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HomeMy WebLinkAbout08/05/2008 04B Minutes 07-23-2008 Council Downtown Yakima Futures Initiative • DOWNTOWN YAK /MA FUTURES IN/TIA TI VE City Council Chambers Meeting Minutes from Wednesday, July 23, 2008 8:00 a.m. Councilmembers: Chairman Norm Johnson, Kathy Coffey and Rick Ensey City Staff: Dick Zais, Bill Cook, Michael Morales, Brett Sheffield, and Bob Degrosellier Ed Abbot reported on the new icon idea for City Place of Yakima. He also discussed and went over the design of the new Parc Hotel and the removal of the Mall ramp. Joe Morrier explained the use of the 18X10 freight elevator. He also brought to the attention of the members his concern about how important it is to have "A" Street lighting and sidewalks brought into the budget. 0 Mr. Morrier stated that the Parc Hotel project Phase I should be started September 2008 and open by March 2009. Phase II should begin within ninety days of the opening of Phase I. K Dick Zais recommended as soon as we get the quote on the mall ramp removal that an amendment to the budget be made. Kathy Coffey moved to have the mall ramp removal forwarded to full council as soon as the quote is done. Ensey seconded. The motion carried. Bill Cook explained that in order to vacate the sidewalk on "A" Street, Mr. Morrier would have to go through the Hearing Examiner and then on to full City Council. Michael Morales went over project funding. Bob Degrosellier informed members that they are working with the Committee for Downtown Yakima on the downtown banners. There was some discussion about Phase 4. Dick Zais recommended that the Phase 4 packet be sent to the new Committee members. 1, / , , d . or `or nson, Chair 0 • MEMORANDUM June 24, 2008 TO: Council Downtown Futures Initiative Oversight Committee Richard Zais, City Manager FR: Bill Cook, Director of CED RE: JEM Development Request Letter — May 22, 2008 JEM Development, represented by Joe Morrier, has requested council consideration of a public- private partnership that JEM has deemed necessary for a new, upscale hotel to be built in the .former JC Penney building. This memorandum serves as a response and /or recommendation for each item listed in JEM's letter to the city. 1. "Remove the ramp that is located on the north side of the hotel site." Research conducted by city legal has determined that this ramp was constructed as part of an LID in the late 1960's. While the details of long term maintenance and care are not clear, it could be argued that this is a legitimate public expense to demolish the structure as a way to remove an obstacle to the reuse of the building. From a public use standpoint, the ramp has served its purpose and period of useful life. The cost of demolition would be at least $50,000 additional study will be needed to identify a potential funding source for its removal since this is unbudgeted and ineligible for certain funds,` and we have made other project commitments for this year. 2. "Request that the sidewalks be vacated on A Street between Naches Avenue to the east side of the The Lofts building." While it is within the city's right to accommodate this request, any vacation of the public right of way must go through the SEPA process, and the city would need to determine a fair amount of compensation and /or a license agreement for the long term use of the property. The SEPA/Right -of -Way vacation must be completed before a council decision on this matter. • 3. "New Market Tax Credits of $8 million minimum." The city is neither a recipient, nor an awarding agency for New Markets Tax Credits (NMTC). NIVITC is a private equity program that can only be used by an approved recipient, such as the National Development Council and most major financial institutions. While NMTC were utilized on the Hilton Garden Inn project, the city did not provide them to the project. We assume that Mr. Morrier has mistaken NMTC with the city's Renewal Community Commercial Revitalization Deduction (CRD) tax incentive. The city receives an annual allocation of $12 million of CRD that must be awarded on a competitive basis, following review and ranking of applications by the council appointed CRD Allocations Committee. The 2008 application cycle will open in July, with council ratification of the committee's recommendations in September. Following an appeal' period to the State of Washington, the awards become final and certificates are issued to projects. Appeals to the state can only be made on the grounds of project eligibility and compliance with the local procedures for allocation. The city will receive another allocation of CRD in 2009, and that is currently slated as the final year