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HomeMy WebLinkAboutR-2006-101 Fiesta Foods Yakima County Supporting Investments in Economic Development (SIED) Grant & Loan Application (Nob Hill BouRESOLUTION NO. R-2006-101 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 Nob Hill -Fair Avenue (Fiesta Foods) Improvement Project. 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 and and and WHEREAS, Fiesta Foods will construct a new 45,000 square foot grocery store in Yakima; WHEREAS, Fiesta Foods will create 75 new jobs in the city's federal Renewal Community; WHEREAS, Fiesta Foods will invest approximately $5,000,000 to construct the new facility; WHEREAS, in order to develop a new facility, Fiesta Foods needs to provide infrastructure improvements estimated to cost $100,000.00; and WHEREAS, funding (through a grant/loan) may be available from Yakima County through the SIED Fund for infrastructure improvements; and WHEREAS, Fiesta Foods has requested that the City submit a grant/loan application with Yakima County to fund the infrastructure improvements from the SIED Fund; and WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to authorize submittal of a grant/loan application with Yakima County for funding of said infrastructure improvements from the SIED Fund, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized and directed to execute and submit grant and loan application with Yakima County for funding from the Yakima County Supporting Investments in Economic Development (SIED) Fund for infrastructure improvements necessary for the Fiesta Foods Improvement Project. 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 27th day of June, 2006. ATTEST: David Edler, Mayor >41 11.—eLeA City Clerk SIED CONTRACT NO. YC FF 06 Amendment 2 YAKIMA COUNTY and CITY OF YAKIMA (Fiesta Foods) IT IS HEREBY AGREED between Yakima County and the City of Yakima that the third paragraph of Subsection V.B. of SIED Contract No. YC FF 06 and SIED Contract No. YC FF 06, Amendment 01, relating to loan repayment of Cnty SIED funds for the City of Yakima's Fiesta Foods project, is amended, effective, this �lg. day of` / , ...le10007, as set forth below. This amendment is made to correct the length of the loaii. Except for the amended terms of the third paragraph of Subsection V.B., which are set forth below, the original terms and conditions of SIED Contract No. YC FF 06 shall remain in full force and effect. V. MUTUAL CONSIDERATION B. Repayment shall be made by the City of Yakima in five equal annual installments (including principal and interest) payable on June 1, 2008, 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. xxxxxxxxxxxxxxxxxxxxxxxx Page 1 of 2 YC FF 06 Amendment 02 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, Jr., ' y Manager Approved as to Form: BOARD OF COUNTY COMMISSIONERS Ray Paolella, City Attorney Attest: Michael D. Leita, Chairman Ronald F. Gamache, Commissioner nd Elliott, Commissioner Approved as to Form: Debbie Moore, City Clerk John RESOLUTION NO: /Po?DG4'-/D/ Page 2 of 2 taffan, Deputy Prosecuting Attorney CONTRACT AUTHORIZATIONaze".6�F t'�'"1 s`; • , o • Attest: Ct .47 r w ,,'`,r�4; ����lll ,�i• Tiera L. Girard Deputy Clerk of the Board Christina Steiner, Clerk of the Board (31 -18 -0 - Date YC FF 06 Amendment 02 SIED CONTRACT NO. YC FF 06 YAKIMA COUNTY and CITY OF YAKIMA (Fiesta Foods) I PARTIES This Supporting Investments in Economic Diversification (hereinafter referred to as SIED) 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 N 2'1 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 Project shall consist of improving the intersection of Nob Hill Boulevard and Fair Avenue by widening the approach to the intersection and creating sidewalks, curbs and gutters, storm drains, fire hydrants, and streetlights. 