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HomeMy WebLinkAboutR-1995-112 Central Heating & Plumbing, Inc.’s• • • A RESOLUTION RESOLUTION NO. R-95- 112 authorizing and directing the City Manger to execute, on be- half of the City of Yakima, the City's acceptance of an Initial Offer ofa loan from the Washington State Community Econo- mic Revitalization Board to partially finance the cost of con- structing or improving public infrastructure in the vicinity of Central Heating & Plumbing, Inc.'s new facility; and further authorizing and directing the City Manger and the City Clerk to execute, on behalf of the City, a Final Contract between the Community Economic Revitalization Board and the City, and further designating and authorizing the City Manager to act as the official representative of the City to take such additional steps as may be necessary and prudent to establish this financial assistance. WHEREAS, economic development is a priority of the City of Yakima, and the City intends to approach economic development on an inclusive, comprehen- sive basis which involves public, private and community-based efforts to achieve new investment and redevelopment in the City, and WHEREAS, Central Heating & Plumbing, Inc has committed itself to a private/ public partnership and has undertaken development of a new, 20,000 square foot light industrial facility in the vicinity of Elks Park, within the State designated Community Empowerment Zone, and WHEREAS, the new Central Heating & Plumbing, Inc. facility represents significant reinvestment and redevelopment in Yakima, and promises substantial opportunities, economic diversification, and job creation which will benefit the local economy, and WHEREAS, the new facility necessitates improvements to public infrastruc- ture, namely construction or improvement of sewer and water lines, streets, curbs, gutters, sidewalks, andstreetlights in the vicinity of the new facility, and WHEREAS, the Washington State Community Economic Revitalization Board (CERB) administers a program of financial assistance to foster economic diversifi- cation and job creation in economically distressed areas of the state; and has of- fered the City a loan of $463,189 at an interest rate of 5 5% per annum to be paid over a period 20 years to aid in financing the cost of public infrastructure re- quired by the new Central Heating & Plumbing, Inc. facility; and WHEREAS, it is in the best interests of the City of Yakima that improvements to public infrastructure in the vicinity of the new Central Heating & Plumbing, Inc. facility be constructed expeditiously and that the City accept the CERB offer of financial aid and proceed promptly to execution of a final contract, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA. Section 1 The City of Yakima accepts the offer of a loan from the Washington State Community Economic Revitalization Board ("CERB") in the amount of $463,189 at an interest rate of 5 5% per annum to be paid over a period 20 years. The City Manager is authorized and directed to execute, on behalf of the City as lap\comm&econ devei/cerb loan offer accept ance res 8/8/95 1.35 PM RESOLUTION ACCEPTING OFFER OF CERB LOAN -- Page 1 "Contractor", acceptance ,of the CERB's Initial Offer of Financial Aid, dated July 20, 1995, a copy of which is attached to this resolution, designated Exhibit A, and is incorporated in this resolution by reference. Section 2. The City Manager and City Clerk are hereby further authorized and di- rected to execute, on behalf of the City, a Final Contract between CERB and the City The Final Contract shall consist of the following documents, which are attached to this resolution, designated as indicated, and incorporated in this resolution by reference: 1 Signed Certification Page of Application Form (Attached as Exhibit B) 2. Initial Offer of Financial Aid (Attached (unsigned) as Exhibit A). 3 General And Special Conditions (Attached as Exhibit C) 4 This Resolution accepting CERB's offer 5 Attorney's Certificate (Attached (unsigned) as Exhibit D) Section 3 Repayment of this general obligation loan shall be in accordance with the provisions of Article 8 of the General and Special Conditions to the Final Contract. This obligation shall be considered as a legal general obligation of the City and the City hereby pledges its full faith and credit to the payment thereof The City reserves the right to accelerate payments on principal and eliminate the interest on any accelerated principal payments. Section 4 All financial activity related to this CERB loan shall be accounted in a separate set of CERB accounts within the