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HomeMy WebLinkAboutR-2005-108 Yakima Air Park at McAllister Field SIED Grant & Loan ApplicationRESOLUTION NO. R-2005-108 A RESOLUTION authorizing the City Manager to execute and submit a 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 Yakima Air Park at McAllister Field. . The City Manager is also directed and authorized to first investigate the possibility of providing a full grant to the project in coordination with Yakima County. WHEREAS, Yakima County has established the Supporting Investments in Economic Diversification (SIED) fund to assist the growth of business in 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 investment and redevelopment in the City; and WHEREAS, Yakima Air Terminal — McAllister Field is an important part of our economic development efforts; and WHEREAS, Yakima Air Teriminal-McAllister Field will invest approximately $700,000.00 in federal funds to upgrade the airport taxi way; and WHEREAS, these improvements will serve a collection of hangars known as the Yakima Air Park; and WHEREAS, the Yakima Air Park will require private sector investment of approximately $200,000.00 WHEREAS, infrastructure improvements to water and sewer service are necessary for the completion of the project; and WHEREAS, funding (through a grant/loan) may be available from Yakima County through the SIED Fund for infrastructure improvements; and WHEREAS, Yakima Airport Board of Directors has requested that the City submit a grant/loan application with Yakima County to fund $129,000 of the infrastructure improvements from the SIED Fund; and WHEREAS, if awarded, the City will receive SIED funds in the form of a grant for $64,500.00, and a loan for $64,500.00; and WHEREAS, the Yakima Airport Board of Directors has agreed to execute loan documents with the City of Yakima for repayment of the loan; and WHEREAS, the loan will be paid through lease payments and/or airport fee revenue; 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 to execute and submit a 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 Yakima Air Park Project in the amount of $129,000.00. The City Manager is also directed and authorized to first investigate the possibility of providing a full grant to the project in coordination with Yakima County. 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 project. ADOPTED BY THE CITY COUNCIL this 5th day ofuly, 2005. ATTEST: Paul George, Mayor XaA,„, City Clerk H dw• . r. tea A4rr Fuessl `v.... i ��5rnen Ga+» Neese Mn'rkmmo. 1..r.W' I fGr„Dily ArGat unnlnncr.-,a Snw.�+ F r.J xT'n ” :a'3 ',H rrr Na ;un 6'JC ald uptrt gr.", ec,a r7=7 SPiCNG Win( WAD %S _, CONTRACTOR AGING AREA eiNt- wa_31 WfJi FaEWF 8 OWNER SUPPLIED WASTE SITE FOR SOIL EXCAVATION ONLY iI HAUL ROUTE TO SOIL WASTE SITE Yakima County SIED Fund Supporting Investments in Economic Diversification Application for funding Yakima County SIED Board Supporting Investments In Economic Diversification APPLICATION FOR FUNDING CERTIFICATION Applicant: City of Yakima Federal Tax Number: 91-6001293 Contact: Bill Cook Title: Director of Community & Economic Development Telephone: 509/575-6113 Fax: 509/576-6792 Email: bcook@clyakima.wa.us Address: 129 North 2nd Street Yakima, WA 98901 Indicate the minimum necessary total public project infrastructure costs. Amount of SIED loan requested: (see Policies for limits) Amount of SIED grant requested: (see Policies for limits) Local match (minimum 10% of SIED request) Airport PFC $ 701,494 List other funding source(s $ $ $ TOTAL public project costs: $ 830,494 TOTAL private investment in plant/equipment $200,000.00 Project title: South Airport Water/Sewer Addition Resolution # authorizing application: Declaration: IHEREBY CERTIFY THAT THE INFORMATION GIVEN IN THIS SUPPORTING NVESTMENTS IN ECONOMIC DEVELOPMENT BOARD ISTRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE AND BELIEF. $_64,500 $ 64,500 Signature of Responsible Official: Print or Type Name and Title: Richard A. Zais, City Manager Application for Funding, 1998 Page 3 Yakima County SIED Program Yakima County SIED Board Supporting Investments In Economic Diversification A. REQUEST FOR FUNDING Al. Indicate the full terms requested for SIED consideration. ♦ A loan of: $64,500.00 ♦ A grant of $64,500.00 (maximum 40% of project costs*). ♦ A deferral of the first loan payment (up to five years): N/A. ♦ Loan terms requested: •Total number of years for repayment: 7 years. B. PUBLIC SECTOR PROJECT B1. Describe the entire public facility project, including the parts that you are not asking SIED to fund. The Yakima Air Terminal has property on the south side of the airport that is targeted for development into a general aviation hangar facility and a Fixed Base Operator business (FBO) with full service (fuel, sales, service) to the aviation industry. In order to accommodate the expansion, basic infrastructure such as water, sewer, access roadway, and new taxiway are needed. Additionally, aircraft taxiway improvements are required to provide adequate access to the site for general aviation and corporate aircraft. B2. Will this project upgrade an existing public facility? YES. Build a new one? YES. Describe. The property has a water and sewer main running along the east boundary but it is inadequate to provide fire flow requirements for new businesses. This project would `loop' the water main, add fire hydrants, and extend the sewer line to the hangars and FBO facility. The airport will reconstruct the taxiway utilizing airport funding. B3. List all funding sources for the public project and amount. •Identify whether the amount has been provided or is being requested. Provide the status and date the funds were approved or the date that funds are expected to be approved: SOURCE SIED loan requested SIED grant requested Airport (PFC Funds) Total project costs STATUS DATE AMOUNT Applied July 05 $ 64,500 Applied July 05 $ 64,500 Pending August, 05 $701.494 $ $ $ $830,484 NOTE: ALL REQUIRED FUNDING TO COMPLETE THE PROJECT MUST BE SECURED WITHIN SIX MONTHS OF A SIED OFFER OF FINANCIAL AID. Application for Funding, 1998 Page 4 Yakima County SIED Program Yakima County SIED Board Supporting Investments In Economic Diversification B4. Specifically, for what element(s) of the public project are SIED funds requested? SIED funding will cover costs to `loop' the water main, add fire hydrants, and extend the sewer line to the hangars and FBO facility. B5. Include a site map of the area. Identify the location of the site, public infrastructure and private development project (existing and/or proposed). Specifically identify where SIED funds are proposed to be used. B6. Attach engineering estimates supporting project costs. Identify whether estimates are from preliminary engineering or design engineering work. Engineering estimates prepared by City of Yakima and HLA Engineers. B7. Describe how the public facility project will enhance or encourage other development in the immediate area in addition to the direct development described in this application (Section D.) Development on the north side of the Yakima Airport has been limited by FAA safety regulations. Therefore, any future aviation facilities will have to be located on the