HomeMy WebLinkAboutR-2008-050 Italstone SIED Grant; Supporting Investments in Economic DevelopmentA RESOLUTION
RESOLUTION NO. R-2008-50
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 Yakima Italstone 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 effort's to achieve new investment and
redevelopment in the City; and
WHEREAS, this project will build a new street (23rd Avenue) off Ahtanum Road and
extend Oak Street so that it provides a full loop within the business park; and
WHEREAS, this project involves constructing approximately 850 linear feet of roadway
to industrial standard, including sidewalks, curbs, gutters and lighting; and
WHEREAS, this project will also include the extension of water and sewer utilities
parallel to the road improvements; and
WHEREAS, significant improvement has been made to the area in recent years to
encourage business growth of existing and new companies in and around the airport. These
improvements include over $7 million to widen and improve Washington Avenue, $880,000 to
install a fiber optic loop around the airport, and several SEID funded projects to assist business
expansion (Cub Crafters, Cascade Quality Molding, Yakima Air Park LLC, etc.); and
WHEREAS, the project was designed and reviewed in 1999, and was approved to
proceed at the developer's initiative; and
WHEREAS, the cost of the project is estimated to be $535,000; and
WHEREAS, $428,000 in funding (through a grant/loan) may be available from Yakima
County through the SIED Fund for infrastructure improvements; and
WHEREAS, the developer will provide equity together with the value of the right-of-way
dedicated to equal at least $107,000; and
WHEREAS, due to various budgeting constraints experienced by the City, this type of
infrastructure investment has become cost prohibitive without the use of external funding
sources; and
WHEREAS, Schultz Construction LLC has requested that the City submit a grant/loan
application with Yakima County to fund the infrastructure improvements from the SIED Fund;
and
1
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 Yakima
Italstone 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 18th day of Mo h, 2008
ATTEST:
City Clerk
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avid Edle
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yor
YAKIMA COUNTY
and
CITY OF YAKIMA
(Italstone)
I. PARTIES
SIED CONTRACT Ns YC IS 08
RECEIVED
JUN 302008
CITY OF YAKIMA
COMMUNITY DEVELOPMENT
This Supporting Investments in Economic Diversification (hereinafter referred to as SIED)
Contract is made by and between Yakima County (hereinafter referred to as the County)
whose address is 128 North Second Street, County Courthouse, Room 102, Yakima,
Washington 98901, and the City of Yakima (hereinafter referred to as the City) whose
address is 129 North Second Street, Yakima, Washington 98901-2613. 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 approximately 870 linear feet of roadway to
industrial standard, with adjacent sidewalks, curbs and gutters, and lighting on both sides of
this roadway, as well as water and sewer utilities parallel road improvements. The Project will
create a new street, 23`d Avenue, to connect Ahtanum Road to Oak Street and extend Oak
Street to provide a full loop within the McAllister Field Business Park.
IV. RECITALS
The Parties make this Contract based on and in recognition of certain relevant facts and
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
Filed Page 1 of 9 YC IS 08
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 $428,000.00 from the SIED Fund, $214,000.00 to be in the
form of a loan and $214,000.00 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 SLED 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 Fourteen Thousand
Dollars and Zero Cents ($214,000.00) for the Project described herein. This loan
amount shall be drawn on the SIED Fund by County warrant, payable to the City,
upon the next Yakima County Auditor's warrant issue.
B. REPAYMENT OF COUNTY LOAN—The City shall repay the County's loan of Two
Hundred Fourteen Thousand Dollars and Zero Cents ($214,000.00) with interest on
unpaid principal, at an annual per annum rate of 3.15 17%, 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.
Filed Page 2 of 9 YC IS 08
Repayment shall be made by the City in five equal annual installments (including
principal and interest) payable on June 1; 2009, and annually thereafter on June 1
of each year, with the final payment nevertheless due on June 1, 2013; Provided,
however, that the final installment may be in such greater or lesser amount as shall be
required for full amortization of the repayment amount.
These payments shall be by check payable to Yakima County Infrastructure Fund
and delivered to Yakima County Treasurer, Yakima County Courthouse, Room
115, 128 North 2nd Street, Yakima, WA 98901. The City obligation hereunder shall
be a limited general obligation of the City, payable from any legally available source of
funds. Exhibit A attached hereto and incorporated herein reflects the Debt Service
Schedule as noted.