existing Economic Development Fund. Future CERB grants or loans, if any, shall be similarly accounted in separate sets of accounts within the Economic Development Fund. CERB accounts within the Economic Development Fund shall be sufficiently funded to meet established loan repayment schedules. The source of payment is the City of Yakima General Fund. Section 5 The City Manager is designated as the official representative of the City for this CERB financial aid and is authorized to take such additional steps as may be necessary and prudent to secure Community Economic Revitalization Board aid in financing the cost of construction or improvement of sewer and water lines, streets, curbs, gutters, sidewalks, and streetlights in the vicinity of the new Central Heating & Plumbing, Inc. facility ADOPTED BY THE CITY COUNCIL this day f August, 1995 f1 ATTEST ne,,f4>0644(1,9( CitCit' Clerk lap\comm&econ devel/cerb loan offer accept ance res 8/8/95 1.35 PM RESOLUTION ACCEPTING OFFER OF CERB LOAN — Page 2 Mayor -- lap \cornm&econ ayor-- • 1 "-oject #C95-107 ATTACHMENT #2 WASHINGTON STATE COMMUNITY ECONOMIC REVITALIZATION BOARD INITIAL OFFER OF FINANCIAL AID Offer Date: July 20, 1995 Pursuant to its authority derived from chapter 40, Laws of 1982, 1st ex. sess., and subject to the general and special conditions attached hereto, the Community Economic Revitalization Board (hereafter referred to as "CERB"), hereby offers to make funds available to the City of Yakima hereafter referred to as the "Contractor", in order to aid in financing the cost of; or improvements to, public facilities consisting of water, sewer, road, sidewalks, curbs, gutters and lighting as described in the application (hereafter collectively referred to as the "Project"). Funds provided shall be in the form described and shall constitute the maximum allowable 20 -year repayment period: • A loan in the amount of 5463,189. Interest on the loan shall be computed and paid at the rate of five and one-half percent (5.5%) per annum for twenty (20) years. The offer herein provided for shall be subject to completion of: (1) special conditions, as applicable, (2) )rney's certificate, (3) ordinance or resolution accepting terms and conditions of the offer, and (4) evidence satisfactory completion of all necessary permit processes. It is understood that a Final Contract shall be developed by CERB prior to disbursement of funds and that no project costs incurred prior to _the executed Final Contract date will be reimbursed by CERB. The Final Contract shall consist of: Attachment #1 - Attachment #2 Attachment #3 Attachment #4 Attachment #5 Signed Certification Page of Application Form - Initial Offer of Financial Aid - General and Special Conditions - Loan Ordinance or Resolution - Attorney's Certificate If accepted, this Initial Offer of Financial Aid must be signed and returned to CERB prior to September 8, 1995. ACCEPTANCE CERB CONTRACTOR By: By: ,le: Title: Date: Date: lap \ comm&econ devel/cerb loan offer accept ance res 8/4/95 11:01 AM RESOLUTION ACCEPTING OFFER OF CERB LOAN - EXHIBIT A nS/o?-95 15:34 WR 51 LE=F' i Lu I 1m -wt. tt UN Lt l COMMUNITY ECONOMIC REVITALIZATIOW*BCARD' c. Traditional Program ArtucATIoN yOR FUNDI[, 1 CERTIFICATION Government applicant: Contact: Title: Telephone: Address: $750,000 maximum CERB limit per project. Amount of CERB loan requested: Amount of C]RD grant requested: Local Match (10% of CERB request): Other funding sourccs/amount: Total cost of project: ERB Program MAR 31.19i5 LF" 4-0 111r. or" .. s % .. City of Yakima, Yakima County Glenn J. Valenzuela Director, Con.ununity & Economic Develop. (509) 575..61'13 129 North Second Street Yakima, Washington 98901 $463,189 $0 $50,000 $0 $513,189 Project description: Mr. William .Ash, CEO, Central's Inc. has submitted a proposal to expand his existing light manufacturing facility by constructing a new 20,000 square foot facility with associated employee and client parking. The expansion will create 10-20 killed full-time job positions at wages exceeding the $8.75 county average. The owner has committed $1.2 million funding for his capital projects and an additional $15,000 foe' CERB match funds for the public sector improvements. The City ofYakirna intends to apply for State CERB assistance to pay for the required off-site improvements to West 7' Street from North 6th Avenue and North 8th Avenue, and from West "Y" Street to Hathaway Alvenue. The construction of public improvements shall provide for building the street sections in question to local access street standards as noted in the accompanying "standard 'detail". Included with the improvements are water, sewer, drainage and street lighting,. Ctentral's Inc. has applied and received Council approval to vacate unneeded portions of the; North Bth Avenue right-of-way fronting the west side of the industrial development site to accommodate enlargement of the industrial site. y CITY OF YAKIMA., WASHINGTON APPLICATION FOR FUNDING lap \commdcecon devel/cert loan offer accept ance res 8/8/95 8:29 AM RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT 13 CERJ3 .. 