under this scenario, the impact to the City of Yakima budget would be zero and funding to
provide downtown events and maintenance is made available.
City of Yakima Special Event Fund
City staff is seeking council guidance on $30,000 in annual funding from the $75,000 to the
Downtown Association of Yakima to produce special events in downtown that the City of
Yakima Economic Development staff originated in 2013 such as Downtown Summer Nights,
Roots and Vines, Blues and Brews and more. The $75,000 Special Event Fund noted above is
included in the 2017 City of Yakima draft budget. It is recommended for the City to exit out of
assisting downtown events by providing $30,000 toward them in 2017, $20,000 toward them in
2018 and $10,000 towards them in 2019. The balance of $45,000 in the Special Event Fund in
recent years has been used to fund Cinco De Mayo, Viva La Music and Yakima Folklife Festival
and would be available with council consideration to fund again in 2017.
Downtown Yakima Business Improvement District
Since the inception of the Downtown Yakima Business Improvement District in 2008, the City
has made an annual contribution of $50,000 to the district budget to represent the properties the
City owns in the district including the Capitol Theatre, Convention Center, City Hall and
municipal parking lots. Including the City's participation, the DYBID produces annual revenue of
$210,000 annually specially for maintenance funding. The City's portion of DYBID funding is
included in the 2017 City of Yakima draft budget and is sourced from the Central Business
District account. It is recommended that this funding continue as long the district remains in
existence.
Downtown Yakima Partnership Creation Timeline
The following is a possible timeline and steps to establish the Downtown Yakima Partnership:
December 2016 — Yakima City Council approves State of Washington Main Street Tax Incentive
in the City of Yakima budget for $133,333. City Council will also consider a special event fund of
$75,000 in the City of Yakima 2017 Budget. The Downtown Association would refund the City
of Yakima back the net portion of the Main Street Tax Incentive.
Page 2 of 4
December 2016 — The Downtown Association of Yakima will advertise locally and nationally to
fill an Executive Director position. The expectation will be to have this position fill by March 1,
2017.
January 2016 — City staff will bring a resolution will to the Yakima City Council authorizing the
City Manager to execute two agreements with the Downtown Association of Yakima.
1. Approve a three year agreement for the City to apply for the maximum
amount of annual funding from the Washington State Main Street Tax
Incentive. This is currently set at $133,333 annually. The funds available
to the Downtown Association of Yakima would be subject to the
availability of funding available through the State of Washington Main
Street Tax Incentive Program. The Downtown Association of Yakima
would refund the net portion of the funding back to the City of Yakima.
2. Approve a three year agreement for $30,000 of special event funds to
produce Downtown Summer Nights, Roots and Vines Festival, Blues and
Local Brews Festival, Second Saturday Cruise Nights, Holiday Activities
and other special events. This funding would be sourced from the City's
$75,000 Special Event Fund. The amount would be reduced to $20,000 in
2018 and $10,000 in 2019. It would be written into the agreement that the
funding would cease 2020.
January 2016 — the Downtown Association of Yakima will create one seat on their board for the
City's Economic Development Department and the City Council will appoint a liaison to attend
board meetings.
March 1, 2017 — The City of Yakima Purchasing Department will provide a one month notice to
Block by Block of the termination of their maintenance contract.
March 2017 — City staff will bring a resolution to the Yakima City Council authorizing the City
Manager to approve a maintenance agreement with the Downtown Association of Yakima to
provide services in the Downtown Yakima Business Improvement District. The Downtown
Association of Yakima would be required to hire and supervise a minimum of 120 weekly hours
of clean team services. The City's DYBID contribution as well as the remaining balance of the
2017 portion of the DYBID maintenance fund will fund this work. The City Council would also
end the Downtown Yakima Business Improvement District Advisory Committee and require that
the Downtown Association of Yakima create a Clean and Safe Committee to address clean and
safe issues in downtown Yakima as part of the maintenance agreement.
Downtown Plaza Programming and Maintenance
Looking ahead, the Downtown Yakima Partnership is the most likely organization to handle the
day to day maintenance and programming oversight for the Yakima Central Plaza. We believe
that the steps above will ensure that the Downtown Association of Yakima is a strong enough
organization to take on all maintenance and daily booking of the plaza. City staff recommends a
funding model where the rental fees from the plaza will be broken into four parts:
Page 3 of 4
1) Downtown Association of Yakima fund to assist in paying labor cost to
providing staffing for daily maintenance including landscaping, littler removal,
power washing and more;
2) Capitol Reserve Fund to pay for future capital projects in the plaza that would
be managed jointly by the City of Yakima and the Downtown Association of
Yakima;
3) Plaza Maintenance Fund to assist the City in paying water and electric utility
costs and any incidental services provided by City staff.
