HomeMy WebLinkAbout04/19/2011 20 Redirection of Sales and Use Taxes; LIFT; RCW 82.14.475 [Local Infrastructure Financing Tool] BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. Z-
For Meeting of April 19, 2011
ITEM TITLE: Relating to the City's Local Infrastructure Financing Tool (LIFT)
program, consideration of an ordinance implementing the redirection of
sales and use tax currently collected by the State to the City of Yakima,
pursuant to the requirements of RCW 82.14.475.
SUBMITTED BY: Michael Morales, Acting Assistant City Manager
tY er g
Cindy Epperson, Deputy Director of Accounting & Budgeting
CONTACT PERSON/TELEPHONE: Michael Morales
575 -6040
SUMMARY EXPLANATION
On September 23, 2008 the City' was notified by the Community Economic Revitalization Board
( "CERB ") of the State of Washington that is was selected as a LIFT (Local Infrastructure Financing
Tool) grant recipient under RCW Chapter 39.102. This financing will be used for public infrastructure
0 improvements related to the redevelopment of the former Boise Cascade /Yakima Resources sawmill
and plywood plant and surrounding public areas of public property. In June 2008, Ordinance 2008 -28
identified and established this area as the RDA (Revenue Development Area). Consistent with the
requirements of RCW 82.14.475 following a review of several previous years' sales tax revenue, on
September 1, 2009 the City selected a local option sales and use tax rate of .0915% within the Revenue
Development Area (RDA). This rate will be used by the Washington State Department of Revenue
when calculating the amount of the City's share of sales and use taxes to be credited and remitted to
the City.
CONTINUED ON NEXT PAGE
Resolution Ordinance X Contract Other (Specify)
Funding Source
APPROVED FOR SUBMITTAL: ` t—= ., ‘\\
City Manager
STAFF RECOMMENDATION: Pass Ordinance
•
COMMITTEE RECOMMENDATION:
"'COUNCIL ACTION:
1 -- April 14, 2011
THIS IS NOT A NEW TAX. This money comes from the State's share of sales and use taxes generated
in the City and is a statutory method of redirecting locally generated tax revenues. Under the State's
LIFT program, the City can receive up to $1 million per year for twenty -five years to finance
infrastructure projects within the adopted RDA boundaries and use the redirected state local sales and
property tax revenues from the RDA to pay debt service. Thus, adoption of this ordinance does not
impose any new taxes, it is merely the next step required under the State's LIFT program for
redirecting a portion of State taxes back to the City. With the passage of this ordinance, the first LIFT
funds would be collected beginning July 1, 2011 and would be remitted to the City in September 2011.
The maximum state contribution is $1 million per year, and must be matched dollar for dollar
by the city. The match may consist of other local or federal funds, and the city's credit for
match is determined by expenditures in the year preceding the state share.
This ordinance does not create any financial obligations for the city, and is only for the
purpose of establishing an eligible area for the State Department of Revenue to measure
economic activity, and for the city to use LIFT funds for infrastructure improvements.
Following adoption, the ordinance will be submitted to the State DOR for review and
acceptance. Upon DOR approval, the city will begin to receive a state sales tax revenue credit
for use on eligible LIFT activities.
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2 - Apnl 14, 2011
RCW 82.14.475: Sales and use tax for the local infrastructure financing tool program. (Ex... Page 1 of 3
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RCWs > Title 82 > Chapter 82.14 > Section 82.14.475
Inside the Legislature
• Find Your Legislator 82.14.470 « 82.14.475 » 82.14.480
* Visiting the Legislature
* Agendas, Schedules and . RCW 82.1! 4.475
Calendars _
* Bill Information Sales and use tax for the local infrastructure
* Laws and Agency Rules
* Legislative Committees (Expires June 30, financing tool program. l p , 2039 .)
* Legislative Agencies
* Legislative Information (1) A sponsoring local government, and any cosponsoring local government, that has been
Center approved by the board to use local infrastructure financing may impose a sales and use tax
E-mail Notifications in accordance with the terms of this chapter and subject to the criteria set forth in this section.
(Listserv) Except as provided in this section, the tax is in addition to other taxes authorized by law and
Civic Education is collected from those persons who are taxable by the state under chapters 82.08 and 82.12
RCW upon the occurrence of any taxable event within the taxing jurisdiction of the
It History of the State sponsoring local government or cosponsoring local government.
Legislature
Outside the Legislature (2) The tax authorized under subsection (1) of this section is credited against the state
taxes imposed under RCW 82 and 82.12.020 at the rate provided in RCW
* Congress - the Other 82.08_020(1). The department must perform the collection of such taxes on behalf of the
Washington sponsoring local government or cosponsoring local government at no cost to the sponsoring
TVW local government or cosponsoring local government and must remit the taxes as provided in
RCW 82.14.060.
* Washington Courts
* OFM Fiscal Note Website (3) The aggregate rate of tax imposed by the sponsoring local government, and any
411 cosponsoring local government, must not exceed the lesser of:
Access
`: Wa:s r.ngton
.∎..;,,.,,, Gr. , / , (a) The rate provided in RCW 82_08_020(1) less:
(i) The aggregate rates of all other local sales and use taxes imposed by any taxing
authority on the same taxable events;
2010
;tiCNI, anti n : (ii) The aggregate rates of all taxes under RCW 82.14.465 and this section that are
N, authorized to be imposed on the same taxable events but have not yet been imposed by a
sponsoring local government or cosponsoring local government that has been approved by
the department or the community economic revitalization board to receive a state contribution
under chapter 39.100 or 39.102 RCW; and
(iii) The percentage amount of distributions required under RCW 82.08 020(5) multiplied
by the rate of state taxes imposed under RCW 82.08.020(1); and
(b) The rate, as determined by the sponsoring local government, and any cosponsoring
local government, in consultation with the department, reasonably necessary to receive the
state contribution over ten months.
,(4) Sponsoring local governments that have been approved before October 1, 2008, by
the community economic revitalization board for a state contribution must select the rate of
tax under this section no later than September 1, 2009.
(5) The department, upon request, must assist a sponsoring local government and
cosponsoring local government in establishing their tax rate in accordance with subsection
(3) of this section. Once the rate of tax is selected, it may not be increased.
(6)(a) No tax may be imposed under the authority of this section:
• ( i) Before July 1st of the second calendar year following the year approval by the board
und under RCW 39 102.040 was made; and
(ii) Until a. sponsoring local government reports to the board and the department as
required by RCW 39..102..140 that the state has benefited through the receipt of state excise
http: / /apps.leg.wa.gov /RCW /default.aspx ?cite = 82.14.475 4/14/2011
RCW 82.14.475: Sales and use tax for the local infrastructure financing tool program. (Ex... Page 2 of 3
tax allocation revenues or state property tax allocation revenues, or both.
