Loading...
HomeMy WebLinkAbout06/11/2013 02 Cascade Mill Project UpadateBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting of- 6/11/2013 ITEM TITLE: Cascade Mill Project Update SUBMITTED BY: Joan Davenport, Strategic Project Manager SUMMARY EXPLANATION: Council briefing on the status of various projects and tasks related to the redevelopment of the Cascade Mill Project Resolution: Other (Specify): Contract: Start Date: Item Budgeted: Funding Source/Fiscal Impact: Strategic Priority: Insurance Required? No Mail to: Phone: APPROVED FOR SUBMITTAL: RECOMMENDATION: Ordinance: Contract Term: End Date: Amount: Economic Development �m� City Manager ATTACHMENTS: Name: Description: ❑ Study Session Sawmill Rrea Update 6.11.13.doc Council Briefing Memo MEMORANDUM TO: Honorable Mayor Cawley and Members of the City Council FROM: Tony O'Rourke, City Manager Jeff Cutter, City Attorney Joan Davenport, Strategic Project Manager DATE: June 11, 2013 SUBJECT: Council Study Session on Cascade Mill Project Update I -82 Interchange Modification - On March 21, 2013 Federal Highway Administration (FHWA) in Olympia submitted a letter to the Washington State Secretary of Transportation regarding the proposed project to modify the existing I -82/ Yakima Avenue /Cascade Mill Interchange. The letter provides the crucial authorization by FHWA that enables the detailed planning and design work necessary to explore the technical feasibility of a modified interchange in a formal report called an Interchange Justification Report (UR). As the City Council is aware, the process of getting FHWA concurrence on this issue has been on -going for nearly 3 years. The Interchange Modification has been closely coordinated by Yakima County with support from the City of Yakima. The Interchange modification will provide a connection to the County East -West Corridor to I -82, as well as provide significantly improved freeway access to the Cascade Mill property. Status Update: • The alignment of the East -West Corridor crossing of I -82 has been shifted south to avoid any at -grade ramp crossings with the railroad spur line, as a requirement of FHWA. This realignment necessitates street and ramp construction on the "landfill parcel" (191318- 41001, owned by Office Max) that was not originally expected. • An Executive Committee will be convened in June to provide policy guidance for the interchange improvement project and the UR report. The Committee will include Tony O'Rourke and a City Council member. Kathy Coffey volunteered to serve on this committee. Other representatives will be attending from Yakima County, Federal Highways, and the South Central office of WSDOT. • The preferred alternative in the IJR modifies the access ramps to Yakima Avenue, eliminates the direct access to the "Gateway Shopping Center" and provides new ramps from I -82 that will connect to the "East -West Corridor" and the Cascade Mill site. A public meeting will be held in late summer to receive comments on the alternatives, including the modified access to the Gateway Shopping Center. This issue could potentially create some concern from citizens, property owners in Page 1 of 4 the area and merchants. The City may consider an information effort to encourage participation by city residents at this public meeting 2. Environmental Study of the Cascade Mill Property — On April 2, 2013 the City Council authorized a contract with Landau Associates to provide geotechnical and environmental analysis of the 20 parcels and 207 acres that are the Cascade Mill site (excepting the "landfill parcel "). The City of Yakima does not own any of this land, but has a strong interest in the redevelopment of the area, due to the funding program granted by the State of Washington in the LIFT legislation. This Environmental Study is a pre- purchase obligation to determine the nature and extent of any Mill site contamination, especially with respect to the Plywood Plant parcel. Status Update: • Landau has submitted the preliminary draft of the "Due Diligence" report which is a document review of studies and reports related to the environmental history of the Cascade Mill site. The "landfill parcel" was excluded from this evaluation, since much is already known about the area. • The City has submitted an application to the local Department of Ecology for an "Integrated Planning Grant" which would reimburse the City for up to $200,000 of the cost of the Landau Report. Staff is working with DOE to finalize this grant. Landau Associates expects to begin field testing of the area south of the railroad tracks in mid -June which will include Soil Boring and Test Pits to determine the nature and extend of any contamination in the area. The property owners are in the process of removal of the building debris from demolition of the Plywood Plant structure which is necessary in order to allow field investigation of that property. The City is working with the property owners (Yakima Resources and Office Max) on an Access Agreement to facilitate the study. Landfill Removal Options — The realignment of the East -West Corridor and related interchange ramps and structures will necessitate removal of landfill material from the ramp corridors. In addition, the Cascade Mill Parkway (north -south street) has also been realigned which will traverse the landfill area. The City has been working with Yakima County Public Services staff to develop options for the appropriate relocation of the former landfill to a modern and approved site. Three different options for landfill removal will be studied including: (a) Excavate only street and ramp alignments. Compact other portions of the landfill. (b) Remove all landfill west of the Cascade Mill Parkway, as well as other street and ramp corridors. Compact remaining portion of landfill. (c) Remove all landfill materials