4) Debt service for the overall project cost paid back to the City.
The final percentage amounts of each fund would be determined through the negotiation of an
agreement between the City of Yakima and the Downtown Association of Yakima at the
appropriate time.
Page 4 of 4
City of Yakima
Business Incubator, Commercial Kitchen, Public Market
Real Estate Valuation Study
Request for Qualifications No. 11628Q
In 2015 the City of Yakima completed a community feasibility study to determine if there was the
feasibility and community support for a business incubator, commercial kitchen and public market.
The feasibility determined that there was support for a facility without the final determination of
a location. A copy of the feasibility study is attached to this RFQ.
The City of Yakima, WA is soliciting qualified consulting firms and organizations to submit
Statement of Qualifications to facilitate and assist in the development of a business incubator,
commercial kitchen and public market in downtown Yakima using the City's feasibility study
recommendations as a guide. The scope of this project assists the City of Yakima in preparing for
the potential next steps of this project. The next step would be full architectural design of the
project and final construction / remodeling of the building.
The Scope of Work includes: but is not limited to the following tasks:
• Location Selection: Working with the project's oversight committee, the firm will assist
the City in determining the two final locations for evaluation using the recommended
locations in the City's feasibility study as a guide.
• Design/Layout: Once the two final locations are determined, complete conceptual
project layouts for both locations including evaluation of all necessary infrastructure
conditions and needs. To complete this, the firm must have a full understanding of how
both vendors and customers would access and use the proposed facility.
• Conceptual Drawings: The firm will generate conceptual drawings of the interior and
exterior of the two locations to generate public interest in the project. The City is
interested in your firm's ability at bringing conceptual projects to life to generate
community interest in the project and the methods of how you would accomplish this.
• Estimated Construction budget: Once the final layouts, building needs and infrastructure
have been evaluated, the firm will produce a final estimated construction budget for the
final 2 locations. The Yakima City Council in consultation with the project oversight
committee will make the final determination of the location.
The project's final scope will be completed during contract negotiations with the selected firm.
The City of Yakima is interested in working with a firm that has previous experience in Business
Incubator Projects. Following review of the Statements of Qualifications by the City Selection
Committee, one or more firms may be selected to participate in an interview to provide the
opportunity for more detailed presentation of their proposal. The successful firm will be offered
the opportunity to enter into an Agreement with the City of Yakima to provide services. Insurance
requirements are illustrated in "Attachment B". The city reserves the right to negotiate elements
of the RFQ and Agreement. If an agreement cannot be reached the City reserves the right to
negotiate with the next highest ranked proposer.
Interested firms will provide seven copies of the proposal, including one unbound copy. A digital
copy of the proposal is also requested. All costs for developing proposals in response to this RFQ
are the obligation of the Consultant and are not chargeable to the City of Yakima. All responses
and accompanying material will become the property of the City and will not be returned.
Proposals may be withdrawn at any time prior to the published close date, provided notification
is received in writing to the agent listed in this RFQ.
Proposals will be evaluated based on the following criteria and the weighted table below.
1. Project Proposal- Summarize the unique qualities of your team, the services and
deliverables included in your proposal that will accomplish the Scope of Work outlined
above.
2. Key Personnel- The chosen consultant will demonstrate that they have personnel
available to perform this work that have significant experience with similar projects.
3. Relevant Project Experience — Provide three examples of similar projects that
emphasize compliance with the Business Incubator Projects. Project descriptions should
include location, project name, project duration, budget, project status and lead client
contact.
4. Project Approach — Describe how your team will be organized and the tasks to
accomplish the project, on time and on budget.
S. References — Please provide the names and contact information of at least 5 persons
the City of Yakima may discuss previous project experience with your firm.
