HomeMy WebLinkAboutR-2005-008 Cub Crafters Airplane Manufacturing Grant & Loan ApplicationRESOLUTION NO. R-2005- 08
A RESOLUTION authorizing the City Manager to execute and submit grant and loan
application with Yakima County for funding from the Yakima County
Supporting Investments in Economic Development (SIED) Fund for
infrastructure improvements necessary for the Cub Crafters Airplane
Manufacturing project.
WHEREAS, Yakima County has established the Supporting Investments in Economic
Diversification (SIED) fund to assist the growth of business m the County; and
WHEREAS, economic development is a priority for the City of Yakima, and the City
intends to approach economic development on an inclusive, comprehensive basis which involves
public, private and community-based efforts to achieve new investiuent and redevelopment m the
City; and
WHEREAS, Cub Crafters is a locally company that is expanding its operations to
manufacture new airplanes; and
WHEREAS, Cub Crafters' expansion will require approximately $4,000,000 m private sector
investment and create over 100 new jobs;
WHEREAS, m order to develop a new manufacturing facility, Cub Crafters needs to install
wastewater infrastructure, estimated to cost $63,200; and
WHEREAS, Cub Crafters needs SIED assistance to help it conserve working capital for
equipment and inventory to support expanded production; and
WHEREAS, funding (through a grant/loan) may be available from Yakima County through
the SIED Fund for infrastructure improvements; and
WHEREAS, Cub Crafters has requested that the City submit a grant/loan application with
Yakima County to fund $50,000 of the infrastructure improvements from the SIED Fund; and
WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to
authorize submittal of a grant/loan application with Yakima County for funding of said
infrastructure improvements from the SIED Fund, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized and directed authorizing the City Manager to execute and
submit grant and loan application with Yakima County for funding from the Yakima County
Supporting Investments in Economic Development (SIED) Fund for infrastructure improvements
necessary for the Cub Crafters expansion project in the amount of $50,000.00. The City Manager is
hereby designated as the official representative of the City to act in connection with that funding
application and is authorized to take such additional actions as may be necessary and prudent to
complete the application process.
ADOPTED BY THE CITY COUNCIL this 4th day of January, 2005.
ATTEST: Paul George, Mayor
City Clerk
ITEM TITLE:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT ,.t
Item No.- I
For Meeting Of: January 4, 2005
Consideration of a resolution to authorize the City Manager to
execute and submit a grant/loan application to the Yakima County
Supporting Investments in Economic Diversification (SIED) fund for
Cub Crafters Project.
SUBMITTED BY. `;'°; ,:il Cook, Director of Community and Economic Development
CONTACT: ill Cook, 575-6113
SUMMARY EXPLANATION:
Cub Crafters, a local airplane manufacturer owned by Jim Richmond, is expanding their
manufacturing operation at the Yakima airport. The company expects to invest
approximately $4,000,000 in their facility and create over 100 new jobs.
Cub Crafters has applied for SIED funding to offset the cost of public sewer
infrastructure. The total cost of the infrastructure improvements is estimated at
$63,200. The company needs assistance to help it conserve working capital. SIED
funds will help Cub Crafters invest its funds in equipment and inventory that supports
expanded production.
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Resolution _X Ordinance Contract Other: Grant & Loan Application
Funding Source: Yakima County SIE
Approval for Submittal:
Fund
City Manager
STAFF RECOMMENDATION: Staff recommends approval of the resolution.
BOARD RECOMMENDATION:
COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2005-08
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Upon award, the City will enter into a loan agreement with Yakima County for
repayment of the loan portion (50%), and will also enter into an agreement with Cub
Crafters for repayment to the City of the aforementioned obligation.
The SIED program is a Yakima County funding source for economic development that
originates from a refund of County tax revenue from the State of Washington. SIED is
administered for the County by YCDA/New Vision, and the advisory board is appointed
by the County, with nominations from the cities.
SIED funds are available only for construction of public infrastructure, and only in
association with new private sector development which creates or retains manufacturing
jobs. SIED funding consists of a loan and grant award from Yakima County to the
applicant municipality or port district. Funding is limited to $500,000 per project, and a
local match is required.
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