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 Fourteen Thousand
Dollars and Zero Cents ($214,000.00) 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 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
Filed Page 3 of 9 YC IS 08
Contract or work undertaken hereunder for the purpose of making audit, examination,
excerpts, and transcriptions.
VII. RELATIONSHIP OF PARTIES AND AGENTS
A. The relationship of the City to the County, with regard to construction of the Project,
shall be that of an independent contractor rendering professional services. The City shall
have no authority to execute contracts or to make commitments on behalf of the County
and nothing contained herein shall be deemed to create the relationship of employer and
employee or principal and agent between the County and the City.
B. The City represents that it has or will secure at its own expense all personnel,
contractors, and/or subcontractors required in order to perform work under this Contract.
Such personnel shall not be employees of the County. All such personnel, contractors,
and/or subcontractors shall be fully qualified and authorized/permitted under State and/or
local law to perform such services.
C. All services required hereunder will be performed by the City or under its supervision
and all personnel engaged in the work shall be fully qualified and shall be authorized or
permitted under State or local law to perform such services.
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:
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;
Otherwise allowable costs incurred during the period of suspension, if upon
investigation, the County is satisfied of the City's compliance with the terms
and conditions of this Contract to the extent of the compensation claimed by
the City.
Filed Page 4 of 9 YC IS 08
. 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; them,
4. The County may terminate this Contract in whole or in part, and thereupon shall
notify the City of termination, the reasons therefore, and the effective date, provided
such effective date shall not be prior to notification of the City. After this effective
date, no charges incurred under any terminated portions outlined in the application
for funding are allowable.
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
of termination, including effective date and, in case of termination in part, that portion to
be terminated.
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
Filed Page 5 of 9 YC IS 08
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 ACTOF 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).
XV. INTEREST OF MEMBERS OF THE COUNTY AND THE CITY
No member of the governing body of either party and no other officer, employee, or agent of
either party who exercises any functions or responsibilities in connection with the planning or
carrying out of the Project shall have any personal financial interest, direct or indirect, in this
Contract.
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.
Filed Page 6 of 9 YC IS 08
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.
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: Bill Cook, Director
Community & Economic Development
City of Yakima
129 North Second Street
Yakima, WA 98901-2613
TO COUNTY: Steve Hill, Director
Yakima County Departments of
Community Services & Grant Management
128 North Second Street, Room 102
Yakima, WA 98901-2639
Filed Page 7 of 9 YC IS 08
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.
XXIV. GOVERNING LAW AND VENUE
All questions of the validity, construction, and application of this Contract shall be governed
by the laws of the State of Washington. Venue for any suit between the parties arising out of
this Contract shall be the Superior Court of Yakima County, Washington.
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 8 of 9 YC IS 08
IN WITNESS WHEREOF, the County and the City have executed this Contract as of the date and year
last written below.
CITY OF YAKIMA
Richard A. Zais, Jr., It per (; if ju 1110,061jerr
Approved as to Form:
Ray Paolella, City Attorney
Attest:
CITY CONTRAC i NO: •---C4` `1S "t�f 7
RESOLUTION NO: _2C)61a---6
Debbie Moore, City Clerk
Date
6// 6/de
e
BOARD OF YAKIMA COUNTY COMMISSIONERS
Ronald F. Gamache, Chairman
and Elliott, Commissioner
Michael D. Leita, Commissioner
Constituting the Board of County Commissioners•
for Yakima County, Washington
Approved as to Form:
John Staf . n, Deputy Prosecuting Attorney
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Christina S. Steiner, Clerk of the Board Tiera L. Girard
Deputy Clerk of the Board
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Filed Page 9 of 9' YC IS 08
•
Dated: 6124/ 2008
Delivered 6/24/2008
Variable Rate Transactions
City of Yakima
SLED - IT Al STONE
SIA 30/360 YRLY 7/6
Srmp Int
Coupon Int Calc Pnnapal Effective Interest Credit Periodic Outstanding
Period Date Day Cnts Payment Coupon Rate Payment Enhancements Debt Service Balance
1 6/1/2009 337/360 40,110.56 3.75000 7,512.29
2 6/1/2010 360/360 41,102.00 3.75000 6,520.85
3 6/1/2011 360/360 42,643.32 3.75000 4,97.9.53
4 6/1/2012 360/360 44,242 44 3.75000 3,380.41
5 6/1/2013 360/360 45,901.68 3.75000 1,721.31
47,622.85