Proposals will be evaluated by the City Selection Committee, based on the following criteria:
Qualification and Experience
Weight
Project Proposal - Demonstration of a thorough understanding of
the scope and intent of the project objectives 25
Key Personnel Experience - Combination of team members that
meet the interdisciplinary needs of the project I 20
Relevant Project Experience - Demonstration of Consultant's
relevant experience with projects of similar scope and size 20
Project Approach - Demonstration of team's ability to meet the
proposed project including assigned staff availability. 20
References- Provide contact information of 5 persons related to
previous projects of a similar nature available to describe their
5 experiences with your firm. 15
TOTAL 10(
TENTATIVE PROJECT SCHEDULE AND BUDGET
The City of Yakima has an approximate budget of $65,000 for this project. Schedules for interim
deliverables will be developed as part of the final written proposal.
Preliminary RFQ Schedule
Request for Qualifications Released
Qualification Packets Due — Close date
Interviews, if warranted
Contract Selection
Proposed Start Date
Sean Hawkins, Economic Development Manager
Sean. HawkinsCchYakimaWA.aov P: 575-6274
December 12, 2016
January 6, 2017
Week of January 16th, 2017
Week of January 16th, 2017
Week of February 6, 2017
Certificate of Insurance Example
PROFESSIONAL LIABILITY DATE(MWDDNYW)
CERTIFICATE OF LIABILITY INSURANCE I Current Date
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THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
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BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder Is an AODT110N4 INSURED, the policy(les) must be moo sed. II SUBROGATION IS WAIVED, eub)ecl to
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!three years after job is completed). The City of Yakima and the County of Yakima
'usually cannot be named as additional insureds.
CERTIFICATE HOLDER CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
City of Yakima/County of Yakima THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
Purchasing Department ACCORDANCE WITH THE POLICY PROVISIONS.
129 N. 2nd Street
AUTHORIZED REPRESENTATIVE
Yakima, WA 96901 SIGNATURE
191yB1J-LU1U ACUftU CORPORATION. All rights reserved.
ACORD25(2010/05) The ACORD name and logo are registered marks ofACORD
October 27, 2016
To: Joan Davenport
City of Yakima
From: Maria DJ Rodriguez, Executive Director
Re: 2017 CDBG Funding Request - Microenterprise Technical Assistance $50,000
Rural Community Development Resources Center for Business Development (Center) is
requesting $50,000 from the City of Yakima's 2017 CDBG allocation for economic development
within the city of Yakima. These funds will be utilized to provide technical assistance for hard to
serve low income individuals that seek technical or financial assistance to start or expand a
microenterprise as a form of job creation or retention within the City of Yakima.
The Center has an outstanding 25 -year track record in assisting microenterprises with relevant and
culturally sensitive business counseling & coaching, business plan development, educational
workshops and access to financing. Additionally, the Center has been administering a revolving
loan fund for over 20 -years with a less than 3% default rate and 64% business retention making
the Center one of the few successful alternative lenders within Washington State. The Center is
also a certified Community Development Financial Institution (CDFI) by the Department of the
Treasury and is a certified SBA Intermediary Lender. These designations are hard to obtain and
maintaining that certification is based on outcome based performance and adequate and timely
reporting requirements.
The City of Yakima's continued support to assist microenterprises to create jobs and assets for low
income individuals has played a key role in the success of this program. With the CDBG dollars
awarded, low income individuals can set up microenterprises, employ low income individuals,
create assets and increase wealth. This in turn, gets invested back into the local economy. To date,
the Center has leveraged loan outputs of over $1.4 million within the City of Yakima.
2017 City of Yakima CDBG Grant Funds Request Page 1 of 2
Loans*
notal
Invested
Jobs
Crested
Mobs
Retained
0/, LM
2008
7
$105,000
8
11
157%
2009
8
$111.668
9
11
50%
2010
7
$171,612
6
10
71%
2011
5
$ 67,101
3
3
80%
2012^
5
$234,346
6
5
60%
2013
3
$ 90,000
3
5
66%
2014
3
$121,286
1
5
67%
2015
9
$405,993
3
12
50%
2016#
6
$190,000
12
8
33%
TOTAL
Average
* Borrowers can obtain more than one loan
^ No CDBG TA grant funds received
# Results are current as of 9-30-16
2017 City of Yakima CDBG Grant Funds Request Page 1 of 2
Of the total inquiries in as of September 30, 2016, 47% were from within the City of Yakima, and
of those 68% were considered low income individuals.
HUD income Verification
It takes many hours of hands on technical assistance for each entrepreneur. Many times the smaller
loans take more time than the bigger loans. The numerous hours spent is needed for long term
success of the entrepreneur. Educational workshops on business financial management and
business tax reporting are required and important. Learning about asset building as part of the
training will create growth and long term sustainability.