2 �,1795 15:35 WA ST DEPT COM TRADE , a ECON DEO 003 1 Adjacent properties are zoned light -industrial but Iack access t) public infrastructure. This lack of access has resulted in unfavorable development oppo;'tunities. This improvement will also allow for additional investment and development opportunities within the State designated Community Empowerment Zone by providing neee7ary infrastructure for light - industrial property. 1 The targeted development area is an area in transition from unused or poor residential housing units to industrial development. The development of s aller parcels of industrially - zoned land within this area for local business is a key stra cgy of the City's economic development program. This project would serve as a catalyst for area revitalization and reinvestment and the development of additional industrial sites without sacrificing the environmental integrity of the area. CITY OF YAKIMA, 'WASHINGTON APPLICATION FOR FUNDING lap\comm&econ devel/cerb loan offer acrept ance res 8/8/95 8:29 AM RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT B CERB - 3 08/07/95 19:35 WA ST DEPT COM TRADE 8 ECON DEL) 004 pssiatatism, I HEREBY CERTIFY THAT THE INFORMATION GIVEN IN THIS APPLICATION TO THE COMMUNITY ECONOMIC REVITALIZATION BOARD JS TRUE AN!) CORRECT TO THE BEST OF MY KNOWLEDGE AND BELIEF, Signature of Responsible Official: Print or Type Narne and Title: Richard A. ' ais Jr.., City Manager CITY OF YAKIN1[A, WASHINGTON APPLICATION FOR FUNDING lap \comm&econ devel/cerb loan offer accept ance rea 8/8/95 8:29 AM RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT B CERB - 5 Project #C95-107 ATTACHMENT #3 COMMUNITY ECONOMIC REVITALIZATION BOARD GENERAL AND SPECIAL CONDITIONS Except as supplemented or modified by the Special Conditions set forth on page nine (9), the following articles shall constitute General Conditions to the Final Contract. Article 1. DEFINITIONS a) CERB shall mean the Community Economic Revitalization Board. b) Contractor shall mean the City of Yakima. c) The Contract Agreement shall consist of the Certification Page from the application, the Initial Offer of Financial Aid, General and Special Conditions, and the Resolution or Ordinance accepting CERB assistance and detailing repayment terms, if applicable, and shall include all modifications thereto incorporated into documents. d) This contract shall be construed for all purposes as a contract entered into pursuant to the laws of the state of Washington. Article 2 EXECUTION, CORRELATION AND INTENT OF DOCUMENTS. The contract documents are complementary, and what is called for by one shall be binding as if called for by all. Article 3. PERMITS, LAWS AND REGULATIONS_ All permits and licenses necessary for the prosecution of the project works shall be secured and paid for by the Contractor. Easements for permanent structures or permanent changes in existing facilities shall likewise be secured and paid for by the Contractor. The Contractor shall give all notices and comply with all laws, ordinances, rules and regulations bearing on the conduct of the project work. The Contractor must evidence satisfactory completion of all necessary permit processes. The Contractor shall comply with all relevant local, state and federal regulations. City of Yakima lap \commacecon devel/cel loan offer accept once res 8/8/95 &28 AM RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT C Page 1 of 9 IJnless other arrangements are agreed upon in writing and incorporated into this document under Special Conditions, the Contractor shall have ninety (90) days, or until the next regularly scheduled board meeting after ninety days, to complete contract requirements between the date the Initial Offer of Financial Aid is executed and the date the Final Contract is executed. Extensions may be considered upon appropriate request. Article 5 PUBLIC INDEBTEDNESS. This agreement shall not be construed as permitting the Contractor to exceed any public debt limitation established by statute, constitutional provision or otherwise, and the obligation created by a CERB loan to the Contractor shall be included in the total constitutional