(b) The tax imposed under this section expires when all indebtedness issued under the
authority of RCW 39:102.150 is retired and all other contractual obligations relating to the
financing of public improvements under chapter 39.102 RCW are satisfied, but not more than
twenty -five years after the tax is first imposed.
(7) An ordinance adopted by the legislative authority of a sponsoring local government or
cosponsoring local government imposing a tax under this section must provide that:
(a) The tax is first imposed on the first day of a fiscal year;
(b) The cumulative amount of tax received by the sponsoring local, government, and any
cosponsoring local government, in any fiscal year may not exceed the amount of the state
contribution;
(c) The tax will cease to be distributed for the remainder of any fiscal year in which either:
(i) The amount of tax received by the sponsoring local government, and any cosponsoring
local government, equals the amount of the state contribution;
(ii) The amount of revenue from taxes imposed under this section by all sponsoring and
cosponsoring local governments equals the annual state contribution limit; or
(iii) The amount of tax received by the sponsoring local government equals the amount of
project award granted in the approval notice described in RCW 39.102.040;
(d) Neither the local excise tax allocation revenues nor the local property tax allocation
revenues may constitute more than eighty percent of the total local funds as described in
RCW 39.102.020(28)(b). This requirement applies beginning January 1st of the fifth calendar
year after the calendar year in which the sponsoring local government begins allocating local
excise tax allocation revenues under RCW 39.102.110;
(e) The tax must be distributed again, should it cease to be distributed for any of the
reasons provided in (c) of this subsection, at the beginning of the next fiscal year, subject to
the restrictions in this section; and
(f) Any revenue generated by the tax in excess of the amounts specified in (c) of this
subsection belongs to the state of Washington.
(8) If a county and city cosponsor a revenue development area, the combined amount of
distributions received by both the city and county may not exceed the state contribution.
(9) The department must determine the amount of tax receipts distributed to each
sponsoring local government, and any cosponsoring local government, imposing sales and
use tax under this section and shall advise a sponsoring or cosponsoring local government
when tax distributions for the fiscal year equal the amount of state contribution for that fiscal
year as provided in subsection (11) of this section. Determinations by the department of the
amount of tax distributions attributable to each sponsoring or cosponsoring local government
are final and may not be used to challenge the validity of any tax imposed under this section.
The department must remit any tax receipts in excess of the amounts specified in subsection
(7)(c) of this section to the state treasurer who must deposit the money in the general fund.
(10) If a sponsoring or cosponsoring local government fails to comply with RCW
39 no tax may be distributed in the subsequent fiscal year until such time as the
sponsoring or cosponsoring local government complies and the department calculates the
state contribution amount for such fiscal year.
(11) Each year, the amount of taxes approved by the department for distribution to a
sponsoring or cosponsoring local government in the next fiscal year must be equal to the
state contribution and may be no more than the total local funds as described in RCW
39.102.020(28)(b). The department must consider information from reports described in
RCW 39.102 140 when determining the amount of state contributions for each fiscal year. A
sponsoring or cosponsoring local government may not receive, in any fiscal year, more
revenues from taxes imposed under the authority of this section than the amount approved
annually by the department. The department may not approve the receipt of more
distributions of sales and use tax under this section to a sponsoring or cosponsoring local
government than is authorized under subsection (7) of this section.
http: / /apps.leg.wa.gov /RCW /default.aspx ?cite = 82.14.475 4/14/2011
RCW 82.14.475: Sales and use tax for the local infrastructure financing tool program. (Ex... Page 3 of 3
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(12) The amount of tax distributions received from taxes imposed under the authority of
this section by all sponsoring and cosponsoring local governments is limited annually to not
more than seven million five hundred thousand dollars. •
(13) The definitions in RCW 39.102 020 apply to this section unless the context clearly
requires otherwise.
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(14) If a sponsoring local government is a federally recognized Indian tribe, the distribution
of the sales and use tax authorized under this section must be authorized through an
interlocal agreement pursuant to chapter 39.34 RCW. •
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(15) Subject to RCW 39_102.195, the tax imposed under the authority of this section may
be applied either to provide for the payment of debt service on bonds issued under RCW
39.102.150 150 by the sponsoring local government or to pay public improvement costs on a pay -
as- you -go basis, or both.
•
(16) The tax imposed under the authority of this section must cease to be imposed if the
• sponsoring local government or cosponsoring local government fails to issue indebtedness
under the authority of RCW 39 and fails to commence construction on public •
improvements, by June 30th of the fifth fiscal year in which the local tax authorized under this
section is imposed. •
• (17) For purposes of this section, the following definitions apply:
• (a) "Local sales and use taxes" means sales and use taxes imposed by cities, counties,
• public facilities districts, and other local governments under the authority of this chapter,
• chapter 67.28 or *67.40 RCW, or any other chapter, and that are credited against the state
• sales and use taxes.
(b) "State sales and use taxes" means the tax imposed in RCW 82.08.020(1) and the tax
• imposed in RCW 82.12.020 at the rate provided in RCW 82.08.020(1).
•
I2010.c 164 § 12; Zoos c 267 § s; 2007 c 229 § s; zoos c 181 § 401.i
•
Notes:
*Reviser's note: A majority of chapter 67.40 RCW was repealed by 2010 1st
sp.s. c 15 § 14, effective November 30, 2010. RCW 67.40 020 was repealed by
• 2010 1st sp.s. c 15 § 15, effective December 30, 2010.
•
Expiration date -- 2010 c 164 §§ 11 and 12: See note following RCW
39.102.020.
•
Expiration date -- 2009 c 267: See note following RCW 39.102.020.
Application -- Severability -- Expiration date -- 2007 c 229: See notes
following RCW 39.102.020. •
Captions and part headings not law -- Severability -- Construction
Effective date -- Expiration date -- 2006 c 181: See RCW 39.102,900 through
39.102.904.