south side of the airport. At this time, there is inadequate infrastructure to accommodate the demand for growth in this industry. With FAA funds to construct the new taxiway, water and sewer utilities are needed to facilitate new construction of aviation facilities. B8. List all permits and environmental reviews required for the PUBLIC SECTOR PROJECT and give their current status (applied for, application being prepared, permit issued, etc.) PERMIT N/A ISSUER STATUS ANTICIPATED COMPLETION DATE NOTE: ALL REQUIRED PERMITS TO COMPLETE THE PROJECT MUST BE SECURED WITHIN SIX MONTHS OF A SIED OFFER OF FINANCIAL AID. B9. If environmental permits are not required for the project (e.g., Shorelines Permit, Environmental Impact Statement, etc.), please explain why they are NOT required. This type of construction is categorically excluded from the environmental process under Federal Aviation Administration Order 5050.4A, Environmental Handbook. B10. Estimated schedule for public project completion. Indicate the month and year when the activities listed have been, or will be, completed. ESTIMATED COMPLETION DATE Preliminary Engineering Report June, 05 Environmental Review N/A All Required Permits Obtained N/A Design Engineering August, 05 Land/Right-of-Way Acquisition (Leases) August 05 Prepare Bid Documents August, 05 Award Construction Contract September, 05 Begin Construction September, 05 Project Operational November, 05 Application for Funding, 1998 Page 5 Yakima County SIED Program Yakima County SIED Board Supporting Investments In Economic Diversification B11. What other jurisdictions, such as counties, cities, port districts, tribes, state/federal agencies are involved in the planning, design, financing, construction or operation of this project? City of Yakima, Yakima County, Federal Aviation Administration and Yakima Air Terminal Please explain how completion of the project is coordinated between other involved parties. Airport personnel will coordinate construction of private sector project. City of Yakima will manage design and construction of utilities. B12. Will the SIED public facility project be totally maintained by the applicant? If not, whom? Please explain. The taxiway will be maintained by the Yakima Air Terminal. Water and Sewer mains will be maintained by the City of Yakima. Parking facilities will be maintained by tenant. B13. How will this project impact utility rates and public services within the jurisdiction? No impact. B14. Is this project consistent with your local comprehensive and capital facilities plans? If no, please explain. Yes. This project is consistent with the Yakima Air Terminal Master Plan and Airport Layout Plan, as well as the City of Yakima Comprehensive Plan. C. FINANCIAL INFORMATION ON CITIES, TOWNS, PORT DISTRICTS AND COUNTIES C1. Identify funds (General Fund, Utility Fund, Property taxes, etc.) that are eligible to repay a SIED loan. The Yakima Airport will repay the loan to the City of Yakima through lease payments received at the airpark. The airport has also agreed to budget a portion of its fee revenue to cover the debt service obligation. C2. In the context of the local government's overall annual budget, explain the need for SIED assistance. If the applicant has budget reserves, please explain why these funds are not available for the project? The City of Yakima does not have available funds to extend services onto the airport property as it is also owned by Yakima County. Circumstances for using of the City's reserve funds are restricted, and this project does not meet the criteria for their use. C3. If the local jurisdiction is not financially contributing to the project, please explain why. The City has agreed to apply for SIED funds and incur debt on behalf of the Yakima Airport, as the airport is ineligible to receive SIED funds. As co-owner of the airport, Yakima County will also be required to authorize the airport to incur debt. Application for Funding, 1998 Page 6 Yakima County S1ED Program Yakima County SIED Board Supporting Investments In Economic Diversification C4. Has the use of revenue or general obligation bonds, LID, ULIDS been explored for this public facility project? Yes. Explain the outcome and describe why these financing sources would or would not be applicable for this project. Due to regulations, the nature of the airport leases are incompatible with an LID for the project. The land of the airport is jointly owned by the city and county, and is leased to the hangar developers. The hangers eventually revert to airport ownership at the end of their term. C5. Will a revenue stream be generated that could repay a SIED loan outside of the system's normal operations and maintenance costs? Yes. Please explain. In addition to revenue from hangar lease payments, the Yakima Airport will pledge a portion of its fee revenue for repayment of the loan. C6. Other public sources of funding for public economic development projects are listed below. Indicate which public sources were investigated to fund this project, in addition to SIED. Indicate what the outcome was. YES NO OUTCOME FEDERAL: Economic Development Administration _X— Rural Development —X— T21 (ISTEA) —X Other: Federal Aviation Administration X _ Application Pending. STATE: Transportation Improvement Board _ _X Community Development Block Grant _X— _ Not eligible. Public Works Trust Fund —X— Department of Ecology —X CERB —X— RTPO/MPO —X Other Explain why SIED funds are necessary and the outcome of the investigation of other fund sources: This project closely tailored to meet the goals and objectives of the SIED program. Infrastructure development is essential to the economic well being of the Yakima Valley, and the SIED program's goals is to assist in providing this infrastructure. Aviation plays a key role in attracting and maintaining businesses in the Yakima area. By improving the infrastructure on the south side of the airport, jobs are created and facilities for corporate and general aviation aircraft are improved. Application for Funding, 1998 Page 7 Yakima County SIED Program Yakima County SIED Board Supporting Investments In Economic Diversification D. PRIVATE SECTOR COMMITMENT D1. In order to show that a specific private investment is ready to occur, but will do so only if SIED assistance is made available to the applicant, SIED requires a signed Contingency Agreement(s) between the applicant and the private sector representative(s). If a developer is involved, there must also be a signed Contingency Agreement between the developer and the proposed tenant. D2. Describe the proposed private development or expansion project that will be supported by the public facility project. Business: Private and Corporate Hangars Ahtanum Hangar LLC — proposing to build 10 - 20 individual hangars (50'x50') Yakima Airpark LLC — proposing to build 10 - 20 individual hangars (60'x60') Prospective Corporation (to be named) — proposing to build a corporate hangar (100' x 100') Prospective Corporation (to be named) — proposing to build a corporate/FBO hangar (100'x200') Total estimated cost of improvements: $2,460,000 to $3,810,000 D3. Name of private sector firm Yakima Airpark LLC (lead tenant on project) Address P.O. Box 814 Zillah, WA 