RCDR has established strong partnerships with local banks. Representatives from banks serve on
the Loan Credit Committee (LCC) to review and make recommendations on loan packages
requiring funding. These partnerships have enhanced the ability to access loan capital funds.
The 2017 TA request will serve microenterprises that have five or fewer employees, which is
consistent with HUD regulations. The services will include individual business assistance/
coaching, educational workshops, business plan development, and loan packaging. Loans will be
made available from other sources such as federal, state and or private banks for those
microenterprises that qualify and reside within the City of Yakima.
The objectives for 2017 are as follows:
• 24 startups and expanding microenterprises will receive TA
• 10 loan packages and business plans will be developed
• 2 business tax seminars for 16 attendees
• 2 personal financial literacy seminars for 18 attendees
• 8 loans will be closed and funded
Local support is greatly needed to continue providing the needed TA for microenterprises to be
successful, grow and create jobs for the local economy.
2017 City of Yakima CDBG Grant Funds Request Page 2 of 2
CITY OF YAKIMA
LEGAL
DEPARTMENT
200 South Third Street, 2nd Fl. I Yakima, WA 98901 P: 509.575.6030 1 F: 509.575.6160
MEMORANDUM
December 5, 2016
TO: Economic Development Committee
FROM: Bronson Faul, Senior Assistant City Attorney v
SUBJECT: Downtown Redevelopment Tax Incentive Program
Attached is a draft ordinance on Chapter 11.63 of the Yakima Municipal Code (YMC). The
ordinance is based, on part, from the Revised Code of Washington (RCW) Chapter 84.14. In
2006, the City of Yakima adopted its own downtown redevelopment tax incentive program using
the RCW's as a template. Since 2006, a number of changes have been made by the legislature to
RCW 84.14. This ordinance recognizes those changes and adopts certain provisions of the RCW
while maintaining the unique provisions that Yakima created in 2006.
ORDINANCE NO. 2016 -
AN ORDINANCE relating to land use and development; repealing Chapter 11.63 of the
Yakima Municipal Code and replacing it with a new Chapter 11.63 entitled
"Downtown Redevelopment Tax Incentive Program"; authorizing a process
whereby properties satisfying the requirements of the application and
development guidelines become eligible for exemption from ad valorem
property taxation on the value of the new housing construction, conversion
and rehabilitation improvements as provided in 84.14 RCW.
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. Chapter 11.63 of the Yakima Municipal Code is hereby repealed:
Ghapte�o
DOWNTOWN REDEVELOPMENT TAY IA CENTIVE DCOGGAllll
Sections:
■■_
■■_
11.63.030 Defonatmens.
A. "Multifaniffily housing" -
- dwelling- _ -
R "Owner" means the nrnnerty awner of reonrrl
G. „ IJFban ,
1 . SeveFal existing OF pFevious, or both, business estaWshments that may inGlude but
r t limited to shops, ff'ees, banks. sta„rantc government agencies;2. Adequate public; faGilitieS including streets, sidewalks, lighting, transit, damestiG anr•1
water,
and sanitary sewer systems; and
a, A m xtwe— f-4jses and ac,4v+4e that m ..kWe hGusa g ac eatiatn—,aod-udtural
aGtiVitieS in aSSE)Giatien with either E;E)mmeFE;mal OF OffiGe, OF both types of use,
development or authorized designee._
"De m ne t Fes'dent'al nao„nano y" means multifamily housing that nrnvides either
Fental OF owner oGGupanGy feF a Gent' 1 of at least one month, and provides
sleeping, eating and eeeking faGilities. These provisle s speGifiGally exGlude hotels and
motels that predominately effeF Fental accommodations on a daily or weekly bases.
C "Del hilt tion improvements" meanmndifieatinns to existing-otr„nt„res ,n E)Fd T�
r t. �/
aGhie of ubsta ntial oom pl an., oe•,with exist ng a;j el ding noes'; e .-.�.e��
a d/ r'norea a the number of multifamily housing „nits.
•�. ^"�
G. "De 'rlent'al target a a" means an area within an Urban y+enter that has been
designated by the Yakima eity council as laeking suffiement, available, desirable, and
n nyenient 'rdenti I hn„c.'n t meet the needs of the n„blin
H. „ „
means E;ompliame with IGGal building OF housing GGde
2006 47 § 1 (part) 2006)
,
d •1 G4 040 Re 'dent'al target area designation and standarrdz
T�p��VTC w.wv..ww. target area designation �. _.. �... �. standards-.
