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HomeMy WebLinkAboutR-2010-118 Yakima Sawmill Redevelopment Area SIED Fund Loan ApplicationRESOLUTION NO R-2010-118 A RESOLUTION authorizing the City Manager to execute and submit a loan application and related documents in the amount of $500,000 to the Yakima County Supporting Investments in Economic Diversification fund for infrastructure design related to the Cascade Mill District Redevelopment 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 WHEREAS, regional cooperation is an important part of our economic development efforts, and WHEREAS, the Cascade Mill District is a high priority economic development initiative of the City Council, and WHEREAS, the city is eligible to receive up to $25,000,000 of infrastructure financing from the State of Washington to assist with redevelopment of the Cascade Mill District; and WHEREAS, the property owners of the Cascade Mill District will undertake an extensive land use planning process in the near future, and WHEREAS, analysis of options for the location of infrastructure and public facilities within the redevelopment area has been conducted as a necessary component of the overall planning process, and WHEREAS, interim financing of engineering design for infrastructure may be available from Yakima County through the SIED Fund for activities that are eligible for reimbursement from state LIFT funds, and WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to authorize submittal of a loan application with Yakima County for funding of said design engineering activities from the SIED Fund, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA. The City Manager is authorized to execute and submit a loan application and related documents in the amount of $500,000 to the Yakima County Supporting Investments in Economic Diversification fund for transportation and public facilities planning related to the Cascade Mill District. The Yakima 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 19th day of October, 2010 ATTEST Micah Cawley, IV yor • R 20lU—//- SIED CONTRACT Ns YC CMD 10 YAKIMA COUNTY and CITY OF YAKIMA (Cascade Mill District Development Project) 1. 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 2nd Street, Washington 98901. Notices between the parties shall be made where and as provided for on Page 8, Section 22, NOTICES. 2. 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 5, MUTUAL CONSIDERATION, Subsection B. REPAYMENT OF COUNTY LOAN, have been made or until terminated as provided for in Section 8, SUSPENSION, TERMINATION, AND CLOSEOUT, provided, the County's right under Section 5, MUTUAL CONSIDERATION, Subsection D. OWNERSHIP AND USE, to use the Project shall continue so long as the Project remains in use. 3. 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 consists of the engineering design of new roads and utilities to serve the redevelopment of the Cascade Mill District Development Project including environmental compliance, civil engineering, landscape/streetscape design, cost estimating, utility design and coordination, electrical design (street lighting, traffic signalization), traffic engineering, survey, right-of-way, construction contract administration, on-site construction observation, and accounting for Project funds. 4. RECITALS A. The Parties make this Contract based on and in recognition of certain relevant facts and circumstances including: B. 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 SIED Fund), according to YCC 3.10.040. C. The City proposes to construct the Project with a combination of City, private, and Filed Page 1 of 9 Contract No. YC CMD 10 C. The City proposes to construct the Project with a combination of City, private, and County funds, including $500,000.00 from the SIED Fund, to be in the form of a loan, and thereafter to own and operate the Project for the benefit of the City and the County. D. 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. E. 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. F 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. G. 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. H. 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. I. The SIED Fund balance is sufficient to make the requested contribution to the Project. J. RCW 39.34 authorizes interlocal agreements whereby municipal governments may jointly exercise the powers granted to each. 5. MUTUAL CONSIDERATION A. COUNTY LOAN—The County shall loan Five Hundred Thousand Dollars and Zero Cents ($500,000.00) for the Project described herein. This loan amount shall be drawn on the SIED Fund by County warrant, payable to the City, upon the next Yakima County Auditor's warrant issue. B. REPAYMENT OF COUNTY LOAN—The City shall repay the County's loan of Five Hundred Thousand Dollars and Zero Cents ($500,000.00) with interest on unpaid principal, at an annual per annum rate of %, 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. C. Repayment shall be made by the City in two equal annual installments (including principal and interest) payable on June 1, 2012, and annually thereafter on June 1 of each year, with the final payment nevertheless due on June 1, 2013; 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. Filed Page 2 of 9 Contract No. YC CMD 10 128 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. E. 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. F. 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 preserves the County's right of use, shall be deemed ownership, maintenance, and operation by the City. 6. 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 seven 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. 