HomeMy WebLinkAbout02/04/2014 10 Cascade Mill District Redevelopment Project SIED Grand Agreement with the 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 of funding and executing
an Agreement with the Yakima County (SI ED) Board for
$900,000 in a loan and $900,000 in a grant to support
engineering and design of new streets, utilities, environmental
clean-up and right of way for the Cascade Mill District
Redevelopment Project.
Tony O'Rourke, City Manager
Joan Davenport, Strategic Project Manager
On January 23, 2014 the Yakima County "Supporting Investments in Economic Development"
SI ED Board reviewed and approved the request from the City of Yakima for a $900,000 grant
and $900,000 loan to be used for the engineering, design and right of way for the Cascade Mill
Redevelopment Project. The loan portion will be paid in a lump sum no later than 2017 when
the City issues the first LIFT construction bond.
Resolution: X
Other (Specify):
Contract:
Start Date:
Item Budgeted: Yes
Ordinance:
Contract Term:
End Date:
Amount:
Funding Source/Fiscal Loan to be repaid with LIFT construction bond in
Impact: 2017
Strategic Priority: Economic Development
Insurance Required? No
Mail to:
Phone:
APPROVED FOR
SUBMITTAL:
City Manager
RECOMMENDATION:
Approve the Resolution which authorizes City Manager to execute necessary Agreement for
SI ED Funds for the Cascade Mill Project
ATTACHMENTS:
Description
Resolution to accept and execute agreement for
SIED Funds of Cascade Mill Project 1/27/2014
SIED Application for Funding Cascade Mill Project 1/27/2014
Upload Date
Type
Resollution
Backup IMaterliall
A RESOLUTION
RESOLUTION NO. R -2014 -
authorizing the City Manager to accept and execute the necessary agreement
for $900,000 in a grant and a $900,000 loan from the Yakima County SIED
Board to support engineering and design of new streets, utilities and
environmental clean-up plans for the Cascade Mill District Redevelopment
Project,
WHEREAS, the Yakima City Council has established that redevelopment of the Cascade Mill
Site, 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 2012 and 2013 Community Survey, the City Council Strategic Plan and the Yakima Urban Area
Comprehensive Plan 2009 Amendment; and
WHEREAS, the City of Yakima was successful in receiving funds from the State of
Washington in the form of the Local Infrastructure Financing Tool (LIFT) award that provides $25
Million to finance necessary infrastructure improvements, and
WHEREAS, the City of Yakima has a Professional Services contracted with Lochner &
Associates to develop and provide the engineering and design services for infrastructure at the
Cascade Mill Redevelopment Project, and
WHEREAS, the Scope of Work and Budget included in this Professional Services
Agreement include environmental compliance, civil engineering, landscaping/street design, cost
estimating, utility design and coordination, traffic engineering, surveying, right of way, construction
contract administration and other related services, 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 $900,000 grant and $900,000 loan. The loan portion will be paid back in a lump sum
in 2017, when the first LIFT construction bond is issued, 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
APPLICATION FOR FUNDING
CERTIFICATION
Applicant: City of Yakima
Federal Tax Number: 91-6001293
Contact: Tony O'Rourke
Title: City Manager
Telephone: 5091575-6040
Fax: 5091576-6792
Email: tony.orourkeRyakimawa.aoy
Address: 129 North 2nd Street
Yakima, WA 98901
indicate the minimum necessary total public project infrastructure costs.
Amount of SIED loan requested:
Amount of SIED grant requested:
(see Policies for limits)
Local match (minimum 10% of SIED request):
List other funding source(s):
TOTAL public proiect costs:
TOTAL private investment in plant/equipment
$900, 000
$900,000
$1.500,000
City of Yakima
13,400,000
Project title. Cascade Mill District Infrastructure Design — Phase 2
Resolution # authorizing application: R-2014 - (tbd on Februa
Declaration: HEREBY CERTIFY THAT THE INFORMATION GIVEN 1
SUPPORTING INVESTMENTS IN ECONOMIC DEVE • PMENT BOAR
OF MY KNOWLEDGE AND BELIEF.
