HomeMy WebLinkAboutR-2007-142 Yakima County SIED Grant Application - South Airport / Ahtanum Industrial Area Sewer Extension ProjectRESOLUTION NO. R-2007-142
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 South
Airport-Ahtanum Industrial Area Sewer Extension 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, Adam & Elizabeth Smith will construct a 4,300 linear foot extension
of 12 -inch sewer main in the vicinity of the Yakima Air Terminal and Ahtanum Road
between South 26th and South 38th Avenues; and
WHEREAS, Adam & Elizabeth Smith have secured all necessary permits and
easements to construct the project; and
WHEREAS, the project will provide sewer service to over 350 acres of industrial
property; and
WHEREAS, the cost to design and construct the sewer extension is estimated to
be $530,450; and
WHEREAS, funding (through a grant/loan) may be available from Yakima County
through the SIED Fund for infrastructure improvements; and
WHEREAS, Adam & Elizabeth Smith have 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 South Airport-Ahtanum Industrial Area Sewer Extension 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 2rd day of October, 2007.
ATTEST: — David Edler, Mayor
City Clerk
i2 -zoo -7-/'a
SIED CONTRACT NO. YC SAA 07
YAKIMA COUNTY
and
CITY OF YAKIMA
(So Airport Ahtanum Industrial Area)
I. PARTIES
This Supporting Investments 'in Economic Diversification (hereinafter referred to as
S1ED) 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°d 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 consists of installing 4,300 feet of 12"
sanitary sewer main along Sorenson Road between South 26th Avenue and South 38th
Avenue, excavating and installing 16 manholes, removing and reinstalling Bachelor
Creek culvert revised elevation, providing erosion control and revegetation measures,
assuring water quality prior to discharge into Bachelor Creek, and street repairs as
required.
IV. RECITALS
The Parties make this Contract based on and in recognition of certain relevant facts and
Filed Page 1 of 10 Contract No. YC SAA 07
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
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 $500,000.00 from the SIED Fund, $250,000.00 to be in
the form of a loan and $250,000.00 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 Two Hundred Fifty Thousand
Dollars and Zero Cents ($250,000.00) for the Project described herein. This loan
Filed Page 2 of 10 Contract No. YC SAA 07
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.
B. REPAYMENT OF COUNTY LOAN—The City shall repay the County's loan
of Two Hundred Fifty Thousand Dollars and Zero Cents ($250,000.00 with
interest on unpaid principal, at an annual per annum rate of 5•6)5°/: 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 seven 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, 2014; 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 115,428 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 Two Hundred Fifty Thousand
Dollars and Zero Cents ($250,000.00) 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 30 days of the County's receipt of a signed copy of
the Project engineer's certificate that 50 percent 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
Filed Page 3 of 10 Contract No. YC SAA 07
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.
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:
Filed Page 4 of 10 Contract No. YC SAA 07
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
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 and4 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 chargers 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 ofl termination, including effective date and, in case of
termination in part, that portion to be terminated.
Filed Page 5 of 10 Contract No. YC SAA 07
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.
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):
Filed Page 6 of 10 Contract No. YC SAA 07
XV. INTEREST OF MEMBERS OF THE COUNTY AND THE CITY
No member of the governing''lbody 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.
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.
Filed Page 7 of 10 Contract No. YC SAA 07
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.
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:
TO COUNTY:
Bill Cook, Director
Dept. of Community & Economic Development
City of Yakima
129 N 2nd Street
Yakima, WA 98901
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.
Filed Pane 8 of 10 Contract No. YC SAA 07
XXIV. GOVERNING LAW AND VENUE
All questions of the validity, 'i! 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.
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 SAA 07
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 Mdrker
Approved as to Form:
Ray ' aolella, City Attorney
Debbie Moore, City Clerk
Date
oo7
CITY CONTRAC f NOtRa67 'pj,.7�
RESOLUTION NO.