�-. --_.
A. C; 'ter' Following a publiG l earimg, the nirty vn„ F6r'Irm&y, sale drico,retirnnr
designate one OF MGFe Fesidential taFget aFeas. Earh deGignated target aFea must meet
the following nriteria s determined by the nitv_an„nnil•
1. Th target a ea ie. Ionated within a designated Lrhnn nenteF
housing to_mce�eeds of t e._.pub Il e-- wian-centeF-4f
desorable, Chita Gt* ye' and ere available; and
3. The provision of additional hqu6inq opportunities On the taFget aFea will assiSt
aohiev'ng the following n, yrng%Sc
$R -the map identified as-Evrltfhit 'A" " attao-. he..ieiv an- i rated heroin by this
Sieh are n file- ir. the city derlr's ofke-
Beginning at the_WeFsention of Gr�ct. AlSes+ia.•. zui�h�r �ina-v_r C]I.�r) ++nil 3�Ierth L:43� �4rn a+• than
rare ,y m'Zrmvmzre �... �
south to the inteFserAien of C uth 6th Street and East_]AC.�Inut Strseet• then y�eest to the
Iry �Q� �viTcc� r� U �C'"C�f7C.
r.lir. ra FA a nt of th c._13P 18F rrriif-r.eri tre nlr �.` th—R-PeOh t ahCft7� ent
Wr�ref lAlr. est I''S-.er+tn ��T
then est alon. the -.11i •`5� �
srrc=r
to East A Street then east along the aligRpnent of VVe6t tFe et to t. ali g nment of 04e
ent of East6An rFi
waue un I=wth8FKiRq BOUI,
then east to point of heginnir. rr
(nrd 2006 37 § 1_ rpr.r+i 2096).
44-6"50 Taxz ptiGns4G i#am-ily-housi-ng-in -feside4vfia-l-tapget-areas.
D intent. I irva't d ten . e r n+ions from rid valorem property tr.vo+inn for use multifamily
housing in r+
ive_se � �rhnn renters are intended +o• r
T—En•GG Q'e�TnTl^iTeas sed residential opportunities within mixed use urban nenteFS
2. Stmmulate new GonStMetion or rehabilitation of existing vaeant and undeFutilized
buildings fOF multifamily housing an residential target aFeas to inGFease and impFove
housing opportunities;
3. Assmst On directing future population grevAh to designated mixed useUFban GenteFs,
theFeby FedLIGing development preSSLIFe on single family residential neighbeFheeds;and
4. AGhieve development densities that are meFeGGRduGive to tFansit use in designated
mixed . e centers
B, DuFatmen of Exemption. The value of impFevements qualifying under thi6GhapteFsha4
1 st of the year immediately following the ealendaF yeaF after issuanGe of the final GertifiGate
of tax exemption. At the GenGIL166OR of the ten year exeMptiE)R peFi0d, the new OF
rehabointated housing eest shall be GonsideFed as new conGtFUGtion for the purposes of
Ghnnter 84.55 RGW
G Limits on Exemption.
value Of not qualifying under this Ghapter, nor does the exemption apply to
in 'n ed valuation f land and nonqualifying improvements In the Gase of
r eh uhmili+ at'r6C—of eil6tr'rQ�tr'Ie'llQG, the —Ei2�tF9F��$2S IA-Fltl mde thevalue ofr
tS GGR6trLlGted prior to submission of the Gempleted appliGation required Under
thisoT
D. PFc)jeot Eligibility. A proposed prejeGt must meet the following FequirementS fE)
E;o,nsderation for o property toy exemption.
im 1 en t' n The project ust he Inn ted within o residential tercet area s designated
M h
Tenant DisplaGernent Polmoy. Existing dwelling units proposed f9F rehabilitation must
"have een— E5eupierfor ai1mkcr►eI Y ii—
e—
appfic-"on and musthave—PTTe n�+Vi �
7
eer�t shall n�tr, lana m ide4al tenants. rf. t uetl lyes that arepr`oypo�
�--�Fg�T>�'T f�F�f-7 E�-F1?6 �LTi�
far rr.rieyelnnm not p r to .. rlemn nstratio n-tha e4eoatjg "a ns set fa.li-. in and
pl•r.at'a for new
Y
by state and fedeFa...
ansGGnPtCSL7GAiG cannot be G b ,rtt,d for yruGant-pr-g
steed,
the time of most resent o pansy3. .