of the program.. Due to the limited supply and increased demand for the CRD, the committee has prioritized allocations to projects that placed in service in the current year. Future year allocations may not presently be allowed because the designation is set to expire in 2009, and the current interpretation of the tax code is that projects receiving an allocation must be placed into service by December 31, 2009 or the allocation will be null and void. 4. "New sidewalks, curbs and streetlights installed and trees planted on "A" Street from Naches Avenue to Third Street" The cost of DYFI improvements is approximately $300,000 per block face pair. While this section is within the Phase 3 area of intent, no design has been done for this block section due to the fact that there was not any new commercial activity proposed for "A" Street during the design phase. Phase 3 was placed out to, bid on June 11, and bid opening is July 1, with construction to begin later that month. If contingency funds remain following construction of the current bid package, then funds can be allocated to this section of "A" Street, provided that other funds are allocated for the design of the project. There are not currently any design funds for additional DYFI work. 5. "Designate the use of two lanes on "A" Street for Lobby Parking — where the ramp is to be removed and the lane north of that lane." This request could be accommodated as part of the Right -of -Way vacation process for "A" Street. • • 6. "Relocate the gas line and sprinkler line north of the hotel site to an agreed upon new location. "Cascade Natural Gas is the owner of the gas line, which is used under their franchise agreement with the city. The city cannot arbitrarily force CNG to relocate the line for a private development project, and there is not a public project in conflict with the line to enforce eminent domain. JEM will be responsible for coordinating relocation with CNG. We are unsure of which irrigation or water pipes Mr. Morrier is referring to in his letter. Most of the infrastructure in "A" Street is there to serve the JC Penney building or the mall property, and includes: • 8 -inch fire service and a 3 -inch water service for the JCPenney on the corner of Naches and "A" Street. • 12 -inch fire service and 3 4 -inch, 1 1/2 -inch and 3 -inch domestic services to the former Mall near the "A" St entrance • There is a domestic irrigation service on 3rd and A that will be used as part of the new sidewalk project. Water Division policy regarding alterations or relocation of this nature requires that private developers pay for changes when they are caused by the private project. RE• CEIVED July 7, 2008 JUL 0 9 2008 . • Dick Zais t;IT Of YAKIMA c; ;_ :, , , R PLANNI OW. t AC City Manager __.__..__ 129 N. 2nd Street Yakima, WA 98901 1 1 Dear Mr. Zais, Mayor Dave Edler and Yakima City Council Members: DEVELOPMENT C O M P A N r Naches Hotel, LLC continues to move forward on its commitment and investment to build an upscale multi -story hotel in the former J.C. Penney location. The City of Yakima's partnership remains critical in the success of the project which would provide continued economic development and downtown revitalization. THE TOWER, LLC MORRIER HOTEL, LLC We request the support of the City of Yakima in this necessary project and ask for MORRIER RANCH your consideration in the following: MORRIER HOLDINGS, LLC YMSCC • Removal of the ramp that is located on the north side of the hotel site 402 E YAKIMA AVE . • Vacation of the sidewalks on "A" Street between Naches Avenue to the east side of The Lofts building SUITE 1000 • KIMA, WA 98901 • Renewal Community Commercial Revitalization Deduction of $8 Million minimum PHONE (509) 248 -4040 • Installation of new sidewalks, curbs and streetlights and planting of trees FAX (509) 457 -8361 on. "A" Street from Naches Avenue to Third Street • Installation of sidewalks and streetlights and planting of trees on Naches Avenue between Yakima Avenue and "A" Street www.)emdevelopment.eom • Designation of the use of two lanes on "A" Street for Lobby Parking (where the ramp is to be removed and the lane north of that lane) Estimated demolition costs is approximately $60,000.00 including saw cut, demolition, disposal of ramp, railing section, concrete curb, asphalt saw cut, architectural and engineering. We feel this project can be successful and one that will impact the core of downtown Yakima. It is our hope that the City realizes the project's potential and makes this investment in the renewal of downtown Yakima so additional jobs can be created, present jobs retained and local business sustained. Sincerel yours, • • Jos-. R. M rro ier • ■ • • • •