HomeMy WebLinkAbout02/04/2014 09 Business Incubator and Public Market Feasibility Study SIED Grant Agreement with Yakima County SIED BoardBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of: 2/4/2014
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ITEM TITLE:
SUBMITTED BY:
SUMMARY EXPLANATION:
Resolution authorizing acceptance and executing the
necessary agreement for a $40,000 "Supporting Investments
in Economic Diversification" (SIED) grant to study the
feasibility of a business incubator and public market in the
City of Yakima.
Tony 0' Rourke, City Manager
Sean Hawkins, Economic Development Manager
On January 23, 2014 the City of Yakima requested and was awareded funding from the Yakima
County "Supporting Investments in Economic Diversification" (SIED) Board in the form of a
$40,000 grant with a $10,000 local match to conduct a feasibility study for a business
incubator / public market in the City of Yakima.
Resolution: X Ordinance:
Other (Specify):
Contract: Contract Term:
Start Date: End Date:
Item Budgeted: Yes Amount: $10,000
Funding Source/Fiscal
Impact:
Strategic Priority: Economic Development
Economic Development Funds
Insurance Required? No
Mail to:
Phone:
APPROVED FOR
SUBMITTAL:
City Manager
RECOMMENDATION:
Approve the Resolution which authorizes the City Manager to execute necessary agreement for
SI ED fund for the business incubator / public market project.
ATTACHMENTS:
Description
Resolution SIED Grant Business Incubator /
Public Market
SIED Grant Application
Upload Date
1/27/2014
1/27/2014
Type
Cover Memo
Cover Memo
A RESOLUTION
RESOLUTION NO. R -2014 -
authorizing the City Manager to accept and execute the necessary agreement
for a $40,000 "Supporting Investments in Economic Diversification" (SIED)
grant to study the feasibility of a business incubator and public market in the
City of Yakima,
WHEREAS, the Yakima City Council has established that small business development, is an
Economic Development priority for the City of Yakima; and
WHEREAS, a community support for this revitalization effort has been strongly supported in
the Downtown Yakima Master Plan; and
WHEREAS, on January 23, 2014 the City of Yakima requested and was approved for
funding from the Yakima County "Supporting Investments in Economic Diversification" (SIED) Board
in the form of a $40,000 grant with a $10,000 local match, therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized to accept and execute the Agreement with the
Yakima County SIED Board for terms and conditions of the loan and grant as specified in the
attached draft contingency agreement.
ADOPTED BY THE CITY COUNCIL this 41h day of February, 2014.
ATTEST: Micah Cawley, Mayor
Sonya Claar-Tee, City Clerk
Yakima County SIED Board
Supporting Investments In Economic Development Board
APPLICATION FOR FEASIBILITY STUDY/PLANNING PROJECT FUNDING
CERTIFICATION
Applicant:
Federal Tax Number:
Contact:
Title:
Telephone:
Fax:
Email:
Address:
City of Yakima
Sean Hawkins
Economic Development Manaaer
(509) 575-6274
sean.hawkinsnvakimawa,aov
129 N. Second. Street
Yakima. WA 98901
Indicate the minimum necessary total public project infrastructure costs.
Amount of SIED grant requested:
($25,000 Maximum per applicant per year)
$ 40,000
Local match (minimum 20% of SIED request): $ 10,000
Other funding source(s): $ n/a
TOTAL public prosect costs: $ 50,000
Project title: Yakima Public Market / Incubator Feasibility Study
Resolution # authorizing application:
Declaration: I HEREBY CERTIFY THAT THE INF RMATION
SUPPORTING INVESTMENTS IN ECONOMIC DEV .OPMENT B
OF MY KNOWLEDGE AND BELIEF.
HIS APPLICATION TO THE
UE AND CORRECT TO THE BEST
Signature of Responsible Official:
Print or Type Name and Title:
Tony 0' R,o. - ity Manager
Please Submit application to:
New Vision, P.O. Box 1387, Yakima, WA 98907-1387
(424 East Yakima Avenue - Yakima)
Application for Funding
Page 2
Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Development Board
To improve the economic vitality of the Yakima County, SIED is authorized to make grants (and loans) to
Yakima County political subdivisions to conduct feasibility studies or planning projects that support tangible
or potential investments in public facilities.