Michael D. Leita, Chairman
Ronald F. Gamache, Commissioner
Excused
J. Rand Elliott, Commissioner
Approved as to Form:
John Staffan, Deputy Prosecuting Attorney
CONTRACT AUTHORIZATIQN i l I g i+ii,
�,,``\,oF AKI Mii
A CO"i
'F•WAS `7i,_
Christina Steiner, Clerk of the' d•.. • • • 'r`\`�
/J,) io`
Attest:
<<OZI67
Date
Filed Page 10 of 10 Contract No. YC SAA 07
Dated 11/30/2007
Delmerod: 11/30/2007
Variable bate Train -actions
City of Yak Z1121 ,
Sa A irport-A htarutm I1th strzal
SIA 30/360 YRL Y 7/6
Stnp Int
Coupon Lrt Ca/c Principal Effective Interest Credit Periodic Olds/and/17,g
Period Date Day Calc Payment Coupon Rate Payment Enhancements Debt Service Balance
1 6/1/2008 181/360 35,948 24 5 62500 7,070.31 43,018.55
2 6/1/2009 360/360 30,978.14 5.62500 12,040.41 43,018.55
3 6/1/2010 360/360 32,720.66 5.62500 10,297.89 43,018.55
4 6/1/2011 360/360 34,561.20 5.62500 8,457 35 43,018.55
5 6/1/2012 360/360 36,505.26 5 62500 6,513.29 43,018.55
6 6/1/2013 360/360 38,558.68 5.62500 • 4,459.87 - 43,018.55
7 6/1/2014 360/360 40,727.82 5 62500 2,290 94 43,018.76
214,051.76
183,073.62
150,352.96
115,791.76
79,286 50
40,727.82
5250, 000.00 551,130.06
True Interest Cost (TIC)
Arbitrage Yield Limit (A YL)
Average Life
50.00 5301,130.06
5.6250000 Face Value of Bond Issue $250,000.00
0.0000000 Accrued Interest (+) $0.00
3.6359155 Original Issue Prenziur/Discount (+) $0.00
Underwriter Discount (+) $0.00
Lump -sum credit enhancements (-) $0.00
Prepcu 3 by: Yakinu Canmv Tn swrsr"s Cf/ e
Prxparrrl04' 11/30/2007 14:37 12.95 Rpt 01j
Al UNIDB
YC SSA -2007-A
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting Of: October 2, 2007
ITEM TITLE: Consideration of legislation regarding a Sewer Extension Project:
A. 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 the South
Airport-Ahtanum Industrial Area Sewer Extension Project.
B. An Ordinance amending the 2007 budget and Making an
Appropriation in the 476 — Sewer Construction Fund
SUBMITTED BY:
CONTACT:
Bill Cook, Director of Community and Economic Development
Cindy Epperson, Financial Services Manager CZ,
Michael Morales, Deputy Director 575-3533
SUMMARY EXPLANATION:
Adam and Elizabeth Smith have proposed to construct a 4,300 linear foot extension of
12' city sewer main to serve properties in the south Airport area between South 26th
Avenue and Airport Lane to South 38th Avenue and Sorensen Road. The project will
have the capacity to serve 355 acres of Light Industrial zoned property which currently
does not have sewer services available, and is estimated to cost $530,450.
CONTINUED ON NEXT PAGE
Resolution X Ordinance X Contract_s Other: Grant & Loan Application
Funding Source: Yakima County SIED Fund --Sewer Collection Fund
Approval for Submittal:
City Manager
STAFF RECOMMENDATION:
A. Approve the attached Resolution authorizing the City Manager to execute and
submit a SIED grant/loan and take additional actions to complete the project.