47,622.85
47,622.85
47,622.85
47,622.99
173,889.44
132,787.44
90,144.12
45,901.68
0.00
$214,000.00 S24,114.39 $0.00 $238,114.39
True Interest Cost (TIC)
Arbitrage Yield Limit (A YL)
Average Life
3.7500000 Face Value of Bond Issue $214,000.00
0.0000000 Accrued Interest (+) $0.00
3.0049087 Original Issue Premium/Discount (+) $0.00
Underwriter Discount (+) $0.00
Lump -sum credit enhancements (-) $0.00
Prepared ly Yakrma County Trea.rurer'f Ofie
Prepared on: 6/ 24/200811 :9 12.9811 Rpt 011
:MUNIDB
YC 1S -2008-A
Yakima County SIED Fund
Supporting Investments in
Economic Diversification
Application for funding
Yakima County SIED Board
Supporting Investments In Economic Diversification
APPLICATION FOR FUNDING
CERTIFICATION
Applicant: Citv of Yakima
Federal Tax Number: 91-6001293
Contact: Bill Cook
Title: Director of Community & Economic Development
Telephone: 509/575-6113
Fax: 509/576-6792
Email: bcook@ci.yakima.wa.us
Address: 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):
$214,000
$214,000
$107,000" *Developer equity and right-of-way
TOTAL public project costs: $535.000
TOTAL private investment in plant/equipment $700,000
Project title:
Resolution # authorizing application: TBD
•
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 SLED 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 grant of $ (maximum 40% of project costs*). 214,000
A loan of: $ 214,000
• A deferral of the first loan payment (up to five years): 1 year
• Loan terms requested: •Total number of years for repayment: 5 years.
• Justify a request for a deferral of the first loan payment. What is the basis for a lower interest rate request?
The City needs a one year deferral to ensure that the private facility is constructed, operational, and
triggering local property tax payments
B. PUBLIC SECTOR PROJECT
B1. Describe the entire public facility project, including the parts that you are not asking SIED to fund.
The project involves constructing approximately 870 linear feet of roadway to industrial
standard. Sidewalks, curb and gutters and lighting will also be built on both sides of this
roadway. Water and sewer utilities will also be extended to parallel road improvements.
B2. Wilfthis project upgrade an existing public facility? Build a new one?. Describe.
This project will build a new street (23rd Avenue) off of Ahtanum Road and extend Oak Street so
it provides a full loop within the business park. Water and wastewater utilities will also be
extended from the cities existing lines near Ahtanum Road.
Application for Funding, 1998 Page 3 Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
B3. List all funding sources for the public project and amount.
SOURCE STATUS DATE AMOUNT
SIED fund
application submitted March 2008 $428,000
B4. Specifically, for what element(s) of the public project are SIED funds requested?
Construct roadway improvements and sidewalk, curb and gutter.
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.)
McAllister Field Business Park is an industrial park located on Ahtanum Road on the south side of the
Yakima Airport between 20th Avenue and 26th Avenue. The Park is approximately 44.5 acres in size.
The subdivision of the Park is complete and development has been occurring although additional
vacant Tots remain, awaiting public infrastructure to be marketable.
This area is primed to build out as our economy sustains a heightened activity level. Key to the
success of maximizing the economic benefits of the positive growth cycle is a concerted effort to
attract new construction to fill in these existing available sites with job creating commercial and
industrial development.
Italstone is a great example of the new development we are seeking. Italstone is an importer and
precision fabricator of custom stone finish materials. They plan to hire approximately twenty-three
"career -oriented" employees within the first three years in Yakima. However, as a condition to open
their Yakima facility, the City requires road and infrastructure improvements as proposed.
•
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.)
PERMIT ISSUER
SEPA City of Yakima
STATUS
ANTICIPATED
COMPLETION
DATE
exempt
B9. If environmental permits are not required for the project (e.g., Shorelines Permit, Environmental
Impact Statement, etc.),
Project was designed and approved in 1999. All reviews were completed at that time. Work can
proceed at developer's initiative.
B10. Estimated schedule for public project completion. Indicate the month and year when the activities
listed have been, or will be, completed.
Preliminary Engineering Report
Environmental Review
ESTIMATED COMPLETION DATE
Complete
NA
Application for Funding, 1998 Page 4 Yakima County SIED Program
•
Yakima County SIED Board
Supporting Investments In Economic Diversification
All Required Permits Obtained NA
Design Engineering April 2008
Land/Right-of-Way Acquisition Complete
Prepare Bid Documents April 2008
Award Construction Contract May 2008
Begin Construction June 2008
Project Operational July 2008
611. What other jurisdictions, such as counties, cities, port districts, tribes, state/federal agencies are involved in the
planning, design, financing, construction or operation of this project?
