HomeMy WebLinkAboutR-2004-193 2004 Allocation - Approved Projects re: Renewal Community Commercial Revitalization Deduction / Washington State DepartmRESOLUTION NO. R-2004-193
A RESOLUTION approving projects for the 2004 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 faunally 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 2004 that must be allocated by December 31, 2004;
and
WHEREAS, applications for the 2004 Commercial Revitalization Deduction were made
available to, and were received from the public; and
WHEREAS, a total of twenty (20) applications were submitted to the City for
consideration of the Commercial Revitalization Deduction; 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 for twelve (12) of the projects in the
amount of $12,000,000; 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
2004 federal Renewal Community Commercial Revitalization Deduction in the
amount of $12,000,000; 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 14th day of December, 2004
Paul George, Mayor
ATTEST:
...b
City Clerk
City of Yakima Renewal Community
2004 Commercial Revitalization Deduction Projects
Applicant/Proiect
Mark Petersen
Building Rehab @ 211 W. Yakima Ave.
Banner Bank
New bank @ 502 W. Yakima Ave.
Stewart Subaru
New showroom @ 506 Fruitvale Blvd.
Carey Motors
New dealership @ 3204 Fruitvale Blvd.
Lakefront, LLC
New office and bank building @ 1400 Lakeside Ct.
Dr. Ehlers Eye Care
New medical office @ 3403 Powerhouse Rd.
Allocation Amount
$312,000
$1,600,000
$729,000
$1,324,700
$960,000
$1,450,000
Jim Dwinnel $224,000
New office and restaurant space @ 3806 Fruitvale Blvd.
PDK Development
Physical therapy & rehab clinic @ 1470 N. 16th Ave.
BMS Properties
Rehab for office building @ 3700 Fruitvale Blvd.
Shields Bag & Printing
New warehouse space @ 1009 Rock Ave.
Shields Bag & Printing
New Ink Room @ 1009 Rock Ave.
A&N Invest & Rental
Neighborhood grocery @ 902 N. 4th St.
$2,552,596
$850,000
$1,277,743
$700,000
$19,361
TOTAL 2004 CRD ALLOCATIONS: $12,000,000
ITEM TITLE:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
Af-g
For Meeting Of: December 14, 2004
Approve projects for the 2004 allocation of the Commercial
Revitalization Deduction, and forward to state of Washington for
commitment.
SUBMITTED BY: Michael Morales, Economic & Community Affairs Specialis
CONTACT: Michael Morales, 575-3533
SUMMARY EXPLANATION:
The City of Yakima was designated a federal Renewal Community 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.
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. The City received nearly $20
million in applications for the $12 million allocation. The CRD Allocations Committee
recommended funding all projects that were placed in service in 2004, and moving
applications for 2005 projects to next year's cycle. All applications for projects
constructed in 2004 were awarded their entire eligible request.
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, 2005.
CONTINUED ON NEXT PAGE
Resolution X Ordinance Contract Other:
Approval for Submittal:
City Manager
STAFF RECOMMENDATION: Staff recommends approval of the allocations.
BOARD RECOMMENDATION: CRD Allocations Committee recommends approval.
COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2004-193
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The projects for the 2004 allocation of the Commercial Revitalization Deduction
are listed below:
Applicant/Project
Mark Petersen
Building Rehab @ 211 W. Yakima Ave.
Banner Bank
New bank @ 502 W. Yakima Ave.
Stewart Subaru
New showroom @ 506 Fruitvale Blvd.
Carey Motors
New dealership @ 3204 Fruitvale Blvd.
Lakefront, LLC
New office and bank building @ 1400 Lakeside Ct.
Dr. Ehlers Eye Care
New medical office @ 3403 Powerhouse Rd.
Jim Dwinnel
New office and restaurant space @ 3806 Fruitvale Blvd.
PDK Development
Physical therapy & rehab clinic @ 1470 N. 16th Ave.
BMS Properties
Rehab for office building @ 3700 Fruitvale Blvd.
Shields Bag & Printing
New warehouse space @ 1009 Rock Ave.
Shields Bag & Printing
New Ink Room @ 1009 Rock Ave.
A&N Invest & Rental
Neighborhood grocery @ 902 N. 4th St.
Allocation Amount
$312,000
$1,600,000
$729,000
$1,324,700
$960,000
$1,450,000
$224,000
$2,552,596
$850,000
$1,277,743
$700,000
$19,361
TOTAL 2004 CRD ALLOCATIONS: $12,000,000
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