B. Read the attached Ordinance by title only at the October 2, 2007 meeting. Pass
ordinance after second reading at the October 16, 2007 Council Meeting
BOARD RECOMMENDATION:
COUNCIL ACTION:
A. Resolution adopted. RESOLUTION NO. R-2007-142 (sIED
grant)
B. Ordinance read by title only; second reading scheduled 10-16-07
As direct route to Interstate 82 is completed .by the Valley Mall Boulevard Project and
the realignment of South 16th Avenue -to connect;Ahtanum Road to Valley Mall
Boulevard, the viability of, and demand for industrial property along the south side of
Yakima Airport will increase. The project is consistent with millions of dollars worth of
infrastructure improvements to the area that have taken place over the past 10 years.
Ultimately, this sewer line could be extended to the west as far as South 64th Avenue
(approx. 8500 If), which will help spur development on approximately 500 additional
acres of property. While the westernmost properties will be primarily residential, the
properties adjacent to, and directly affected,by,this project will be developed for
industrial, commercial and aviation related businesses.
Upon award, the City will enter into a loan agreement with Yakima County for
repayment of the loan portion (50%)1,estimated to be $253,875 and will also enter into
an agreement with Adam & Elizabeth Smith for repayment to the City of the
aforementioned obligation. (The current project estimate is approximately $22,700
more than the total of the loan and grant. The Smiths have agreed to reimburse the City
for any costs in excess of the SIED revenue.)
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 granf award from Yakima County to the applicant
municipality or port district.
The project will be accounted for in the 476 = Sewer Construction. Fund. The attached
appropriation is balanced, as revenues consisting of the SIED grant and loan of
$253,875 each, and a contribution fiom the developer of $22,700 equal the project
expenditure budget of $530,450. Therefore, the capital reserves for the sewer
collection system are not proposed to be used for this project.
2
Yakima County SIED Fund
Supporting Investments in
Economic Diversification
Application for funding
CITY OF YAKIMA
SOUTH AIRPORT-AHTANUM
INDUSTRIAL AREA
SEWER EXTENSION PROJECT
IE
Yakima County SIED Board
Supporting Investments In Economic Diversification
APPLICATION FOR FUNDING
CERTIFICATION
Applicant:
Federal Tax Number:
Contact:
Title:
Telephone:
Fax:
Email:
Address:
City of Yakima
Bill Cook
Director of Community & Economic Development
509/575-6113
15: 09/576-6792
bcook@ci.yakima.wa.us
129 North 2nd Street
Yakima, WA 98901
Indicate the minimum necessary total public project infrastructure costs.
Amount of SIED loan requested:
(see Policies for limits)
Amount of SIED grant requested:
(see Policies for limits)
Local match (minimum 10% of SIED request):
List other funding source(s):
TAL public \projecf costs:
$253,875
$253,875
$229,100
$22,700 Developer Cash
$206,400 — ROW Easement Contribution
;;$736;850
TOTAL private investment in plant/equipment $TBD
Project title: South Airport-Ahtanum Industrial Area Sewer Extension Project
Resolution # authorizing application: I R-2007-131
Declaration: I HEREBY CERTIFY THAT THE INFORMATION GIVEN IN THIS APPLICATION TO THE
SUPPORTING INVESTMENTS IN ECONOMIC DEVELOPMENT BOARD IS TRUE AND CORRECT TO THE BEST
OF MY KNOWLEDGE AND BELIEF.
Signature of Responsible Official:
Print or Type Name and Title: Richard A. Zais, Jr., City Manager
Application for Funding, 1998 Page 2 Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
A. REQUEST FOR FUNDING
Al. Indicate the full terms requested for SIED consideration.
A SIED loan is a general obligation of the jurisdiction receiving the loan. With acceptance of a SIED loan, the
jurisdiction agrees to the terms of the interlocal agreement regardless of the project which prompted the
application for SIED funding.
• A loan of: $253,875.
• A grant of $253,875 (maximum 40% of project costs*).
• Loan terms requested: •Total number of years for repayment: 7 years
• Justify a request for a deferral of the first loan payment. What is the basis for a lower interest rate request? •
NO DEFERRAL OF LOAN PAYMENT REQUESTED.