PROJECT DESCRIPTION
1. Describe the entire feasibility study or planning project, including the parts that you are not asking SIED to fund.
Specifically identify the public facilities (roads, water & wastewater lines, port facilities, buildings, etc.) being
evaluated as part of this project. (Note: public facilities being evaluated with SIED funds should be identified
in the applicant's capital facilities plan, or the County's Overall Economic Development Plan. These public
facilities must be clearly incorporated into these plans as a condition of funding).
The City of Yakima wants to study the potential to develop a public market and business incubator facility that
could support new and established businesses within the region. The public market has been viewed as a
business incubator as it creates a year round space for small local businesses and entrepreneurs to try out
ideas at an affordable and convienient lease rate. The incubator could also feature a commercial kitchen to
support food entrepreneurs and provide co -working space that allows startup businesses to share office
space, meeting space and common office elements like printers, furniture etc. Our proposal is to evaluate
potential locations for this facility, the feasibility of developing a commercial kitchen as part of the facility, and
the costs, potential revenues generated, and financing options for developing the facility.
2. How will this project lead to investments in public facilities?
The feasibility study will demonstrate whether a public incubator (and market) is cost beneficial and feasible
from a funding and operating perspective. If the study demonstrates this facility is feasible, the City would
apply for Economic Development Administration (EDA), County SIED, State and other federal funding
agencies to construct this new public facility. Optionally, we could use Community Development Block Grant
(CDBG) funds as a tool to provide annual operation support for the operation.
3. List all funding sources for the feasibility/planning project and amount. Identify whether the amount has been
provided or is being requested. Provide the status and date the funds were approved or the date that funds
are expected to be approved:
SOURCE
SIED grant requested
City of Yakima General Fund
Total project costs
STATUS DATE AMOUNT
Requested 1/25/14 $ 40,000
Approved 2014 Budget $ 10,000
$ 50;000
NOTE:
ALL REQUIRED FUNDING TO COMPLETE THE PROJECT MUST BE
SECURED WITHIN SIX MONTHS OF A SIED OFFER OF FINANCIAL AID.
4. Specifically, for what element(s) of the public project are SIED funds requested?
The feasibility and community planning process
Application for Funding
Page 3
Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Development Board
5, Describe how the potential public facility project will enhance or encourage other development in the
immediate area (in addition to the direct investment in public facilities described in this application).
The facility could become an anchor for the downtown or another City business district. A similar
facility in Wenatchee, Pybus Market, is currently drawing 3-5,000 people per week. As an anchor
development, we anticipate significant development in the vicinity of this facility.
6. Identify the prospective location of the project. Please attach a map of the area indicating the proposed
project site.
Because the existing farmer's market is downtown it makes a lot of sense to locate this facility
somewhere in the Central Business District. There are several potential locations in the downtown
area that could work for this project. Each site needs to be evaluated more carefully to determine
which location is optimal for a public market and incubator. We will also ask project consultants to
quickly assess other potential locations in Yakima that could generate similar consumer traffic and
spark development in the immediate area.
7. What other jurisdictions, such as counties, cities, port districts, Indian nations, or state/federal agencies are
involved in the planning, design, financing, construction or operation of this project?
Yakima County
EDA
Please explain how completion of the project is coordinated between other involved parties.
The oversight of the feasibility study would be overseen by economic development staff from the City
of Yakima and representatives from YCDA (New Vision), Thrive Yakima Valley Project, Rural
Community Development Resources (RCDR) and the Downtown Yakima Master Plan Implementation
Committee.
B. EVALUATION OF FUNDING SOURCES AND FINANCIAL CAPACITY
B1, 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 SI ED. Indicate what the outcome was.
FEDERAL:
Economic Development Administration
Rural Development
Other:
STATE:
Community Development Block Grant
Public Works Trust Fund
Department of Ecology
YES NO
X
OUTCOME
Pending
not eligible
X not eligible for state CDBG
X
X
CERB X May Apply in Future
Application for Funding Page 4 Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Development Board
B2. Explain why SIED funds are necessary and the outcome of the investigation of other fund sources.