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http: // apps. leg.wa.gov /RCW /default.aspx ?cite= 82.14.475 4/14/2011
ORDINANCE NO. 2011-
An Ordinance Imposing the Local Sales and Use tax to be credited against the
State Sales and Use tax for purposes of utilizing Local
Infrastructure Financing in the Yakima Revenue Development
Area pursuant to RCW 39.102;
WHEREAS, RCW 39.102, (Chapter 181, Laws of 2006, and as hereafter
amended (collectively the "Act ") and RCW 82.14.475 authorize the imposition of a local
sales and use tax (the "LIFT tax ") for the purpose of financing certain public
improvements located within a Revenue Development Area ( "RDA "), upon the
satisfaction of certain conditions set forth therein. This local sales and use tax is
credited against the sales and use tax otherwise due to the State under Chapters 82.08
and 82.12, resulting in no net change in tax rate to the taxpayer; and
WHEREAS, pursuant to this authority, the City of Yakima, by Ordinance 2008 -28
adopted on June 10, 2008, previously created the Yakima Revenue Development Area
( "RDA ") for the purpose of financing public improvements located within the RDA; and
WHEREAS, the City submitted its application for use of Local Infrastructure
Financing pursuant to RCW 39.102.040 on June 30, 2008, and the Community
Economic Revitalization Board ( "CERB ") approved such application on September 23,
2008, granting a project award of up to $1 million in annual taxing authority for up to 25
years; and
WHEREAS, on September 1, 2009 the City selected the maximum rate of tax
under RCW 82.14.475, which rate is not to exceed 0.0915 %;
NOW, THEREFORE, THE CITY OF YAKIMA DOES ORDAIN:
Section 1. State - shared Sales and Use Tax, as authorized under RCW
82.14.475 shall be imposed as of July 1, 2011, as follows:
1.1 Effective Date and Duration. The sales and use tax authorized by this
ordinance shall be imposed and become effective as of July 1, 2011, the
first day of the State of Washington fiscal year. It shall expire when all
indebtedness issued under the authority of RCW 39.102.150 is retired
and all other contractual obligations relating to the financing of Public
Improvements under. RCW 39.102 are satisfied, but not later than July 1,
2036, twenty -five years after the date the tax is first imposed.
1.2 Rate. The tax rate shall initially be set at .0915% of the selling price (in
the case of sales tax) or value of the article used (in the case of a use
• tax). The tax cannot exceed this rate, which has been calculated as the
rate reasonably necessary to receive the annual state contribution of
$1,000,000 over ten months, in accordance with RCW 82.14.475(3)(b), •
but can be adjusted downward by ordinance of the City Council in the
future. In any case, receipts in any given year cannot exceed $1 million
and the LIFT Tax shall cease to be distributed to the City for the
remainder of any State fiscal year in which the amount of tax received by
the City equals the amount of the State contribution, or distributions reach
$1,000,000.
1.3 Use of LIFT Tax Receipts. Subject to RCW 39.102.195, receipts from
the LIFT Tax may be applied either to provide for the payment of debt
service on bonds issued under RCW 39.102.150 by the City or to pay
Public Improvement costs on a pay -as- you -go basis, or both.
1.4 Indebtedness. In accordance with RCW 82.14.475(16), the LIFT Tax
shall cease to be imposed if the City fails to issue indebtedness pursuant
to RCW 39.102.150, and fails to commence construction on public
improvements by June 30 of the fifth fiscal year in which the LIFT Tax is
imposed.
Section 2. General Authorization. The City Manager and other appropriate
City officers designated by the City Manager are each hereby authorized and directed to
do such things as may be necessary and appropriate in order to carry out the terms and
provisions of, and complete the transactions contemplated by this ordinance, including
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without limitation all actions necessary to impose the collection of Local Infrastructure
Financing under Chapter 39.102 RCW.
Section 3. Section Headings or Captions. The section headings or captions
of this ordinance are for convenience of reference only, and shall not be used to resolve
any question of interpretation of this ordinance.
Section 4. Severability. If any one or more of the covenants or agreements
provided in this ordinance to be performed on the part of the City shall be declared by
any court of competent jurisdiction to be contrary to law, then such covenant or
covenants, agreement or agreements, shall be null and void and shall be deemed
separable from the remaining covenants and agreements in this ordinance and shall in
no way affect the validity of the other provisions of this ordinance, or of any bonds issued
in anticipation of receipt of distributions from LIFT Taxes.
Section 5. Ratification of Prior Acts. All acts taken pursuant to the authority
of this ordinance but prior to its effective date are ratified and confirmed.
Section 6. Authority to Correct Scrivener's Errors. The City Clerk and the
codifiers of this Ordinance are authorized to make necessary corrections to this
Ordinance including, but not limited to, the correction of scrivener's clerical errors,
references, ordinance numbering, section /subsection numbers and any references
thereto.
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• Section 7. Upon approval of this ordinance, the City Clerk is directed to
cause a certified copy of this ordinance to be delivered to the State of Washington
Department of Revenue and any other public officers or agencies as required by law.
PASSED BY THE CITY COUNCIL, signed and approved this day of
, 2011.
ATTEST: Micah Cawley, Mayor
City Clerk
• Publication Date:
Effective Date:
Ill
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of Tune 10, 2008
ITEM TITLE: Public Hearing and consideration of an ordinance to establish the Yakima
Revenue Development Area for the Washington State Local Infrastructure
Financing Tool (LIFT) program.
SUBMITTED BY: William R. Cook, Director
Department of Community and Economic Development
CONTACT PERSON/TELEPHONE: Michael A. Morales, Deputy Director CED
575 -3533
SUMMARY EXPLANATION:
LOCAL INFRASTRUCTURE FINANCINT TOOL (LIFT) PROGRAM BACKGROUND
The Department of Community and Economic Development is preparing an application for state
funding through the Local Infrastructure Financing Tool (LIFT) program, due June 30, 2008. LIFT
funds would be used to finance public infrastructure needed to accelerate redevelopment of the former
Boise Cascade /Yakima Resources sawmill and plywood plant, and surrounding areas of public and
• private property.
The LIFT program is a form of tax increment financing that allows cities to finance infrastructure
projects by using the increase of state local sales and property tax revenue related to a specific
development area to pay debt service. LIFT funding can only be generated from a designated
"Revenue Development Area" (RDA), and can only be used to support debt service for public
infrastructure within the adopted RDA. The city is required to designate the RDA by ordinance
prior to the Lail' application, and must hold a public hearing on the proposed ordinance.