B. PUBLIC SECTOR PROJECT
B1. Describe the entire public facility project, including the parts that you are not asking SIED to fund.
The project is located in the vicinity of South 26th Avenue and Airport Lane to South 38th Avenue
at Sorensen Road. The project consists of design, securing right-of-way/easements,
construction, inspection and testing of approximately 4,000 feet of City of Yakima 12 -inch sewer
main. The project lies within the Light Industrial and Central Business District Support zoning
districts.
The proposed project is in compliance with the goals, objectives and policies of the City of
Yakima's Comprehensive Plan and Critical Areas Ordinance.
B2. Will this project upgrade an existing public facility? Build a new one?. Describe.
The project will extend sewer service;kto 355 acres of industrial zoned property in order to
facilitate further development around the Yakima Airport.
B3. List all funding sources for the public project and amount.
SOURCE STATUS
SIED loan requested
SIED grant requested
Private Cash Contribution
ROW/Easement Contribution
Pending
Pending
Committed
Committed
DATE
11/01/07
11/01/07
AMOUNT
$253,875.
$253,875
$ 22,700
$206,400
Total project costs
$736,850
Application for Funding, 1998 Page 3 Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
B4. Specifically, for what element(s) of the public project are SIED funds requested?
All construction related activities.• Clear and grub work area; excavate, install and backfill
approximately 4300 If 12" sanitary sewer main; excavate and install 16 manholes with
required stubs to adjacent properties; open cut mainline installation across Bachelor Creek;
remove and re -install Bachelor Creek culvert at revised elevation; provide required erosion
control and re -vegetation measures; provide de -watering measures as may be required;
assure water quality prior to discharge into Bachelor Creek streambed; street repairs, as
required, at Sorensen Road.
B5. Include a site map of the area. Identify the location of the site, public infrastructure and private development
project (existing and/or proposed). Specifically identify where SIED funds are proposed to be used.
B6. Attach engineering estimates supporting project costs. Identify whether estimates are from preliminary
engineering or design engineering work.
(Attention: SIED will not entertain requests for additional funding if projections are insufficient.)
B7. Describe how the public facility project will enhance or encourage other development in the immediate area in
addition to the direct development described in this application (Section D.)
The project will have the capacity to serve 355 acres of Light Industrial zoned property which
currently does not have sewer services available. It is consistent with millions of dollars worth
of infrastructure improvements to the area that have taken place over the past 10 years from the
Yakima Armory, Washington Avenue,' Airport Fiber Loop Project, and SIED funded
improvements for Cascade Quality Molding, Cub Crafters, and the Yakima Air Park.
As direct route to Interstate 82 is completed by the Valley Mall Boulevard Project and the
realignment of South 16th Avenue to connect Ahtanum Road to Valley Mall Boulevard, the
viability of, and demand for industrial; property along the south side of Yakima Airport will
increase.
Ultimately, this sewer line could be extended to the west as far as South 64th Avenue (approx.
8500 If), which will help spur development on approximately 500 additional acres of property.
While this property will be primarily residential, the properties adjacent to, and directly affected
by, this project will be developed for industrial, commercial and aviation related businesses.
B8. List all permits and environmental reviews required for the PUBLIC SECTOR PROJECT and give their current
status (applied for, application being prepared, permit issued, etc.)
ANTICIPATED
COMPLETION
PERMIT ISSUER 1 STATUS DATE
SEPA City of Yakima Issued
Critical Areas Permit City of Yakima Issues
Hydraulic Permit Dept. of!IFish & Wildlife Issued
B9. If environmental permits are not required:for the project (e.g., Shorelines Permit, Environmental
Impact Statement, etc.), please explain why they are NOT required.
Application for Funding, 1998 Page 4 Yakima County S1ED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
B10. Estimated schedule for public project completion. Indicate the month and year when the activities
listed have been, or will be, completed.