Yakima Air Terminal
Please explain how completion of the project is coordinated between other involved parties.
B12. Will the SIED public facility project be totally maintained by the applicant? If not, whom? Please explain.
Yes
• B13. How will this project impact utility rates and public services within the jurisdiction?
Insignificant impact.
B14. Is this project consistent with your local comprehensive and capital facilities plans? If no, please explain.
Yes
Application for Funding, 1998 Page 5 Yakima County SLED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
C. FINANCIAL INFORMATION ON CITIES, TOWNS, PORT DISTRICTS A
COUNTIES
This section examines the general financial status of cities, towns, and counties to determine the need for SIED
assistance.
C1. Identify funds (General Fund, Utility Fund, Property taxes, etc.) that are eligible to repay a SIED 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 into reserves just to balance the
General Fund budget, and those reserves are now at critically low levels. The road and
streets capital budget has also taken on a number of initiatives in recent years that stretch
our financial capacity, making this type of investment cost prohibitive without external
funding sources.
C3. If the local jurisdiction is not financially contributing to the project, please explain why.
See C2 above. Developer has agreed to accept financial responsibility for the project to stimulate
economic development activity in this area.
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 applicab
for this project.
See C2 and C3 above. Also, the size of the project and the undeveloped land along the propos
improvements undermines the potential for an LID, ULID or municipal bonding.
C5. Will a revenue stream be generated that could repay a SIED loan outside of the system's normal
operations and maintenance costs? Yes_ No X. Please explain.
Private project will generate a very small revenue stream from sales tax and property tax, but
an insufficient amount to repay debt service net of the cost of services provided to the site
(i.e. police, fire, public works, etc.).
Application for Funding, 1998 Page 6 Yakima County SLED 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.
•
•
YES NO OUTCOME
FEDERAL:
Economic Development Administration _ _X_ Not eligible
Rural Development _ _X_ Not eligible
T21 (ISTEA) ' _ _X Not eligible
Other: — —X
STATE:
Transportation Improvement Board _X_ Not eligible
Community Development Block Grant _ _X_ Not eligible
Public Works Trust Fund _X Not eligible
Department of Ecology _ _X_ Not eligible
CERB _ _X_ Not eligible
RTPO/MPO _ _X_ Not eligible
WSDOT _ _X_ Not eligible
Explain why SIED funds are necessary and the outcome of the investigation of other fund sources:
Based upon the small size of the project and the short timeline to assist and leverage private
investment, the above funding sources for this project would not be eligible for the above funding
sources. Community Development Block Grants are invested by the City of Yakima in the City's
Renewal Community Area. The Airport does not qualify for this designation.
Application for Funding, 1998
Page 7 Yakima 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.
Italstone is going to build a new manufacturing facility near 23`d avenue and Ahtanum Road. The
company is headquartered in Hood River, Oregon and this expansion allows the company to increase
sales and better serve the Washington State market for their custom marble and granite countertops,
floors, and interior furnishings.
D3.
Name of private sector firm: Italstone US
Address: 3399 Guignard Rd. Hood River, OR 97031
Phone/Fax: 541-387-2691
Contact Person: Gjino Ilias
D4. Explain why the private development requires the proposed public infrastructure improvements
described in this application.
The street, water, and sewer improvements must be completed for the business to obtain an
occupancy permit.
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.
Jobs must be expressed in Full Time Equivalents (FTEs).
Wage data should exclude fringe benefits.
*Management positions should be indicated as an annual salary.
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
Mgmt./Admin*
3
$20
Technical/Prof.
2
$16
Office/Clerical
2
$16
Production
8
8
$18
Sales
Skilled Crafts
Others
•
a) Number of Jobs **Retained _0
b) Projected annual gross payroll for all job classifications $500,000 by end of first year
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?
Medical Insurance, Vacation, and sick time.
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.
Jobs projections are based on operations of a similar facility in Hood River, Oregon
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 unemplo.
workers? How will the firm work to hire people from Yakima County?
The company wants to attract its workforce from the local labor market. The company will post jobs at
the local WorkSource office and work with community based organizations to see how disadvantaged
or unemployed workers meet their skill requirements.