98953 Phone/Fax (509) 829-6381 Contact Person Tom McMahon D4. Explain why the private development requires the proposed public infrastructure improvements described in this application. Water line is required to meet the City/County Fire Code for water volume and pressure to the fire hydrants. The infrastructure is to be "looped" to the existing system that is at the airport boundary. Sewer line is to provide the needed demand for public use facilities and future development of the area for sanitary sewer. Existing septic system is antiquated and below projected need capacity. Application for Funding, 1998 Page 8 Yakima County SIED Program Yakima County SIED Board Supporting Investments In Economic Diversification D5. List the number of protected jobs, by job type, to be retained and/or created by the firm as a direct result of the public infrastructure project supporting the private development. Jobs must be expressed in Full Time Equivalents (FTEs). Wage data should exclude fringe benefits. *Management positions should be indicated as an annual salary. Job Description Current # Of Jobs Retained** (In FTEs) # Of Jobs Created Year 1 (In FTEs) # Of Jobs Created by Year 3 (In FTEs) Current or initial Hourly Wages Local Occupational Hourly Wages*** Mgmt./Admin* 1 Project Mgr 1 FBO Mgr 36-48K/yr Technical/Prof. 2 A/C Mechanics Const Supervisor 3 NC Mechanics 3 A/c Mechanics $15-25/hr Office/Clerical 1 FBO Office $10/hr Pilots 4 Corp Pilots $45-60K/yr Sales Skilled Crafts 3 FBO Service 1 FBO Service $8-12/hr Others a) Number of Jobs **Retained 7 b) Projected annual gross payroll for all job classifications $846,600 c) How many of these positions are for seasonal work? (In FTE) 10+Sub Contractors d) What kind of fringe benefits does the company offer to regular full time employees? Medical, dental, vision, 401K, paid vacation and sick leave. D6. Will this project displace existing jobs in any other part of the county? Yes No X . D7. How were job projections developed? Projections are based on the history of other operations at the airport and on the plans expressed by the airpark developers. D8. Will the private sector project offer expanded employment opportunities to disadvantaged or unemployed workers? How will the firm work to hire people from Yakima County? Construction work is expected to be done by local contractors, and job openings will be advertised locally. D9. Indicate the construction schedule (if applicable) for the proposed private sector project. Private Facility Construction Begins Private Facility Construction Completed Private Facility Operational (month/year) September, 05 November, 05 November, 05 Application for Funding, 1998 Page 9 Yakima County SIED Program Yakima County SIED Board Supporting Investments In Economic Diversification D10. List all permits required for the PRIVATE SECTOR PROJECT and give their current status (applied for, application being prepared, permit issued, etc.) PERMIT/ENVIROMENTAL ANTICIPATED COMPLETION REVIEW ISSUER STATUS DATE Building Permit City of Yakima For hangars. Pending September, 05 NOTE: ALL REQUIRED PERMITS TO COMPLETE THE PROJECT MUST BE SECURED WITHIN SIX MONTHS OF A SIED OFFER OF FINANCIAL AID. D11. What private authorizations remain prior to proceeding with the proposed private development project? Execution of leases with Yakima Airport, to include repayment of SIED loan. D12. Explain how the private sector is financing their capital investment in this project. Hangar construction will be financed by each individual developer. Application for Funding, 1998 Page 10 Yakima County SIED Program 10/20/05 YAKIMA COUNTY and CITY OF YAKIMA (Yakima Air Park) I PARTIES SIED CONTRACT NO. YC -AP -05 This Contract is made by and between Yakima County (hereinafter referred to as the County) whose address is 128 North Second Street, County Courthouse, Room 102, Yakima, Washington 98901, and the City of Yakima (hereinafter referred to as the City) whose address is 129 North 2nd Street, Yakima, Washington 98901. Notices between the parties shall be made where and as provided for on Page 8, Section XXII, NOTICES. II TERM This Contract takes effect upon execution hereof by the authorized representatives of both parties and continues in effect until all payments required under Section V, MUTUAL CONSIDERATION, Subsection B. REPAYMENT OF COUNTY LOAN, have been made or until terminated as provided for in Section VIII, SUSPENSION, TERMINATION, AND CLOSEOUT, provided, the County's right under Section V, MUTUAL CONSIDERATION, Subsection D. OWNERSHIP AND USE, to use the Project shall continue so long as the Project remains in use. III PURPOSE The purpose of this Contract is to provide for the construction of certain infrastructure improvements (hereinafter referred to as the Project) using certain County funds designated for such infrastructure. The Yakima Air Terminal has property on the south side of the Airport with water and sewer mains running along the east boundary, but the water main is inadequate to provide fire flow requirements for new businesses. This Project would "loop" the water main and add fire hydrants to serve new hangars and a Fixed Base Operator (1130) facility. IV RECITALS The Parties make this Contract based on and in recognition of certain relevant facts and circumstances including: A. Sales and use taxes are collected in and for the County under authority of RCW 82.14.370 and Yakima County Code 3.10.010 for the purpose of financing public facilities in the County, and the proceeds are deposited in the Yakima County Infrastructure Fund (also referred to as S1hD Fund), according to YCC 3.10.040. Filed Page 1 of 9 Contract No. YC -AP -05 10/20/05 B. The City proposes to construct the Project with a combination of City, private, and County funds, including $129,000.00 from the SIED Fund, $64,500.00 to be in the form of a loan and $64,500.00 to be in the form of a grant, and thereafter to own and operate the Project for the benefit of the City and the County. C. RCW 82.14.370 was adopted to serve the goals of promoting business in rural distressed areas, providing family wage jobs and the development of communities of excellence in such areas, and the parties expect the Project to further these goals. D. RCW 43.160 and 43.160.020 adopted and amended for related purposes with those of RCW 82.14.370, define public facilities to include various buildings, structures and works, such as the Project. E. The County, under authority of RCW 36.01.085, and by agreement of February 19, 1999, has engaged the Yakima County Development Association, also known as New Vision, to provide administrative and technical assistance in furtherance of the County's economic development. F. The County has also created the SIED Board to review applications for grants from the SIED Fund and make recommendations for SLED Fund investments based on commitment of other funds, potential for resulting job creation, and other factors. G. New Vision has investigated the Project and assisted in preparing the pending application for SIED funds, and the SIED Board has reviewed the application for SLED funds and has recommended approval. H. The S I HD Fund balance is sufficient to make the requested contribution to the Project. I. RCW 