debt obligation of the Contractor. A CERB loan constitutes a full faith and credit debt obligation of the Contractor. The Contractor's obligation to repay the CERB loan is unconditional. Article 6. DISBURSEMENT OF FUNDS (check option 1 or 2) OPTION 1 __ (advance of funds) The precise terms of disbursement shall be as follows: No funds will be disbursed for construction expenses until a bid is awarded for the project. The initial installment will be payable upon CERB's receipt and acceptance of a state voucher form certifying the project starting date, and the amounts that will be due and payable by the Contractor within ninety (90) days of the request for the initial installment. Documentation of funds expended will be required on an advance of funds request within ninety (90) days of the :request. In the event the advanced funds have not been expended within 90 days, a written explanation as to why funds have not been used and a timetable as to when funds are anticipated to be expended shall be submitted no later than 90 days from disbursement. Ten (10) percent of funds will be retained by CERB on all advance requests until documentation of funds expended for the full amount is received. All other payments shall be made on a reimbursement basis only upon CERB's receipt and acceptance of a state voucher form and a recap of expenditures form providing a breakdovvri of funds disbursed in the previous installment (forms provided by CERB) and documentation of funds expended. Total funds disbursed shall not exceed actual amounts required for the project described or the amount of the C:ERB award, whichever is the lesser. All funds other than CERB's must be disbursed prior to CERB funds, except where required on a matching basis by other federal or state programs. CERB will not recognize any requests for project cost over -suns. City of Yak:irna lap\ corranteecon aevel/cerb io.,, of8/8/ ais AM Page 2 of 9 RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT C If a combination loan and grant is approved, under no circumstances will payment be made from the grant portion prior to total disbursement of funds from the loan portion. OPTION 2 (reimbursement of funds) The precise terms of disbursement shall be as follows: Funds will be disbursed on a reimbursable basis only. The initial installment shall be payable upon CERB's receipt and acceptance of a state voucher form certifying the project starting date and appropriate certification of the amounts paid to date. The second and any additional payments will be made in a similar manner and will include a recap of expenditures form providing a breakdown of funds disbursed in the previous installment (forms provided by CERB). Total funds disbursed shall not exceed actual amounts required for the project described or the amount of the CERB award, whichever is the lesser. All funds other than CERB's must be disbursed prior to CERB funds, except where required on a matching basis by other federal or state programs. CERB will not recognize any requests for project costs overruns. If a combination loan and grant is approved, under no circumstances will payment be made from the grant portion prior to disbursement of funds from the loan portion. Article 7. INTEREST ON CERB FUNDS. In those cases where funds have been disbursed by CERB, and the commencement of the Contractor's performance has been delayed beyond thirty (30) days after execution of the Final Contract, all unexpended funds disbursed by CERB pursuant to this agreement shall be placed in an interest-bearing account, in CERB's name, and all interest accruing on such funds shall inure to the benefit of CERB. Article 8. REPAYMENT PROVISIONS Loan payments shall be made to CERB in accordance with the terms described in Attachment #4 to this agreement. Upon failure to pay any installment, or any portion thereof; of principal or interest, CERB may at its option declare the entire remaining balance of the loan, together with interest accrued thereon, immediately due and payable. Failure to exercise its option with respect to any default shall not constitute a waiver by CERB to exercise such options for any succeeding installment payment which may then be in default. The Contractor shall pay the cost and reasonable attorney's fees incurred by the State in any action undertaken to enforce its rights under this contract. City of Yakima lap \ n° on devel/cerb loan offer accept once res 8/8/95 8:28 AM RESOLUTION ACCEPTING OFFER OF CERB LOAN - EXHIBIT C Page 3 of 9 Article 9. PROJECT PERFORMANCE. 