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
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City Clerk
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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:
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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
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Ronald F. Gamache, Commissioner
CITY coNTRAcrNO.,;9
RESOLUTION NO 5—(0
SEAT
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Approved as to Form:
taffan, Deputy Prosecuting Attorney
CONTRACT AUTHORIZATION
Attest:
Attest: Jennifer Adams, Deputy Clerk of the Board
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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
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R. A. Zais, Jr City Manager
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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