Size. The ro•est t 'null rde at least four units of multifamily hr. using within
Fesidential StFUetuFe OF as paFt of a mixed use development. A minimum Of fauF Rew units
must be GonStFUGted or at least feur additional multifamily units must be added to existing
OGGUpied multifamily housing. Existing multifamily heusing that has been vacant fqF twelve
months OF MGFe shall not be requiFed to provide additional URitS 60 leng as the pFejeGt
multifamily housing must be-, Permanent resmdential E)GoupanGy, as defined in
YMG 4 1.63.030(F=).
5. Proposed Gampletion Date. New GonstruGfion multi u5i-end„-r-e ha bilitation
improvemeRtG must be ad +i�be GGmpleted with' thrrceca. y�a..uis..-fdOnT- 4-he--date-cif
plan,applk;atien app. oval.
6. GomplianGe with Guidelines and StandaFds. The pFejeGt must be designed to somply
with the Gity'S Gornprehensive
building, housing, and zening Godes, and any othe F
applirsable regulations on effeet at the time the application is approved. Rehabilitation and
nnrnie inn •mprn amen} m t som I with the city's minimum housing Gorda Ale,
nStFUGtqon must comply with the InteMational Building Code (IBC). The projeGt Must. alICSO
residential t et rea 'n hish the roie64 'll he develop
E. AppliGation ProGeduFe. A property owner who wishes to propose a projest for a tax
exemption undeF this ehapter shall Gomplete the following PFOGedures;
1 . An appiaGant desiring to make use Of thiS PFE)gFan; 6hall file with the 1
fees. The initial pplin t'on fee to the pity shall Gen •st of base fee of zero rdellars plus
addotoonal one hundred dallaF fee to eE)veF the Yakima County 1
Gests shall a!69 be paid to the eity. if the appliGation shall result in a denial by the Gity, the
Gity shall FetaiR that per-tien of the fee attFibutable to its own adrn*n!StFateve costs and FefWpA
the halanne to the applioant
7 A Gemplete a plisatien shall
(aa)A EeMp}etedeity of Yaliirna-appl,iGation form sing #e#h the grounds for the
evempt'en•
T
/h\ Drelimina floor and site plans of the proposed proiest•
the i
s last known
addFess within ten days of the denial. An applioant Fnay seek
Feconsideration
Feeensideration,
that theFe is
of a denial
the Gity GounGil's
before the Gity ec)unG*l w thin thiFty days of receipt of notiGe. OR
deGw,-;On-.n sh-all -hem upheld unless the appliGant Gan show
the to the decision. The
no
pity n nil's
substantial
rdeninion on reconsideration
evidenGe on FeeeFd support GounGil's
will he final
,.,.f-
dollar n
o fee /1n extension
extension,
may he oranterd if the rd;rentor determines that;
time period is
good faith with
3. All the conditions
6atisfierd Upon
due to n;rni rAstannes
due rd;lioenne•
of the
nmmpletinn of
beyond the nontrol of the owner; and
and
original GOntrac;t between the applicant and the Gity will be
the nro;ent
�•y;-t$c�eti�er�itFi--;:itef�:s��d-p�.F�a4#��{�d-�-iarieri�ii�r�"� -.., hc. nl,norl rtrf�he--4�rid-
n,,re., ant to state lenislato
2. NetiGe and Appeal. Upon deteFmining that a tax exemption is to be eanceled, the
the determonatien by filing a n9tiGe of appeal with the eity GleFk within thiFty days, 6peGifying
the faetual and legal basis feF the appeal. The hea i - . F Will Gendurat a heaFing at
ev4denc-e4,&Geived AFW-teved--party..maFy--appea{#ie-hearirig--exam�ReF'S deGisionta the
Yakima Geunty supeFOOF Geurt. (Ord. 2006 37 § 1 (paFt), 2006).
Section 2. Chapter 11.63, entitled "Downtown Redevelopment Tax Incentive
Program" is hereby enacted as to read as follows:
Chapter 11.63
DOWNTOWN REDEVELOPMENT TAX INCENTIVE PROGRAM
Sections:
11.63.010
Purpose.
11.63.020
Short title.
11.63.025
Duly authorized administrative official.
11.63.030
Statutes adopted.
11.63.040
Residential target area designation and standards.
11.63.042
Project eligibility.