'Che Contractor's performance shall commence within one hundred twenty (120) days after execution of the Final Contract, unless otherwise specified in the Special Conditions. Extension may be considered upon appropriate written request. Any changes are to be incorporated into this document as additions or amendments to Special Conditions. l:f at any time during the term of this agreement CERB determines that project performance is unsatisfactory, including, but not limited to: (a) defective work not remedied, or (b) a reasonable doubt that the Contract can be completed for the balance then unpaid, CERB reserves the right to withhold payments until the problem is remedied or to exercise its rights of termination under Article 16 of this agreement. Article 10 OWNER SHALL CONTINUOUSLY MAINTAIN PROTECTION OF PROJECT WORK AND PROPERTY AT OWNER'S RISK. The Contractor shall continuously maintain adequate protection of all the project work from damage and shall protect the property from injury or loss arising in connection with this contract. The entire work of the Contractor shall be at the sole risk of the Contractor. The Contractor may elect to secure fire, extended coverage and vandalism insurance or all-risk insurance to cover the project: work during the course of construction. The Contractor shall take all necessary precautions for the safety of employees on the project work, and shall comply with all applicable provisions of federal, state and local safety laws and building codes to prevent accidents or injuries to persons, on, about, or adjacent to the premises where the work is being performed. Article 11. ACCESS TO WORK AND RECORDS. All property, facilities, and records developed pursuant to this agreement shall be available for inspection upon request during regular business hours by CERB or its authorized representative. All records supporting every request for payment shall be maintained in a manner which will provide an audit trail to the expenditures. This paragraph shall be included in any and all subcontracts let by the Contractor under this agreement. Article 12. INDEMN F1CATION. The Contractor shall defend, protect, and hold harmless the State of Washington, the Department of Trade and Economic Development, CERB, or any state employee from all claims, suits, and or actions arising from any damage caused, negligent act, or omission of the Contractor or any authorized subcontractor, or any employees or agents of either while performing this contract. City of Yakima lap\commececron Bevel/cerb loan offer accept ince res 8/8/95 &23 AM RESOLUTION ACCEPTING OFFER OF CERB LOAN - EXHIBIT C Page .4 of 9 Article 13. NONDISCRIMINATION. During the performance of this contract, the Contractor shall comply with the following federal and state nondiscrimination laws, regulations, and policies: A. The Contractor shall not, discriminate against any employee or applicant for employment because of race, color, sex, religion, national origin, creed, marital status, age, or the presence of any sensory, mental, or physical handicap. This covers not only hiring but also upgrading, demotion, transfer, recruitment, or selection for training. B. The Contractor shall not, on grounds of race, color, sex, religion, national origin, creed, marital status, age, or the presence of any sensory, mental, or physical handicap: 1. Deny any services or benefits provided to the public. 2. Provide any services or benefits in a different manner from those provided to the general public. 3. Subject an individual to segregation or separate treatment while receiving any services or benefits provided to the general public. 4. Deny any individual an opportunity to participate in any program provided by this contract which is different from that afforded others. 5. Utilize criteria or methods of administration which have the effect of subjecting individuals to discrimination in determining: (a) the types of services or benefits to be provided; (b) the class of individuals to whom services or benefits will be provided; (c) the situation in which services or benefits will be provided; or (d) the class of individuals to be afforded an opportunity to participate in any services or benefits. C. CERB shall advise the Contractor immediately if it becomes aware of any noncompliance with the above laws and give reasonable time to cure the problem. in the event the Contractor refuses to comply, this contract may be terminated in whole or in part, and the Contractor will be declared ineligible for further contracts with CERB. D. Whenever possible the Contractor will subcontract with minority-owned and women -owned business enterprises certified by the Office of Ivrnority and Women's Business