Signature of Responsible Official:
Print or Type Name and Title:
thj
HIS APPLI
IS TRUE
ON TO THE
CORRECT TO THE BEST
Tony O'Ro City Manager
Yakima County SIED Board
Supporting Investments In Economic Diversification
A. REQUEST FOR FUNDING
To improve the economic vitality of the Yakima County, SED is authorized to make primarily loans, and grants in
unique circumstances, to Yakima County political subdivisions to assist in financing the cost of public facilities that are
required by industrial sector businesses that will create and/or retain jobs.
In most cases, SIED Board will choose to combine funding in the form of loans and grants. Interest rates on loans are
established when the County formally approves the project contract (interlocal agreement) by using the County
Interfund Loan Rate, as authorized by law. Loan payments are made in equal annual amounts on June 1st. As the
interlocal agreement is put in place between the County and the applicant specific repayment dates and a related loan
amortization schedule are established. Loan payment installments are based on an ordinary annuity, compounded
annually. If an applicant needs additional flexibility on ban repayment schedules they can request a deferral. Interest
on loans will continue to accrue from the date the contract is approved by the County, even if the applicant is granted a
deferral on their first loan payment.
If an applicant requests a deferral of the first loan payment, the applicant must justify the
request.
Al. Indicate the full terms requested for SIED consideration.
A SIED loan is a general obligation of the jurisdiction receiving the loan. With acceptance of a SIED loan, the
jurisdiction agrees to the terms of the interlocal agreement regardless of the project which prompted the
application for SIED funding.
• A loan of: $900,000
• A grant of $900,000 (maximum 40% of project costs*).
*NOTE: If applicant contributes 20% toward project costs (including state, federal, or private funds
leveraged) the maximum grant increases to 50% of the SEID request.
• A deferral of the first loan payment (up to five years):
Deferral Requested until 2017, when the first project bond is issued. The SIED Loan will be repayed in
one lump sum in 2017.
• Loan terms requested: *Total number of years for repayment: Defer until 2017
• Justify a request for a deferral of the first loan payment. What is the basis for a lower interest rate request?
The City requests the authority to defer repayment of the $900,000 Loan until the first
construction bond is issued for the LIFT funded project. The bonding deadline is
2017. The City could incorporate this debt into the bond, thereby eliminating the
need to use General Fund or other city funds to repay this debt.
Application for Funding, 2014
Page 2 Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
B. PUBLIC SECTOR PROJECT
B1. Describe the entire public facility project, including the parts that you are not asking SIED to fund.
The City of Yakima requests a $1,800,000 in SIED funding to help complete engineering design of
new roads and utilities to serve the redevelopment of the Cascade Mill District Development Project.
With SIED funds, the city will employ a consulting team to carry out the following scope of services:
• Environmental Compliance
• Civil Engineering
• Landscape/Streetscape Design
• Cost estimating
• Utility design and Coordination
• Electrical Design (street lighting, traffic signalization
• Traffic Engineering
• Survey
• Right -of -Way
• Construction Contract Administration
• On-site construction observation
• Assistance with administration of funding sources
The project will enable the City of Yakima to move forward in 2014 to initiate environmental clean-up
and construction of the Cascade Mill Parkway between Lincoln Avenue and the East-West Corridor.
Following completion of the SIED funded project, the City of Yakima will utilize state LIFT funds and
other grants to build the remainder of this key arterial street and other portions of the infrastructure
project. The city is investing over $1,200,000 to secure property that will be used for right of way,
utilities and clean-up needed to access the mill site property. These funds were also used as match
for phase I, but they are sufficient to cover the SIED program's twenty percent match requirement
for projects.
To date, and with some assistance previously provided by SIED, the city has completed the
following:
• Economic Impact Study* to support the LIFT application
• Phase 2 Traffic Study with YVCOG and WSDOT* which resulted in supportive position by
Federal Highways and WSDOT to proceed with an Interchange Modification of the 1-82 &
Yakima Avenue interchange to improve access to the Cascade Mill project and the East-West
Corridor
• Remedial investigation and feasibility study on former city landfill within the site
• Geotechnical analysis and environmental investigation of the Plywood Plant area for due
diligence of purchase
• Geotechnical analysis and alignment study for Phase 1 infrastructure*
* Partially funded by previous SIED funds
The Cascade Mill District consists of 205 acres that were formerly used as the Boise Cascade
Sawmill and Plywood Plant. Redevelopment of the area is the top economic development priority
for the City of Yakima, and it is listed as one of the most significant properties for economic
opportunity in the region, according the 2013 YCDA Community & Economic Development (CED
Plan). The recommendations of this plan and a SIED funded economic impact study were key
elements of the city's application for state Local Infrastructure Financial Tool (LIFT) financing,
which was the #1 ranked application in the state and received a maximum award of up to $25 million
to finance necessary infrastructure improvements.