11.63.045
Application—Procedures.
11.63.010 Purpose.
The purpose of this chapter is to provide for increased residential opportunities in
the city of Yakima within urban centers where the Yakima city council determines there is
insufficient housing opportunities. It is further the purpose of this chapter to stimulate the
construction of new multiple -unit housing and the rehabilitation of existing vacant and
underutilized buildings for multiple -unit housing in urban centers having insufficient
housing opportunities that will increase and improve residential opportunities within these
urban centers. To achieve these purposes this chapter provides special valuations for
eligible improvements associated with multiple -unit housing in residentially deficient urban
centers. It is intended that this chapter meet all required provisions and procedures set
forth in Chapter 84.14 RCW to comport with state law
11.63.020 Short title.
The following sections shall be known and may be cited as the "downtown
redevelopment incentive."
11.62.025 Duly authorized administrative official.
The duly authorized administrative official of the city will be the director of the city's
department of community and economic development or an authorized designee.
11.63.030 Statutes Adopted.
The following Revised Code of Washington (RCW) sections, as currently enacted
or as hereafter amended or recodfied from time to time, are hereby adopted by reference
and shall be given the same force and effect as if set forth herein in full:
RCW 84.14.005
Findings.
RCW 84.14. 010
Definitions.
RCW 84.14.020
Exemption—Duration—Valuation.
RCW 84.14.030
Application—Requirements.
RCW 84.14.060
Approval—Required Findings.
RCW 84.14.070
Processing—Approval—Denial—Appeal.
RCW 84.14.090
Filing requirements for owner upon completion—
Determination by city or county—Notice of intention by city
or county not to file—Extension of deadline—Appeal.
RCW 84.14.110
Cancellation of exemption—Notice by owner of change in
use—Additional tax—Penalty—Interest—Lien—Notice of
cancellation—Appeal—Correction of tax rolls.
11.63.040 Residential target area designation and standards.
A. Criteria. Following a public hearing, the city council may, in its sole discretion,
designate one or more residential target areas. Each designated target area must meet
the following criteria, as determined by the city council:
1. The target area is located within a designated urban center;
2. The target area lacks sufficient available, desirable, and convenient
residential housing to meet the needs of the public who would likely live in the
urban center if desirable, attractive, and livable places were available; and
3. The provision of additional housing opportunities in the target area will
assist in achieving the following purposes:
(a) Encourage increased residential opportunities within the target area;
(b) Stimulate the construction of new multiple -unit housing and the
rehabilitation of existing vacant and underutilized buildings for multifamily
housing;
(c) Stimulate the historically sensitive reuse of vacant and underutilized
upper floors of urban center commercial space for permanent residential living;
(d) Encourage mixed-use development or redevelopment of buildings in
the identified areas of the urban center presently containing retail and
commercial uses that would support downtown residential living on the ground
floors and would provide permanent residential housing on the upper floors.
In designating a residential target area, the city council may also consider other
factors, including, but not limited to: whether additional housing in the target area will
attract and maintain a significant increase in the number of permanent residents; whether
an increased residential population will help alleviate detrimental conditions and social
liability in the target area; and whether an increased residential population in the target
area will help to achieve the planning goals mandated by the Growth Management Act
under RCW 36.70A.020. The city council may, by ordinance, amend or rescind the
designation of a residential target area at any time pursuant to the same procedure as set
forth in this chapter for original designation.
B. Target Area Standards and Guidelines. For each designated residential target
area within an urban center the city council shall adopt standards and guidelines, as
required by RCW 84.14.040(5), for both new construction and rehabilitation, including any
area -specific application procedures that may be required in addition to the standard
application process described herein. The requirements for a particular development plan
(hereinafter "project') shall be relative to the size of the proposed development and the
tax benefit to be obtained. In addition to the specific guidelines set forth in YMC 11.63.050,
the city council adopts the following guidelines applicable to the specific projects at issue
in this chapter:
1. Minimum Investment. Each project must represent an investment of a
minimum of twenty-five thousand dollars per unit.
2. Relocation. The project shall not result in residential displacement and
shall not be considered for approval unless all relocation obligations required by
state and federal law are satisfied.
3. Ground Floor Space. The program is not available for projects that plan to
convert existing ground floor commercial space (occupied or vacant) to housing,
unless approved by way of specific waiver from city council. The city council
encourages the use of ground floor spaces for retail and commercial uses that are
supportive of downtown residential living in urban center residential projects
approved under this program.