CONTINUED ON NEXT PAGE
Resolution _Ordinance X Contract Other (Specify) Public Hearing
Funding Source
APPROVED FOR SUBMITTAL:
City Manager
STAFF RECOMMENDATION: Approve Ordinance
COMMI I'EE RECOMMENDATION: Economic Development Committee recommends
• approval
COUNCIL AC'T'ION: ACTION: Public hearing was held. Lynne Kittelson and Dr. James Dodge
spoke. Ordinance passed. ORDINANCE NO. 2008 -28
1 - June5,2008 VOTE: Unanimous
The maximum state contribution is $1 million per year, subject to the actual revenue generated
within the RDA, and must be matched dollar for dollar by.the cit The economic analysis, of
the RDA' demonstrates. that the City could receive the maXimum state'contribution, but;the
'arnOtint of LIFT and local rev ed to the project will not be determined until 2011,
enue alloc Y
following the initial base measurement ear (2009), and the mitial.year of substantial economic
activit
PROPOSED YAKIMA RDA
The proposed Yakima RDA consists of 556,acres of p'r'ivate :and public property The primary
. -,_.development .area consists of.approxirnately 224 acres, nearly all. of which is the former Boise _
Cascade /Yakima Resources,` sawmill and plywood plant _Four'smaller:parcels that are''
included m the -RDA are the vacant Je1d Wen-plant, the former, Trail Wagons building
(currently rented as an indoor soccer1aci :ity), a Pacific Power utility station, and one owner :.:
occupied, single family residence The publicly owned acreage consists of Interstate 82 from
the US 12 Interchange through the Yakiinif Avenue Interchange, along with .the Yakima`.
. :Greenway, and portions of city street rights of ;way.: The_western and southern;boundaries of;
the RDA is almost completely controlled by-the :SaWmill- site, while the'; North ern and Eastern
boundaries are publicly.held property (city limits on-the-east). The .southern-boundary is a
combination of public and private l A m a p out lin i ng the proposed RDA'.is attached to the
proposed Ordinance, which also lists the °' specific parcels included in the RDA "
:*'ESTIMATED'COST OF YAICIMA:RDA PUBLIC IMPROVEMENT
lann rig level cost estmates were prepared by JUB Engineers and 1VIcKa ySposito to
P
determine file costs associated with making primary infrastructure improvements within the
Yakima RDA, Per the requirements of th e LIFT application, these cost are based „on
2008 construction costs and included estimates for planning, survey and design
RDA Public Road System $30 847,125
Includes Fair Avenue Roundabout' connector, „-
Utilities (water,'sewer °stormwater),
Site 're aration `streets trails, sidewalks _
P P
„Interstate 82 Interchange,' Improvements $19,642,334
.Includes land acquisition, site preparation,
Rail crossings signalization
• Total Estiinated of Public Improvements $50,489,459
g
Although these projects are anticipated and proposed. for' :the' LIFT: application the fi n al
deterimnation of protect selection and level of investment within the RDA will be
determined `by the City. Council after the designation. >°
2 . June 5 2008.-
ECONOMIC IMPACTS OF THE YAKIMA RDA
0 The LIFT application requires that each RDA demonstrate its economic impact and likelihood
of success. In order to ensure that the same methodology was used to calculate the impacts of
all RDA's, the state provided strict guidelines for applicants to use in their analysis. The
modeling used to determine the economic impacts of the Yakima RDA followed these
stringent requirements, and in doing so, a number of key assumptions were made:
• Total site acreage for development
• Building square footages of commercial, residential, office and light industrial
development
• Total estimated costs of for site and building development
• Total estimated costs for public infrastructure improvements within the RDA
• Total projected construction and long -term employment
The results of this analysis are summarized below:
Total acreage 224
Total cost of infrastructure improvements, including $308,977,419
buildings
Total acres of park and open space 21
Total acres of commercial development 172
Total square feet of commercial development 2,252,923
Total number of units 171
• Total permanent jobs 3,901
Total construction jobs 1,152
Total annual state and local sales tax revenue $20,105,247
Total annual state and local property tax revenue S6,351,092 —
Total gross property value $508,285,782
Again, the economic impact analysis was prepared in the context of LIFT application
requirements. It is anticipated that these numbers will be reexamined and heavily discounted
for the purpose of bond underwriting.
REQUESTED ACTION AND NEXT STEPS
The Council Economic Development Committee and staff recommend approval of the
attached Yakima RDA Ordinance. This ordinance does not create any financial obligations for
the city, and is only for the purpose of establishing an eligible area for the State Department of
Revenue to measure economic activity, and for the city to use LIFT funds for infrastructure
improvements.
Following adoption, the ordinance will be submitted to the State DOR and the County
Treasurer. CTED /CERB will review applications and make final decisions in September. No
further action is required until the city is notified of its award status. Selection and design of
• public projects will not occur until late 2009.
3 — June 5, 2008
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_ . d) The. Cit w e nter into a contract with a _ private`deve V rela ting to
t Y RDA,
e) Private deve lo p m e nt is .anticipated to oc c u r w ithin the Ya • RDA, as a
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result of thehpubliceimprovements, wh be the.._ , •
unt . ide t olic a do ted b Y Y akima County under RCW '
YW p 9 : p Y p Y ,
36
70A.210 and City's comprehen plan and developm : .
g ' - dop ted u n d er Chapter 36:70A R CW,
. - • re ulations a -. .. . ., .. . .
f) The local infra financing w ith res p ect to the Y RDA is •no
ex : e cted ` to be used °.for t he sole " u . ose:.of relo catin a bu s i ne ss from
p _ p rP 9'
•
outside't RDA w i,nt o rth e , 'RDA`and , :th e
Yakim will i the viability o busines development wi thin the
.. . Yakima .RD
g) T he Publi Impr ovement s are ; r eas onably lik ( 1) mcrease ,private •
residen and comm invest wi thin the.Yakima RDA, (2)
in emplo with Yakima: RDA a n d (3);generate •
p erio d o f. ti met h at local opt s a l e s and use ta will be.i mposed under
RC 82 1 4: 47 s t ate: exc i se,tax allo c a t i on:revenue s 4° nd state property
•
tax allocation revenues
''(as de " A ct) denve d�from,t h e ' Yakima
RDA that.are equal to o r greater than the respect st ate ' c ontr i but i ons
ma un der the Act, and
h ) T i financing w ill b e us only a n the Yakima RDA,
w
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h i c h is a n a rea , deemed by the City t b e* m need of econo
developme or redevelopment a nd is within t he ' C i ty's boundaries _
Section 8`° Findings Required by .., . ., 1`02 080 of the Act Pursuant to
RCW 39 080 the estim impact of the Ya kima RDA on sm business ar.1...., l
income h o u sin g, antl the mitig p l a n relating thereto is a ttached as Attachmet D is
hereby ado pted
1 v1 r ' .,
' Sect 9 ._ General Authoriza The City Manager a nd o a ppropriate
ty g d b the City Manager are each hereby aut an directed to
Ci officers:desi pa
do s uch things a s may b e ne ce s sary and appropriate m girder to can ou t h e t er m s and ,
pr o vi sion s of and comp the transaction contempla by this ordinance, including ` '
without ' limitation a ll a ctions n e c es sa ry to apply f o r ' p rompt approv b the C o f the
Y RD and the use of Loc Infr Financing un der Chapte 3 9 1 02 R CW:
y <,
Section 10 S ection M eade o or- Captions:"': sect headmg captions
of this ord are for co n ven ience of refere o a nd, shall not be used to resolve.