Application for Funding, 2019 Page 3 Yakima County SIED Program
Yakima County SIED Board
Supporting Investments in Economic Diversification
B2. Will this project upgrade an existing public facility'? Yes Build a new one? Yes Describe.
The design work will lead to the construction of the following improvements:
• A new North-South arterial street will be constructed from Lincoln Avenue to the new
East-West Corridor, at the alignment of the "H" Street called the Cascade Mill Parkway
(CMP). The new street will begin at a roundabout at Fair Avenue/Lincoln Avenue
intersection and extend approximately 2,100 LF to another roundabout at the East-West
Corridor. The new roadway will be constructed with a sidewalk, median landscaping,
controlled access, street lighting, and passive infiltration storm water facilities.
• The East-West Corridor will be designed to connect to the 1-82 Interchange
modifications and ramp facilities and will include a roundabout at the intersection of the
East-West corridor, which will accommodate a rail crossing to preserve the Moxee Branch
line of the Central Washington Railroad.
• Domestic water improvements in conjunction with roadway, including new 12"
diameter water main,
• Sanitary sewer improvements in conjunction with roadway, including new 10" and 6"
pipes,
• Industrial Waste Line for domestic sewer related to potential new industrial land uses,
• Stormwater infrastructure
The transportation plan for the Mill District consists of boulevards, connectors and neighborhood
streets. These are further supplemented by pedestrian facilities and Greenway access. Central to
the Mill District is a boulevard (Cascade Mill Parkway) including the sidewalk, a bike lane, and two
one-way driving lanes. In the development of this plan, the following goals will be considered:
1. Efficient delivery of vehicular traffic to the site's commercial and employment areas.
2. The use of common, large scale retail/office/employment parking areas for the Mill District.
3. Vehicular traffic in the Mill District will be carefully managed including roundabouts,
limited access controls, pedestrian separation and landscaping.
4. A pedestrian network through the Mill District parking areas.
5. The use of pedestrian ways to encourage safety and connectivity, including access to the
Yakima Greenway.
6. The street network will also provide significant regional access to the modified I-82/Yakima
Avenue interchange and the East-West Corridor.
B3. List all funding sources for the public 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 loan
SIED grant
City of Yakima — LIFT funds
Total project costs — this phase
STATUS
Applied
Applied
Obligated
DATE
February 2014
February 2014
2014
AMOUNT
$ 900,000
$ 900,000
$ 1,500,000
$ 3,400,000
NOTE:
ALL REQUIRED FUNDING TO COMPLETE THE PROJECT MUST BE
SECURED WITHIN SIX MONTHS OF A SIED OFFER OF FINANCIAL AID.
Application for Funding, 2014
Page 4
Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
B4. Specifically, for what element(s) of the public project are SIED funds requested?
SIED funds will pay for the design engineering of Cascade mill Parkway within the Cascade Mill
District Redevelopment Project. In addition, the City of Yakima plans to begin removal of the wood
debris from the road corridor area which will allow subsequent landfill remediation and street
construction. With SIED funds, the city will employ a consulting team to carry out the following
scope of services:
• Environmental Compliance
• Civil Engineering
• Landscape/Streetscape Design
• Cost estimating
• Utility design and Coordination
• Electrical Design (street lighting, traffic signaiization
• Traffic Engineering
• Survey
• Right -of -Way
• Construction Contract Administration
• On-site construction observation
• Assistance with administration of funding sources
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.
'Materials must be reproducible in black and white and in 8 1/2 x 11 format.
B6. Attach engineering estimates supporting project costs. Identify whether estimates are from preliminary
engineering or design engineering work.