4. Reuse and Conversion. The program encourages the conversion and
rehabilitation of the upper stories of urban center buildings for residential use.
C. Designated Target Areas. The boundary of the "residential target area" subject
to this chapter is the boundary of that portion of the urban center set forth below and
indicated on the map identified as Exhibit "A," attached hereto and incorporated herein by
this reference, which are on file in the city clerk's office.
Beginning at the intersection of East Martin Luther King Jr. Blvd and North 6th
Street; then south to the intersection of South 6th Street and East Walnut Street; then west
to the alignment of the BNSF railroad tracks; then north to the alignment of West Chestnut
Street; then west along the alignment of West Chestnut Avenue to South 7th Avenue; then
north to East A Street; then east along the alignment of West A Street to the alignment of
the BNSF railroad tracks; then north to the alignment of East Martin Luther King Boulevard;
then east to point of beginning.
11.63.042 Project eligibility.
Project Eligibility. A proposed project must meet the following requirements for
consideration for a property tax exemption:
1. Location. The project must be located within a residential target area, as
designated in YMC 11.63.040(C).
2. Tenant Displacement Policy. Existing dwelling units proposed for
rehabilitation must have been unoccupied for a minimum of twelve months prior to
submission of an application and must have one or more violations of the city's
minimum housing code, or the project shall not displace existing residential tenants
of structures that are proposed for redevelopment prior to a demonstration that all
relocation obligations set forth in and required by state and federal laws have been
complied with. Applications for new construction cannot be submitted for vacant
property upon which an occupied residential rental structure previously stood,
unless a minimum of twelve months has elapsed from the time of most recent
occupancy.
3. Size. The project must include at least four units of multiple -unit housing
within a residential structure or as part of a mixed-use development. A minimum
of four new units must be constructed or at least four additional multiple -units must
be added to existing occupied multiple -unit housing. Existing multiple -unit housing
that has been vacant for twelve months or more shall not be required to provide
additional units so long as the project provides at least four units of new, converted,
or rehabilitation multifamily housing.
4. Permanent Residential Housing. One hundred percent of the space
designated for multiple -unit housing must be provided for permanent residential
occupancy, as defined in YMC 11.63.030(E).
5. Proposed Completion Date. New construction multiple -unit housing and
rehabilitation improvements must be scheduled to be completed within three years
from the date of application approval.
6. Compliance with Guidelines and Standards. The project must be designed
to comply with the city's comprehensive plan, building, housing, and zoning codes,
and any other applicable regulations in effect at the time the application is
approved. Rehabilitation and conversion improvements must comply with the city's
minimum housing code. New construction must comply with the International
Building Code (IBC). The project must also comply with any other standards and
guidelines adopted by the city council for the residential target area in which the
project will be developed.
11.63.045 Application—Procedures.
Application Procedure. A property owner who wishes to propose a project for a tax
exemption under this chapter shall complete the following procedures:
1. An applicant desiring to make use of this program shall file with the city's
planning and development services department the required application, together
with the required fees. The initial application fee to the city shall consist of a base
fee of zero dollars, plus zero dollars per multiple -unit, up to a maximum total fee to
the city of zero dollars. An additional one -hundred -dollar fee to cover the Yakima
County assessor's administrative costs shall also be paid to the city. If the
application shall result in a denial by the city, the city shall retain that portion of the
fee attributable to its own administrative costs and refund the balance to the
applicant.
2. A complete application shall include:
(a) A completed city of Yakima application form setting forth the grounds
for the exemption;
(b) Preliminary floor and site plans of the proposed project;
(c) A statement acknowledging the potential tax liability when the project
ceases to be eligible under this chapter; and
(d) Verification by oath or affirmation of the accuracy and completeness
of the information submitted.
For rehabilitation projects, the applicant shall also submit an affidavit that existing
dwelling units have been unoccupied for a period of twelve months prior to filing the
application, or verifiable evidence that all state and federal laws regarding residential
displacement have been complied with, and shall secure from the city written verification
of property noncompliance with the city's minimum housing code.
Section 3. This ordinance shall be in full force and effect 30 days after its passage,
approval, and publication as provided by law and by the City Charter.
PASSED BY THE CITY COUNCIL, signed and approved this day of January, 2017.
ATTEST:
Sonya Claar Tee, City Clerk
Publication Date:
Effective Date:
Kathy Coffey, Mayor