any .
uestion of int re of t hi s , o
p ,.. a nte •
S 1 1 S e v erability If any on or more of th c o v e na nt s or a
;p rovid e d m t o rdin a nce to be; performed on th part of the C ity s ha ll be declared by . • :an c o f c �un s d ic tion to be cont t o la t hen such covenan
coven a greem enf or agre shall b e n a nd void and s h a ll b e d ee or med
L
• ORDINANCE NO. 2008 - c g
AN ORDINANCE . creating the Yakima Revenue Development Area pursuant to
Chapter 39.102 RCW (Local Infrastructure Financing Tool
Program)
WHEREAS, Chapter 39.102 RCW, (Chapter 181, Laws of 2006, as amended by
Chapter 229, Laws of 2007, (collectively the "Act ") provides that a sponsoring local
government may create and adopt a Revenue Development Area (RDA) within which
certain specified public improvements may be financed through the allocation of various
property and excise taxes, as set forth in the Act; and
WHEREAS, subject to approval by the Community Economic Revitalization
Board ( "CERB ") of the W ashington State Department of Community, Trade and
Economic Development( "CTED "), the Act provides t he City of Yakima ( "City") with the
opportunity to demonstrate the benefits of the Local Infrastructure Financing Tool
( "LIFT "), a limited form of tax increment financing; and
WHEREAS, in order to create an RDA, a sponsoring local government must
adopt an ordinance consistent with the requirements RCW 39.102.090; and
WHEREAS, the proposed RDA includes the former Yakima Sawmill and
Plywood Plant and contiguous parcels that include Interstate 82, the Yakima Greenway,
and other parcels deemed necessary to provide for transportation and public utilities
• necessary to redevelop the RDA; and
WHEREAS, the proposed RDA consists of the following private and public
owned parcels more specifically illustrated in the RDA site map in Attachment A:
19132022025 19132022024 19131733402
19131733401 19131733403 19131841002
19131811002 19130741001 19130743002
19130731002 19130732407 19130723002
18131214006 18131241001 19131821003
19131812001 19131824420 19131824001
19131824402 19131831453 19131831461
19131831539 19131831510 19132022403
19131842400 19131842401 19131842404
19131843539 19131842003 19131844023
19131843002 19131843003 19131843006
19131844022 19131841001 19131842001
WHEREAS, the taxable real property within the RDA boundaries does not
exceed one billion dollars at the time of RDA designation; and
WHEREAS, the average assessed value per square foot of taxable land within
the RDA boundaries, as of January 1, 2008, does not exceed $70 at the time of RDA
• designation; and
WHEREAS, the proposed RDA is Tess than 25 percent of the total assessed
value of the taxable real property within the boundaries of the City of Yakima; and •
WHEREAS, redeveloping the former Yakima Sawmill and Plywood Plant site and
surrounding area will provide numerous benefits for all of Yakima County and to the
region. These benefits include: (1) promoting mixed -use redevelopment that will help
generate new family -wage jobs: (2) providing an area for both housing and business
development to occur in a manner that helps preserve the County's limited supply of
agricultural and natural resource lands; (3) facilitating remediation of environmental
contamination within the site to a standard suitable for mixed -use redevelopment; (4)
creating a productive, environmentally - conscious community with opportunities for
recreation, education, shopping, living, working and entertainment; and (5) facilitate the
creation of valuable public recreational and educational resources, including improved
access to the Yakima Greenway, the Yakima River and wetlands; and
WHEREAS, the public improvements proposed for funding by LIFT, more
specifically described in Attachment B, include roadway system and freeway interchange
improvements, utilities (water, sewer, storm water), site preparation, engineering,
planning and survey work; and are estimated to cost $50,489,459, with approximately
$25,000,000 to be financed by LIFT; and
WHEREAS, a Revenue Development Area would provide significant assistance
in carrying out the cooperative redevelopment of this site; and
WHEREAS, the Act requires the City to create a revenue development area,
subject to provisions of the Act, to qualify for a state contribution up to a total amount of
one million dollars per year; and
WHEREAS, the City Council determines that 2009 should be used as the base
year from which to measure the incremental future taxes for purposes of the Act; and
WHEREAS, prior to passage of this ordinance, the City Council held a public
hearing on June 10, 2008, notice of which was published in the Yakima Herald Republic,
the legal newspaper of general circulation within the proposed RDA, at least ten days
before the public hearing, and notice of which was posted in at least six conspicuous
public places located in the proposed revenue development area; and
WHEREAS, notice of the public hearing was sent by United States mail to the
property owners, community - based organizations, and business enterprises listed on
Attachment D, incorporated herein by reference, such notices being sent at least thirty
days prior to the public hearing; and
WHEREAS, a copy of the proposed form of this ordinance was delivered to the
Washington State Community Economic Revitalization Board and to the Washington
Department of Revenue; and
WHEREAS, the City Council heard testimony at the public hearing and carefully
considered the comments and opinions presented; and
• WHEREAS, the City Council finds that this Ordinance complies with the Act and
that the creation and adoption of a Revenue Development Area as described herein and
illustrated in Attachment A is in the best interest of the City of Yakima and its citizens;
NOW, THEREFORE, THE CITY OF YAKIMA DOES ORDAIN:
Section 1. Incorporation of Recitals and Attachments. The recitals set forth
above are incorporated herein by reference as if set forth in this section in full. All
attachments to this ordinance are incorporated herein by reference. •
Section 2. Description of Public Improvements. The public improvements
currently estimated to be made in the Yakima RDA are described in Attachment B
( "Public Improvements "). This list does not imply City Council approval of any specific
projects at this time; City Council will consider and finalize the list of approved public
improvements as part of the development agreement between the City and the private
developer(s) of the Yakima RDA.
Section 3. Description of Boundaries. The City Council adopts the
boundaries of the Yakima RDA as described herein and depicted in Attachment A.