(Attention: SIED will not entertain requests for additional funding if projections are insufficient.)
B7. Describe how the public facility project will enhance or encourage other development in the immediate area in
addition to the direct development described in this application (Section D.)
The 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. In
2014, a Market Analysis will be conducted to determine the most feasible land uses for the site. The
Preliminary YRDA development plan included in the LIFT application 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
The Yakima business community will benefit from the development of the city's first interstate
frontage mixed use development. SIED design funds will leverage capital construction funding that
will create a competitive, cost effective setting for new construction with modern infrastructure in
place to serve business needs. Development of the project area will provide substantial economic
impact and revenue, including approximately $53,000,000 of investment for development.
Application for .Funding, 2014 Page 5 Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
Several key attributes make the site an ideal location for an urban infill redevelopment project.
These include:
• Over 200 acres of prime urban interstate frontage at the gateway to the Yakima Valley,
• Location between two major freeway interchanges,
• Centered within an urban area of 116,000 residents that lacks a true mixed-use employment,
commercial and recreation center.
• Direct connections to the Yakima River and Yakima River Greenway, the only major
development tract in Central Washington to possess this feature.
• Located four blocks from the Yakima Convention Center and Downtown Yakima.
• Bordered by light -industrial business park, residential neighborhoods and commercial
district, which allows and encourages mixed use development, multi -modal transportation
and land use transition points/buffers.
The design of both public infrastructure and private facilities will incorporate the following
principles:
• Provide amenities that support and enhance the urban environment
• Replace existing mill site with vibrant multi -faceted commercial and employment district.
• Expand and enhance the revitalization of Downtown Yakima
• Create a distinctive area centered on the historic flow of water through the site.
• Create strong connections to the Yakima River Greenway from downtown and the Mill District
• Accommodate and facilitate development of public facilities that draw visitors to Yakima and
contribute to the health of hotels, downtown businesses and other private enterprises.
The project will change the face and image of Central Washington as well as improve the
corporate and tourism attractiveness. The recent location of Costco's Business Center and
Tacoma Screw Products International to the Chinook Business Park at the north end of the
property presents a new industry cluster that provides another layer of ancillary business
opportunities.
Surrounding neighborhoods will receive new, basic infrastructure that will alleviate the chronic
public health issues related to failing septic systems and contaminated wells. In addition, the
utilities will increase property values, and the redevelopment will be more compatible with the
neighborhood than a disruptive and hazardous industrial operation.
Abandoned industrial sites are havens for street crimes, gang activity, graffiti and drug dealing.
This activity spreads into the surrounding neighborhoods. Redevelopment of the site brings new
construction, and people to the area throughout the day and into the evening. This is a deterrent to
crime, and enhances the security of the surrounding neighborhoods.
The accelerated redevelopment of the site is important to our competitiveness, not only for new
businesses to the region, but to retaining a number of local firms that are in need of additional land
in order to preserve their operations in Yakima, including auto dealerships that are vital to the city's
financial health.
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
NEPA Compliance
SEPA Compliance
Application for Funding, 2014
ISSUER
City of Yakima
ANTICIPATED
COMPLETION
STATUS DATE
In process for Interchange late 2014
Cascade Mill Parkway April 2014
Page 6 Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
Construction Permits City of Yakima 2016
NOTE: ALL REQUIRED PERMITS TO COMPLETE THE PROJECT MUST BE SECURED
WITHIN SIX MONTHS OF A SIED OFFER OF FINANCIAL AID.
B9 If environmental permits are not required for the project (e.g., Shorelines Permit, Environmental
Impact Statement, etc.) please explain why they are NOT required.
Both NEPA and SEPA processes will be utilized for environmental compliance in the various
elements of this project Requested funding is for a Planning/Engineering Study.
B10. Estimated schedule for public project completion. Indicate the month and year when the activities
listed have been, or will be, completed.
ESTIMATED COMPLETION DATE
(month/year)
Preliminary Engineering Report 2015
Environmental Review 2014 - 15
All Required Permits Obtained 2015
Design Engineering 2014-15
Land/Right-of-Way Acquisition 2014
Prepare Bid Documents 2016
Award Construction Contract 2017
Begin Construction 2017
Project Operational
B11. 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 County; Yakima Valley Conference of Governments;
Washington State Department of Transportation; and Department of Ecology
Please explain how completion of the project is coordinated between other involved parties.