39.34 authorizes interlocal agreements whereby municipal governments may jointly exercise the powers granted to each. J. The City has or will promptly make an agreement with the Yakima Air Terminal Board providing for remittance to the City of Air Terminal property lease payments with which to repay the loan provided for herein. V MUTUAL CONSIDERATION A. COUNTY LOAN—The County shall loan Sixty-four Thousand Five Hundred Dollars and Zero Cents ($64,500.00) for the Project described herein. This loan amount shall be by County warrant drawn on the SIED Fund and payable to the City immediately upon approval of this agreement by Board of County Commissioners following signatures from the City. B. REPAYMENT OF COUNTY LOAN—The City shall repay the County's loan of Sixty-four Thousand Five Hundred Dollars and Zero Cents ($64,500.00) with interest on unpaid principal, at an annual per annum rate of X7 5 . S %, which is Filed Page 2 of 9 Contract No. YC -AP -05 10/20/05 the Yakima County Interfund Loan Rate on the date this Contract is approved by the County. Interest shall accrue from the date this contract is approved by the County. Repayment shall be made by the City in seven equal annual installments (including principal and interest) payable on June 1, 2006, and annually thereafter on June 1 of each year, with the final payment nevertheless due on June 1, 2012; Provided, however, that the final installment may be in such greater or lesser amount as shall be required for full amortization of the repayment amount. These payments shall be by check payable to Yakima County Infrastructure Fund and delivered to Yakima County Treasurer, Yakima County Courthouse, Room 115, 128 North 2nd Street, Yakima, WA 98901. Half of the said loan hereunder ($32,250) shall be a limited general obligation of the City, payable from any legally available source of funds. Exhibit A attached hereto is a schedule of the debt service on this general obligation. The other half of the said loan ($32,250) shall be a revenue obligation of the City, to be paid from the lease proceeds described in paragraph IV. J. Exhibit B attached hereto is a schedule of debt service on the revenue obligation. In the event of insufficiency of the aforementioned lease revenues to meet any annual payment shown in Exhibit B, after allowing for application thereof to the obligation for the same year as shown in Exhibit A, the City shall pay to the County the available revenues, and the County shall clear the balance of that installment for that year under Exhibit B from such source or in such manner it then deems appropriate in the circumstances. In the event of payment by the City of any one or more installments, or of the entire loan balance, before the date prescribed in Exhibit A or Exhibit B, interest shall accrue on such installment(s) or balance until, but not beyond, the June 1 next succeeding the date of such payment(s). C. COUNTY GRANT—The County shall grant Sixty-four Thousand Five Hundred Dollars and Zero Cents ($64,500.00) to the City for the Project described herein. This grant shall be by County warrant drawn on the SIED Fund and payable to the City within thirty (30) days of the County's receipt of a signed copy of the Project engineer's certificate that 50% of the work on the Project has been completed and the City's invoice for said grant. D. OWNERSHIP AND USE—The City shall construct, own, maintain, and operate the Project as a part of its public infrastructure for economic development, available for use by manufacturing and industrial concerns proximate to the Project. The City shall also permit the use of the Project by the County and its departments on like teiins with other users, at such time as the Board of Yakima County Commissioners may deem expedient. For purposes of this paragraph, ownership, maintenance, and operation of the Project or any portion thereof by another municipality, under any conveyance or dedication which is subject to and preserves the County's right of use, shall be deemed ownership, maintenance, and operation by the City. Filed Page 3 of 9 Contract No YC -AP -05 10/20/05 VI RECORDS, REPORTS AND AUDITS The City agrees to maintain such records, make such reports and follow such procedures as may be required by the County, pertaining to this Contract. All records pertaining to this Contract and work undertaken hereunder shall be retained by the City for a period of three years after final audit unless a longer period is required to resolve audit findings or litigation. The County and other authorized representatives of the State and Federal government shall have access to any books, documents, papers, and records of the City which pertain to this Contract or work undertaken hereunder for the purpose of making audit, examination, excerpts, and transcriptions. VII RELATIONSHIP OF PARTIES AND AGENTS The relationship of the City to the County, with regard to construction of the Project, shall be that of an independent contractor rendering professional services. The City shall have no authority to execute contracts or to make commitments on behalf of the County and nothing contained herein shall be deemed to create the relationship of employer and employee or principal and agent between the County and the City. The City represents that it has or will secure at its own expense all personnel, contractors, and/or subcontractors required in order to perform work under this Contract. Such personnel shall not be employees of the County. All such personnel, contractors, and/or subcontractors shall be fully qualified and authorized/permitted under State and/or local law to perform such services. All services required hereunder will be performed by the City or under its supervision and all personnel engaged in the work shall be fully qualified and shall be authorized or permitted under State or local law to perform such services. VIII SUSPENSION, TERMINATION, AND CLOSEOUT If the City fails to comply with the terms and conditions of this Contract, the County may pursue such remedies as are legally available, including, but not limited to, the suspension or termination of this Contract in the manner specified herein: A. SUSPENSION—If the City fails to comply with terms and conditions of this Contract, or whenever the City is unable to substantiate full compliance with provisions of this Contract, the County may suspend this Contract pending corrective action or investigation, effective not less than seven days following written notification to the City or its authorized representative. The suspension will remain in full force and effect until the City has taken corrective action to the satisfaction of the County and is able to substantiate its full compliance with the terms and conditions of this Contract. No obligations incurred by the City or its authorized representative during the period of suspension will be allowable under this Contract, except: 1. Reasonable, proper, and otherwise allowable costs which the City could not avoid during the period of suspension; Filed Page 4 of 9 Contract No. YC -AP -05 10/20/05 2. Otherwise allowable costs incurred during the period of suspension, if upon investigation, the County is satisfied of the City's compliance with