Section 4. Estimates of Costs. As further described in Attachment B, the
current estimated cost of the Public Improvements is approximately $50 million in 2008
dollars, and the current estimated portion of this cost to be financed by local
infrastructure financing, including LIFT State funding and local government LIFT
contributions consistent with the Act, is $25 million to be received over 25 years.
•
Section 5. Time of Tax and Revenue Collection. The estimated time during
which local excise tax allocation revenues, local property tax allocation revenues, and
other revenues from local public sources are to be used as part of the local infrastructure
financing for the Yakima RDA is 25 years (2011 — 2036).
Section 6. Date for Commencement of use of Revenues. The City's use of
local excise tax allocation revenues and local property tax allocation revenues with
respect to the Yakima RDA is anticipated to commence on January 1, 2011.
• Section 7. Findings Required by RCW 39.102.070 of the Act. The City
Council finds and determines that the conditions of RCW 39.102.070 are met with
respect to the Yakima RDA. Specifically, the City Council finds and determines that:.
a) No funds will be used to finance, design, acquire, construct, equip,
operate, maintain, remodel, repair, or reequip public facilities funded
with taxes collected under RCW 82.14.048;
b) The Public Improvements are projects that are or will be identified within
the capital facilities, utilities, housing, or transportation elements of the
City's comprehensive plan under Chapter 36.70A RCW or are historic
preservation projects under RCW 39.89.020;
c) The Public Improvements are expected to encourage private
• development within the RDA and to increase the fair market value of real
property within Yakima RDA;
d) The City will enter into a contract with a private developer(s) relating to •
the Yakima RDA;
e) Private development is anticipated to occur within the Yakima RDA, as a
result of the public improvements, which will be consistent with the
countywide planning policy adopted by Yakima County under RCW
36.70A.210 and the City's comprehensive plan and development
regulations adopted under Chapter 36.70A RCW;
f) The local infrastructure financing with respect to the Yakima RDA is not
expected to be used for the sole purpose of relocating a business from
outside the RDA but within Washington State, into the RDA, and the
Yakima RDA will improve the viability of business development within the
Yakima RDA;
g) The Public Improvements are reasonably likely to (1) increase private
residential and commercial investment within the Yakima RDA; (2)
increase employment within the Yakima RDA; and (3) generate, over the
period of time that local option sales and use taxes will be imposed under
RCW 82.14.475, state excise tax allocation revenues and state property
tax allocation revenues (as defined in the Act) derived from the Yakima
RDA that are equal to or greater than the respective state contributions
made under the Act; and
h) The local infrastructure financing will be used only in the Yakima RDA,
4110
which is an area deemed by the City to be in need of economic
development or redevelopment and is within the City's boundaries.
Section 8. Findings Required by RCW 39.102.080 of the Act. Pursuant to
RCW 39.102.080, the estimated impact of the Yakima RDA on small business and low
income housing, and the mitigation plan relating thereto, is attached as Attachment D is
hereby adopted.
Section 9. General Authorization. The City Manager and other appropriate
City officers designated by the City Manager are each hereby authorized and directed to
do such things as may be necessary and appropriate in order to carry out the terms and
provisions of, and complete the transactions contemplated by this ordinance, including
without limitation all actions necessary to apply for prompt approval by the CERB, of the
Yakima RDA and the use of Local Infrastructure Financing under Chapter 39.102 RCW.
Section 10. Section Headings or Captions. The section headings or captions
of this ordinance are for convenience of reference only, and shall not be used to resolve
any question of interpretation of this ordinance.
Section 11. Severability. If any one or more of the covenants or agreements
provided in this ordinance to be performed on the part of the City shall be declared by
any court of competent jurisdiction to be contrary to law, then such covenant or
covenants, agreement or agreements, shall be null and void and shall be deemed
separable from the remaining covenants and agreements in this ordinance and shall in
no way affect the validity of the other provisions of this ordinance.
Section 12: Ratification of Prior Acts. All acts taken pursuant to the authority
of this ordinance but prior to its effective date are ratified and confirmed.
Section 9. Authority to Correct Scrivener's Errors. The City Clerk and the
codifiers of this Ordinance are authorized to make necessary corrections to this
Ordinance including, but not limited to, the correction of scrivener's clerical errors,
references, ordinance numbering, section /subsection numbers and any references
thereto.
PASSED BY THE CITY COUNCIL, signed and approved this 10 day of June,
2008.
David Edler, Mayor -
ATTEST:
City Clerk
Publication Date:
Effective Date:
n Sawmill Property City of Yakima
t L . Revenue Development Area
,` i.tA` Proposed Yakima RDA Ordinance - June 10, 2008
ATTACHMENTA
equals 1,100 feet Proposed Yakima RDA
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YAKIMA REVENUE DEVELOPMENT AREA
ORDINANCE
ATTACHMENT B
ESTIMATED COST OF PUBLIC IMPROVEMENTS
RDA Public Road System $30, 847, 125
Includes Fair Avenue Roundabout connector,
Utilities (water, sewer, stormwater),
Site preparation, streets, trails, sidewalks
Interstate 82 Interchange Improvements $19,642,334
Includes land acquisition, site preparation,
Rail crossings, signalization.
Total Estimated Cost
Of Public Improvements $50,489,459
40 ,
•
YAKIMA RDA ORDINANCE
ATTACHMENT C
LIST OF PARTIES RECEVING NOTIFICATION OF PUBLIC HEARING
Jeld Wen, Inc Yakima County
Real Estate Division Public Works Department
3250 Lakeport Blvd. 128 North Second Street
Klamath Falls, OR 97601 Yakima, WA 98901
Gene Lizotte GERD
215 North Tenth Street Yakima Soccer Arena Corp.
Yakima, WA 98901 1005 East Lincoln Avenue
Yakima, WA 98901
Wiley Mt., Inc. Boise Cascade Corp.