Both the City and County have retained the same firms for engineering and design of the
infrastructure projects. The City, County and WSDOT have entered several agency
agreements that describe cooperation and coordination of the project.
B12. Will the SIED public facility project be totally maintained by the applicant? If not, whom? Please explain.
The City of Yakima will maintain the infrastructure within the City limits. WSDOIT will maintain 1-82
ramps and facilities. Yakima County will maintain the East-West corridor within their
jurisdiction.
Application for Funding, 2014
Page 7 Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
B13. How will this project impact utility rates and public services within the jurisdiction?
No impact to rates. The project will install public water lines, domestic sewer, industrial sewer,
stormwater drainage, and all related street infrastructure in the Mill district which will benefit the
surrounding neighborhood.
B14, Is this project consistent with your local comprehensive and capital facilities plans? If no, please explain.
Yes. A Comprehensive Plan Amendment to the Yakima Urban Area Plan and related
rezoning of the Mill District was approved by the City Council in 2009. The Comprehensive
Plan Amendment included a Sub -Area Plan, Transportation Elements, Economic
Development objectives and Capital Facilities Discussion. The redevelopment of the Mill
District is consistent with the Comprehensive Plan.
C. FINANCIAL INFORMATION ON CITIES, TOWNS, PORT DISTRICTS AND
COUNTIES
This section examines the general financial status of cities, towns, and counties to determine the need for SIED
assistance.
C1, Identify funds (General Fund, Utility Fund, Property taxes, etc.) that are eligible to repay a SIED loan.
The project area is designated as a Revenue Development Area (RDA) by the Washington State
Department of Revenue, and has received a commitment of up to $25 million from the state Local
Infrastructure Financing Tool (LIFT) program from the Community Economic Revitalization Board
(CERB). Under the LIFT program, a portion of the state share of sales and property tax revenues
will be provided to the city to finance construction of capital improvements. The city will also
dedicate a dollar for dollar match of the local increased tax revenue from the development of the
site. These funds will be used to repay the SIED loan for design engineering.
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 an adopted balanced budget with operating reserves that conform to the
City Council's Financial Management Policy of 60 days of working capital to meet unforeseen, one-
time expenditures of an emergent nature, such as a natural disaster, catastrophic occurrence of
excessive liability judgment. These funds are not available for new infrastructure projects, and we
have previously been forced to use reserves for basic services. Despite our challenges, we have
continued to develop financial packages for the provision of streets, water, wastewater,
telecommunications, and transportation services to support new development in the community.
C3, If the local jurisdiction is not financially contributing to the project, please explain why.
Application for Funding, 2014 Page 8 Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
To date, City of Yakima and Yakima County have invested over $4 million in local funds to support
he planning and engineering of this project.
C4. Has the use of revenue or general obligation bonds, LID, ULIDS been explored for this public facility project?
Yes XXX_ No_. Explain the outcome and describe why these financing sources would or would not be
applicable for this project.
Infrastructure and street construction will be financed through a bonding process and
supported by the implementation of the LIFT financing. With the LIFT award, the City
may bond for up to $50 Million in improvements.
C5. Will a revenue stream be generated that could repay a SLED loan outside of the system's normal
operations and maintenance costs? Yes_XXX_ No_. Please explain.
Yes, the SIED loan will be repaid with the first construction bond targeted for 2014.
C6. Other public sources of funding for public economic development projects are listed below. Indicate which
public sources were investigated to fund this project, in addition to SIED. indicate what the outcome was.