Enterprises. Specific amounts subcontracted to those firms will be reported to the Department of Trade and Economic Development to help it comply with RCW 39.19 which has as its goal that at least 10 percent of all its contracts go to minority-owned firms and 4 percent go to women -owned firms. Article 14. CONTINGENCIES. The duty of CERB to approve disbursement of funds pursuant to this agreement is contingent upon strict compliance by the Contractor with the terms of the agreement. The duty of the State of Washington to disburse funds is contingent upon the funds being available in the appropfiate accounts of the state general fund. City of Yakima lap \commececon devel/cerb loan offer accept ance ret 8/8/95 &28 AM RESOLUTION ACCEPTING OFFER OF CERB LOAN - EXHIBIT C Page 5 of 9 Article 15. P .R -O MANGE REPORTING. The Contractor shall submit progress reports as required by CERB. The Contractor shall also report, in writing any problems, delays, or adverse conditions which will materially affect the ability to meet project objectives, time schedules, or work units by the established time period. This disclosure shall be accompanied by a statement of the action taken or contemplated and any CERB assistance needed to resolve the situation. Within forty-five (45) days of project completion or whenever CERB project assistance is terminated, the Contractor shall submit a Project Completion Report to CERB, signed by the Contractor's responsible party, which shall include an accounting of all expenditures, a description of work accomplished, further refinement of private sector permanent employment impacts, etc. (format to be provided by CERB). If the project is not completed, the report shall contain an estimate of the percentage of completion, and shall contain a final accounting summarizing all expenditures not previously reported and shall include an overall summary for the entire project. After submission of the Project Completion Report, the Contractor shall continue, as required or for not less than three years, to submit annual reports on the economic impact of the project. The reports shall be in a format acceptable to CERB and describe the private sector employment and investment activity resulting from the project. Article 16. MINATION. CERB may require strict compliance by the owner with the terms of this agreement, including but not limited to, the requirements of the applicable statutes, rules and policies incorporated in this agreement, and with the representatiions of the Contractor in its application for a grant as finally approved by CERB. All obligations of CERB under this agreement may be suspended or canceled at the option of CERB if any of the following occur: a) The Contractor has failed to make satisfactory and reasonable progress to complete the project, or CERB concludes it will be unable to.complete the project or any portion of it. b) The Contractor has either made misrepresentations in its application or in any other information furnished to CERB in connection with this project, which misrepresentations would have provided a basis upon which the application would have otherwise been rejected. CERB or its staff may suspend, or may terminate, the obligation to provide funding to the Contractor under this agreement in the event of any breach or anticipatory failure by the Contractor to assure performance of any of the obligations under this agreement, including the probable failure to occur of all - or any of the private development or expansion which justified the project. CERB may at its absolute discretion, provide a reasonable time for such defect to be cured, including allowing the Contractor to find a satisfactory replacement in private development. Any such replacement must be approved by the board. In the event that any portion of the loan or grant amount has been paid to the Contractor under this agreement at the time of breach, or failure of the Contractor to satisfactorily perforni or failure of the City of Yakima lap \c mececon devil/cerb loan offer accept ance tea 8/8/95 &28 AM RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT C Page 6 of 9 private development to occur, CERB may require that such amount be repaid in full not later than ninety (90) days from date of demand. Article 17. RESTRICTIONS ON CONVERSION OF FACILITY TO OTHER USES. The Contractor shall not at any time convert any property or facility acquired or developed pursuant to this agreement to uses other than those for which CERB assistance was originally approved without the prior written approval of CERB. In the event that the Contractor converts any such property or