Leelynn, Inc. Real Estate Division
P.O. Box 518 P.O. Box 50
Creswell, OR 97426 Boise, ID 83728
BNSF Railway Chinook Business. Park, LLC
Seattle Land Sales Office 1901 North Fourth Street
200 West Mercer Street Suite 502 Yakima, WA 98901
Seattle, WA 98119
Yakima Greenway Foundation • Pacific Power
111 South 18 Street Real Estate Division
Yakima, WA 98901 825 NE Multnomah •
Portland, OR 97232
Don Whitehouse Shawn Montee Timber Company
Regional Administrator P.O. Box 1329
WSDOT — South Central Washington Post Falls, ID 83877
P.O. Box 12560
Yakima, WA 98909
Prime Hay Lynne Kitteison
P.O. Box 1767 NE Yakima Neighborhood Assoc
Yakima, WA 98907 305 North Ninth Street
Yakima, WA 98901
Greater Yakima Chamber of Commerce New Vision
P.O. Box 1490 P.O. Box 1387
Yakima, WA 98907 Yakima, WA 98907
Yakima RDA Ordinance
ATTACHMENT D
Low- Income Housing and Small Business Impact Analysis and Mitigation Plan
The LIFT program requires. the City of Yakima to estimate the impact the proposed RDA
may have on low- income housing and small businesses located within the boundaries of
the RDA, and develop a mitigation plan to address any impacts. The following
information is offered in fulfillment of this requirement.
Low Income Housing Within the RDA
The city's housing inventory indicates that there is one housing unit within the proposed
RDA. The unit is owner occupied, and the owner has received notice of their location
within the proposed RDA. The city does not believe that this will constitute a
displacement of a low- income housing unit. The city recognizes the importance of an
adequate supply of low- income housing throughout the city and, where possible, the
city's partnerships with nonprofit agencies will continue to add to the supply of low
income housing units with the City of Yakima, Accordingly, the city has not developed a
mitigation plan for housing within the RDA.
Impact on Housing Price Mix
While redevelopment will not directly impact existing housing stock within the RDA, as
there is only one unit, the redevelopment of property within the RDA is likely to improve
property values in the vicinity of the RDA. Strategically located between the downtown
and the RDA, the older homes of the northeast Yakima neighborhood could become
more attractive to families as a central location to work, recreation and shopping. While
there is also the potential for redevelopment of areas around the RDA to other uses, the
RDA itself has a 10 year property absorption rate due to its size. Therefore, it is not
possible to determine the amount of such conversion that could be attributable to
redevelopment within the RDA until such time as the entire RDA is redeveloped. In
addition, this type of redevelopment in the vicinity of the RDA is likely to occur
incrementally as land values generally increase in Yakima, with or without the RDA or
sawmill redevelopment.
Small businesses within the Yakima RDA
It is reasonable to assume that many small businesses will be positively impacted by the
creation of the RDA and the subsequent development within the area. Although the
overall impact is expected to be positive, the three small businesses located within the
RDA may be at risk of eventual displacement. The three small businesses within the
RDA are: Yakima Soccer Arena Corporation, Prime Hay, and Shawn Montee Timber
Company. The businesses employ fewer than five people.
Due to the transitional nature of the RDA, all three businesses have been operating
under short term leases (month to month) for property and /or buildings. Prime Hay and
• Montee Timber are operating on property formerly occupied by sawmill operations, with
the understanding that redevelopment of the site would lead to termination of their
agreement. The Yakima Soccer Arena is in its first year of business, leasing the building
that was formerly used by the now defunct Trail Wagons RV company, owned by
Chinook Business Park. Chinook Business Park has been involved in the development
of the RDA, and the project fits with the development strategy of adjacent properties also
under the same ownership, but not within the RDA. The owner has indicated interest in
moving the soccer building and selling other property in order to assist the project in
moving forward.
Mitigation Plan for Small Business Within Yakima RDA
In an effort to minimize to those small businesses that may be negatively affected by the
RDA, the City of Yakima is committed to providing services to small businesses , as
outlined in the following mitigation plan:
• Economic development officials will meet with any interested business owners to
evaluate possible means of support.
• When requested and where possible, interested businesses owners will be
referred to those who have access to an inventory of other available commercial
property within the city.
• The city will continue with its support of the Greater Yakima Chamber of
Commerce, Small Business Development Center, and Yakima County
Development Association and possible other agencies that support small
businesses.
• The city will determine the needs of the businesses potentially impacted and
assist as appropriate with support for additional marketing resources, broadcast
•
communications to chamber members to alert them to changes in status of the
business impacted, etc.
• The city will assure ongoing physical access to existing businesses during the
redevelopment activities.
• The city will provide public notices and other information regarding
redevelopment activities.
• The city will work with property owners to create a and use plan for the RDA that
allows for a complementary mix of land uses that will further enhance the value
of ht e area properties.
OFFICE OF THE MAYOR
F � W2,'I s 129 North Second Street
V & 1 City Hall, Yakima, Washington 98901
• . Phone (509)575-6050 * Fax (509) 576 -6335
1 �P
..ufI YH' '.` YllI1� . [l
June 30, 2008
Mr. Tom Trulove
Chairman
Community Economic Revitalization Board
Olympia, WA
Mr. Trulove and .CERB Board Members:
I am proud to submit for your consideration, the City of Yakima Revenue Development
Area application for LIFT funding. The YRDA represents a once in a generation
opportunity to reshape the image and economic competitiveness of the Yakima Valley.
The former Boise Cascade Sawmill & Plywood Plant contains 205 acres of vacant
property along Interstate 82 at the gateway to the Yakima Valley.
The economic impacts of the YRDA include about $400 million of private investment
that will create over 4,000 jobs in 10 years. The state and local governments will
certainly benefit from this transition. For this reason,. the YRDA has broad based
regional support from the following partners:
• 1 3th, 14t and 15 District Legislators Yakima County Commissioners
Yakima County Development Association Yakima Chamber of Commerce
Yakima Valley Conference of Governments WSDOT South Central Region
TRANS Action Yakima GreenwayFoundation
Yakima Valley Visitors & Convention Bureau Yakima Valley Sports Commission
Committee for Downtown Yakima Wine Yakima Valley
Rattlesnake Hills Winery Association The Vineyards Resort
Pacific Northwest Health Sciences University Chinook Business Park
Yakima Parks & Recreation Sandor Development Company
Tacoma Screw Products International Yakima Transit
National Development Council Wine Country Washington
The Yakima Valley urges your consideration of this transformational investment.
Sincere)
I/
Dave Edler
Mayor
Yakima
411 rv �k,r .
1991
•
•
•
•
II]
Community Economic Revitalization Board (CERB) • .
Local Infrastructure Financing ool Competitive Program
ram p g
.APPLICATION FOR COMP.ETITIVE.PROJECT AWARDS •
SPONSORING LOCAL GOVERNMENT •
APPLICATION SUMMARY AND CERTIFICATIONS
• Sponsoring. local government: . • City of.Yakima Federal tax number: 91- 0000693
`Contact: Michael Morales • Title: Deputy Director, CED
•
Phone number: 509 -575 -3533 FAX: 509 -576 -6792
Emal! address: mmorales@cLYakima.wa.us
• Mailing address: 129 North '2 Street; Yakima, WA 98901 •
. .Name. of revenue development area: 'YAKiMA RDA-
. Date designation.ordlnance was adopted: June`lii Date designation ordinance was
.2008 amended (if applicable):
Amount of•LIFT award (annual.state $1,000,000 per year •
contribution) requested:
List all participating.localgovernments City of Yakima .