FEDERAL:
Economic Development Administration
Rural Development
Other:
STATE:
Community Development Block Grant
Public Works Trust Fund
Department of Ecology
CERB
Other
YES
X
X
X
X
X
X
NO OUTCOME
Seeking public works
funding
Not eligible in urban area
Not eligible - Entitlement
area
Did not meet funding
criteria
Pending environmental
issues
May apply for
construction funds
Application for Funding, 2014 Page 9 Yakima County SIED Program
Yakima County SPED Board
Supporting Investments In Economic Diversification
Explain why SIED funds are necessary and the outcome of the investigation of other fund sources:
This proposal is considered a bridge financing mechanism for the project. The project
area is designated as a Revenue Development Area (RDA) by the Washington State
Department of Revenue, and has received a commitment of up to $25 million from the
state Local Infrastructure Financing Tool (LIFT) program from the Community Economic
Revitalization Board (CERB). Under the LIFT program, a portion of the state share of
sales and property tax revenues will be provided to the city to finance construction of
capital improvements. The city will also dedicate a dollar for dollar match of the local
increased tax revenue from the development of the site.
Engineering design and property acquisition are eligible for reimbursement when the
city receives the LIFT funding. The city will pay off SIED loans at the time of first
project construction bonding in 2017.
D. PRIVATE SECTOR COMMITMENT
Di. 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.
Complete Section D and a Contingency Agreement FOR EACH private sector entity.
D2. Describe the proposed private development or expansion project that will be supported by the public facility
project.
Business: NIA
The requested SIED funding is to support the engineering and design of the
public infrastructure, to allow installation and environmental clean-up in a
timely manner that will allow redevelopment of the site. There are NO private
development sectors that will directly receive SIED assistance.
D3. Name of private sector firm
Address
Phone/Fax
Contact Person
D4. Explain why the private development requires the proposed public infrastructure improvements
Application for Funding, 2014 Page 10 Yakima County S1ED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
described in this application.
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
Local
Occupational
Hourly Wages***
Mgmt./Admin*
Technical/Prof.
Office/Clerical/sales
Skilled Crafts
Others
a) Number of Jobs **Retained
b) Projected annual gross payroll for all job classifications $
c) How many of these positions are for seasonal work? (In FTE)
d) What kind of fringe benefits does the company offer to regular full time employees?
**Retained jobs are defined as jobs that would otherwise be lost to the county.
06. Will this project displace existing jobs in any other part of the county? Yes No XXX If "yes," please
describe the circumstances.
D7. How were job projections developed? Explain why the projections are realistic.
Attach supporting information such as a business plan or year-end financial statements (financial statements
may be unaudited). The entire SIED application is considered a public record; however, financial and
commercial information provided by the private business is exempt from disclosure to the extent
permitted by 42.17 RCW.
***Contact YCDA for information on this column.
D8. Will the private sector project offer expanded employment opportunities to disadvantaged or unemployed
workers? How will the firm work to hire people from Yakima County?
D9. Indicate the construction schedule (if applicable) for the proposed private sector project.
,4pplication for Funding, 2014 Page I 1 Yakima County S1ED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
Private Facility Construction Begins
Private Facility Construction Completed
Private Facility Operational
(month/year)
D10. List all permits required for the PRIVATE SECTOR PROJECT and give their current status (applied for,
application being prepared, permit issued, etc.)
PERMIT/ENVIROMENTAL
REVIEW ISSUER
STATUS
ANTICIPATED
COMPLETION
DATE
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?
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.
Application fir Funding, 2014
Financial contact(s)
phone#
phone#
Page 12 Yakima Couiny SIED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
SAMPLE CONTINGENCY AGREEMENT
1. PARTIES.
The parties to this Agreement are THE APPLICANT and THE PRIVATE BUSINESS.
ATTENTION: If a developer is involved in the project, the tenant must also be a party to this agreement or
there must be an additional agreement between the developer and the tenant.
The required agreement will be executed as described by the City of Yakima.
2. PURPOSE.
The purpose of this Agreement is to clarify the intentions of the parties regarding the completion of THE PUBLIC
FACILITIES PROJECT. This section should also contain an explanation of the need for the public improvements.
3. BACKGROUND.
The purpose of this section is to provide a description of the public improvements, which can be referenced, thereafter,
as "required public improvements."
4. AGREEMENT.
This section must contain the following:
a) A statement that the applicant agrees to construct the required public improvements providing that SIED
financing is approved.
b) A statement by the business of the projected number of permanent, full-time jobs created and/or retained as a
result of the public facilities project. (Attention: Job estimates identified here must equal those in Question C5.)
c) A statement by the business of the estimated private capital investment.
d) An agreement by the business to contact the local One -Stop Career Center, Job Service Center, or
appropriate Community Based Organization for assistance in filling new positions.
e) An agreement by the business to provide the applicant with employment and investment data as requested by
SIED.
f)If applicable, this section must also contain a list of any public and/or private contributions to the public
facilities project, such as cash contribution or donated land.
