HomeMy WebLinkAboutR-2003-146 2003 Commercial Revitalization Deduction Project ApprovalsRESOLUTION NO. R-2003-146
A RESOLUTION approving projects for the 2003 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 2003 that must be allocated by December 31, 2003;
and
WHEREAS, applications for the 2003 Commercial Revitalization Deduction were made
available to, and were received from the public; and
WHEREAS, a total of seven applications were submitted to the City in response to a
public call for apphcations; 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 and recommends approval of the projects; and
WHEREAS, the City Council finds it is in the best interests of the City of Yakima to
approve and submit for federal Commercial Revitalization Deductions the projects listed on the
attached sheet; now, 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
2003 federal Renewal Community Commercial Revitalization Deduction in the
amount of $7,115,000; 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 7th day of October, 2003
ATTEST:
City Clerk
/Le
M;'lace, Mayor
City of Yakima
Renewal Community
Commercial Revitalization Deduction
2003 Second Allocation Project List
Applicant/Pro ject
Gary Carnevali
Furniture/Appliance Store
1324 S. 6th Street
Allocation Amount
$1,250,000
Harry C. Crawford $ 66,000
Crawford Insurance
7 S. Third Avenue
Robert Melton $ 51,700
Farwest Climate Control
112 North 3rd Avenue
R.H. Smith Distribution Co, Inc. $1,200,000
New convenience store and gas station
301 North 1st Street
Mobile Fleet Service $ 300,000
New shop and service bays
2003 E. Viola Avenue
Steve Hahn Volkswagen -Audi -Suzuki $1,000,000
New show room and service center
1730 South 1st Street
MW Hotel, LLC $3,247,300
401 E. Yakima Avenue
Total Allocations: $7,115,000
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting Of: December 2, 2003
ITEM TITLE: Approve projects for $7,115,000 of the 2003 allocation of the
Commercial Revitalization Deduction, and forward to state of
shington for commitment.
SUBMITTED Bael 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 (CRD), which requires a local project selection
process.
A public Request for Proposals (RFP) for CRD allocations was issued in May of this
year, and in October the City Council allocated $4,885,000 in CRD's to seven
applications submitted in response to the RFP. With $7,115,000 still remaining for
allocation in 2003, we embarked on a media and outreach campaign in the community
to cultivate and identify projects eligible for this incentive. We are pleased to report that,
with council approval today, the City will fulfill its opportunity to allocate $12 million of
CRD's each year.
CONTINUED ON NEXT PAGE
Ordinance Contract _ Other: Appointments
STAFF RECOMMENDATION: Staff recommends approval of the allocations.
BOARD RECOMMENDATI AutigUel8c tLCtittf8 mcaids approval.
COUNCIL ACTION:
1
The projects for the 2003 allocation of the Commercial Revitalization Deduction,
including those approved on October 7 are listed below:
Applicant/Pro ject
Gary Carnevali
Furniture/Appliance Store
1324 S. 6th Street
Harry C. Crawford
Crawford Insurance
7 S. Third Avenue
Robert Melton
Farwest Climate Control
112 North 3rd Avenue
R.H. Smith Distribution Co, Inc.
New convenience store and gas station
301 North 1st Street
Mobile Fleet Service
New shop and service bays
2003 E. Viola Avenue
Steve Hahn Volkswagen -Audi -Suzuki
New show room and service center
1730 South 1st Street
MW Hotel, LLC
401 East Yakima Avenue
Total Allocations Awarded 12/2/03:
Allocation Amount
$1,250,000
$ 66,000
$ 51,700
$1,200,000
$ 300,000
$1,000,000
$3,247,300
$7,115,000
CRD projects previously approved by City Council on October 7, 2003
Up Front Development
Old City Hall Restoration @ 27 N. Front Street
Withrow Development
New car wash @ 907 E. Nob Hill
Owens Cycle, Inc.
New Harley-Davidson Dealership @ N. 1st St. & "R" St.
Triangle Auto Supply
2
$700,000
$605,000
$1,200,000
$100,000
Building improvements @ 401 E. Arlington Street
Kobe Properties, LLC $400,000
New facility for Central Chain & Transmission @ 702 S. 2"d Street
ACTNOW Personnel & Training Services $110,000
Building rehab @ 303 W. "B" Street
Cascade Natural Gas Corp. $1,770,000
Building rehab and expansion for offices @ 701 S. 1St Ave.
Total Approved 10/07/2003
TOTAL 2003 CRD ALLOCATIONS:
$4,885,000
$12,000,000
With City Council approval, the list of projects will be forwarded to the state Department
of Community, Trade and Economic Development for ratification. CTED will then
provide a binding commitment letter and contract to the CRD awardees for verification
with the Internal Revenue Service. Another allocation of $12 million will be available
January 1, 2004.
3