the terms and conditions of this Contract to the extent of the compensation claimed by the City. B. TERMINATION FOR CAUSE—If the City fails to comply with the terms and conditions of this Contract and any of the following conditions exist: 1. The lack of compliance with the provisions of this Contract were of such scope and nature that the County deems continuation of this Contract to be substantially detrimental to the interests of the County; 2. The City has failed to take satisfactory action as directed by the County or its authorized representative within the time period specified by same; 3. The City has failed within the time specified by the County or its authorized representative to satisfactorily substantiate its compliance with the terms and conditions of this Contract; then, The County may terminate this Contract in whole or in part, and thereupon shall notify the City of termination, the reasons therefore, and the effective date, provided such effective date shall not be prior to notification of the City. After this effective date, no charges incurred under any terminated portions outlined in the application for funding are allowable. C. TERMINATION FOR OTHER GROUNDS—This Contract may also be terminated in whole or in part by mutual consent and written agreement setting forth the conditions of termination, including effective date and, in case of termination in part, that portion to be terminated. IX COPYRIGHT RESTRICTION No report, maps, or other documents produced in whole or in part under this Contract shall be the subject of an application for copyright by or on behalf of the City. X COMPLIANCE WITH LAWS The County and the City shall comply with all applicable laws, ordinances, and codes of the Federal, State and local governments with regard to the performance of this Contract. XI TITLE VI OF THE CIVIL RIGHT ACT OF 1964 Under Title VI of the Civil Rights Act of 1964, no person shall, on the grounds of race, color, creed, religion, sex, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. Filed Page 5 of 9 Contract No. YC -AP -05 10/20/05 XII SECTION 109—HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974 No person in the United States shall on the grounds of race, color, creed, religion, sex, or national origin be excluded from participation in, be denied benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this title. XIII AGE DISCRIMINATION ACT OF 1975 (As Amended) No person shall be excluded from participation, denied program benefits, or subjected to discrimination on the basis of age under any program or activity receiving Federal funding assistance. (42 U.S.C. 610 et. seq.) XIV SECTION 504 OF THE REHABILITATION ACT OF 1973 (As Amended) No otherwise qualified individual shall, solely by reason of his or her handicap, be excluded from participation (including employment), denied program benefits, or subjected to discrimination under any program or activity receiving Federal funds (29 U.S.C. 794). XV INTEREST OF MEMBERS OF THE COUNTY AND THE CITY No member of the governing body of either party and no other officer, employee, or agent of either party who exercises any functions or responsibilities in connection with the planning or carrying out of the Project shall have any personal financial interest, direct or indirect, in this Contract. XVI HOLD HARMLESS AND INDEMNITY The City shall indemnify and hold halinless the County, its officers, agents, and employees, from all liability, loss or damage, including costs of defense they may suffer as a result of claims, demands, actions costs, or judgments which result from the activities to be performed by the City, its agents, employees, or subcontractors pursuant to this Contract. XVII PUBLIC LIABILITY The City or its contractor(s) shall maintain for the duration of work under this Contract, issued on an occurrence basis, comprehensive liability insurance with a combined single limit of not less than one million dollars ($1,000,000) from a company authorized to provide insurance in the State of Washington. Said policies shall provide that the policy shall not be canceled or altered by any party without written notice to Yakima County, delivered not less than thirty (30) days prior to such cancellation or alteration. Applicant certifies that comprehensive liability insurance with a combined single limit of not less than $1,000,000.00 is in effect. XVIII ASSIGNABILITY Filed Page 6 of 9 Contract No. YC -AP -05 10/20/05 The City shall not assign any interest in this Contract and shall not transfer any interest in this Contract (whether by assignment or novation) without prior written consent of the County thereto, provided, however, that claims for money by the City from the County under this Contract may be assigned to a bank, trust company, or other financial institution without such approval. Written notice of any such assignment or transfer shall be furnished promptly to the County by the City. XIX NON -WAIVER The failure of either party to insist upon strict performance of any provision of this Contract or to exercise any right based upon a breach thereof or the acceptance of any performance during such breach shall not constitute a waiver of any right under this Contract. XX CONTRACT MODIFICATIONS It is mutually agreed and understood that no modification or waiver of any clause or condition of this Contract is binding upon either party unless such modification or waiver is in writing and executed by the County and the City. XXI SEVERABILITY If any portion of this Contract is changed per mutual contract or any portion is held invalid, the remainder of this Contract shall remain in full force and effect. XXII NOTICES Unless stated otherwise herein, all notices and demands shall be in writing and sent or hand - delivered to the parties to their addresses as follows: TO CITY: TO COUNTY: Bill Cook, Director of Community & Economic Development City of Yakima 129 North 2nd Street Yakima, WA 98901 Steve Hill, Director Yakima County Departments of Community Services & Grant Management 128 North 2nd Street, Room 102 Yakima, WA 98901 or to such other addresses as the parties may hereafter designate in writing. Notices and/or demands shall be sent by registered or certified mail, postage prepaid, or hand -delivered. Such notices shall be deemed effective when mailed or hand -delivered at the addresses specified above. Filed Page 7 of 9 Contract No. YC -AP -05 10/20/05 XXIII INTEGRATION This Contract contains all terms and conditions agreed to by the County and the City. There are no other oral or written agreements between the City and County as to the subjects contained herein. No changes or additions to this Contract shall be valid or binding upon either party unless such change or addition be in writing and executed by both parties. XXIV GOVERNING LAW AND VENUE All questions of the validity, construction, and application of this Contract shall be governed by the laws of the State of Washington. Venue for any suit between the parties arising out of this Contract shall be the Superior Court of Yakima County, Washington. XXV FILING Upon execution by the authorized representatives of the parties, a copy of this Contract shall be promptly filed with the Yakima County Auditor