facility to an unapproved use, the Contractor shall pay to CERB all funds disbursed under this _contract with interest in full upon demand. Article 18. NONWAIVER OF CERB RIGHTS. CERB's failure to insist upon the strict performance of any provision or to exercise any right based upon a breach of the contract or to accept any defective performance,shall not constitute a waiver of any rights under this contract. Article 19. DUPLICATION OF EFFORT. No work to be performed under this contract shall duplicate any work to be charged against any other contract, subcontract, or other source. This provision shall be included in any subcontract which exceeds $2,500. The Contractor shall advise CERB, in writing, of any other work it has performed or is performing which might be relevant to this contract. Article 20. CHANGES. Either party may, from time to time, request changes in this contract. Any such change shall be effective only if committed to writing, signed by all parties, and incorporated into this agreement. Article 21. IDENTIFYING MARKERS CERB reserves the right to display, during the period covered by this agreement and after project completion, appropriate signs or markers identifying the roles of the state and other agencies participating financially in this project. Article 22. INSURANCE COVERAGE. The Contractor shall be in full compliance with all state unemployment and industrial insurance laws while performing work under this contract. CERB will not be responsible for payment of industrial insurance premiums or for any other claim or benefit for the Contractor, or any subcontractor or employee of the Contractor, which might arise under the industrial insurance laws during performance of this contract. City of Yakima lap \commsecon devel/cert loan offer accept ante res 8/8/95 &28 AM RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT C Page 7 of 9 ale 23 NOTICES. All notices, demands, requests, consents, approvals, and other communication which may be or are required to be given by either party to the other under this agreement shall be in writing and shall be deemed to have been sufficiently given for all purposes when delivered or mailed by first class postage or certified mail, postage prepaid, addressed as follows: a) Notice to CERB: Department of Community, Trade and Economic Development Community Economic Revitalization :Board (CERB) 2001 6th Avenue Suite 2700 Seattle, WA 98121 b) Notice to Contractor: Glenn J. Valenzuela (name) Director, Community & Economic Development (title) City of Yakima 129 North Second Street Yakima, WA 98901 (political. subdivision) (address) (address) or to such other official or addresses the Contractor shall have furnished to CERB in writing. Article 24. ACCOUNTING. ]Project cost accounting will be accomplished within prescribed standards as approved by the Office of the State Auditor and material and records evidencing such accounting shall be held available for audit by the State Auditor, Division of Municipal Corporations, State of Washington. A copy of the State Auditor's report(s) of the project will be provided to CERB by the Contractor. City of Yakima lap \comme econ devel/cerb loan offer accept ance res 8/8/95 &28 AM RESOLUTION ACCEPTING COFFER OF CERB LOAN — EXHIBIT C Page 8 of 9 City of Yakima Project #C95-107 SPECIAL CONDITIONS A. Repayment terms on the $463,189 loan are as follows: Interest rate: 5.5 percent per annum on the outstanding principal balance. Term: 20 years • If the first disbursement is between January 1 and June 30, repayment will begin July 1 following the first anniversary of the first disbursement of funds. If the first disbursement is between July 1 and December 31, repayment will begin January 1 following the first anniversary of the first disbursement of funds. y City of Yakima lap\commaceoon Bevel/cerb loan offer accept ance reit 8/8/95 &28 AM RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT C Page 9 of 9 CITYOFYAKIMA LEGAL DEPARTMENT THE NACHES BUILDING 424 E. YAKIMA AVENUE, SUITE 100 YAKIMA, WASHINGTON 98901 August 8, 1995 Chairman Community Economic Revitalization Board c/o Dept. of Trade & Economic Development 2001 Sixth Avenue, Suite 2700 Seattle, WA 98121 RE: Attorney Certification For Final Contract for CERB Loan Dear Sir: Phone: (509) 575-6030 SCAN 278-6030 FAX 575-6160 I am an attorney admitted to practice in the State of Washington. I am a duly selected and duly appointed Assistant City Attorney of the City of Yakima, Washington. I have examined the application filed by the City of Yakima (the "City") with the Washington State Community Economic Revitalization Board ("CERB"), whereby