The City has explored other funding sources for this project and no other funds are available or timely to
support this study. Yakima will be approaching local, state and federal funding partners to build or rehabilitate
a public market. The SIED funds represent a very timely source of available fund to keep the City's economic
development and revitalization efforts moving forward.
B3. 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 does not have adequate funding to complete this study by itself. Like many local jurisdictions, the
City's revenues have been flat over the past few years. In the meantime costs for staffing and operations have
mounted. General fund resources in particular are scarce. The City has also invested some of its limited
funding into other economic development initiatives that complement or are related to this public
market/incubator project (downtown futures plan, etc)
B4. Identify funds (General Fund, Utility Fund, Property taxes, etc.) that could be available to repay loans made to
construct public facilities described in this application.
A public market/incubator should gengrate rents and fees to repay loans. As a second repayment source the
City could pay off loans until the facility generates enough revenue to become self sustaining. .
C. PROJECT DESCRIPTION AND BUDGET
C1. Summarize the issues or opportunities facing your jurisdiction that necessitate a feasibility or planning study.
The City of Yakima has no business incubator operation to assist small businesses in starting and developing
new businesses. Nearby communities such as Ellensburg, Walla Walla and Wenatchee have had great
success in using their business incubator to launch several new small businesses that have created hundreds
of full time jobs in their community.
While the region has had success in recruiting new businesses and helping local industry expand, efforts to
support small business and entrepreneurs are limited at best. This incubator project could be a great tool to
unleash a wave of entrepreneurship.
C2. Describe Project goals, desired outcomes and timelines using the table below (attach additional information if
necessary):
Form Project Advisory Committee
Outcomes
Gain expertise and support for
feasibility study
Timelines
February
Send out RFP and Select Project Consultant(s)
Evaluate potential locations for public market/incubator
using the City's site selection criteria
Identify and quantify potential demand for public
market/incubator
Evaluate costs of constructing or rehabilitating top candidate
facilities
Develop proforma financials for public market/incubator
Application for Funding
Page 5
Hire capable consultant to
complete study
Identify and prioritize potential
locations for public facility
March
April
Identify core tenants and highest
and best use for facility
Formal cost estimates developed
for 1-2 preferred sites (or
buildings)
April
May
Demonstrate financial feasibility
for proiect
May
Yakima County SIED Program
S
Yakima County SIED Board
ortin Investments In Economic Develo
Identify potential funding sources for developing preferred
facility
lent Board
Present plan and strategy for funding and operating public
facility
Identify funding sources
Provide City recommendations for
implementation if project is
feasible
June
June
C3. Identify project budget and match funds using the table below (Match can include in-kind contributions for up
to 50 percent of necessary match):
Personnel/Benefits
Travel
Equipment/Supplies
Contractual
Other
Administration
TOTAL
Matching Funds Total Funds
$40,000 $10,000
3,000
$50,000
$50,000
C3a. If you plan to use consultants or contractors to complete all or part of the project, please identify the firm or
type of firm you plan to hire for this project.
The City of Yakima would go through a public RFQ process to hire the consultant to conduct the study.
C4. Describe plans to secure the total required funding for the public facility improvements. Is it secured or not,
and will capital facility funds be available in a timely manner (six months) upon completion of the proposed
feasibility or planning study?
The City has talked with a couple state and federal funding partners and is confident project funding can be
secured within six to twelve months if the study proves a public market/incubator is feasible.
C5. Describe job development expectations for the project in terms of the number of jobs created and/or retained,
anticipated wages, when jobs will be created (or retained), and opportunities the project may offer to our local
labor force and regional training providers.
It is difficult to project how many businesses and jobs could be supported by this public facility. The study
should help identify demand for this facility and the related impacts from potential businesses using the facility.
C6. How will businesses directly or indirectly benefit from the proposed project?
This is a huge opportunity for the City of Yakima / Yakima County. We do not have a business incubator to
help small businesses get off the ground. Similar facilities in Ellensburg (Ellensburg Business Incubator),
Wenatchee (Pybus Market) and Walla Walla (Wine Incubator) are successful and demonstrate how these
facilities can create jobs and stimulate new business activity within their communities.
Application for Funding Page 6 Yakima County SIED Program