pursuant to RCW 39.34.040. *************** Filed Page 8 of 9 Contract No. YC -AP -05 10/20/05 IN WITNESS WHEREOF, the County and the City have executed this Contract as of the date and year last written below. CITY OF YAKIMA Richard A. Zais, City Manager Approved as to Form: 4 Ray Paolella, City Attorney Attest: �jw...,_ Karen S. Roberts, City Clerk at( a-oos Date BOARD OF COUNTY COMMISSIONERS BOARD OF YAKIMA COUNTY COMMISSIONERS 444 J/sse S. Palacios, Chairman Michael D. Leita, Commissioner ea„ <) Ronald F. Gamache, Commissioner CITY coNTRAcrNO.,;9 RESOLUTION NO 5—(0 SEAT LS' HiPd�:Zc Approved as to Form: taffan, Deputy Prosecuting Attorney CONTRACT AUTHORIZATION Attest: Attest: Jennifer Adams, Deputy Clerk of the Board 0111 l k y AK �` Q� CO i�p Q�"•' pc- WAs /,'/ 3 CO -Y: ui fai =��yS 01 12 $ `a Dated this day of F - v6 . , 2006 Filed Page 9 of 9 Contract No. YC -AP -05 Dated 2/7/2006 Delivered: 2/7/2006 Debt Service Schedule SLED Loan City of Yakima Air Park - General Obi gation 1 Fiscal Coupon Principal Coupon Interest Credit Periodic Fiscal Outstanding Yr Date Payment Rate Payment Enhancements Debt Service Debt Service Debt 2006 6/1/2006 4,918.49 5 625 574 45 5,492.94 5,492.94 27,331.51 2007 6/1/2007 3,955.54 5.625 1,537.40 0 00 5,492.94 5,492.94 23,375.97 2008 6/1/2008 4,178.04 5.625 1,314.90 0.00 5,492.94 5,492.94 19,197.93 2009 6/1/2009 4,413.06 5.625 1,079.88 5,492.94 5,492.94 14,784.87 2010 6/1/2010 4,661.29 5.625 831.65 0 00 5,492.94 5,492.94 10,123.58 2011 6/1/2011 4,923.49 5.625 569.45 0.00 5,492.94 5,492.94 5,200.09 2012 6/1/2012 5,200.09 5 625 292.51 5,492.60 5,492.60 0.00 32,250.00 6,200.24 0.00 38,450.24 True Interest Cost (TIC) 5.6250000 Net Interest Cost (NIC) 5.6249978 .Accrued Interest 0.00 Arbitrage Yield Limit (APL) Arbitrage Net Interest Cost (ANIC) 0.0000000 0.0000000 Prepared by: YAI.I1'L4 COUNTY7REASUR Prepared on: 2/23/2006 13.14 12.00 Rpt 24c :h1UNIDB YC -AP -0.5-2006 A MEMORANDUM OF AGREEMENT PARTIES: YAKIMA AIRPORT— MCALLISTER FIELD, a municipally chartered organization CITY OF YAKIMA: City of Yakima, a Washington municipal corporation. MEMORANDUM OF AGREEMENT dated as of February , 2006, between Yakima Airport and the City of Yakima. The parties hereto hereby agree as follows: BACKGROUND. Yakima Airport is the manager of certain real property within the city limits of the City of Yakima, owned by the City of Yakima and Yakima County per the Yakima Airport Joint Operating Agreement, upon which Yakima Airpark, LLC is constructing new airplane hangars that require the installation of water lines and road improvements, hereto described in Exhibit 1 (The Project). The City of Yakima will provide grant funds up to Sixty -Four Thousand, Five - Hundred Dollars ($64,500.00), and loan funds up Sixty -Four Thousand, Five -Hundred Dollars ($64,500.00), to the extent such funds are made available to the City from Yakima County under the County's Supporting Investments in Economic Development (SIED) Program. Term Loan Agreement 1. Article I AMOUNT AND TERMS OF THE AGREEMENT Section 2.01. Grant and Loan Terms. The City of Yakima agrees on the terms and conditions hereinafter set forth, to make a Grant (the "Grant") available to the Yakima Airpark Project on the date of this Agreement in the principal amount of not more than Sixty -Four Thousand. Five Hundred and no/100 Dollars ($64,500.00). The City will also loan to the project in the principal amount of not more than Sixty -Four Thousand Five Hundred and no/100 Dollars ($64,500.00 (the "Loan"). The Parties agree that said funds shall be used solely in contemplation of the development and Project Section 2.02. Yakima Airport's Contribution. Yakima Airport has contributed over $700,000.00 to the Project (the "Yakima Airport Contribution") for improvements to the Charlie taxi -way. The Yakima Airport Contribution funds are separate and distinct from the Loan and Grant funds. The City of Yakima and Yakima Airport shall work cooperatively and in good faith to insure that the Project is completed in a timely manner. Yakima Airport understands that the City of Yakima shall have control over the expenditures of said Loan and Grant funds in accordance with this Agreement. Section 2.03. Method of Payment. Yakima Airport shall make the Reimbursement under this Agreement on the date when due in lawful money of the United States to the City of Yakima at its Principal Office in immediately available funds. Method of Payment shall be subject to the terms and conditions of the Agreement between the City of Yakima and Yakima County SIED Program, attached hereto as Exhibit 2. Section 2.04. Use of Proceeds. The Grant and the Loan, together with the Yakima Airport Contribution shall be used by the Yakima Airport in the construction of the improvements specified in the Project including, but not limited to, the Project requirements as provided for under the approved plans and specifications of the Project. Yakima Airport and the City will not, directly or indirectly, use any part of such proceeds for any purpose not consistent with said Project. Yakima Airport understands and agrees that the Loan, and Grant funds shall be held in a specially marked account under the direction and control of the City of Yakima, and will be disbursed as necessary and required to the contractor(s) on the Project. Term Loan Agreement 2. Article III CONDITIONS PRECEDENT Section 3.01. Condition Precedent to the Grant. The obligation of the City of Yakima to make the Grant and Loan to Yakima Airport is subject to the conditions precedent that the City of Yakima shall have received on or before the day of such Loan and/or Grant each of the following, in form and substance satisfactory to the City of Yakima and its counsel: (1) Agreement. The Agreement herein duly executed by Yakima Airport; (2) Evidence of authorization for all action by Yakima Airport. Copies of all authorizations by the necessary parties of Yakima Airport authorizing the action taken by Yakima Airport, including resolutions and or minutes from Airport Board of Directors authorizing the execution, delivery, and performance of this Agreement to which it is a party and each other document and funds to be delivered pursuant to this Agreement; (3) Additional documentation. The City of Yakima shall have received such other approvals, opinions, or documents as the City of Yakima may reasonably request. Article IV REPRESENTATIONS AND WARRANTIES Yakima Airport represents and warrants to the City of Yakima that: Section 4.01. Formation, Good Standing, and Due Qualification. Yakima Airport is validly existing, and in good standing under the laws of the State of Washington; has been granted the power and authority by the City of Yakima and Yakima County to own assets, lease property and to transact the business in which it is now engaged or proposed to be engaged in. Section 4.02. Power and Authority. The execution, delivery, and performance by Yakima Airport of this Agreement has been duly authorized by all necessary Board action. Section 4.03. Legally Enforceable Agreement. This Agreement, and the attached Yakima County SIED Program Agreement are legally valid, and binding Term Loan Agreement 3. Agreements between the City of Yakima, Yakima County and