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
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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
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YC CMD -2011 A
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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