D9. Indicate the construction schedule (if applicable) for the proposed private sector project.
(month/year)
Private Facility Construction Begins April 2008
Private Facility Construction Completed July 2008
Private Facility Operational- August 2008
D10. List all permits required for the PRIVATE SECTOR PROJECT and give their current status (applied for,
application being prepared, permit issued, etc.) All permits were secured by the contractor.
PERMIT/ENVIROMENTAL
REVIEW ISSUER
Building permits City of Yakima
STATUS
submitted
ANTICIPATED
COMPLETION
DATE
April 2008
1
NOTE: ALL REQUIRED PERMITS TO COMPLETE THE PROJECT MUST. BE SECURED
WITHIN SIX MONTHS OF A SIED OFFER OF FINANCIAL AID.
D11. What private authorizations remain prior to proceeding with the proposed private development project?
None
D12. Explain how the private sector is financing 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.
A combination of private equity and an SBA loan from Columbia River Bank (Hood River branch)
Application for Funding, 1998
Page 10 Yakima County S1ED Program
•
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. /v
For Meeting Of: March 18, 2008
ITEM TITLE: Consideration of a resolution authorizing the City Manager to execute and submit
a $428,000 grant/loan application and contract with the Yakima County
Supporting Investments in Economic Diversification (SIED) fund for the Yakima
Italstone project.
SUBMITTED BY: Bill Cook, Director of Community and Economic Development
CONTACT: Bill Cook, 575-6113
SUMMARY EXPLANATION:
This project will build a new street (23rd Avenue) off of Ahtanum Road and extend Oak Street
so it provides a full loop within the business park. Water and wastewater utilities will also be
extended from the cities existing lines near Ahtanum Road. Approximately 850 linear feet of
roadway will be constructed to industrial standard. Sidewalks, curb, gutters and lighting will also
be built on both sides of this roadway. Water and sewer utilities will also be extended to parallel
road improvements
With Council approval, the City will be eligible to apply for and accept SIED funds for the project,
in the amount of $428,000. 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.
Resolution X Ordinance Contract Other: Grant & Loan Application
Funding Source: Yakima County SIED Fund
Approval for Submittal:
Cit anager
STAFF RECOMMENDATION: Staff recommends approval of the Resolution.
BOARD/COMMITTEE/COMMISSION RECOMMENDATION:
COUNCIL ACTION:
1
REQUEST FOR FULL RECONVEYANCE
The City of Yakima, a Washington municipal corporation, is the legal owner and
holder of that certain Promissory Note dated October 28, 2011, made by McAllister
Field Industrial Park, L.L.C., a Washington limited liability company, by its manager,
Roderick Schultz, to the order of the City of Yakima in the principal amount of
$214,000.00, plus interest (the "Note") Payment of all balances owing to the City of
Yakima on the Note is secured by that certain Deed of Trust dated October 28, 2011,
wherein McAllister Field Industrial Park, L.L.C., by its manager, Roderick Schultz, is
Grantor, and Fidelity title Company, is Trustee and the City of Yakima is Beneficiary, as
recorded on November 4, 2011, under Yakima County Auditor Recording No. 7744111,
records of Yakima County, Washington (the "Deed of Trust").
The Note and all other indebtedness secured by the Deed of Trust have been
fully satisfied, and said Note has been cancelled. The City of Yakima is not
surrendering possession of the Note to the Trustee of the Deed of Trust
Fidelity Title Company, as Trustee, is hereby requested and directed, on
payment to it of any fees to which it is entitled under the Deed of Trust, to reconvey,
without warranty, to the persons entitled thereto, all of the right, title and interest now
held by it under the Deed of Trust in and to the real property described therein.
DATED this .2j' day of March, 2018.
CITY OF YAKIMA
By:
Cli Motibi, City Manager
STATE OF WASHINGTON )
)ss
County of Yakima )
On this ?3 ''
day of March, 2018, before me personally appeared Cliff Moore, to me
known to be the City Manager of the municipal corporation that executed the within and
foregoing instrument, and acknowledged said instrument to be the free and voluntary
act and deed of said corporation, for the uses and purposes therein mentioned, and on
oath stated that he was authorized to execute said instrument on behalf of the
corporation.
Notary Public
State of Washington
KAARRE ALLYN
MY COMMISSION EXPIRES
January 12, 2020
v r l A -6(y Print Name
Notary Public in and for the State of
Washington, residing at (,/,,
My commission expires 1 / - / - �.���