7. RELATIONSHIP OF PARTIES AND AGENTS A. 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. B. 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. Filed Page 3 of 9 Contract No. YC CMD 10 C. 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. 8. SUSPENSION, TERMINATION, AND CLOSEOUT A. 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: B. 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: I. Reasonable, proper, and otherwise allowable costs which the City could not avoid during the period of suspension; II. 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. C. TERMINATION FOR CAUSE—If the City fails to comply with the terms and conditions of this Contract and any of the following conditions exist: I. 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; II. The City has failed to take satisfactory action as directed by the County or its authorized representative within the time period specified by same; III. 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, IV. 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. Filed Page 4 of 9 Contract No. YC CMD 10 D. 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. 9. 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. 10. 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. 11. 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. 12. 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. 13. 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.) Filed Page 5 of 9 Contract No. YC CMD 10 14. 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). 15. INTEREST OF AGENTS AND OFFICERS 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. 16. 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. 17. 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 ($1,000,000.00) 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 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. 18. 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. 19. 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. Filed Page 6 of 9 Contract No. YC CMD 10 20. 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. 21. 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. 22. NOTICES A. 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: Michael Morales Community & Economic Development 129 North Second Street Yakima, WA 98901-2613 Steve Hill, Director Yakima County Departments of Human 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. 23. 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. Filed Page 7 of 9 Contract No. YC CMD 10 24. 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. 25. 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 CMD 10 IN WITNESS WHEREOF, the County and the City have executed this. Contract as of the date and year last written below. CITY OF YAKIMA Michael Morales, Acting City Manager Approved as to Form: Jeff City Attorney BOARD OF COUNTY COMMISSIONERS Attest: Debbie Kloster, City Clerk Date CITY CONTRAC(NO W4-/Q�/ RESOLUTION NO: /-,%26/e -J�d ichael D. Leita, Chairman J.:. hey, Commissioner if/ Ilif J. R. F lliott, Commissioner Approved as to Form: St fan Deputy Prosecuting Attorney S p y CONTRACT AUTHORIZATION Tiera L. Girard, Clerk of the Board BOCC 132-2011 1g$ary 15, 2011 Filed Page 8 of 8 Contract No. YC CMD 10 Dated- 2/15/2011 Delivered: 2/15/2011 Debt Service Schedule City of Yakima - SIED Loan Cascade Mill District Develoment Project SIA 30/360YRLY7/6 Simp Int Coupon Int Cak Principal Efective Interest Credit Periodic Outstanding Period Date Day Cnts Payment Coupon Rate Payment Enhancements Debt Service Balance 2 6/1/2012 466/360 245,212.47 2.44000 15,792.22 261,004.69 254,787.53 3 6/1/2013 360/360 254,787.53 2.44000 6,216.82 261,004.35 $500,000.00 522,009.04 50.00 5522,009.04 True Interest Cost (TIC) Arbitrage Yield Limit (AYL) Average Life 2.4400000 Face Value of Bond Issue $500,000.00 0.0000000 Accrued Interest (+) $0.00 1.8040195 Original Issue Premium/Discount (+) $0.00 Underwriter Discount (+) $0.00 Lump -sum credit enhancements (-) $0.00 Prepared by Prepared an: 211112011 11:34 13.90 Rpt 01j :Mun-EaseMainDb YC CMD -2011 A • • • ITEM TITLE BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No For Meeting Of. October 19, 2010 Consideration of a resolution authorizing the City Manager to execute and submit a loan application to the Yakima County Supporting Investments in Economic Diversification (SIED) fund in the amount of $500,000 00 for the infrastructure design of the Yakima Sawmill, Redevelopment Area. SUBMITTED BY Michael Morales, Director of CED CONTACT PERSON/TELEPHONE Michael Morales, 575-3533 SUMMARY EXPLANATION The Yakima County SIED fund provides financing for capital improvement projects that create economic development activity The Department of Community and Economic Development requests authorization to submit a $500,000 loan application for design engineering of the Phase 1 infrastructure needs related to the proposed redevelopment project. The SIED loan will serve as bridge financing instrument, to be repaid to the county with the city's first LIFT bond issuance While design costs are eligible for reimbursement by LIFT, the city Tacks sufficient general funds to advance these costs With council approval, CED will submit an application for consideration by the SIED board on October 21, with action by the county commissioners expected in November At that time, a bridge loan agreement will be negotiated with the County Resolution X Ordinance _ Contract _ Other Funding Source Yakima County SIED Fund Approval for Submittal City Manager STAFF RECOMMENDATION Staff recommends approval of the resolution BOARD RECOMMENDATION COUNCIL ACTION 1