from the entire 28 acres. Status Update: • Yakima County is exploring the options of landfill placement at either the Terrace Heights or Cheyne facility. The advantage of the Cheyne facility is that clean backfill material may be available to the City for site restoration. The County has Page 2 of 4 offered a reduction in tipping fees to the city for this landfill relocation, as their contribution to the East -West Corridor and I -82 interchange project. Costs of landfill removal and the related operating plans for each of the alternatives are beginning. If the entire landfill is removed, redevelopment options are greatly increased. However, the cost, complexity and length of time required for full landfill removal is significant. An Inter -local Agreement with Yakima County will be developed to establish the terms of the landfill project. Permits from the Department of Ecology for landfill treatment involve a complex and lengthy process. Our preliminary target for permitting and landfill removal is winter of 2014 -2015. 4. Cascade Mill Parkway — The Cascade Mill Parkway is planned as a city street that will connect to Fair Avenue at a roundabout and to the East -West Corridor ( "H" Street alignment) at another roundabout. The Parkway is anticipated to be a four lane divided boulevard with significant landscaping, sidewalks, bike facilities and street lighting. Access to properties from the Parkway will be limited to major intersections (now planned as roundabouts rather than traffic signals). The Parkway will also be a utility and storm water corridor. Status Update: • We are in the decision phase about whether it should be included in the NEPA for the East West Corridor, or do a separate SEPA. • This corridor will also be constructed in phases. The first construction project will be a roundabout at Fair Avenue /10th Street/Lincoln Avenue. Construction of the roundabout would replace a non - standard intersection of Lincoln Avenue and Martin Luther King Boulevard at Fair Avenue. The Roundabout will accommodate left turns at this intersection which are currently restricted by geometry and will provide a construction access into the Mill Site. Earliest construction of the roundabout would be 2014, if we can secure State Funding this year through TIB program. Additional construction of the Cascade Mill Parkway is dependent upon removal and clean -up of the former Municipal Landfill which is targeted for winter of 2014 -2015, at the earliest. The Cascade Mill Parkway will be constructed with public funds from the roundabout at Fair Avenue to the roundabout at the East - West Corridor. Private development will likely be responsible for the Parkway north of the East -West Corridor, sometime after 2016. Cascade Mill Redevelopment Strategies - In 2009, the City rezoned the Mill property to Regional Development and processed a Comprehensive Plan Amendment to cover the land use change from Industrial to Regional Commercial. Redevelopment of the mill property could be encouraged if development reviews can be expedited and an end user is identified early in the process. Status Update Page 3 of 4 • In conjunction with landfill clean -up, the City may consider conducting a SEPA review and Binding Site Plan process ( or other process) that would reduce permitting and project review time for certain developments. • The City may consider an RFQ/RFP process to hire a development consultant that could conduct a market study, identify tax credits and other financial incentives and assist in the implementation of property development. 6. Critical Path of LIFT Project - The City received Local Infrastructure Financing Tool (LIFT) designation in 2009. This unique funding award to the City of Yakima provides the opportunity to support related infrastructure and municipal projects up to $50 Million using bonding capacities. However, the LIFT program is subject to rigorous timelines for use of this funding. The 5 -Year "Pay -Go" period was initiated by the City by Ordinance 2011 -17 which established the sales and use tax rate and the deadline for construction bonding of June 30, 2016, with a bonding expiration of 2039. During the "Pay -Go" period, the city is reimbursed by State tax distributions of up to $1 Million for qualified expenses of project development. Expending local funds and reimbursement by the State during this period preserves our full bonding ability of up to $50 Million. Extension of the LIFT deadlines was considered by the State Legislature in 2013, but has not been approved at this time. Status Update • The original plan for LIFT funds was $30 Million in City infrastructure (streets, utilities, sidewalk, trails) and $20 Million in a contribution to the I -82 Interchange improvements. • Construction bonds must be issued no later than June of 2016, unless the State Legislature extends the deadlines. Construction of the southern portion of the Cascade Mill Parkway will likely be the first LIFT project. However, it is dependent upon landfill removal prior to construction. • No LIFT funds were allocated for landfill clean -up, although it is an eligible expense. The City will seek DOE funds for assistance in landfill clean -up. Brownfield funds from EPA are not likely for the clean -up of the land fill, but the City will pursue Model Toxic Control Act (MCTA) and other similar funds. Conclusions Redevelopment of the Cascade Mill Property has been in a conceptual mode for years, with many variations on land use, ownership and layout options. However, now the UR process is underway, street/ramp alignments are more defined, and construction bonding under the LIFT program is nearing a deadline. Action steps and financial plans will be developed for each of the components described in this report in order to meet the various deadlines and sequencing. Page 4 of 4