ESTIMATED COMPLETION DATE
(month/year)
Preliminary Engineering Report Complete
Environmental Review Complete
All Required Permits Obtained Complete
Design Engineering Complete
Land/Right-of-Way Acquisition Complete
Prepare Bid Documents October 2007
Award Construction Contract November 2007
Begin Construction November 2007
Project Operational February 2008
B11. What other jurisdictions, such as counties, cities, port districts, tribes, state/federal agencies are involved in the
planning, design, financing, construction `lir operation of this project?
Yakima County Yakima Air Terminal
Washington State Department of Fish and Wildlife
Please explain how completion of the project is coordinated between other involved parties.
Construction of the project must be completed in accordance with the time frame approved
by the Department of Fish and Wildlife ("Fish Window"). The Yakima Air Terminal Board of
Directors needed to approve the easement and determine that prospective development
would not interfere with Airport Influence Area and applicable FAA regulations.
B12. Will the SIED public facility project be totally maintained by the applicant? If not, whom? Please explain.
The City of Yakima will maintain all public improvements.
B13. How will this project impact utility rates and public services within the jurisdiction?
No adverse impact projected. Thel improvements will benefit other commercial users of the
system, and the debt service is not being paid for by user rates.
B14. Is this project consistent with your local comprehensive and capital facilities plans? If no, please explain.
Yes, the project is consistent with the Comprehensive Plan and Capital Facilities Plan.
Application for Funding, 1998 Page 5 Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
C. FINANCIAL INFORMATION ON CITIES, TOWNS, PORT DISTRICTS AND
COUNTIES
This section examines the general financial status of cities, towns, and counties to determine the need for SIED
assistance.
01. Identify funds (General Fund, Utility Fund, Property taxes, etc.) that are eligible to repay a SIED loan.
Utility enterprise funds are eligibleifor use in repayment, but the city will enter into an
agreement with Adam and Elizabeth Smith for repayment of the loan.
C2. In the context of the local government's overall annual budget, explain the need for SIED assistance. If the
applicant has budget reserves, please explain why these funds are not available for the project?
The City of Yakima has been forced in recent years to dip in to reserves just to balance the
General Fund budget, and those reserves are now at critically low levels. The sewer capital
budget has also taken on a number of initiatives in recent years (plant expansion and
subsidizing NPDES storm water requirements) that have stretched our financial capacity,
making this type of investment cost prohibitive without a subsidy.
C3. If the local jurisdiction is not financially contributing to the project, please explain why.
The City is responding to a development request. The project was not budgeted in our
immediate capital investment plan's.
C4. Has the use of revenue or general obligation bonds, LID, ULIDS been explored for this public facility project?
Yes_X_ No . Explain the outcome and describe why these financing sources would or would not be
applicable for this project.
While the project is eligible for an LID, the current property owners were not interested in
forming an LID because the timing of the industrial development is difficult to determine,
thereby limiting their ability to recoup the investment.
C5. Will a revenue stream be generated that (could repay a SIED loan outside of the system's normal
operations and maintenance costs? Yes NoX_. Please explain.
The timing of connection fees may not coincide with SIED repayment requirements, and at
least a portion of them would need to go toward system wide and plant improvements. The
property owners that granted easements for the sewer line were also given a waiver of late-
comer charges for connecting to the pipe as a condition.
Application for Funding, 1998 Page 6 Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
C6. Other public sources of funding for public economic development projects are listed below. Indicate which
public sources were investigated to fund this project, in addition to SIED. Indicate what the outcome was.
FEDERAL:
Economic Development Administration
Rural Development
T21 (ISTEA)
Other:
STATE:
Transportation Improvement Board
Community Development Block Grant
Public Works Trust Fund
Department of Ecology
CERB
RTPO/MPO
WSDOT
YES NO OUTCOME
X
X
X_ Not eligible
X Not eligible
X
X_ Not eligible
X_ Not eligible
City has other obligations
X_ Not eligible
_X_ Not eligible
_X_ Not eligible
_X Not eligible
Applicant and City requested use of SIED funds because of the short time period and flexibility of the
program, and difficulty to be competitive in statewide and federal grant cycles.