•
and dates written agreements are signed: •
Base year. requested (by. calendar year) *: 2009
•
Anticipated effective date forimposing July.1, Anticipated number of years:the .25
sales and use tax: 2010 • .tax will be Imposed: •
.
110
Anticipated date for initial general 2011 Anticipated number of general 5 -6
• obligation bond sale: .obligation bond sales: •
.Legislative districts): • 14 • 'Congressional district(s): 41"
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DECLARATION. AND CERTIFICATIONS
/hereby certify that the information given to 'the Community Economic Revitalization Board in this Local •
'infrastructure Financing Tool Competitive Program "Application Summary and Certifications" form and.attached
"Revenue Development Area Worksheet," "Process andNotice.Worksheet, "and `Annual Tax Revenue Estimate
• Worksheets" is•true, correct.and complete to the best of my knowledge and belief. in addition,1 certify that the
following conditions of the Local Infrastructure Financing Tool Competitive Program, as setforth.ln 39.102.RCW,
have been met or will have.been met by June 30,:2008:
1. A revenue development area within the limitations of RCW 39.102.060has been designated;
'2. The conditions ofRCW39.102.070have :been met;
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3. The process -in RCW 39.102.080 has been completed;
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4. Publlc•notice as required by RCW 39.102.100 has, been provided; and •
5. An ordinance adopfing the revenue developmentarea has been, passed as required in •
'RCW 39.102.090, or amended as provided by RCW 39.702.040(2). . .
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Signature.of Responsible Official:
Name (typed or printed): Richard A. Zais, Jr.
• Title: City. Manager Date: June 30, 2008
.Note: if there Is one or more cosponsoring local government. each must submit a "Cosponsoring .Local
Government Application Summary and Certifications, as well as applicable worksheets and attachments.
w See definition of "base year" in RCW 39.102.020 (3).
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Yakima Revenue Development Area
Community Economic Revitalization Board (CERB)
Local Infrastructure Financing Tool Competitive Program
COMPETITIVE QUESTIONNAIRE
1. Describe the project's ability to encourage mixed use and transit- oriented
development and the redevelopment of a geographic area.
YAKIMA REVENUE DEVELOPMENT AREA
The Yakima Revenue Development Area (YRDA) consists of 556 acres in census tract
02 of Yakima's federal Renewal Community. The YRDA straddles Interstate. 82 from
the US 12 /North 1st Street Interchange through the Yakima Avenue/Terrace Heights
Exit. The YRDA is located entirely within the city limits and in one of the earliest plats of
the City of Yakima
As identified on the attached YRDA maps, the primary development zone is
approximately 224 acres, of which 205 acres were formerly used as the Boise Cascade
Sawmill and Plywood Plant, now controlled by McDougal Brothers. Three smaller
parcels located in this•zone are:
• Former .Jeld -Wen plant vacant since 2005 when Jeld Wen built _a new plant in
north central Yakima and listed for sale; (McDougal Bros. have submitted offer).
• Former Trail Wagons RV building currently leased for indoor soccer clinics;
• Pacific Power sub- station that mainly served the Boise site, and
The balance of the YRDA consists of public property, including the Yakima River
Greenway, and the stretch of Interstate 82 from the US 12 Interchange through the
Yakima Avenue/Terrace Heights Exit. The YRDA is bordered on the north and east by
the Yakima River, which is the city limits, and on the west by a mix of residential
neighborhood and light industrial property. The southern boundary-is adjacent to both
commercial and public property.
LIFT REQUEST
The City of Yakima is requesting up to $25 million of LIFT funds to partially finance over
$50 million of public transportation and utility improvements that are necessary for the
redevelopment project to occur, including the following:
(Engineer estimate in Attachment G) '
City Infrastructure Improvements $30,847, 125
Includes Fair Avenue Roundabout connector,
Utilities (water, sewer, stormwater),
Site preparation, streets, trails, sidewalks
Interstate 82 Interchange Improvements $19,642,334
Modification, of existing, approved interchange,
includes and acquisition, site preparation, rail crossings, signalization.
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Total Estimated Cost of Public Improvements $50,489,459
Page .I of 43
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YRDA REDEVELOPMENT PROJECT
The redevelopment of the YRDA is a true urban infill project that will utilize and build
upon existing urban infrastructure within the city's core area. The mixed use, and
transit - oriented redevelopment will improve the economic health and vitality of the both
the former sawmill site and surrounding neighborhoods, which are among the most
economically distressed in the state of Washington. The YRDA development plan
consists of the following components:
Land Use Category .Acreage
Commercial acres 122.4
Light Industrial /Research & Development Flex Space 30.0
Office — Medical 20,0
Medium — High Density Housing 9.5
Open- Recreational space 21.0
Street grid, public rights of way /easements 20.7
Development of the YRDA will provide substantial economic impact, both in
terms of overall job creation and revenue for state and local government,
including: -
• 4,631 permanent jobs (2054 jobs in manufacturing /technical /professional)
• 1,315 construction jobs
• • 171 housing units
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• $1,774,657 annual city sales and use tax revenue
• $3,752,635 annual city property tax revenue
• $10,864, 362 annual state sales and use tax revenue
• $648,253 annual state sales and use tax revenue
• $425,282,167 total 30 -year tax revenue
• $337,817,045 of private sector investment for development
Commercial Acreage
The sawmill site possesses a senior water right from 1893 that allows for'direct
channeling of the Yakima River onto the site. This unique asset inspired the, plan for a
signature piece of the development: A 25 -30 acre "lifestyle center" that will feature a
pedestrian oriented design with a system of streams /canals, ponds, pathways and
green space that will serve the daily needs of the residential and employment center, as
well as create . a destination for those seeking a village type shopping and recreation
experience. This center will include some upstairs residential units or condominiums,
specialty /boutique retail, wine tasting rooms, restaurants, .. small specialty .
grocers /markets, pharmacies, spa /wellness facilities, and other amenities. The
pedestrian and water amenities will connect with the Yakima River Greenway.
The property owners are also working with Sandor Development to design and market
approximately 50 acres as a retail shopping complex. The retail complex is being
heavily marketed to higher end retailers and businesses that are not present in the
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