5. CONTINGENCY.
This Agreement is contingent upon receipt of SIED funds by THE APPLICANT and is intended to meet the first level of
convincing evidence of private development as required by SIED.
All parties must sign the Agreement.
The required agreement will be executed as described by the City of Yakima.
Application for Funding, 2014
Page 13 Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
E. PROJECT FEASIBILITY For projects where expanding or troubled businesses are not
involved, please fill out the following section.
El. Summarize the results of the feasibility analysis that supports your proposed public facility investments.
The Cascade Mill District project is a highly complex initiative with multiple technical issues.
Unlike other development sites in the city (Congdon, River Point Landing, etc.), the Mill
District currently does not connects to the arterial street system, nor the interstate
system. This is a significant challenge for a mixed use site. Furthermore, the acreage
does not have any streets running through the property. The alignment and design of
this system is further complicated by the location of a former municipal landfill,
environmental remnants of the 100 years of former mill operations and an active rail
spur. While none of these issues are insurmountable, they have required specialized
study and analysis, and a challenging environmental and engineering design approach
that is beyond the capacity of city staff. AH of these challenges have been approached
in careful coordination with local, state and federal agencies that will influence the
project and its sustainability
E2. Identify industries that are targeted for recruitment with this project.
According to a 2008 economic impact study, Phase 1 of the YSR project will provide
substantial economic impact, both in terms of overall job retention or creation and revenue
for state and local government, including:
• 402 permanent jobs retained or created
• 205 construction jobs
• $276,986 annual city sales and use tax revenue
• $585,411 annual city property tax revenue
• $1,694,840 annual state sales and use tax revenue
• $102,000 annual property tax revenue
The overall construction schedule assumes a 15 -year build out period for the entire site, with
the highest level of construction occurring in 2016-2020. The timing of construction was
based on analysis of absorption rates for the Yakima Urban Area for both retail and other
commercial uses. Light Manufacturing and Office -Flex may be accelerated depending on the
success of business recruitment and retention efforts for the employment center.
Construction estimates were based on industry trends and similar projects.
E3. Describe a market strategy that contains action elements with appropriate timelines. Who will be responsible
for implementing the marketing strategy?
In 2014, the City will employ a Market Economist to evaluate the most desirable and feasible
land uses for the Cascade Mill site. The contract is estimated at $30,000 and will be a
subconsultant of Lochner Associates, the primary project consultant for the City and
County. Although basic economic and employment forecasting data was collected and
presented in the 2008 LIFT application, the data and assumptions need to be checked.
Additionally, the Downtown Revitalization effort should be supported by the Cascade
Mill project. The Study will be completed by third quarter 2014 with recommendations
and strategies for implementation.
Application for Funding, 2014
Page 14 Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
E4. Describe the site's appropriateness by addressing (at a minimum): zoning; environmental restrictions; access
to infrastructure; water, sewer, road, rail, and electricity; distance to markets; and, the site's ability to support
the anticipated development over time.
The design of both public infrastructure and private facilities will incorporate the following principles:
• Provide amenities that support and enhance the urban environment
• Replace existing mill site with vibrant multi -faceted commercial and residential district.
O Expand and enhance the revitalization of Downtown Yakima
O Create a distinctive neighborhood centered on the historic flow of water through the site.
• Create strong connections to the Yakima River Greenway from downtown and the Mill District
The Yakima business community will benefit from the development of the city's first interstate frontage mixed
use development. SIED design funds will leverage capital construction funding that will create a competitive,
cost effective setting for new construction with modern infrastructure in place to serve business needs.
Development of the project area will provide substantial economic impact and revenue, including
approximately $53,000,000 of investment for development.
Several key attributes make the site an ideal location for an urban infill redevelopment project. These include:
• Over 200 acres of prime urban interstate frontage at the gateway to the Yakima Valley,
• Location between two major freeway interchanges,
• Centered within an urban area of 116,000 residents that lacks a true mixed-use employment,
commercial and recreation center.