Yakima Airport, and are enforceable against Yakima Airport, Yakima County and the City of Yakima in accordance with the respective terms, except to the extent that such enforcement may be limited by applicable bankruptcy, insolvency, and other similar laws affecting creditors' rights generally. Section 4.04. Litigation. There is no pending or threatened action or proceeding against or affecting Yakima Airport before any court, governmental agency, or arbitrator, which may, in any one case or in the aggregate, materially adversely affect the financial condition, operations, properties, or business of Yakima Airport or the ability of Yakima Airport to perform its obligation under the Loan Documents to which it is a party. Section 4.05. Environment. Yakima Airport has duly complied with, and their businesses, operations, assets, equipment, property, leaseholds, or other facilities are in compliance with, the provisions of all federal, state, and local environmental, health, and safety laws, codes and ordinances, and all rules and regulations promulgated thereunder. Yakima Airport has not received notice of, nor knows of, or suspects, facts which might constitute any violations of any federal, state, or local environmental, health, or safety laws, codes or ordinances, and any rules or regulations promulgated thereunder with respect to its businesses, operations, assets, equipment, property, leaseholds, or other facilities. Yakima Airport does not have any indebtedness, obligation, or liability, absolute or contingent, matured or not matured, with respect to the storage, treatment, cleanup, or disposal of any solid wastes, hazardous wastes, or other toxic or hazardous substances (including without limitation any such indebtedness, obligation, or liability with respect to any current regulation, law, or statute regarding such storage, treatment, cleanup, or disposal) which is not disclosed herein: Term Loan Agreement 4. will Article V AFFIRMATIVE COVENANTS So long as the Public Works Project remains to be completed, Yakima Airport Section 5.01. Maintenance of Existence. Preserve and maintain its organization existence and good standing in the jurisdiction of its formation. Section 5.02. Maintenance of Records. Keep adequate records and books of account reflecting all financial transactions of Yakima Airport. Section 5.03. Maintenance of Properties. Maintain, keep, and preserve all of its properties (tangible and intangible) necessary or useful in the proper conduct of its business in good working order and condition, ordinary wear and tear excepted. Section 5.04. Conduct of Business. Continue to engage in an efficient and economical manner in a business of the same general type as now conducted by it on the date of this Agreement. Section 5.05. Compliance With Laws. Comply in all respects with all applicable laws, rules, regulations, and orders, such compliance to include, without limitation, paying before the same become delinquent all taxes, assessments, and governmental charges imposed upon it or upon its property. Section 5.06. Environment. Be and remain in compliance with the provisions of all federal, state, and local environmental, health, and safety laws, codes and ordinances, and all rules and regulations issued thereunder; notify the City of Yakima immediately of any notice of a hazardous discharge or environmental complaint received from any governmental agency or any other party; notify the City of Yakima immediately of any hazardous discharge from or affecting its premises; immediately contain and remove the same, in compliance with all applicable laws; promptly pay any fine or penalty assessed in connection therewith; permit the City of Yakima to inspect the premises, to conduct tests thereon, and to inspect all books, correspondence, and records pertaining thereto; and at the City of Yakima's request, and at Yakima Airport's expense, provide a report of a qualified environmental engineer, satisfactory in scope, form, and content to the City of Yakima, and such other and further assurances reasonably satisfactory to the City of Yakima that the condition has been corrected. Term Loan Agreement 5. Article VI EVENTS OF DEFAULT Section 6.01. Events of Default. If any of the following events shall occur: (1) Yakima Airport should fail to make a loan payment in a timely manner as defined in the Yakima County SIED Program Agreement, fail to pay Reimbursement amount as required herein, or any fee, as and when due and payable; (2) Any representation or warranty made or deemed made by Yakima Airport in this Agreement, shall prove to have been incorrect, incomplete, or misleading in any material respect on or as of the date made or deemed made; (3) Yakima Airport shall fail to perform or observe any term, covenant, or agreement contained herein; (4) The City of Yakima otherwise deems itself insecure. Section 6.02. Remedies Upon Default. Upon the occurrence of any event of default, the City of Yakima may, by notice to Yakima Airport, declare this Agreement and all other amounts payable under this Agreement to be forthwith due and payable, whereupon the Yakima Airport loan payment or Reimbursement amounts shall become and be forthwith due and payable, without presentment, demand, protest, or further notice of any kind, all of which are hereby expressly waived by Yakima Airport. Upon the occurrence and during the continuance of any Event of Default, the City of Yakima is hereby authorized at any time and from time to time, without notice to Yakima Airport to seek collection of any sums due and owing under this Agreement, and may seek any means to collect off set of any amounts still owing by virtue of the Airport default. The City of Yakima agrees promptly to notify Yakima Airport after any such setoff and application, provided that the failure to give such notice shall not affect the validity of such setoff and application. The rights of the City of Yakima under this Section 7.02 are in addition to other rights and remedies (including, without limitation, other rights of setoff) which the City of Yakima may have under the Yakima Airport Joint Operating Agreement with Yakima County. Term Loan Agreement 6. Article VII MISCELLANEOUS Section 7.01. Amendments, Etc. No amendment, modification, termination, or waiver of any provision of this Agreement to which Yakima Airport is a party, nor consent to any departure by Yakima Airport from any provision of this Agreement to which it is a party, shall in any event be effective unless the same shall be in writing and signed by the City of Yakima, and then such waiver or consent shall be effective only in specific instance and for the specific purpose for which given. Section 7.02. Notices, Etc. All notices and other communications provided for under this Agreement and under the other Loan Documents to which Yakima Airport is a party shall be in writing (including telegraphic, telex, and facsimile transmissions) and mailed or transmitted or delivered, if to Yakima Airport, at its address at: Attention: Yakima Airport 2400 West Washington Avenue Yakima, Washington 98902 Attn: Buck Taylor, Manager and if to the City of Yakima, at its address at: 129 North Second Street Yakima, Washington 98901 Attention: William R. Cook; or, as to each party, at such other address as shall be designated by such party in a written notice to the other party complying as to delivery with the terms of this Section 8.02. Except as otherwise provided in this Agreement, all such notices and communications shall be effective when deposited in the mails or delivered to the telegraph company, or sent, answer back received, respectively, addressed as aforesaid, except that notices to the City of Yakima pursuant to the provisions of Article II shall not be effective until received by the City of Yakima. Term Loan Agreement 7. Section 7.03. No Waiver. No failure or delay on the part of the City of Yakima in exercising any right, power, or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power, or remedy preclude any other or further exercise thereof or the exercise of any other right, power, or remedy hereunder. The rights and remedies provided herein are cumulative, and are not exclusive of any other rights, powers, privileges, or remedies, now or hereafter existing, at law or in equity or otherwise. Section 7.04. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of Yakima Airport and the City of Yakima and their respective successors and assigns, except that Yakima Airport may not assign or transfer any of its rights under this Agreement to which Yakima Airport is a party without the prior written consent of the City of Yakima. Section 7.05. Integration. This Agreement contains the entire agreement between the parties relating to the subject matter hereof and supersedes all oral statements and prior writings with respect thereto. Section 7.06. Indemnity. Yakima Airport hereby agrees to defend, indemnify, and hold the City of Yakima harmless from and against any and all claims, damages, judgments, penalties, costs, and expenses (including attorney fees and court costs now or hereafter arising from the aforesaid enforcement of this clause) arising directly or indirectly from the activities of Yakima Airport, its predecessors in interest, or third parties with whom it has a contractual relationship, or arising directly or indirectly from the violation of any environmental protection, health, or safety law, whether such claims are asserted by any governmental agency or any other person. This indemnity shall survive termination of this Agreement. Section 7.07. Governing Law & Venue. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Washington. Venue shall be in the Yakima County Superior Court. Section 7.08. Severability of Provisions. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. Section 7.09. Headings. Article and Section headings in this Agreement are included in this Agreement for the convenience of reference only and shall not constitute a part of this Agreement for any other purpose. Term Loan Agreement 8. Section 7.10. Attorney Fees. In the event legal action is instituted to determine the rights and duties of the parties hereunder in any state or federal court, including bankruptcy court, the substantially prevailing party in any court action shall be awarded, its reasonable attorney's fees, costs and expenses in pursuing such action in any state or federal court and enforcing such rights and duties determined thereby. Section 7.11. Jury Trial Waiver. THE CITY OF YAKIMA AND YAKIMA AIRPORTHEREBY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM, OR COUNTERCLAIM, WHETHER IN CONTRACT OR TORT, AT LAW OR IN EQUITY, ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT OR THE LOAN DOCUMENTS. NO OFFICER OF THE CITY OF YAKIMA HAS AUTHORITY TO WAIVE, CONDITION, OR MODIFY THIS PROVISION. DISCLOSURE ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. Term Loan Agreement 9. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written. ATTEST: City of Yakima 129 North Second Street Yakima, WA 98901 YAKIMA AIRPORT McAllister Field By: Doug Hahn Title: Chairman CITY OF YAKIMA By: ,tp,KIMq *� R. A. Zais, Jr City Manager \SEAL *� re.,.. 5, P -,L , , , City Clerk s'717* CITY CONTRACENO:iy ,s,eQ0f2.'5 97 RESOLUTION NO AOD.5-/0, Term Loan Agreement 10. EXHIBIT 1 Yakima Air Terminal South Airport!Water/Sewer Addition Yakima County SIED Grant and Loan 1. Installation of approximately 1,240 linear feet of 12 -inch water main, 45 linear feet of 6 -inch water main, 3 -each fire hydrant assemblies, 6 -each 12 -inch butterfly valves, 3 each 6 -inch gate valves, and connection to existing mains. Estimated total cost = $95,320 (construction, tax, engineering & inspection) 2. Installation of approximately 360 linear feet of 8 -inch diameter PVC sanitary sewer main, 2 -each sewer manholes, cleanout assembly, and connection to existing pipes. Estimated total cost = $33,680 (construction, tax, engineering & inspection) Total Estimated Project Cost Term Loan Agreement 11. $129,000 EXHIBIT 2 YAKIMA COUNTY SIED FUND GRANT AND LOAN AGREEMENT BETWEEN YAKIMA COUNTY AND THE CITY OF YAKIMA X•\ CITY OF YAKIMA-20009\Yakima Airport\1Vlaster Grant Agreement (011906) phw revised.doc Term Loan Agreement 12. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. q For Meeting Of: July 5, 2005 ITEM TITLE: Consideration of a resolution authorizing the City Manager to execute and submit a grant/loan application to the Yakima County Supporting Investments in Economic Diversification (SIED) fund in the amount of $129,000.00 for the Yakima Air Park. SUBMITTED BY: Bill Cook, Director of Community and Economic Development CONTACT: Bill Cook, 575-6113 SUMMARY EXPLANATION: The Yakima Airport Board of Directors has asked the City to apply for SIED funds to install water and sewer service for the Yakima Air Park. The Air Park is a series of airplane hangars that will be constructed by the private sector on leased airport land. The hangars will be used by airplane owners from around the region, and will also serve corporate aircraft from other areas. The estimated Initial private sector investment will be $200,000 for the first hangars, with additional hangars proposed. The airport will also leverage $700,000 in FAA funds for taxiway improvements to serve the project. SIED funding will be used to offset the cost of required infrastructure improvements including water and sewer lines. The total estimated cost of the infrastructure improvements is estimated at $129,000.00. With Council approval, the City will apply for a SIED loan of $64,500 and a grant of $64,500. The airport repay the loan from land lease payments, and has pledged to budget airport fee revenue as a backup source of repayment. CONTINUED ON NEXT PAGE Resolution _X Ordinance Contract _ Other: Grant & Loan Application Funding Source: Yakima County SIED Fund Approval for Submittal: City Manager STAFF RECOMMENDATION: Staff recommends approval of the resolution. BOARD RECOMMENDATION: COUNCIL ACTION: Resolution adopted as amended to direct the City Manager to execute the grant agreement & loan application, subject to first investigating the possibility of obtaining a full grant. RESOLUTION NO. R-2005-108 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 Yakima Airport for repayment to the City of the aforementioned obligation. As joint owner of the Airport, Yakima County will also need to authorize the airport to incur debt for the project. 2