Application for Funding, 1998
Page 7 Yakiina County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
D. PRIVATE SECTOR COMMITMENT
D1. In order to show that a specific private investment is ready to occur, but will do so only if SIED assistance is
made available to the applicant, SIED requires a signed Contingency Agreement(s) between the
applicant and the private sector representative(s). If a developer is involved, there must also be a
signed Contingency Agreement between the developer and the proposed tenant.
D2. Describe the proposed private development or expansion project that will be supported by the public facility
project.
I.'
The project will provide sewer service to over 350 acres of industrial development property
around the Yakima Air Terminal. We anticipate that this are will develop over the next five
years with a range of uses from Tight manufacturing to aviation related business.
D3. Name of private sector firm: Adam & Elizabeth Smith
Address 4607 Ahtanum Road; Yakima, WA 98903
Phone/Fax 834-9299
Contact Person
Adam Smith
D4. Explain why the private development requires the proposed public infrastructure improvements
described in this application.
Ultimately, the sewer pipe will serve parcels that require this utility for development,
including several residential areas;,in this fast growing section of the Upper Valley. The City
of Yakima conditioned any SIED application on having the sewer pipe be aligned and
designed in such a manner that industrial properties owned by others can be opened up for
the industrial development. This design will allow these industrial properties to be more
aggressively marketed as "Ready to Go" for potential investors. The lack of infrastructure to
the area provides a competitive disadvantage to marketing these industrial sites. Industrial
property is in short supply in the City of Yakima, and the development of this corridor will
help address this problem.
Application for Funding, 1998 Page 8 Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
D5. List the number of projected jobs, by job type, to be retained and/or created by the firm as a direct
result of the public infrastructure project supporting the private development.
THIS IS A PROSPETIVE PROJECT
Job Description
Current # Of
Jobs Retained**
(In FTEs)
# Of Jobs
Created Year 1
(In FTEs)
# Of Jobs
Created by Year
3 (In FTEs)
Current or initial
Hourly Wages
Local
Occupational
Hourly Wages***
Mgmt./Admin*
Store Division
and Shift
Managers
Technical/Prof.
Office/Clerical
Production
Sales
Skilled Crafts
Others:
Sales Clerks
Meat Cutters
Bakers
Food Prep
Stockers
General Help
a) Number of Jobs **Retained _0
b) Projected annual gross payroll for all job classifications $
c) How many of these positions are for seasonal work? (In FTE) 0
d) What kind of fringe benefits does the company offer to regular full time employees?
D6. Will this project displace existing jobs in any other part of the county? No
D7. How were job projections developed? Explain why the projections are realistic.
***Contact YCDA for information on this column.
Application for Funding, 1998
Page 9 Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
D8. Will the private sector project offer expanded employment opportunities to disadvantaged or unemployed
workers? How will the firm work to hire people from Yakima County?
n/a
D9. Indicate the construction schedule (if applicable) for the proposed private sector project.
(month/year)
Private Facility Construction Begins N/A
Private Facility Construction Completed , N/A
Private Facility Operational N/A
D10. List all permits required for the PRIVATE SECTOR PROJECT and give their current status (applied for,
application being prepared, permit issued, etc.)
PERMIT/ENVIROMENTAL
REVIEW ISSUER
STATUS, -
ANTICIPATED
COMPLETION
DATE
ALL REQUIRED PERMITS: TO' COMPLETE THE;YPROJECT.MUST
WITHIN, SIX MONTHS OF A'SIED OFFERO'F FINANCIAL AID
URE
D11. What private authorizations remain prior to proceeding with the proposed private development project?
This is a prospective project.
D12. Explain how the private sector is financ)ng their capital investment in this project. When will private sector
financing be in place? Please list financial references that can verify financing sources and capacity for this
project.
Application for Funding, 1998
Page 10 Yakima County SIED Program