O Direct connections to the Yakima River and Yakima River Greenway, the only major development tract
in Central Washington to possess this feature.
O Located four blocks from the Yakima Convention Center and Downtown Yakima.
O Bordered by light -industrial business park, residential neighborhoods and commercial district, which
allows and encourages mixed use development, multi -modal transportation and land use transition
points/buffers.
E5. Provide an analysis of other adequately serviced land in the area and give the primary reasons for he
selection of the proposed site over other existing sites.
The Cascade Mill District project is a highly complex initiative with multiple technical issues.
Unlike other development sites in the city (Congdon, River Point Landing, etc.), the Mill
District currently does not connects to the arterial street system, nor the interstate
system. This is a significant challenge for a mixed use site. Furthermore, the acreage
does not have any streets running through the property. The alignment and design of
this system is further complicated by the location of a former municipal landfill,
environmental remnants of the 100 years of former mill operations and an active rail
spur. While none of these issues are insurmountable, they have required specialized
study and analysis, and a challenging environmental and engineering design approach
that is beyond the capacity of city staff. All of these challenges have been approached
in careful coordination with local, state and federal agencies that will influence the
project and its sustainability.
E6, Describe the plan to secure the total required funding for the public facility improvements. Is it secured or not,
and will it be available in the time frame established for project completion?
In 2009, the City of Yakima was awarded authority to utilize Local Infrastructure Financing
Tool (LIFT) for the Mill District. The LIFT award was $25 Million which could be utilized
to bond up to $50 Million. The LIFT was designated for streets, utilities, freeway ramps
and environmental clean-up. While this is a significant contribution to the
redevelopment of the Mill District, additional funds are necessary to leverage success
Application for Funding, 2014 Page 15 Yakima County SIED Program
Yakima County SIED Board
Supporting Investments In Economic Diversification
for the entire project. The City has strong partners in Yakima County, Washington State
Department of Transportation, Federal Highways, Department of Ecology, Conference
of Governments and private property owners. Environmental Clean-up of the former city
landfill and the contaminants of the 100 years as a lumber mill will be costly and will
exceed the first estimate for remediation. The partnership with Department of Ecology
is very strong and DOE has been supportive of funding the clean up.
E7. Describe job development expectations for the project in terms of the number of jobs created and/or retained,
anticipated wages and how wages compare to local prevailing wages, opportunities the project may offer to
the local labor force and other related issues.
According to a 2008 economic impact study, Phase 1 of the YSR project will provide substantial
economic impact, both in terms of overall job retention or creation and revenue for state and
local government, including:
• 402 permanent jobs retained or created
• 205 construction jobs
• $276,986 annual city sales and use tax revenue
• $585,411 annual city property tax revenue
• $1,694,840 annual state sales and use tax revenue
• $102,000 annual property tax revenue
The overall construction schedule assumes a 15 -year build out period for the entire site, with the
highest level of construction occurring in 2016-2020. The timing of construction was based on
analysis of absorption rates for the Yakima Urban Area for both retail and other commercial uses.
Light Manufacturing and Office -Flex may be accelerated depending on the success of business
recruitment and retention efforts for the employment center. Construction estimates were based on
industry trends and similar projects.
E8. Describe the specific, quantifiable measures of the outcomes that will demonstrate project success. Describe
in measurable term (jobs created/retained, etc.) what you expect to be able to show as progress toward the
outcome for each year before the whole outcome has been achieved.
Goals
Determine options for public ownership, remediation and
facility development for former landfill site. Complete
Feasibility Study for DOE review
Outcomes
Timelines
Complete landfill feasibility
study for cleanup options
Council choses
Preferred Option
in February 2014
Design of Cascade Mill Parkway and utility improve ents
90% design plans
May 2014
Determine alignment, access and right of way needs for
Cascade Mill Parkway infrastructure improvements,
including roundabout intersection with East-West Corridor
Road
Complete alignment and
right of way acquisition
June 2014
Construct Phase 1 infrastructure improvements
June 2016
Application for Funding, 2014
Page 16
Yakima County SIED Program