HomeMy WebLinkAboutR-2002-138 2002 Renewal Community Commercial Revitalization Deduction Allocations (re: CTED)RESOLUTION NO. R-2002- 138
A RESOLUTION approving projects for the 2002 allocation of the federal Renewal
Community Commercial Revitalization Deduction, and directing the City
Manager to submit the list of approved projects to the Washington State
Department of Community, Trade and Economic Development (CTED)
for ratification and commitment.
WHEREAS, economic development is a priority of the City of Yakima, and the City
intends to approach economic development on a comprehensive basis involving public, private
and community-based efforts to achieve new investment and redevelopment in the City; and
WHEREAS, the City has been formally designated a Renewal Community under the
Empowerment Zones and Renewal Communities Initiative by the federal government; and
WHEREAS, the Renewal Communities Program includes, in part an opportunity for
Renewal Communities to participate in a Commercial Revitalization Tax Deductions plan
whereby certain local development projects (including certain rehabilitation of existing
development) may qualify for accelerated partial deduction of development costs by way of
enhanced federal income tax deductibility; and
WHEREAS, the City of Yakima retains responsibility for developing and administering
locally a Qualified Allocation Plan for evaluating eligible development activities within the
community; and
WHEREAS, the City of Yakima has an allocation of $12 million in Commercial
Revitalization Tax Deductions for the year 2002; and
WHEREAS, applications for the 2002 Commercial Revitalization Deduction were made
available to, and were received from the public between September 9, 2002 and October 11,
2002; and
WHEREAS, a total of seven applications were submitted to the City on or before the
published deadline of October 11, 2002; and
WHEREAS, all project applications were determined to be eligible to receive the
Commercial Revitalization Deduction; and
WHEREAS, the City Council appointed Commercial Revitalization Deduction
Allocations Committee reviewed, scored and ranked the projects accorded to the City's adopted
allocation plan; and
WHEREAS,
concurred with the
Committee; and
WHEREAS,
approve the submit
attached sheet; now
the City Council Economic Development Committee has reviewed and
recommendations of the Commercial Revitalization Deduction Allocations
the City Council finds it is in the best interests of the City of Yakima to
for federal Commercial Revitalization Deductions the projects listed on the
, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
1. The City Council approves the attached list of projects to receive allocations from the
2002 federal Renewal Community Commercial Revitalization Deduction; and
2. The City Manager is hereby authorized and directed to submit the list of approved
projects to the Washington State Department of Community, Trade and Economic
Development for ratification and commitment.
ADOPTED BY THE CITY COUNCIL this 19th day of November, 2002
79-Ze",e
Mar `lace, Mayor
ATTEST:
PP City Clerk
YAKIMA RENEWAL COMMUNITY
COMMERCIAL REVITALIZATION DEDUCTION
2002 ALLOCATION
PROJECT RANKINGS
Applicant/Project Avg. Score Allocation Amount
1. Washington Fruit & Produce 46.6 $2,158,384
Additional facility
2. ECR Investments
Barrel House Restaurant 44.2 $325,000
3. Graphic Label, Inc.
Building Acquisition/Rehab 44.0 $130,000
4. Yakima Hotel, LLC
Marriot Fairfield Inns & Suites 43.6 $3,551,000
5. Yakima Herald -Republic
Press Building Construction 42.2 $3,271,842
6. Chinook Business Park
Alliance Analytical Laboratories 42.0 $1,200,000
7. Craig Schultz Construction 39 0 $1,363,774
Pacific NW Bank
TOTAL ALLOCATIONS: $12,000,000
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting Of: November 19, 2002
ITEM TITLE: Approve projects for the 2002 allocation of the Commercial
Revitalization Deduction, and forward to state of Washington for
commitment.
SUBMITTED BY: Michael Morales, Grants Officer
Department of Community and Economic Development
CONTACT: Michael Morales, 575-3533
SUMMARY EXPLANATION:
The City of Yakima was designated a federal Renewal Community by the U.S.
Department of Housing and Urban Development (HUD) in January 2002. The RC
designation provides a variety of tax incentives to RC businesses, including the
Commercial Revitalization Deduction, which requires a local project selection process.
CRD applications were released on September 9, and the City received seven projects
by the October 11 deadline. Staff conducted an initial screening and eligibility review of
the applications, and some application amounts were adjusted as a result. The reasons
for adjustments included ineligible costs, and the addition of acquisition costs. The total
amount of CRD requested in all of the applications was $11,988,870. The review
committee convened on October 25 to review and rank the applications. It was
recommended by the committee that the unallocated amount of 2002 CRD allocation
($11,130) be awarded to the highest ranked project that had not completed
construction.
CONTINUED ON NEXT PAGE
Resolution Ordinance _ Contract _ Other: Appointments
Approval for Submittal:
City manager
STAFF RECOMMENDATION: Staff recommends approval of the allocations.
BOARD RECOMMENDATION: CRD Allocations Committee and Council Economic
Development Committee recommend approval
Resolution adopted. RESOLUTION NO. R-2002-138
COUNCIL ACTION:
1