financial assistance is requested for a public facilities project, namely, construction or improvement of public infrastructure consisting of sewer and water lines, streets, curbs, gutters, sidewalks, and streetlights (the "Project") in the vicinity of the new Central Heating and Plumbing facility in Yakima, Washington. I have reviewed all resolutions relating to the Project, including those applying for and accepting the offer of a loan of $469,189 at 5.5% interest for twenty years from CERB. I have also reviewed the Final Contract to be executed by the CERB and the City and all attachments incorporated within such agreement, including the General and Special Conditions of the CERB loan. I have inquired specifically of John R. Hanson, Director of the City's Department of Finance and Budget, regarding the financial records and financial condition of the City, paying particular attention to the composite outstanding debt. I am aware of the provisions of Chapter 39.36 RCW and any successor or other statute or rule relating to debt limitations for taxing districts including the City. I have also inquired specifically of Glenn J. Valenzuela, Director of the City's Depart- ment of Community and Economic Development, which is responsible for compre- hensive land use plans and zoning ordinances for the City, regarding the proposed Project outlined in the application in the light of existing comprehensive land use plans and zoning ordinances for the City, including the plans for the acquisition of land and the development thereof for the Project. For this purpose, I include Shoreline Management Plans as comprehensive land use plans. I have also examined or made appropriate inquiry after any and all documents and records in addition to the above which are also germane to the proposed loan. lap \commdcecon devel/cerb loan offer accept ance res 8/8/95 8:27 AM RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT D Chairman, Community Economic Revitalization Board August 8, 1995 Page 2 Based on the foregoing, it is my opinion that: 1. The City is a properly constituted public body operating under the laws of the State of Washington; the City is empowered to: receive and expend federal, state, and local funds; to contract with the State of Washington; to receive and expend CERB loan funds for the Project; and to accomplish the objectives set forth in the City's application for CERB financial assistance. 2. The City is empowered to adopt the resolution, to which a copy of this certification (unsigned) is attached as Exhibit D, accepting CERB's offer of a loan and providing for the repayment of the loan under the Final Contract as described in the resolution. 3. Such resolution accepting CERB's offer of a loan and providing for the repayment of the loan as set forth in the Final Contract and the resolution was properly adop- ted in accordance with the laws of the State of Washington. 4. The City has the right, title and interest in all real property required to construct and implement the Project. Specifically, all construction and improvements shall occur on real property which is either owned in fee simple by the City, or is City right-of-way, or is subject to utility easements in favor of the City; and the City is completely able, as a matter of its legal rights, without acquiring any additional right, title or interest required to construct and implement the Project, to enter onto any property where work must be done and to perform the work. 5. There is currently no litigation pending seeking to enjoin the commencement or completion of the Project or to enjoin the City from repaying the loanextended by CERB with respect to the Project. The City is not a party to litigation which will materially affect its ability to repay such loan on the terms contained in the at- tached resolution, without exception. 6. Assumption of this obligation would not exceed statutory and administrative rule debt limitations applicable to the City of Yakima 7. To the best of my understanding, the Project is consonant with any and all land use plans and zoning ordinances, as those terms are described above Based on the factual representations made to me, for purposes of this opinion, by Glenn J. Valenzuela and John R. Hanson, l further certify that the City is :in legal compliance with those requirements of CERB upon which disbursement of the loan commitment of the agency has been conditioned. Very truly yours, Lawrence A. Peterson Assistant City Attorney WSBA #14626 lap \comm6cecon devel/cerb loan offer accept ance res 8/8/95 8:27 AM RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT I)