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 Filed Page 1 of 10 Contract No. YC FF 06 Infrastructure Fund (also referred to as SIED Fund), according to YCC 3.10.040. B. The City proposes to construct the Project with a combination of City, private, and County funds, including $100,000.00 from the SIED Fund, $50,000.00 to be in the form of a loan and $50,000.00 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 SIED 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 SIED funds and has recommended approval. H. The SIED 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. V MUTUAL CONSIDERATION A. COUNTY LOAN—The County shall loan Fifty Thousand Dollars and Zero Cents ($50,000.00) 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. Filed Page 2 of 10 Contract No. YC FF 06 B. REPAYMENT OF COUNTY LOAN—The City shall repay the County's loan of Fifty Thousand Dollars and Zero Cents ($50,000.00) with interest on unpaid principal, at an annual per annum rate of(o. I'bcjS11.1'/o, which is 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 five equal annual installments (including principal and interest) payable on June 1, 2007, and annually thereafter on June 1 of each year, with the final payment nevertheless due on June 1, 2011; 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. The City obligation hereunder shall be a limited general obligation of the City, payable from any legally available source of funds. Exhibit A attached hereto and incorporated herein reflects the Debt Service Schedule as noted. The loan is not subject to redemption prior to maturity (final date of repayment schedule). 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, interest shall accrue on such installment(s) or balance until, but not beyond, the June 1 next succeeding the date of such payment(s). If more than one installment is paid during any repayment year, then the repayment period recited above shall be correspondingly shortened and the scheduled of payments reflected in Exhibit A shall be correspondingly advanced. C. COUNTY GRANT—The County shall grant Fifty Thousand Dollars and Zero Cents ($50,000.00) 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 terms 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 Filed Page 3 of 10 Contract No. YC FF 06 preserves the County's right of use, shall be deemed ownership, maintenance, and operation by the City. 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 Filed Page 4 of 10 Contract No. YC FF 06 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; 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. Filed Page 5 of 10 Contract No. YC FF 06 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. 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. Filed Page 6 of 10 Contract No. YC FF 06 XVI HOLD HARMLESS AND INDEMNITY The City shall indemnify and hold harmless 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 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. Filed Page 7 of 10 Contract No. YC FF 06 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: Bill Cook Director of Community & Economic Development City of Yakima 129 N 2nd Street Yakima, WA 98901 TO COUNTY: Steve Hill, Director Yakima County Departments of Community Services & Grant Management 128 North Second 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. 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. Filed Page 8 of 10 Contract No. YC FF 06 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 9 of 10 Contract No. YC FF 06 IN WITNESS WHEREOF, the County and the City have executed this Contract as of the date and year last written below. CITY OF Yakima BOARD OF COUNTY COMMISSIONERS Richard A. Zais, Jr., City Mager Approved as to Form: /fJA Ray Paolella, City Attorney Attest: Karen.& Roberts, C Clerk & rte+. h /`7oor'e- (:-// Gi I, Date e0, cr aDd�mX3 Ronald F. Gamache,-Chairman cotAMtS Excused Jesse S. Palacios, Commissioner- C -014r241'1-\4`•-1 ichael D. Leita, commissioner Approved as to Form: John/Staffan, Deputy Prosecuting Attorney CONTRACT AUTHORIZATION0 '"f,a�, e s Attest: y. / Chris Ina -Steiner, Deputy Clerk oEtlie°Board 0 ' i O • L> Date Filed Page 10 of 10 Contract No. YC FF 06 Dated• 10/10/2006 Delivered 10/10/2006 Variable Rate Transactions City of Yakzmi SIED - Fiesta Foals 1 SIA 30/360 YRLY7/6 Sime Int Coupon Int Calc Principal Effective Interest Credit Periodic Period Date Day Cnts Payment Coupon Rate Payment Enhancements Debt Servece 1 6/1/2007 231/360 9,696.24 6.18750 1,98516 11,681 40 2 6/1/2008 360/360 9,187 60 6.18750 2,493.80 11,681 40 3 6/1/2009 360/360 9,756.09 6.18750 1,925.31 11,68140 4 6/1/2010 360/360 10,359 75 6.18750 1,321.65 11,681 40 5 6/1/2011 360/360 11,000.32 6.18750 680.64 11,680.96 Outstanding Balance 40,303 76 31,116.16 21,360.07 11,000.32 $50,000.00 $8,406.56 $0.00 $58,406.56 True Interest Cost (TIC) Arbitrage Yield Limit (AYL) Average Life 6.1875000 Face Value of Bond Issue $50,000.00 0.0000000 Accrued Interest (+) $0.00 2.7172727 Original Issue Premium/Discount (+) $0.00 Underwriter Discount (+) $0.00 Lump -sum credit enhancements O $0.00 Prepared by: Yakima County Treasurer's Prepared on: 10/16/2006 8:41 12.33 lips 01j :MUNIDB YCFF 06-2006-A YAKIMA COUNTY DEPARTMENT OF COMMUNITY SERVICES October 17, 2006 Bill Cook, Director Community & Economic Development City of Yakima 129 N 2nd Street Yakima, WA 98901-2613 Dear Bill: Enclosed is your fully signed and executed copy of SIED Contract number YC FF 06 signed by the Board of Yakima County Commissioners on October 10, 2006. Attached is your Debt Service Schedule prepared by the Yakima County Treasurer's office. A warrant in the amount of $50,000 will be issued and mailed by the Auditor's office on their next regular warrant issue date. Sincerely, Autumn Halloway Office Specialist Enclosure: 1 128 North Second Street, Room 102 9.0 Yakima, Washington . 98901 ' (509) 574-1520 V. (509) 574-1521 v.. (800) 572-7354, extension 1520 YAKIMA COUNTY DEPARTMENT OF COMMUNITY SERVICES _7,_/ Ccanrr! September 6, 2007 Debbie Moore City of Yakima 129 N 2nd Street Yakima, WA 98901-2613 Dear Debbie: RE: SIED Contract Number YC FF 06, Amendment 02 / 9 rizod .14 z Enclosed are five originals of SIED Contract Number YC FF 06, Amendment 02 between Yakima County and City of Yakima/Fiesta Foods for signatures by the City of Yakima officials. Amendment 01 had the correct dates for deferring the loan repayment, but unfortunately, had the wrong number of years listed in the paragraph. Please return all five signed originals to this office. We will send you one original for your files after approval by the Yakima County Board of Commissioners. Thank you. Sincerely, Autumn Halloway Enclosures: 5 128 North Second Street, Room 102 v.. Yakima, Washington v.. 98901 (509) 574-1520 v.. (509) 574-1521 v.. (800) 572-7354, extension 1520 ITEM TITLE: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting Of: June 27, 2006 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 for th? Nob Hill -Fair Avenue (Fiesta Foods) Improvement Project. SUBMITTED BY: Bill Cook, Director of Community and Economic Development CONTACT: Michael Morales, Deputy Director 575-3533 SUMMARY EXPLANATION: Fiesta Foods is an independent grocer with stores in Pasco and Sunnyside. Fiesta has selected Yakima for its next site, and has acquired the former Bowden's Auto Parts store at southeast corner of Nob Hill Boulevard and Fair Avenue. The Bowden's store has been demolished, and Fiesta has submitted plans to build a 45,000 square foot store. This intersection is part of the Six Year TIP, but funding has not been secured to improve all four approaches. The Fiesta site is the only one of the four corners where new development will occur, and, as such, their participation in the intersection improvements is substantially higher than the others. Fiesta has requested the City utilize SIED funding to offset the cost of required infrastructure improvements including road paving, storm drainage, curb and sidewalks. The total estimated cost of the infrastructure improvements is estimated at $100,000.00. With Council approval, the City will apply for a SIED loan of $50,000 and a grant of $50,000. Local match will come from right-of-way contribution and other transportation grants. 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. RESOLUTION NO. R-2006-101 1 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 Fiesta Foods for repayment to the City of the aforementioned obligation. The SIED program is a Yakima County funding source for economic development that originates from a refund of County tax revenue from the State of Washington. SIED is administered for the County by YCDA/New Vision, and the advisory board is appointed by the County, with nominations from the cities. SIED funds are available only for construction of public infrastructure, and only in association with new private sector development that creates or retains jobs. SIED funding consists of a loan and grant award from Yakima County to the applicant municipality or port district. Funding is limited to $500,000 per project. 2