The URL can be used to link to this page

Home My WebLink About08/28/2018 02 Cascade Mill Redevelopment Status ReportBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 2. For Meeting of: August 28, 2018 ITEM TITLE: Status Report Cascade Mill Redevelopment Project SUBMITTED BY: Cliff Moore, City Manager Jeff Cutter, City Attorney Joan Davenport, Community Development Director Brett Sheffield, Chief Engineer SUMMARY EXPLANATION: The redevelopment of the Cascade Mill is a priority project for the City of Yakima. A status report presentation will help summarize the current tasks, partnerships, challenges and opportunities. ITEM BUDGETED: STRATEGIC PRIORITY: APPROVED FOR SUBMITTAL: STAFF RECOMMENDATION: BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date d Cascade Mill Redevelopment Project Presentation 8/10'2018 Type Presentation Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard UPDATE Presented on August 28, 2018 To Yakima City Council Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Agenda I: History of Project V: Environmental Benefits 1. East/West Corridor & GMA 1. County Floodplain Project 2. Mill Closure 2. Landfill Clean -Up 3. Local Infrastructure Financing Tool VI. Development Opportunities II: Interchange Improvement - Partnerships 1. Current Zoning 1. Interchange Justification Report 2. Jones, Lang LaSalle Analysis 2. Connecting Washington Funding 3. Opportunity Zones 3. VERG video VII. Critical Path Items III: New Capital Investments 1. RR Crossing Permit 1. Bravo Company Boulevard 2. Landfill & ROW 2. EIW Corridor & H -Street VIII. Schedule & Funding 3. 1-82 Improvements 1. Capital Investment Timing IV: Greenway Improvements 2. Capital Programming & Funding 1. Connecting Terrace Heights 3. Future Council Items 2. Neighborhood Enhancements LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard 1 Operations began in 1906 LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Rail Car Unloading logs into pond LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard 1 Ponds Used Prior to I-82 LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Lumber processing stopped in 2006 LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Boise Cascade • 2006 Yakima Resources announced mill closure • Community loses 450 jobs • Opens path for East- West Corridor • Successful Local Infrastructure Financing Tool — Potential to create 4,000 jobs $337M in private investment $426M in tax revenue over 30 - yea rs 1 Closes LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard LIFT "101" How it Works • Local Infrastructure Financing Tool — LIFT. RCW 39.102 • Yakima was one of 9 cities in Washington to receive a LIFT project approval in 2008. • City initiated spending/ tax collection approval in 2011. For 25 years, the City must expend at least $1 million in qualified project costs to be matched with $1 million from Department of Revenue. This results in the maximum opportunity to receive $50 million in project funding, if fully utilized. • Since 2011, the city has financed environmental engineering studies, street construction plans and project design, with minimal impact to the General Fund. • The LIFT financing expires in 2036. LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard LIFT District • LIFT District is 225 acres in size, includes 25 acres in existing freeway, streets and riparian area east of 1-82. • New streets, ramps and bridges will use nearly 20 acres, leaving 180 acres for new development. • The City will acquire the new street ROW and build new streets using LIFT. • The City of Yakima does not own any of the land for new development. • LIFT funds leveraged water and sewer line extensions. • LIFT funds will likely pay for land fill clean-up. Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard East-West Corridor & GMA • 2011 Terrace Heights Corridor Study — Yakima Ave. Interchange > LOS D • Potential GMA Traffic Congestion Issue for Concurrency • 2012 Alignment alternatives Report LEGEND Recomn»nd.d East - W.:t Corridor LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Interchange Modification • The Yakima Avenue Interchange with 1-82 will be modified which required an Interchange Justification Report (IJR) • Efforts by the City, County & WSDOT Succeeded (6 years in study) • Feb 22, 2017 FHWA Issues finding of Engineering & Operational Acceptability (Major Milestone Event) LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Visualization of Improvement VERG • The City, County and WSDOT contracted with WSDOT "Visual Engineering