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HomeMy WebLinkAboutR-2008-063 Food Bank; 313-315 South 2nd Street; Grant for PropertyRESOLUTION NO. R-2008-63 A RESOLUTION: Authorizing the City Manager to obligate a maximum of $130,000 from the City's Community Development Block Grant program for the Yakima Food Bank to purchase real property at 313-315 South 2"d Street in Yakima, Washington. WHEREAS, the City of Yakima is a recipient of federal Community Development Block Grant funds which may be used, among other things to assist public services benefiting low and moderate income families; and WHEREAS, the Yakima Food Bank is requesting a grant of $130,000 in CDBG funds to match an estimated $155,000 of private donations to purchase property and relocate the Yakima Food Bank; and WHEREAS, these funds will be part of a total budget of $285,000 needed to complete this relocation of the Yakima Food Bank; and WHEREAS, the Yakima Food Bank has provided food to families of Yakima for over 30 years and provides groceries to approximately 1600 persons per week; and WHEREAS, the Yakima Food Bank has outgrown its current location on the Southeast Community Center property; and WHEREAS, the City Council has determined that it is in the best interest of the City to obligate up to $130,000 towards the purchase of a new Food Bank facility, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: 1. A maximum of $130,000 in CDBG funds will be obligated to the Yakima Food Bank building project for the purpose of purchasing property at 313-315 South Second Street, , subject to the following conditions: a. City participation will be limited to a maximum of $130,000 b. Certified appraisal of the property to demonstrate fair market value.. c. The submission of a business plan showing operating expenses and cash flow projections; d. Acquisition must be completed within six months of award (October 15, 2008); e. No occupancy of the building without prior authorization from the city. f. Review and approval under federal NEPA and all other applicable local, state and federal environmental requirements prior to release of funds; g. Execution of a lien in the City's favor for $130,000 in the event of a future sale. 2. This commitment of $130,000 of matching funds shall expire on October 15, 2008, unless all of the above conditions have been met, or unless the City Council approves an extension. 3. The City Manager is hereby authorized and directed to execute all necessary grant documents, including a conditional award letter, and grant agreement between the City of Yakima and the Yakima Food Bank. The final form of these documents shall be reviewed and approved by the City Attorney. ADOPTED BY THE CITY COUNCIL this 15th day of April, 2008 ATTEST: City Clerk 2 - April 16, 2008 erfr n David Edler, Mayor • • BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 7 For Meeting of April 15, 2008 ITEM TITLE: Resolution to obligate a maximum of $130,000 from the City's Community Development Block Grant program for the Yakima Food Bank to purchase real property ,and relocation of their program. SUBMITTED BY: °William Cook, Director of Community and Economic Development (509) 575-6113 CONTACT PERSON/TELEPHONE: Michael Morales, 575-3533 SUMMARY EXPLANATION: The Yakima Food Bank is requesting $130,000 in CDBG funds towards the acquisition of a building for its operation. Total cost of the project is $285,000, with the Food Bank responsible for raising the balance of the funds through private donations and grants. The subject property is located at 313-315 South 2"d Street in Yakima. CDBG funds will be used for up to 50% of the acquisition cost, and will be matched with private donations and grants to be secured by the Food Bank. This is an eligible use of CDBG funds. The Food Bank has outgrown its present facility at the Southeast Community Center grounds, and is of the opinion that expanding the building would not be feasible. The committee voted to forward the proposal to the full council with a recommendation to approve, provided that the following conditions were met: CONTINUED ON NEXT PAGE Resolution X Ordinance Contract Other (Specify) Funding Source 2008 CDBG funds APPROVED FOR SUBMITTAL: 17,.�� City Manager STAFF RECOMMENDATION: Approve Resolution with conditions. BOARD/COMMISSION RECOMMENDATION: Recommended for full Council consideration by the Council's Neighborhood Development Committee. COUNCIL ACTION: a. City participation will be limited to a maximum of $130,000 b. Certified appraisal of the property to demonstrate fair market value.. c. The submission of a business plan showing operating expenses and cash flow projections; d. Acquisition must be completed within six months of award (October 15, 2008); e. No occupancy of the building without prior authorization from the city. f. Review and approval under federal NEPA and all other applicable local, state and federal environmental requirements prior to release of funds; g. Execution of a lien in the City's favor for $130,000 in the event of a future sale. This proposal was discussed at the meeting of the City Council's Neighborhood Development Committee on April 9, 2008; the committee recommended that this proposal be forwarded to the full Council for approval. 2 -- April 10, 2008 • •