Resource Group (VERG) in 2017 to produce an animation of the improvements related to the interchange. The video is available on the City of Yakima web site at: https://yakimamillsite.com/ • Additional VERG videos are planned to illustrate further development of the project. • The cost of the first VERG video was $31,250 shared by City of Yakima, Yakima County and WSDOT. City funds were from LIFT. FAO TIMELINE DOCUMENTS HISTORY Yakima New East West Corridor 2.16 2018 LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Three Major Projects any Phases COUNTY PHASE 1 COUNTY PHASE 2 COUNTY PHASE 3 CITY PHASE 1 CITY PHASE 2 CITY PHASE 3 LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Bravo Company Boulevard: 2019 LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Roundabouts for major intersections rather than traffic signals Cascade Mill Redevelopment Project 1-82 Interchange Modification, ENV Corridor & Bravo Company Boulevard Bravo Company Boulevard City Street 2019 4 4/4 S,;EE3 ,CHT PC 440 644 PATH 441.3144 L4414 M 414 13 :414343 LAN 41/43,3 10' P/4/ "ED 0.3 fl:VE PATH E34et83/11e43.034 44413/ 444E8 TREA3MEN1. 4441118411413 LOCHNER HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard East-West Corrido includes bridges over I-82 and Yakima River ("Connect Washington" Funds LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard 1-82 Improvements A WSDOT Project from "Connect Washington" Funding Program inclines®D Lanes and Ramp Modifications LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard WSDOT Project - CD Lanes on I-82 LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, ENV Corridor & Bravo Company Boulevard H Street Safety Enhancement 2021 R /*W /*W! ,ANE LEFT TURN 4' )1'0 LAN 14' F`EDESTRIAN AND EIKE P Acr, (LOC ATION VARIE SJ EXISTNC HOUSE (43:,•&.!PW.:0;!'1,.. . , \ \!. CON( RE TE SIDE WALK \ rRIJSHED G0RFACIN0 30" IF.RIOATION —* ' '— TOP COURSE 75\ CONCRETE SICEIWAL!.. ToP A 0.. /.! FO -28 — / / / CRIJSHED SURFACING TOP !:;CI',IPSE. -12140SHED SURFACING E ASE COURSE TING HOUSE LOCHNER HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Greenway Trail Connec ion Improvements LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Greenway Connection from Neighborhood LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Environmental Bene s - YBIP & E/W Corridor Yakima Basin Integrated Plan • Floodplain Restoration • Levee Improvements • 1-82 Protection • Fish Weir Adjustment • Bridge Scour Protection LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, ENV Corridor & Bravo Company Boulevard Environmental Benefits Landfill Clean -Up and Wood Waste removal GP.4 Sto Sthilt . • St141 •"44"'" : EX,. L'.••• IL:",,L F A.F.P,", . ,N.LL Lc., L , FELL:k ELF • • 1 1..4,1 ...1,,,41s. , WWI 38.31) • $6,30 os,...e.( rf:, sa-za • • - (OLE, SSA* ,,E.EL—L-G fl�ct LS LEE, L 1„,f,t,41.N1) GP.41 tttt t tttt.t”; .'LL'••••4•ELLIL•1*,LELL•••• • -4;•••••••••.(tieLL.E.E.E,E. •••••••LLLE=4•••••••:•• SL,« F LLL,LL LOCHNER HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Former City of Yakima Landfill • Closed Municipal Solid Waste Landfill on private property — Located south of RR tracks on former Mill Site — Approximately 28 acres of landfill material, some places 14 feet deep — 388,000 to 452,000 CY of MSW in former log ponds • Operated by City from 1962 — 1972 • Currently owned by OfficeMax, leased to Yakima Resources LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Why is City Involved in Land ' Cleanup • DOE named the City as a "Potentially Liable Person" under MTCA • Based on City's role as an "operator" of the landfill (1962-1972) • City is jointly and severally liable to pay for the investigation & cleanup costs • DOE requiring City to participate & meet its MTCA obligations LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Washington's odel Toxics Control Act (MTCA) • State Superfund Statute funded through gas tax • Administered by Department of Ecology (DOE) • Regulates hazardous waste cleanup • Imposes liability for the investigation & cleanup of hazardous substances LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Environmental Investigations at Landfill • City conducted extensive sampling & analysis (2008-2015) — Soil — Groundwater — Municipal Solid Waste — Landfill gases • Characterization of the nature & extent of contamination • DOE determined characterization was sufficient • City must now proceed with additional steps LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Environmental Findings from Remedial Investigation • Landfill Clean-up costs are in study. Current working estimate is $15 Million to remediate landfill for development. • Contaminants of Concern (COCs) include dissolved metals, methane, nitrate, petroleum products, pesticides, pH, & vinyl chloride • Studies found hazardous substances above MTCA cleanup levels in groundwater which require analysis & evaluation • No site-specific COCs in soil • Dissolved metals (arsenic, iron, manganese, sodium), pH, nitrate, & vinyl chloride are site-specific COCs in groundwater • Methane gas is also present as a COC at the Landfill Site LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Landfill cleanup Process: Next Steps • MTCA Agreed Order for Landfill approved by all parties July 9, 2018 — Administrative Order issued by DOE — Binding legal requirements on City to perform MTCA work — Includes MTCA requirements for selection & preparation of cleanup • Work to be performed by City: — Interim Action — Early MTCA work & approvals related to road construction prior to landfill clean up — Updated Conceptual Site Model, Feasibility Study with Evaluation of cleanup options and Draft Cleanup Action Plan — Selection & preparation of proposed cleanup • State Capital Budget once contained $28 Million for this clean up, but was eliminated in 2016 LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Interim Ac ion: Cleanup in ROW Corridor Necessary for Road Construction - 2019 • High priority for road construction approvals & schedule — Time is of the essence — City & DOE working in close coordination — Need to avoid interference with design & construction • Allows for expedited progress on road construction, while evaluating remaining landfill issues • Ensuring road design & construction complies with MTCA • City will submit Interim Action plans for DOE approval LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Development Opportunities • Current Zoning: Regional Development (RD) — Regional Commerce — Office / Education Campus — Large -Scale Retail — Recreation/culture — Mixed Use The Planning Commission is reviewing modification to the RD Zone to encourage more light industrial, employment center and recreation with less dependency on retail. Council will see these amendments in fall of 2018. LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Jones, Lang LaSalle Analysis (2014) Market Analysis & Fiscal Impact Study — Recommendations of land uses with the highest rate of return • Sustainable Levels of Retail • Education & Health Care Fac • Limited Light Manufacturing • Amusements 1 es LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Opportunity Zones, 2018 • In 2018, three City of Yakima Census Tracts were designated as "Opportunity Zones", including Tract 2 where the Cascade Mill is located. In addition, Census Tract 1 (CBD Area) and Census Tract 15 (Fairgrounds & race track) were also designated as Opportunity Zones. Union Gap received one zone. • The Opportunity Zones represent areas of low to moderate income population where private investment may utilize a temporary deferral of inclusion in gross income tax incentive for certain qualified investment in capital projects within the zone. • Private investment from Opportunity Zones may encourage and support appropriate development. • YCDA is leading the coordination of the Yakima Opportunity Zone program at this time. LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Critical Path Items -Bravo Co Blvd Acquire Right of Way — in process. Complete DOE approval for clean-up strategy of streets. Bid street construction and ROW corridor clean- up. New Street in place 2020. LOCHNER •; HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Schedule & Funding Construction Stage Fair Avenue Roundabout (City Project) Butterfield to Rosa Canal (County Project) Bravo Company Blvd. (City Project) Rosa Canal to 15th (County Project) H -Street (City Project) 15th to Bravo Company (Bridges, County Project) TOTAL Beginning Construction Complete 2019 2019 2020 2021 2021 Preliminary Est. of Probable Cost $ 2,355,000 $ 6,983,300 $ 18,386,000 $ 10, 855,100 $ 4, 694,000 $ 57,538,400 $100,811,800 LOCHNER •+,HLA Cascade Mill Redevelopment Project 1-82 Interchange Modification, E/W Corridor & Bravo Company Boulevard Funding Sources (Probable) Source Connecting Washington (Bridges) LIFT County Road Fund SIED Macro Account (County Only) YB I P (County Only) TIB (Anticipated) Other TOTAL Amount $ 50, 053, 000 $ 23,446,000 $ 12, 752, 300 $ 6,646,500 $ 1,320,000 $ 4,400,000 S 2,194,000 $ 100,811,800 LOCHNER •+,HLA